This is first blog that will be of interest to our subscribers from an external contributor, Kym Wallis. His bio is at the end of this blog. Our aim is to publish a business or management blog on the first day of each month. We hope you enjoy this initial blog.
Guest podcast by Kym Wallis
Starting a New Business?
Here Are 10 Things You Need to Prepare!
So, you’ve decided to go into business for yourself but have never built a company from the ground up. Whether you are going to work as a sole trader or are planning to operate a small business with multiple employees working under you, there are things you need to get ready before you can actually open those proverbial doors to business. Here are 10 of the most important things you’ll need to prepare.
1. The Mindset of an Entrepreneur
Remember, you are not going to be working for a boss because now you will be the boss! Everything is going to fall squarely on your shoulders, from finding a sound investment loan to hiring top talent to work with you. Begin with a positive attitude and a willingness to learn from mistakes. If you understand what you need to do and any pitfalls you may encounter, you can make a successful go of it.
2. Business Structure & Type
Before you can do anything, you will need to decide between your options in business structures. Each type carries different taxation and legal requirements, so it pays to understand the differences between registering as a sole trader, a partnership, a company or a trust. As for the type of business you are going to operate, here is where you will need to decide whether you are going to work from your own home or you will need a separate base of operations. These are extremely important preliminary considerations to decide upon before you can go any further in starting your new business.
3. Registering with Proper Authorities
There are several steps involved in registering your business with the proper authorities. You must register a business name, your company, and then get all the requisite permits and licences. If you will be running an online endeavour, here is where you’ll need to register a domain name as well. You can check out the business.gov.au website for information on just how to go about registering your company to do business in Australia.
3. Write Your Business Plan
What new business owners may not understand is the importance of a business plan. This is where you lay out your business model and how you plan to do everything from day to day operations to marketing. If you are going to begin buying investment properties, for example, you would need a sound business plan long before seeking investment property loan information. No lender will even consider underwriting a loan for a new business unless they can see a solid business plan that will result in a strong likelihood of profitability. Without a strong business plan, everything else along the way is probably doomed to failure.
4. Develop a Marketing Strategy
Drawing on the business model of an investment property entrepreneur, one of the most important types of investment property tips in learning how to plan and execute a marketing strategy. Whether you are going to invest in commercial or residential properties unless you can attract renters, how can you expect a good return on your investment (ROI)? Marketing is going to be a key component of any business, but especially when beginning a new venture.
6. A Sound Understanding of Taxes
Ignoring taxation laws in Australia, or anywhere else in the world for that matter, has been the downfall of many a business old and new. From day one, you need to understand how to keep accurate records, which taxes you will need to register, and how to lodge taxes when the time comes. In fact, you’ll even need to when businesses are required to lodge taxes. This is where you might want to consult with a licenced accounting firm.
7. Learn Which Laws Apply to You
If you don’t understand business laws in Australia, you could be in jeopardy of being fined high dollar amounts or, worst case scenario, being closed down by the government for breaking one or more laws. From fair trading laws to complying with the Privacy Act, ignorance is no excuse. Just as you might wish to consult with an accountant for all things financial, you may wish to get legal counsel to help you with legal compliance.
8. Financing and All Things Financial
A majority of new businesses will need financing not only at the very beginning but from time to time throughout the life of the company. Your business’ borrowing power will depend on a number of things, and here is where you will probably want to find a good borrowing power calculator. Along with almost every other startup, you will probably wonder, “How much can I borrow?” That calculator will give you a good idea of how much you may qualify for when seeking a startup business loan.
9. Insurance and Emergency Preparedness
Not only are businesses required to carry such things as liability insurance but there are other types of cover you may wish to consider to protect your investment. Your accountant or lawyer can help you understand which types of insurance you are legally required to carry so that you can begin searching for a provider with reasonable rates. If you are going to be employing staff, an emergency preparedness plan is also going to be required. Such things as evacuation routes and authorities to contact should be posted in highly visible areas.
10. Your Base of Operations
Speaking of highly visible areas, this is the last step in starting a new business before you can plan a launch date. Whether working from home or in an outside base of operations, everything necessary should be on site and ready to go. Besides stock and operational equipment, you’ll need to have key players in place as well. In order for a smooth and profitable launch, make sure you are really ready before announcing your ‘grand opening.’
Once everything is in place and you’ve covered all your bases, don’t forget to work closely with your marketing team.
Kym Wallis, the founding director of Higher Ranking has over 15 years of advertising sales, digital strategy, and business development experience. He is currently working as Digital Adviser for Integr8IT.