If you want to learn how to start a new business, you will find that it is a very rewarding and satisfying process that gives you opportunities for a work-life balance while you are pursuing something you are passionate about.
Many entrepreneurs who desire to start a small business don’t always have the knowledge needed to get their new venture off the ground and running in the right direction.
There is much to consider when beginning a new business, from developing your products to how to market them and from technology issues to finance.
If you can get the basics of starting a business done right the first time such as the basic business registrations and get the right systems in place, you will be prepared for success in business and this leads to performance enhancements.
Here is a checklist of some basic things that you will need to do to start a new business and prepare you for success.
1. Start with your business structure.
Do you wish to run your business as a sole trader or partnership, a trust or a company? Each of these structures has advantages and disadvantages and also come with their own specific tax reporting requirements, work health and safety issues as well as regulatory essentials.
You should speak with an accountant or lawyer before deciding which structure is best for your current situation.
2. How will you fund your new business?
If you need funds you should speak with your accountant about the advantages and disadvantages of the options open to you, such as banks, personal savings, personal loans or venture capital, or many other funding options and sources available.
3. Choose a business name and register it.
When you choose a business name ensure that you can register your company name before you have any letterhead, logos, websites, business cards, or purchase a URL.
Will your company name be accepted by the Australian Securities and Investments Commission (ASIC)? Make sure that it is available for use and begin the process at ASIC Connect.
4. Should you register a trademark for your business name or logo?
If you think you need to protect your business name or logo you should inquire about copyright protection. To understand about intellectual property rights, visit IP Australia.
5. Apply to get an ABN
If your business will be registered to collect GST (have an annual turnover of $75,000 or greater), then you will most definitely need an Australian Business Number or (ABN).
In order to apply for this, you will need to visit the Australian Business Register. If you plan on forming a partnership, company or trust, these will need their own Tax File Number or (TFN) given by the Australian Tax Office (ATO) as well.
6. Get familiar with PAYG withholding.
If you are going to have employees, their salaries will need to have taxable amounts withheld from their pay checks. If you have contractors these payments must also receive similar treatments.
Speak to a qualified accountant about meeting your tax obligations in your new business.
7. Get all the needed permits and licenses.
You should visit business.gov.au to learn about any state, local or national licenses you may be required to have for your new business.
Also, check into the ATO’s fuel scheme to learn whether your business can take the fuel tax credit.
8. Have an Australian business account.
You will need one place where you can take care of all your related business needs such as government regulated permits, registrations and licenses and the rare but welcomed partnership between state, national and local governments. Having an Australian Business Account can save you a lot of time and effort. Speak to a business tax accountant who will be able to assist your business at this step.
9. Have an understanding of your legal requirements.
There are certain laws that will apply to certain businesses, services, and products. A small business owner that is interested in finding out their legal obligations can find this information in the Australian Government Department of Industry.
Knowing about Australian Consumer Law, privacy laws and the Competition and Consumer Act will help you to understand your obligations at the basic level.
10. Get your accounting systems ready.
It does not matter how you get it done, an accounting system that is set up right the first time with business growth built into the system will save you tremendous effort over time. All types of businesses have legal and tax responsibilities involving record keeping.