Every business starts with an idea, but you will need more than just an idea to turn your dream into a reality and have a profitable business running on full steam. While the basic principles of starting a small business and the initial steps to be taken are generally common throughout the world, it is the statutory regulations that differ between countries. However, in today’s Internet-driven world, it is not too difficult to know what is required of you before you launch your business. Visit the website of local regulatory bodies, and you will get a complete lowdown of all formalities that need to be fulfilled.
Here are a few guidelines to follow if you want to start a small business in Australia.
Decide the structure
In Australia, there are three types of business structure that you can follow.
- Sole trader – This will be right for you if you want to go solo or want to work as a freelancer. It is inexpensive to set up, and there are very few tax and legal procedures to follow.
- Partnership – This is when you want to run your business jointly with others. Income will be received jointly and management and control, as well as income and losses, have to be shared between the partners.
- Company – This structure is a distinct legal entity and is regulated by the Australian Securities & Investments Commission (ASIC). It is expensive to set up and has a host of reporting requirements. One benefit of this type of registration is that it provides asset protection, but directors can be made legally liable for their actions and debts of the company.
Talk to small business start up consultants, accountants or solicitors for expert opinion in this regard.
Create a business plan
This is crucial if you want to give your business accurate directions towards business growth and profitability. A business plan is a comprehensive document that covers every aspect of your startup. First is the financial side. You will have projections on cash flow, working capital requirements and expected income and expense – all over a couple of years initially. Then there will be details on new product launches, pricing, marketing and competitor analysis. This guiding document can be used to bring partners on board or to get credit limits sanctioned from lenders and financial institutions. Have a professional agency like TR Consulting Firm to prepare this business plan for you for best results.
Know you’re legal and tax obligations
As a small business owner, you have to be very careful on this score. Be sure that all legal and tax requirements have been carefully followed to avoid any surprises or unwarranted litigation in future which can drastically affect your operations. Ensure that you are aware of all obligations to local, state and federal governments as well as the Australian Taxation Office (ATO).
Invest in the right business infrastructure
Make sure that you have technologically advanced systems from the start. Invest in cutting-edge hardware and software to offer optimised customer service. This investment will pay you back in the long run. Have a fully secured point-of-sale and payment system. Offer your customers as many payment options as possible. Have a powerful inventory system and a data entry network that gives you updated information on the running of your business at the click of a button. It will help you plan for the future and take accurate business decisions.
Apart from these guidelines, focus on building a good team around you. Initially, you might want to do most things yourself to save on recurring salary expenses, but sooner or later, you will have to delegate responsibilities if you have to focus on your core activity of business growth and development.
Published by Tranding Stories