How to start a business in six easy steps
Congratulations! You have an idea for a business and you want to know how you can get this business started.
Below is my ultimate guide on how to start a business in six easy steps.
1. Develop a business plan: This can be as simple as one page which documents
a. What your business is
b. What products and services you are selling
c. What is your target market
d. Who are your competitors
e. Your first year business goal.This plan should be referred to on a periodic basis to keep you focussed. It is an evolving document.
2. Determine what structure to operate your business: Are you going to operate as a company, partnership, sole trader etc. If you are a tradesperson then initially it may be best to operate as a sole trader, which is the least expensive to set-up. If you are going into business with someone else then either a partnership or company structure may be better. To create a company will cost you about $700 -$1000 including ASIC fees.
3. Get a Business Name: Think of a name that would best describe what you’re selling. Then, check on the ASIC website to ensure the name is available. If it’s available you should register the name with ASIC. A Three year registration is approximately $80. You should note that if you are a sole trader and your business name is the same as your name or if you are a company and it is the same as the company name then you do not need to register the business name. You may also wish to consider doing a trademark search to ensure you are not infringing on another business. This can be done at www.ipaustralia.gov.au
4. Apply for an Australian Business Number. This can be done online at www.ABR.gov.au
5. Register for GST: I have previously written about the need to register for GST so I will not expand further other than to say that this can be done as you apply for your ABN.
6. Open a bank account for your business.
So that’s it. You can now start your business today if you follow my ultimate guide on how to start a business in six easy steps.
However, one additional step that will make sure you have done everything correct is to find yourself a good Accountant. Not only will they assist you through all of the above steps they can advise on the best structure for your business from a tax perspective. They will also get you started on the right accounting software for your business so that you can focus on earning money rather than recording transactions.
This was first published by me in Savvysme
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PB Accountants recommend Quickbooks Online (QBO) and XERO (both cloud based). We’ve had plenty of experience with both packages-- and believe that (except in rare cases) one or other of these will be the best accounting system for our clients.
Need help choosing an accounting system? Just get in touch with Michael and he’ll help you decide.
If you decide you’d like us to take over your accounting, we will contact your old accountants on your behalf and ask them to forward all your information to us. We’ll also notify the Australian Taxation Office of the change. Done.
While we use and recommend Xero and Quickbooks Online, we’re happy to work with any accounting package you choose. After all, it’s you and your business we’re here to support.