Guide to starting a new business
Are you ready to start a business?
Setting up a business is extremely exciting but can also prove to be difficult if you’re not prepared. One of the first steps is starting a business, is to create a plan, which will be the foundation of your business. It will provide a roadmap for how to structure, run and grow your new business.
Business plans provide the opportunity to identify and prioritise objectives and strategies to achieve goals and minimise challenges. A business plan is essential to obtain finance from lenders and therefore, should be created with different forces and factors in mind. A business plan will also help a business decide what structure you chose to trade under.
“A GOAL WITHOUT A PLAN IS JUST A WISH”
Business Plan
Goals
What is your mission statement?
What is your growth potential?
What are your short-term and long-term goals?
What do you want to achieve in a month, compared to what you want to achieve in a year?
Business Structure
Business Structure
One of the key decisions you will make when starting a business is choosing the business structure. The four main business structures are sole trader, company, partnership and trust. The structure you choose for your business will impact your business registration requirements, your options to tax plan and your personal liability. This is summarised in the table below.
If you are unsure of which structure suits your business needs, Carey Group can help you!
Registering your business
Registering your business
Once the business structure is decided, the entity will move into the second phase of the
start-up process – registering the business. This is a process that can be completed by Carey
Group’s corporate team.
1. Apply for an ABN (Australian Business Number)
2. Registering your business name
– Choose an available business name that reflects your brand.
3. Apply for an ACN (Australian Company Number)
– If you choose a company as your business structure, you will have to apply for an
ACN (a number given to you by ASIC).
4. Apply for a Tax File Number (TFN)
5. GST Registration
6. Other Registrations
– Will you need to lodge a Business Activity Statements (BAS)?
Yes, if you register for GST, PAYG Withholding or Fuel Tax Credits
– Do you need to register with any other organisations for your industry?
QBCC, Master Electricians Australia, etc
Insurance
Insurance
Peace of mind comes with having insurance and knowing you and your business are protected if hardships arise. Ultimately, your insurance product needs will vary depending on your business needs. The below table highlights some insurance product options for small business owners.
General Insurance
Public Liability
Small Business Insurance
Workcover Insurance
Building Insurance
Vehicle Insurance
Personal Insurance
Life Cover
Total and Permanent Disability
(TPD) Insurance
Trauma Cover
Key Person Insurance
If you are unsure of which personal insurance product suits your needs,
Carey Group can help you!
Carey Group specialises in personal insurances (inclusive of life cover, TPD and trauma insurance) any other insurance product should be discussed with an insurance broker
Prepare your finances
Prepare your finances
- Set up a business bank account – this will allow you to easily track your business income and expenses.
- Set up a bookkeeping software – we recommend XERO.
- Prepare a budget – this will help you manage your cash flow
from when your business starts, through to growth and
expansion periods. - Payment types – decide on your payment terms and advise what payment options your customers can use (e.g. Eftpos, direct debit, third party payments, etc.).
- Manage your cash flow – your bookkeeping software will have useful reports to help you manage your cash flow (e.g. profit and loss statement, cash flow statement, and budgets).
Employees
Employees
In the foreseeable future and depending on your business’s growth, the opportunity to hire employees may present itself. The Fair Work’s pay calculator is a resourceful tool for estimating employee wages, superannuation and leave entitlements. Before even considering hiring an employee, the associated costs and business’s financial stability needs
to be taken into account.
Using the pay calculator can only be as accurate as the information filtered in.
The required information you will need includes:
- Relevant award
- Apprentice or trainee (if applicable)
- Employee level (e.g. Level 1–5)
- Employment status
- Employee allowances (e.g. uniforms, travel, car)
- Other award specific information
Following the sequence of questions, the pay calculator will generate an employee’s pay rate summary including hourly rate and weekly pay.
For all other employee related topics, the Fair Work system provides informative resources and other tools to guide you.
Contact our Team
With over 70 years of combined experience, our team is ready to take on your accounting and financial matters with accuracy and focus. Contact us today.