1. Preparing yourself as a business owner

Assess yourself and work out if you have what it takes to be a business owner.

• Education and prior experience (in the business venture)

• Understanding the many hat’s in business (ie Admin, Financial, Operational, Marketing and overall strategy)

• What’s your Why? Why are you starting a business?

• Time capacity

• Financial capacity

2. Is your business idea ready for market?

You now understand that you’re the right fit for a life in business, let’s check to see if your business idea has legs. To analyse your business idea we consider the following questions:

• Is there a need for your product or service?

• Is there a desire for your product or service?

• Who will buy the product or service? Ie who is your customer?

• How hard will it be to develop your idea?

• Is your idea financially viable?

• How will you protect your idea?

• Who are your competitors? Ie who is your direct competition?

3. Understanding the risk component of your business

Setting up your business can be exciting, it’s new, it’s fun and most importantly it’s yours. But setting up a business (especially a start up) will be hard work and the honey moon period won’t last forever, at some point reality is going to set in.

• Understanding the failure rates of business and common reason’s business fails

  • Strategic Risk

  • Compliance Risk

  • Operational Risk

  • Financial Risk

  • Reputational Risk

• Other external factors that should be considered

  • Dealing with natural disasters or pandemics

  • Not being able to run the business (for example due to health)

  • Technology and landscape disruption

4. Re-examine parts 1-3 above and conclude, Are you ready for business life and become self employed?

SECTION 2: MAKING CRUCIAL BUSINESS SETUP DECISIONS

1. Choosing the right business structure

Review the following structures:

• Sole Trader

• Partnership

• Company

• Trust

2. Tax and business compliance

Register or consider registering for

• ABN

• ACN

• GST

  • consider monthly, quarterly and annual reporting

  • Cash vs Accrual method

• Payroll and PAYG withholding

• FBT

• PAYG tax instalments

• Payroll Tax

• Fuel tax credits

• Domain

• Workers compensation

  ACCOUNTING SOFTWARE

• Choosing the right accounting software

• Choosing the right software apps to integrate with your accounting software

  LICENSE AND GENERAL LEGAL COMPLIANCE

• Industry based licenses and permits

• Choosing a business premise, including lease guidance

• The importance of engagement letters and/or customer contracts p. Shareholder
  agreements and other legal documents

  OTHER CONSIDERATIONS

• Insurance

• Human Resources – if employing

3. Choosing a business name

• Applying the marketing rules against your name

• What to consider when choosing a business name

• Making your business name all yours, legally!

4. Planning not to fail, by planning for success

• Developing a business plan

• Writing a marketing plan

• Vital research and understand your stakeholders

• Cash flow system (introduction to next program)

https://business.gov.au/Guide/Starting
https://business.gov.au/planning/new-businesses/preparing-yourself-for-business