A new business can start in many different ways. You may have a brilliant idea, have an inspiring conversation with a friend or you are just really passionate about something. Converting this brilliant idea to a new business venture can be challenging and rewarding.
Starting a new business during the current COVID19 pandemic adds additional uncertainty and issues to overcome.
Here are our top 6 essential tips to help you with starting a business:
1. Business Plan
If you fail to plan, you plan to fail …. so get started on preparing a business plan. The business plan will include (but is not limited to):
– your mission and vision statement
– business description
– your goals
– your competitors
– target market analysis
– 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.
Refer to our other blog post titled “The Right Business Structure”.
3. Essential Registrations
Under the registrations that are required for your business and industry. This may include (but is not limited to):
– Applying for an ABN and TFN
– GST registration (yes or no?)
– Business name registration
– Copyright and intellectual property
– Registering as an employer
4. Marketing Plan
Create a realistic and effective marketing plan. This should be regularly updated and reviewed for its effectiveness.
Understand the numbers and keep your financial records and tax obligations in order. Some new businesses fail to save for their future tax obligations or plan for growth.
Up to date and accurate financial records will empower you to understand the true performance of the business and enable you to make better decisions.
Research the accounting software packages available and choose the one that will best suit your needs. If you are unsure how to use accounting software, engage a bookkeeper or 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 bookkeeping or accountant will also help you to understand how your business finances are travelling and be a sounding board for making important business decisions.
Prepare profit & loss and cashflow forecasts so you can plan and understand what financing may be required. This is essential for all businesses (not just new).
6. Build a Team of Expert Advisers
When you start a business, you are likely to be the business development manager, 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 compliment your strengths and can guide you in your business journey.
The team at EMspire Advisory specialise in small business bookkeeping, accounting, tax, small business start-up and support. We can get you up and running and allow you to focus on your business. Contact us today and we can help you create, grow and succeed in business.
Please note that this information is not specific and is general in nature and cannot be relied on as advice. Please contact us for advice specific to you and your circumstances.