Starting a business can be rewarding, both personally and financially, but it can also be risky. Not all new businesses succeed. Before focusing on how to start a business, you need to be sure you are ready to start one. Consider how the potential personal costs of setting up a business, such as a reduced income, and less free time, could affect you and your family, and how you can prepare yourself to meet these challenges.
Preparing for a new business
Starting a business requires careful planning and preparation. Increase your business skills and knowledge so you will know how to start a business that has the greatest chance of succeeding. Information, training and advice is readily available on all aspects of business management such as business planning, resource and risk management, budgeting and decision making.
Think about where you will set up your business. Starting a business in a location that is convenient and accessible to your customers will give it a much greater chance of succeeding. However, location may not be as important if you are starting a business that is home or internet-based.
When you start a business you are required to meet certain legal requirements. To comply with the law you may need specific licences, permits and registrations. You will also need to register your business name with the Australian Securities and Investments Commission (ASIC) and register your business for taxation purposes with the Australian Taxation Office.
Professional advice is essential when starting a business. Enlist the help of business advisers such as accountants, financial advisers, insurance brokers, bankers and solicitors. They can advise you on all the issues above that relate to starting a business, how to legally structure your business (sole trader, partnership, company etc.) and on other important legal, financial, and tax matters.