I strongly believe that every person dreams of his own business at least once in a lifetime. Irrespective of ability and opportunity, this dream makes a home in every heart and mind. Again, it’s a different issue that neither everyone makes happen nor is it a cup of tea for all. I may have a thousand ideas, but an undervalued idea is of no use. It’s all about making ideas happen. Planning to conquer the world is not easy. Even suppressing the out-bursting ideas within is a difficult situation. We may keep on discussing on this and still, it may fall short of words.
Let me ask you a question…
DO YOU WANT TO START YOUR OWN BUSINESS???
Starting a business takes a lot of effort and commitment. Before you start, it’s important to know what’s involved and if you’re suited to running a business. These questions will help you evaluate yourself and make sure you’re ready.
Do you have the right skills?
Knowledge in your chosen industry is not the only thing that works, running a business requires a wide range of skills.
Are you prepared to sacrifice your lifestyle?
May it be your leisure or your weekend, all will get affected.
Can you continue through tough times?
Passion and motivation can wear off during hard times. Make sure you’re prepared to keep working even when things are hard. You’ll need to rely on your discipline not to give up.
Do you have access to the money you need?
You need to be in the right financial position to start a business. Starting a business is exciting but also expensive. There will be several up-front costs you will have to consider, as well as ongoing fixed and variable costs involved in running a business.
You may not start making money from your business for some time. It’s important you have enough financial backup. Are you prepared not to have a salary?
Very well said by Kevin O Leary, “Salary is the drug they give to forget your dreams”
You should have enough savings or an alternative income to use while you’re establishing your business.
Are you prepared to seek help?
It’s important that you are comfortable seeking help. Running a business isn’t a simple thing to do and you don’t have to do it alone. Talking to a business adviser or trusted accountant or tax agent can help you solve business problems and connect you to grants and programs.
Are you prepared for the risks?
Unfortunately, you need to be prepared yourself so that your business may not be successful. This might mean that you could lose money, time and investments.
Deciding not to start!! It’s okay if you don’t feel ready to start a business. There are other pathways you can take.
You can:
continue your business idea but as a hobby
think of another idea and assess your new business idea
reassess your situation again in the future – you might be ready then!
Einstein said: “If your head tells you one thing and your heart tells you another before you do anything decide first whether you have a better head or a better heart.”
When you are all set and firmly decided to start a business you need to focus on a few points.
1. Make key decisions
The decisions you make early on can affect many areas of your business, including the licences you need, how much tax you pay, and the volume of paperwork required.
Decide on a business structure
Are you an employee or contractor?
Choose your business location
Each business has different needs for storage, equipment, or just being close to the right customers. Consider what’s important for your business before you decide where you’ll be based.
Choose a business name
There may be more to choosing a business name than you think. Consider whether the name is unique, available to use or exists as a protected trademark before you decide.
2. Plan your business
You’ve analysed your idea and yourself. Next, you can plan your future and see how it all comes together.
Develop your business plan
Required
Planning out your business gives you direction and keeps your business on track. You’ll also need a business plan if you seek finance.
DEVELOP YOUR BUSINESS PLAN
Create your risk management plan. Having a good risk management plan in place will help guide the business decisions you make and reduce the impact of unexpected events on your business.
ASSESS AND MANAGE RISK
Write your marketing plan. Need to tell everyone about your new business? A marketing plan can help you find and reach your customers and work out what makes your business different.
DEVELOP YOUR MARKETING PLAN
Develop your export strategy. If you’re going to sell your goods or services overseas, make sure you plan. An export plan can help you discover new markets and the best way your business can operate in them.
3. Help your business
Find resources to help you with your business, from general business advice to financial assistance and support for your mental health and well-being. Find help for your business. Need help? Never hesitate to talk to a business adviser, accountant or solicitor for advice. Find resources to help with your business finances. Financial advisers, accountants or bookkeepers can help you get your finances on the right track.
RESOURCES TO HELP WITH YOUR BUSINESS FINANCES
Get support for your mental health and well-being. Being a business owner can be stressful. Find services, resources and information to look after your own and your employees’ mental health and well-being. MENTAL HEALTH AND WELL-BEING SUPPORT FOR BUSINESS
4. Register your business
To make it official, you’ll need to register. This makes sure your business gets taxed at the right rate, avoids penalties and protects your brand and ideas. Australian business number (ABN). An Australian business number (ABN) is unique to your business. Customers, suppliers and the Australian Taxation Office (ATO) use this number to help identify your business. An ABN is free to register.
REGISTER FOR AN AUSTRALIAN BUSINESS NUMBER (ABN)
Business name-A business name helps your customers identify your business from others. If your business name is different to your own name, you’ll need to register it.
REGISTER YOUR BUSINESS NAME. Tax registrations for your business. Not all taxes will apply to your business. It depends on the type of business you’re starting, your activities and turnover. It’s best to work out what taxes you need to register before you start your business.
TAX REGISTRATION FOR YOUR BUSINESS
Licences and permits-From zoning laws to a food licence, the licences and permits you need will vary. They often depend on the location of your business and the industry you’re in.
REGISTER LICENCES AND PERMITS
Company-A company is a legal entity in its own right. If you’ve decided a company is the right business structure for your business, you’ll need to register.
REGISTER A COMPANY
Trademark-Protect your business name and brand from being used by others by registering it as a trademark.
5. Prepare your finances
It’s essential to take charge of your business finances and know how to manage your cash flow. It could make or break your business. If you need help, consider speaking to a financial adviser. Learn how to organise your finances. Apart from having a business bank account, you’ll need to know how to organise your finances. This includes managing cash flow, budgets, payments and invoices. Consider using a bookkeeping or finance system to help you.
Understand your finance options. Learn about the different finance options and how they relate to your business situation.
OPTIONS FOR SEEKING FINANCE
Develop a pricing strategy. There’s a lot that goes into setting a price for your goods and services. Use the calculations and strategies available to help set your prices so you don’t sell yourself short.
DEVELOP A PRICING STRATEGY
Learn about invoicing and payments. An invoice allows your customers to pay you for your goods and services and for you to provide them with a record of their purchase. Work out the type of invoice you will need and what to include in your invoices.
6. Know the law
Finding out your business isn’t entirely above board can cost you time and money. Start off strong by setting up and protecting your business legally. Consider speaking to a legal professional to help you along the way. Learn the legal essentials for business
Understand fair trading laws. Fair trading and consumer laws protect you, your business and your customers. Find out how you can make sure you protect your rights and those of your customers.
Understand contracts-When you agree to do a job for another person or business, you’re likely to be entering into a contract. Find out what makes a contract fair and what laws there are to protect you.
7. Protect your business
You invest too much time and money in your business to lose it. Protect your investment by planning. As a business owner, you are responsible for managing health and safety for you and your employees in the workplace.
Understand business insurance-Insurance can help protect your business and your employees against the worst of situations. Find out which types of insurance are essential for your business and those you may want to consider. Prepare your business for an emergency. Planning ahead for what to do in an emergency can strengthen your business and help it recover quicker. To get started, see how you can protect your business assets and establish your emergency procedures.
Protect your Intellectual Property. Have a unique business idea and don’t want it getting into the hands of the competition? See how Intellectual Property (IP) can help protect your ideas here and overseas.
Protect your business from cyber threats- Whether your business is mostly online, or you just use an online system to store your customer information, make sure you have measures in place to keep your business and data safe.
8. Prepare for tax
Getting on top of your taxes now can make things easier in the long run. It can help you avoid penalties and make sure your business is taxed at the correct rate. A good record-keeping system can help you get on top of your records. It can also help you track your progress and seek finance if required.
Understand taxation for your business
Understanding tax requirements help make sure your business is taxed correctly and avoids penalties. Get an overview of record keeping, registering for taxes and your options for paying tax.
Learn how to lodge and pay for the tax. How you lodge your tax will depend on your business structure. Find out what you need to lodge and if a Business Activity Statement (BAS) is needed.
9. Set up operations
Setting up your business operations properly will save you trouble in the long run, and give you more time to focus on running your business. Learn about hiring employees.
Manage your suppliers. Are you selling products and need a supplier? See what you should consider when looking for a quality supplier and where you can search for them.
Consider going online
Taking your business online can provide new opportunities and benefits to your business. Look at ways you can set up your business’s online presence, from simply having a social media presence to using e-commerce to sell your products and services to online customers.
10. Market your business
Promote your business and brand to your target audience to grow your customer base. Working out your business’s market position will help you to build your business brand, find your target audience and focus on your customers’ needs.
Communicate with customers.
Providing good customer service is not just for when a customer buys from you. Find out what customer service skills you’ll need to create customer satisfaction and loyalty.
Set up a business website. Register your web address as early as possible.
Establish your brand
Your business’s brand can help you connect better with your customers and help them differentiate you from your competition.
Plan your social media presence
A well-planned and managed social media presence can help you market your business and connect with your customers.
Businesses are the backbone of an economy. They provide products and services that can be purchased by individuals and other companies. Businesses range in size from small to large and operate in many different industries. Business structures also vary from sole partnerships to major corporations that provide shareholder equity to their owners.
When starting a business, do your research and develop a business plan. This allows you to raise the money you need to start your operation.
