Starting a business can be exciting but it also requires a lot of hard work and dedication, especially during the beginning stages. It entails planning, making financial decisions, and continuous marketing of your business and its products or services.
This guide will take you through seven handy tips to help you start a business in Australia.
Gather Information and Make Key Business Decisions
Once you’re set on the kind of products or services you will offer in your business, it’s important to conduct thorough market research before launching. This research will allow you to gather information about your target customers and existing competitors, as well as potential opportunities in the future. Having that kind of data will help you find more business ideas, identify your competitive advantage, and design your business plan.
The planning stage is also the point where you make important business decisions like choosing a business name, location, and the type of business structure you’re going to use. There are various business structures in Australia, each with its own characteristics, tax differences and advantages and disadvantages. Choosing the right business structure is critical.
Develop a Strong Business Plan
A business plan is a crucial tool to achieve your financial and business goals. A business plan is basically your roadmap on how you will structure, navigate, and grow your business. It helps you define objectives and gain control over your business from the beginning. A good business plan also ensures that any challenges along the road are thought of in advance.
A business plan also helps you prepare your finances and manage cash flow. If you’re looking for funding, a business plan can help you show potential lenders or investors how much money you’ll need and how much you expect to earn in the future.
Note that planning your business finances is a continuous process and that you should keep track of your financial reports so you can improve your business plan further.
Since it’s such an essential part of growing a business and ensuring profitability in the long run, most business owners find an accountant to help start their business.
Register your business and Familiarise yourself with relevant laws
It’s time to make your business official by registering it in relevant legal entities. Registering your business protects your brand and ensures it gets taxed properly. Australia has an official business registration service you can find online to make the process easier.
You will first need to register for an Australian Business Number (ABN) to help identify your business. Once you have an ABN number that is unique to your business, you will need to register for tax file numbers, GST, PAYG and even a business name if needed. If you’re not sure whether your chosen name is available, you can check through the Australian Securities & Investments Commission (ASIC) business names register.
Depending on your business, you will also need to secure some licences and permits, patents and trademarks for your business.
Get on Top of your Taxes
Understanding your tax requirements is essential in sustaining your business– it ensures your business is taxed correctly, maintains compliance with your tax obligations, avoids penalties, and saves you money.
Good record-keeping makes it easier to track tax obligations and develop an effective tax planning strategy for your business. Software packages like MYOB and Xero are very popular ways of keeping records. Remember: bookkeeping and preparing tax returns can take up a lot of time so it may be a good idea to get some help.
Ensure Quality Service and promote your business
No matter how much time you put into planning and setting up important requirements, it all boils down to the quality of service you can provide that will determine the lifespan of your business. Not only that, but it’s also important that you establish your brand and market your business to potential customers.
Since everything nowadays can be found on the internet, having a strong online presence or footprint can boost your business and help customers find you. Start by setting up an attractive and well-optimised business website and creating social media accounts that you can use to present information to customers. You can also set up an online store that enables customers to buy from your website.
Once you have customers knocking on your door, it’s important to provide good customer service to retain them, increase customer satisfaction, and foster loyalty.
Ensure your bookkeeping is of a high standard from day one
Good bookkeeping, such as keeping a record of your income and expenses, is essential for any business. As business owners, tracking your financial transactions can help you stay informed about day-to-day operations, profitability, manage cash flow, and, in turn, make better business decisions.
It’s highly recommended that you use accounting software like XERO or MYOB to keep these records in the best shape they can be. Apart from providing important business information, good record keeping can also help reduce your external accounting costs.
Craig Allen & Associates can attend to all your bookkeeping and taxation needs.
Contact Craig Allen & Associates Now
Craig Allen & Associates is a CPA Practice and are experts in helping small businesses with their business accounting and bookkeeping needs. Schedule a free, no-obligation consultation now by contacting our team at 039 558 7316 or emailing us at craig@craigallen.com.au.
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