There are many things to think of when looking to start a business. From choosing a business structure and legal issues, to tax obligations and financial management, these are just some of the things to be considered so as to ensure the smooth set-up and running of your business.
Starting a business is a big and exciting decision that can have a major impact on your life. Therefore, starting a business should not be embarked upon without proper planning and consideration.
In order to give yourself the best chance of success, and ensure that you are meeting all your legal obligations when it comes to running and operating your business, it certainly pays to take some time to plan and think about all the various facets that are required when setting up and running a business. Starting a business is much more than registering a business name, opening a bank account and going for it.
Before You Start a Business
Before you start filling out forms and paying registrations and licenses, it is important to take some time to carefully consider your business idea and ask yourself honestly how you feel about being a business owner.
Some questions that you should think about before starting your business include:
- Does my business idea meet a real-world need?
- Is it servicing a gap in the market? Is it feasible and realistic?
- Can it be monetised?
- Do I have necessary experience in the industry?
- Do I have the motivation and long term commitment to this business idea?
- Do I have the appropriate support available?
- Is time and health on my side?
If you can strongly answer yes to these types of questions, then you are in a good position to consider starting a business.
In order to further develop and flesh out your business idea, it is a great idea to draft a business plan. A business plan is a useful resource on a number of levels throughout the initial assessment, establishment and running of a business. Not only does it guide you to ensure that you have carefully considered the critical building blocks of your business, but it can also be critical when seeking finance, and once you’re up and running, a business plan is an important tool to keep you on track towards your goals.
As part of your business plan you should consider things such as operational plans (how the business will operate), financial management (where the money will come from and what it will be spent on), goal setting (how will you measure your success?) as well as contracts and employment law/human resources. It is also important to consider external factors that could impact your business such as the wider industry and marketplace that you plan to operate in.
Setting Up Your Business
Once you have completed your initial assessments and have decided that setting up a business is right for you, it is time to get started making it happen!
Setting up a business involves:
- Registering a business name
- Setting up a bank account
- Choosing a business structure
- Registering for tax obligations such as ABN, GST and PAYGW
- Taking out necessary insurance policies
- Setting up a website and other intellectual property requirements
- Establishing accounting and recording keeping processes
- Contracts with suppliers and employees
Managing Your Business
Now that everything is set up, the day-to-day running of your business and meeting your ongoing obligations becomes the focus. This is where the detail developed in your business plan helps to provide guidance when it comes to knowing what to do now/next.
Effectively managing your business relates to how well you can address and maintain all the pieces that you have considered and put in place during the planning and set up phases. Of course, some things will need to be revised or amended along the way, but for the most part, if you have planned well and had a methodical and diligent approach in the initial stages, the ongoing management of your business should be a lot smoother than if you jumped right in to setting up and running the business without careful consideration and planning.
Factors critical to the ongoing management of your business include:
- Employment, Human Resources, Contractors and Payroll
- Accounting & Taxation
- Legal Documents & Obligations
- Marketing – including product development and growth
Starting and running your own business can definitely be an exciting and rewarding experience. Unfortunately, without the right advice, planning and execution, it can sometimes result in legal and financial problems.
That is why it is critically important to engage the services of professional advisors at all stages of planning, establishing and running a business. Professional advice will help to ensure that you are not only meeting your obligations and making well-informed choices across all areas of your business, but also identifying opportunities and becoming aware of any potential problems before they get out of hand.
As an integrated team of tax accountants and lawyers, The Quinn Group is perfectly placed to provide expert advice on all areas related to starting a business. From business plans and registering business names, to setting up accounting systems, intellectual property and drafting contracts, we can help you every step of the way and we’ll be there with ongoing guidance and advice as you move to running and managing your business too. Contact us by calling 1300 QUINNS, or +61 2 9223 9166 or submit an online enquiry to arrange an appointment to discuss starting your new business.
Updated: 28 June 2022