The Definitive Guide to Starting a New Business
The Definitive Guide to Starting a New Business
Do you have a brilliant idea that you want to develop into a business?
It is one thing to have a good idea, but it is entirely another matter to turn it into a successful business.
All good business owners know that one of the keys to success is asking for help when you don’t have expertise and experience in certain areas. This is where we can help. We are here to get your business moving in the right direction.
Have a look at our definitive guide to starting a business in 2019 and your business will surely be on its way to success.
Do Research For Your Business Plan
Never start any business venture without being thoroughly prepared, and this will involve research.
You need to study the following:
- Potential customers
- Industry in which you will operate
The aim of this is to have an all-inclusive understanding of exactly what your potential customers want, who your competitors are and the market your business will work in. This will enable you to make more educated decisions about if your business will be a success rather than just going on your gut feelings.
You can take on the hands-on approach and complete your own market research or engage the services of specialist firms to do it for you.
Whichever way you do it, making sure you have a sound understanding of the needs and challenges of your target market will mean you are better prepared for your businesses launch.
Having the Right Business Structure in Australia
Choosing your business structure in which to operate in Australia is a crucial step in setting up a new business. The structure you choose will have an impact on who can make decisions, how profits and losses are shared, asset protection along with tax advantages & disadvantages.
The four most popular business structures in Australia are:
- Sole Trader – Is where you are the sole owner and hold all responsibility for the business
- Partnership – Is where a number of people or entities run a business together.
- Company – Is where the business is a legal entity separate from its owners
- Trust – Is where the business is an entity that holds property or income for the benefit of others.
Not sure what business structure is best for your potential business? Check out the ATO website for more help with choosing your business structure or reach out to us to find out more.
Writing a Business Plan
You’ve done your research and have a good idea on how your business is going to be run.
The next step is preparing a business plan.
A business plan is essentially documentation of what your businesses goals are, reasons they be achieved and how you plan to make the goals a reality. It can be daunting especially if you have never written one, but it doesn’t have to be.
Just download this simple Business Plan Template Guide
Develop A Marketing Strategy and Plan
The next step in the planning process is finalizing a marketing plan. Your marketing plan pulls together the information you have gathered in the research stage, it then outlines your marketing strategy.
If you are unsure where to start when writing your marketing plan, just take a look at this Marketing Plan Template
Calculating Your Start-up Costs For Your Business
Next is for you to calculate your businesses start-up costs.
You need to be pretty ruthless in this step. You are not trying to put forward the best case scenario. You are trying to understand the set-up costs associated with your business and be adequately prepared so you can work out if you need financing and if so, how much.
There’s nothing worse than being partway through setting up your business and receiving a conceivable but still unexpected costs, and not having sufficient funds to cover it. Avoid the unexpected by grabbing this Start-up Costs Template
Use Financial Monitoring and Tracking Tools
One of the biggest things that leads to the failure of a business is the lack of understanding the numbers. It is reasonable that in the early days of your business you would wish to look after the finances yourself to help minimise costs. This, however, cannot be an excuse for poor financial management.
It is your responsibility as a business owner to have the right financial tracking and reporting tools to monitor your profits, losses, sales, stock & cash flow or otherwise seek out the assistance of a professional to do so.
If you are opting to complete your books yourself for now make use of helpful templates like the ones below.
Which Registrations and Licences Do You Need
Depending on what your business is planning to sell, there may be a variety of different registrations you will need. However, no matter the type of business you plan to run, all businesses operating in Australia require an Australian Business Number (ABN) and Tax File Number (TFN).
The Australian Business and Licences Information Service (ABLIS) is an helpful resource when determining exactly which registrations, licences and permits you will need.
Get Your Insurances In Order
Insurance is one of those things that people don’t like to deal with, so they just take the minimum with a name they know without doing any proper research into whether the policy really suits their needs.
The industry or profession your business will be operating in will influence exactly which and how many insurances you will require. Some insurances you may need to consider are:
- Workers Compensation Insurance
- Motor Vehicle Third Party Personal Insurance
- Building & Contents Insurance
- Assets & Revenue Insurance
- Public Liability Insurance
- Professional Indemnity Insurance
- Products Liability Insurance
- Personal Accident, Illness & Life Insurance
- Income Protection Insurance
AS there are so many different types of insurances and so many providers, many business owners use an Insurance Broker to assist them to find the right policy. Not only can they save you time, they can also ensure that you have de-risked your business, and can also save you money as well.
Protecting Your Intellectual Property
How long did it take you to come up with the perfect name for your business?
How would feel if you were halfway through your business start-up process to find out that a competitor had chosen to use that same name.
This is why you need to register your business or company name & domain name as soon as possible.
This does not automatically give you the right to use the name as a trademark, so you may also need to consider registering the name as a trademark if you intend to take action against illegal users.
Depending on your industry and what you will be selling, you may also need to protect your business idea. This is what is going to be making you money and no one will pay for something they can get elsewhere. If you have a unique business idea, you should look into protecting your intellectual property (IP).
Your intellectual property includes:
- Design rights
- Domain names.
Depending on where your intended market is, this may also include looking at protecting these ideas overseas.
As you can see, there is a lot that needs to be taken into consideration before you even open your doors for customers.
If you would like to discuss your options about your business idea, reach out to the team to schedule a chat.