8 must do’s when starting a business

Running a business requires hard work and dedication, but with an abundance of information on the Internet and new technologies available, starting a business has never been easier.

Do some research

Being highly motivated and passionate about your work is not enough for developing a successful enterprise. In order for a company to be profitable, it needs a lot of customers. In this stage, you need to recognize your customers and competition, but also decide where you want to concentrate your business efforts for the highest gains.

Find a mentor

Experienced business people will not only help you avoid common pitfalls of first steps but also point out the problems that can harm your business later on.

In that respect, you might want to connect with professional organizations and attend workshops or classes at your local university or community college.

Write a business plan

Once you know what kind of business you are going to start, you need to write a business plan. It is essential if you are planning to acquire a loan from a bank or investment venture capitalist. Even if you are planning to fund your business with your own money or by borrowing from your family, you need a business plan. It will help you stay on track, spot any potential weak points and focus on your goals.

Choose a company name

Clearly, your business name will tell your potential customers who you are and what you do. Many start-up owners make mistakes when they name their companies, like using a cliché or allowing a “committee” to make a decision. On the other hand, while words with a special meaning are great for telling the story of your company, some business names are obscure enough to turn away any potential customers. Choose wisely- make it simple and catchy but not too vague.

Decide on a business structure

The size of your business, the type, and the participants determine what business structure will work best for it. This is where you establish the legal form of your business – incorporate, limited liability, partnership or sole proprietorship. This decision will affect legal and tax implications. Therefore, don’t hesitate to consult a tax accountant or attorney and learn about the advantages and disadvantages of every structure.

Register your business

All business owners in Australia must register before starting any business activities. Apart from registering a business name, you may have to pay various taxes depending on your company structure. These include an Australian Business Number (ABN), the Goods and Services Tax (GST), a Tax File Number (TFN) and Pay as you go (PAYG) withholding. There are also other obligations, like registering a domain name or registering a trademark. A different registration process applies for a different business structure.

Obtain licences

Every company has to comply with the government’s licences, permits, approvals, registrations, codes of practice and standards. The licence or permit that you need will depend on the product or service you are providing. Licences and permits also differ from state to territory. If you are starting a business for the first time, you will find the Australian Business Licence and Information service (ABLIS) website helpful in many ways.

Choose the location

Unless you are planning on running your business from home, you will need a separate office or retail space. It needs to accommodate the equipment or furniture and be easily accessible to suppliers and utility providers. Security requirements should include burglar-proof doors and windows, security monitoring and Kensington locks on desktops and laptops.

Before you add your company to a number of thriving start-ups, you need to lay its track. Apart from legal requirements, a good business plan and careful customer research are vital for any business success.

(Featured image by REDPIXEL.PL via Shutterstock)

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DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.