Starting your own business can be exciting. You have an idea, you can see the possibilities, and you may be keen to get started as quickly as possible.
But before you open the doors, launch the website or start looking for your first customers, there are a few things worth getting in order.
As the Small Business Accountant Hobart business owners have relied on for more than 25 years, Hills Accounting knows that some of the decisions you make before starting can have a lasting effect on the business you eventually build.
Here are six things worth thinking about before you begin.
1. Know Your Market
A good idea doesn’t automatically make a good business.
Before committing too much time or money, take a close look at the market. Who are your likely customers? What do they need? Who else is already providing something similar, and what could make people choose your business instead?
Some basic market and competitor research can help you test your assumptions before you invest heavily in them.
2. Work Out How the Business Will Operate
You don’t necessarily need an enormous formal business plan before you begin, but you do need a clear idea of how the business is going to work.
What will you sell? How will customers find you? What will you charge? What will it cost to provide your product or service? Will you work from home, lease premises or operate online?
Putting those thoughts into a practical business plan can help turn an interesting idea into something you can properly assess.
3. Choose the Right Business Structure
Will you operate as a sole trader, partnership, company or another structure?
The answer can affect taxation, reporting requirements, costs, legal responsibilities and personal liability. The simplest option today isn’t necessarily the best option for the business you hope to have several years from now.
This is one decision where getting advice early can save considerable trouble later.
Further Information
The Australian Government’s business.gov.au website provides a detailed guide to starting a business, including planning, business structures, registrations, finances and other important steps to consider before you begin. Click Here For More.
4. Get Your Registrations and Requirements Sorted
Depending on the business, you may need an Australian Business Number (ABN), business name registration, GST registration, licences or permits before you start trading.
The requirements aren’t identical for every business, so find out what applies to yours rather than assuming everything can be sorted out afterwards.
5. Establish Strong Financial Foundations
Before the first sale arrives, think about how you’ll manage the money.
How much will it cost to get started? How much working capital will you need? How will you manage invoices, expenses, bookkeeping and cash flow? What tax obligations should you be allowing for?
Having appropriate accounting systems and financial processes in place from the beginning makes it much easier to understand how the business is actually performing.
6. Get Good Advice Before You Commit
There is a big difference between exploring an idea and committing yourself financially.
Before signing a lease, borrowing money, purchasing expensive equipment or making other major commitments, talk to the appropriate professionals.
An accountant can help you look at the numbers, consider the tax and financial implications and identify questions you may not yet have thought to ask.
Starting a business will always involve some uncertainty. You don’t need to know every answer before you begin, but taking the time to put strong foundations in place can give your new business a much better start.
And if you’re thinking about starting a business and would like some help getting all your ducks in a row before you begin, have a chat with the team at Hills Accounting Hobart.
Sometimes a little good advice at the beginning can prevent a lot of expensive paddling later.
Remember, this article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs.
For advice tailored to your circumstances, have a chat with us at Hills Accounting Hobart.
Talk to Kathy and the team today
and stay ahead with Hills Insights.
Call 📞 03 6273 7800,
or email admin@hillsaccounting.com.au.
Follow Hills Accounting on Facebook and LinkedIn for updates and practical business tips.