You've made the decision to take the plunge and start your own small business? Great!
On this page you will find useful information about the key steps to establishing your small business. For consultations with an Avenue Solutions Adviser starting from $99, see here: Consultations starting from $99
5 Key steps involved in starting a new business
|1||Decide on a business structure||The 4 main choices are between sole trader, partnership, company and trust. For more information see here:Information about business structures|
|2||Decide on a business name and branding||If you are going to trade under a name other than your own, you will need to register a business name. At this time, you might also wish to check IP Australia for any registered trade marks that might impact upon your proposed business name, as well as the availability of an appropriate domain name (i.e. for website and emails). You might wish to register these now.|
|3||ATO / Tax issues||You will need an Australian Business Number. Each entity can only ever have a single ABN so, if you have previously had one, you will use that one (you might need to reactivate it if it has been cancelled). If you are using a new entity (i.e. structure other than sole trader) you will likely need to apply to have it issued with a Tax File Number and ABN. You will also need to think about whether or not to register for GST and PAYG withholding, among other things.|
|4||Regulatory/licensing||Do you need a licence to operate your business? Some types of business do require licenses in order to operate lawfully. Liquor and food premises/safety licenses are often contemplated, but there are many other types of licence that may be required.|
|5||Insurances||In almost all circumstances, we recommend that you take out insurance before commencing your business. At Avenue Solutions, we can refer you to a trusted insurance broker who is very experienced in advising small businesses about their insurance needs. Contact us for a referral.|
And don't forget about this stuff
It is assumed that, before making the decision to start your new small business, you have turned your mind to some important issues including the following:
|1||What is your core business?||What goods or services are you providing? You should have a very clear, succinct view about your primary business.|
|2||Who is your target market?||who needs the goods and services you will supply? Who, if anyone, currently supplies your target market, and how will your goods and services be distinguishable from those currently on offer?|
|3||How will you market your business to reach your target market?||do you have a marketing plan? How much will it cost to market your business and will it be effective?|
|4||Establishment and start-up costs||How much will it cost to establish and fund your business during its start-up phase? Where is this money coming from, and do you have enough?|
|5||Have you got a budget for the first 12 months?||What is your projected income and expenses over that period? What happens if you halve your projected income and double your expenses - is the business still viable?|
|6||What does your business need to do to become profitable?||What is your break-even point, and how long will it take you to get there?|
|7||Exit point||How will you know if the business has not succeeded or is not otherwise delivering the outcomes you wanted? Do you have a clear exit point / option?|
Of course, all of the above are typically components of, or questions dealt with in, a business plan. At Avenue Solutions, we encourage all businesses to have, and to constantly refer to and update, a business plan.
Talk to us about a FREE business plan template or about how we can work with you to write a business plan for you and your new business.