Starting a business can seem like a daunting task for any budding entrepreneur. There is a lot to think about which can make the process feel far more convoluted than it should.
Luckily help is at hand as there is a process that should be followed to ensure that you give yourself the right start. Read on to learn more.
Start with a Checklist
Your first step is to get brainstorming and decide what it is you would like to do. We always find the following pointers useful:
- What skills do you currently possess which you could turn into a viable business opportunity? It might be the skills you’ve gained in past employment or something you currently enjoy as a hobby.
- Decide on your business goals and objectives. Is this business going to be a source of full time income or an extension of an existing hobby?
- Figure out how much turnover and profit your business will need to generate to become profitable and therefore viable long-term.
- Keep in mind the need to choose an effective business name. This should go hand in hand with your intended service offering.
This list is not exhaustive and only serves as a guide. If you do at least consider each item in depth, you should be well on your way.
Choose Your Business Structure and Type
Here in Australia, there are several routes you can take to registering your own company or business.
- A sole trader is an individual operating a business and is solely responsible for all liabilities.
- A company would be a legal entity separate from any shareholders.
- A partnership would involve a number of people running a business together but not as a recognised company.
- A trust is usually an entity that might hold a property or income for the benefit of others who aren’t part of the business or company.
Apply for a Business Number
An Australian business number is required which will identify your company or business to the government. This number will also be used for calculating various taxes applicable. Your business number can be applied for online and the process is free.
Register Your Business Name
Once you’ve decided on a business name, it will be associated with your business number and will be used to identify you to anyone you conduct business transactions with. Your business name is essentially your brand so it should be chosen wisely. The registration fee is usually paid yearly and costs $35.
Securing a Business Loan
Once all of the formalities are complete, you might need to apply for a business loan to assist in formally commencing operation. The most common sources of business lending are commercial banks and online direct application companies. Centrelink business loans from Noble for instance allow business owners to borrow up to the $500,000. We would suggest that you think really carefully about how much money you need to borrow as well as the company you approach for funding.
And with that you’re all set to begin running your company. Do be mindful of anything else you need to secure to be compliant with legal legislation such as the appropriate insurance.