Getting Started Checklist and Considerations

 Issues to Consider

Operating a small business is not just about working for yourself, it is also about having the necessary management skills, industry expertise, technical skills, finance and of course a long term vision to grow and succeed. Operating a small business is a big deal and you should spend your time considering the checklist below. Remember – these are only basic issues to get you started. You should also consult an experienced business adviser, accountant or bank manager.

Stage 1 – Research Stage 

 Small Business – Is It for You?

It is important that you possess the capability to start a business, by having:

1. Relevant experience in the industry.
2. Skills and “know-how” to do the work.
3. General knowledge of running a small business.
4. Determination and motivation to make things work for the long term.

 Look Before You Leap – Business Viability

Research the feasibility of your business plan. Look at development costs; management costs; other costs.

If buying an existing business – request details of the last 3 years trading figures, break-up of the purchase price (including goodwill), history of the business and owner and the reason for sale.

Estimate 2 year forecast for sales from the operation of the business.

Determine all costs – fixed and variable (including establishment costs, operating costs, one-off annual costs such as rental bonds, fittings stamp duty).

Prepare a cash flow projection.

Determine your business’ break-even point. How do you plan to exceed this?

 Show Me the Money – Financial Considerations

Determine your financial position – that is your assets less liabilities.

Identify avenues for finance (loan, equity, mortgage existing property).

Identify benefits and disadvantages of purchasing property versus leasing property versus working from home – What suits you best?

 Know Your Market

Consult people operating in your industry including your suppliers, competitors, agents, associations and authoritative individuals.

Find out current trends in the industry and any seasonal fluctuations.

Find out your industry’s and competitor’s pricing policy and terms of offer.

Identify your competitor and determine what they sell, who they sell to and other marketing aspects.

Identify all possible suppliers for your business.

Identify your target market. Who are your customers? Where are they? How can you get to them?

Identify internal and external factors affecting your business proposition. What are your business venture’s Strengths, Weaknesses, Opportunities and Threats?

Develop your Unique Selling Proposition (USP)? What is going to make your business stand out?

Know what your business is going to do and what it is not going to do.

 

Stage 2 – Establishment Stage

Legal Considerations

Register your business name with the Office of Fair Trading.

If your business is a company, register your company name with the Australian Securities and Investment Commission.

Register for an Australian Business Number with the Australian Taxation Office.

Register for the relevant taxes, including GST and PAYG.

If you intend to employ, obtain information on awards, superannuation policies, workers compensation, PAYG taxes as well as other relevant employment information.

Resources to work through before starting your Business:

Feasibility Study – new business – template