A small business can start in many different ways. You may have a brilliant idea, have an inspiring conversation with a friend, or are just really passionate about something. You then decide that you can take this idea and turn it into a business.
But for some people, starting a new business can be quite daunting. Words and phrases like BAS return, appropriate structure, taxation, accounting, and bookkeeping can be quite scary.
We have come up with some tips that you may find useful when starting a business:
1. Business Plan
If you fail to plan, you plan to fail….so get started on preparing a business plan. Your plan will include (but is not limited to), your mission and vision statement, a description of your business, your goals, who your competitors are, analysis of your target market, SWOT analysis, forecasts, budgets, and projections.
2. Business Structure
Choosing a business structure and getting it right from the start is imperative. The most common structures are sole trader, private company, partnership, and trusts.
3. Essential Registrations
Understand registrations that are required for your industry with various regulatory organisations. Some of these include:
- • obtaining an ABN and TFN;
- • GST registration (yes or no?);
- • Registration of your business name;
- • Copyright and intellectual property; and
- • Registering as an employer.
This is not an exhaustive list; there are many more.
4. Marketing Your Business
Create a realistic and effective marketing plan (and stick to it!).
Understand the numbers and keep your financial records and tax obligations in order.
Research accounting software packages available on the market and choose one that will best suit your needs (and budget!). If you are unsure about how to use accounting software and think that you may have difficulty keeping everything in order, engage a bookkeeper/accountant to give you a hand. Doing this from the start will save a lot of pain and hassle in the long run! You should be out there building your business, not bogged down with the record keeping.
Your bookkeeper/accountant will also help you to understand how your business finances are traveling and be a sounding board for making important business decisions.
6. Build a team of expert advisers
When you start a business, you are likely to try to be the sales guru, marketing expert, accountant, legal team, HR specialist, etc. It is unlikely you will be an expert in all those topics. Do not be afraid to engage specialists and advisers in areas that you are unfamiliar with. Build a team of trusted advisers that can complement your strengths and can guide you in your small business journey.
The team at EMspire Advisory specialise in small business bookkeeping, accounting, small business start-up, and support. We can get you up and running and let you focus on your business. Contact us today and we can help you create, grow and succeed in business.