Are You Ready For Business?

Once you have satisfied yourself that you are suitable for small business and that there is a clear, viable market for your business, use the following checklist to ensure you have everything in place ready to start your business.

Have you confirmed your business structure?
Choice of business structure (eg. Sole trader, partnership, Pty Ltd company) will have considerable affect on the operations of the business. It will affect personal liability, taxation and other legal obligations. If you are unsure which structure to choose, seek professional advice from an Accountant or Solicitor.

Is your business name registered?
A good business name can be a valuable marketing tool. If you are a sole trader or partnership trading under a business name (ie. Not your own name) you will need to register the business name with the NSW Office of Fair Trading (or equivalents in other states).

Have you identified your taxation obligations?
You need an ABN to run a business in Australia. You also need to check your GST, Income Tax, Payroll Tax, Fringe Benefits Tax and Capital Gains Tax obligations.

Are your licences and permits in place?
Federal, state and local governments are responsible for different business licences, registrations and certificates.

Is you Marketing Strategy developed and ready for implementation?
Your marketing strategy includes Positioning, Product, Price, Promotion and Place strategies. It is imperative that these are consistent and appropriate for your target market.

Have you considered exporting?
Exporting can be a good way to reduce your reliance on the domestic market. It can also be a profitable way to grow.

Are your insurances in place?
Speak to an insurance broker and find out what types of insurances are necessary for your business. The only compulsory insurances in Australia are Motor Vehicle Third Party Personal Insurance and Workers Compensation Insurance if you have workers. However many businesses will require Public Liability, Professional Indemnity, fire, theft etc. Get quotes early so lack of insurance does not delay your start date.

Have you any Intellectual Property? Have you considered how/if you can protect your Intellectual property?
Intellectual property is anything new or original you have created using your intellect. You can protect Intellectual property (IP) through various forms of registrations eg. Patents, trademarks, copyright, plant breeders rights, circuit layout rights and trade secrets and confidential information. This is a complex area and often overlooked in the establishment phase of a business.

Have you considered any other legal issues relevant to your business?
As well as business structure, insurance, licences and permits there are other legalities that may impact on your business eg. Contracts, debt recovery processes, trade practices etc

Have you secured your business location?
The best location for your business will depend on a number of factors eg. Costs, competition, inventory implications, proximity to customers and suppliers, transport and warehousing.

Have you firm arrangements with potential suppliers?
It is crucial that suppliers are locked in prior to starting your business. Despite positive initial discussions many supplier arrangements falter as they have not been fully detailed at the outset of discussions and there is room for misunderstanding.

Do you understand the cash flow implications of your business?
Many businesses have a timing mismatch in the receipt of funds and the payment of bills ie. You may have to pay bills prior to receiving the proceeds of sales. This shortfall in working capital needs to planned for and appropriate strategies pt in place from the outset. Click here for access to a Cash Flow Spreadsheet.

Have you got a record keeping system in place?
In addition to meeting taxation requirements, a good record keeping system will provide invaluable management information and data on which to base sound business decisions.

Are you aware of all your obligations towards staff?
As a business owner and an employer you will have many obligations to your employees. A thorough understanding of these obligations will help you to ensure the fair treatment and conditions of your staff as well as protecting their health and safety. In turn, this can improve the efficiency of your business.

Have you got systems in place for managing staff performance?
An important part of maximising performance in the workplace is through the review, analysis and evaluation of each individual employee or sector. Part of improving performance is being able to recognise and identify strengths and weaknesses within your organisation.

Have you considered how you will exit from the business?
While it may seem odd to think about this when your business is new, at some stage you will leave your business. Whether you decide to sell up, retire or have to get out of business due to health reasons, it’s important that you plan for that day. A succession, or exit, plan outlines who will take over your business when you leave.

Do you know where to access information regarding grants your business may be eligible for?
For further information about what grants are available, see our Grants Calendar