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What you need to know before starting your business

Written by Laila Mir • Accountant
Published on 28 Jun 2019

Starting a business is no small decision. Many entrepreneurs manage to raise capital initially but money is not just enough. A sound business model that generates consistent cash flows is important. New entrepreneurs need to focus on the customer and fully understand the market.

Therefore careful research of the market you entering into is important. The difference between success and failure can be just choosing the right business. Also launching and growing a business is difficult. No one person can have all the knowledge, experience or perspective to handle every business situation.

Therefore, you need the right people to implement the system, such as to engage an accountant, lawyer, insurance agent, marketing specialist or other specialists.

To overcome the above, the Australian Government has developed a Starting your business checklist covering many of the basics issues you need to consider when you are new to the business. The checklist will help finding the right information quickly and easily which can eventually help you run a successful business.

Before you start a business

Find Advice and Support
When starting a business, there is a range of advice and support available from the government and other organisation for example – information and advice on managing cash flow, stocktaking and obtaining and funding training. Alternatively, you can contact us for guidance, advice and coaching toward a successful business.

Know what events are happening near you
Small business workshops and seminars are run regularly in most areas of Australia and deal with issues such as planning, financial management, innovation, employing staff and exporting. You may also find it useful to attend networking events to help expand your business. By developing networks you can keep up to date on industry and local information, promote your business through new contacts and learn key skills from other businesses.

Hobby vs Business
It is important to distinguish between hobby and business because running a business will have tax implication and need an Australian Business Number (ABN). This would not apply if your activity is a hobby.

Planning for your business
Careful planning is essential to the success of your business. You need to review regularly and review and revise your plans as an ongoing business activity. You can download a business plan template and business plan guide at business.gov.au – Templates and tools. Contact a business advisor for advice and consult your accountant or solicitor.

How to develop

  • A business plan – provides direction, keeps you on track and is usually a requirement when you seek finance.
  • A marketing plan – gives you a systematic approach to developing products and services that satisfy customer needs.
  • An export plan – will help you evaluate your strengths and weaknesses upon entering the export market.
  • A succession plan – can help you plan for the day when you leave your business.
  • Emergency management & recovery plan – successfully adapting the business to changes in its environment.

 

Business Structure
Know which business structure suits you best for example – sole trader, partnership, trust or company. Before starting your business you should consider the advantages and disadvantages of each type of business structure and decide which best suits your needs.

How to obtain finance
Good financial management is critical to the ongoing success of your business. You need to know how much funding you need, where you can get it and how to manage your financial arrangement.

Starting a business can be very exciting but it is important to do your homework and take meticulous steps. Start small and take incremental steps to grow successfully.

Check out another recent blog in this category.

Laila Mir joined Fitzpatrick Group mid-2018. She has completed her Bachelor in Business Administration, majoring in Accounting and also completed her Masters in Accountancy. She specialises in Individual, Company, Trust, Partnership & SMSF tax returns. Authour • Laila Mir

Accountant, Fitzpatrick Group

Post Categories: Managing Business | Small Business

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