Starting a business can feel exciting and overwhelming. If you’re not sure how to begin, here are some actions you can take.
1. Create a business plan
It’s important to understand your vision, goals and strategy as early as you can – this is where a business plan will help. You’ll see opportunities and challenges that may be unique to your business and you’ll be able to plan for them. Once you’ve created your business plan, you can use our financial plan template to understand your costs and get started.
2. Choose your business structure
The way you structure your business will have an impact on how much tax you pay and what you’re liable for, so it’s important to make the right choice. Assess whether your business will work better as a sole trader, partnership, company or trust.
3. Complete our start-up checklist
This is a list of basics you’ll need to cover, like getting an Australian Business Number (ABN) and registering your business name.
4. Understand your business finance
As your business grows, your finances will become more complicated. Being organised from the beginning will help you to stay in control.
Make sure to regularly:
- Set and review your business budget
- Record your income and expenses
- Monitor your cash flow
Learning key financial ratios and business numbers will help you track your performance over time. It’s also important to understand financial obligations, like whether you need to pay Goods and Services Tax (GST). Seek help from your accountant if you’re unsure.
5. Find a mentor or community
Running a business can be quite isolating. Find people to celebrate your wins with and to talk to about your challenges. Consider networking with groups in your industry, hiring a business coach, or looking online for support forums.
6. Develop good business habits
These may include automating as much as you can, keeping your business and personal finances separate, and keeping reporting up to date. Creating good habits and putting systems in place early on will help you to grow and manage your business.
Next up: How to manage your business finances