10 Tips for starting a Successful Business

Starting a business is a process

Starting a business is exciting, it can be challenging if you are not prepared. To start a business is not one big decision, it’s a process with hundreds of variables and small decisions, you will need to have a systematic mindset to go through all those processes.

(1) Think Ahead for Success

You may be thinking of starting a new business, or you may be looking to buy an established business. Perhaps you have decided to turn your hobby into a business. It is essential that you understand the differences between a business and a hobby, and the decisions the business structure for tax, legal and insurance purpose.

Some questions need to consider when analyzing your business idea:

  • What product/service will you provide?
  • Is your idea feasible?
  • Is there a market for your product/service?
  • What skills do you need to have in running the business?
  • Who are your competitors?
  • Will you bring any difference to the market?
  • Do you have the financial capacity?

The business is always a good start with a preparation.  this is the first step in thinking in business concepts and deciding your goals and objectives. Researching all aspects of your business ideas involves gathering, analyzing and evaluating information, this will help you to meet the goals you have outlined in your plan. You will need to understand the “know-how“ first.

  • Know your strengths and weaknesses when starting a business
  • Know your business structure and type
  • Know your product or service
  • Know your customers
  • Know your competitive advantage
  • Know your plan

(2) Make the key Decisions in the Early Stage of the Business

The decision you make early can affect many areas of your business, your personal circumstance is the key factor to determine which structure is suitable for your business. Below are the key decisions you will need to make in the early stage of the business.

  • Choose the right business structure for your business
  • Understand the business type and industry
  • Choose a location for the business
  • Choose a business name
  • Consider a trademark

(3) Make a Plan of the Business

When you have your business idea and the knowing of yourself in the business, then you can do the planning and fits all the elements together.

  • Research the market
  • Research the industry
  • Develop a business plan
  • Develop a marketing plan
  • Develop a financial plan

(4) Make the Business Official  

To make the business official, you will need to do the registration. This makes sure that your business gets tax at the right rate, avoid penalties and protect your branding and ideas.

  • Register a business name
  • Register an ABN
  • Register a Company
  • Register license and permits
  • Consider a website

(5) Know the Tax

Understand the key business and tax registrations are essential for starting a business in Australia. You can make things easier when you know the tax implication of your business.

  •  Register for the correct taxes (TFN, ABN, GST, PAYG, Payroll Tax, FBT, other taxes etc)
  • Keep the good accounting records
  • Prepare to lodge Tax Return

(6) Know the Law

You will need to know what laws apply to your new business, you may wish to consult a legal professional for advice on what you must comply with, such as licenses and registration, contracts and leases, to ensure that your business stays legal.

  • Business Registration
  • Fair Trading
  • Contracts
  • The Privacy Act
  • Anti-bullying laws
  • Independent contractors
  • Unfair dismissal
  • Importing and exporting
  • Intellectual property
  • The Franchising Code of Conduct
  • Employing people
  • Laws of the environment
  • The legal obligation of marketing

(7) Considering financial issues

It is essential to take charge of your business finances and know how to manage the cash flow of your business, there are some elements you will need to consider

  • Have a business bank account
  • Set-up a bookkeeping system
  • Prepare a budget
  • Payment types and invoicing
  • Manage your cash flow

(8) Protect your business

Having the right insurance will help protect your business and minimize the exposure to risk.

  • Compulsory insurance
  • Personal or loss of income insurance
  • Stock, products and asset insurance
  • Accidents and liability insurance
  • Technology and cybercrime insurance
  • Insurance in the specific industry
  • Intellectual property

(9) Set up for Daily Operations

Setup the business operations will give you more time to focus on running your business.

  • Employ people
  • Planning and preparing the market campaign
  • Choose the suppliers
  • Establish a customer service
  • Procedure and government regulations for importing and exporting.

(10) Get help with your business

You don’t have to work it all out on your own. Before establishing your new business, seek professional advice from people within your industry or your accountant.

At eFirm, we offer business and tax advisory service to assist you in starting and growing your new business. We could refer to our partner to assist in other areas such as legal service,  insurance, mortgage & loan, and marketing.

Our accounting team at eFirm will help you with:

  • Business and Tax Registration
  • Tax and Business Planning
  • Budgeting and Cashflow projection
  • Bookkeeping and Tax Advice.
  • Proactive and real-time advise on your business