Or maybe the entrepreneur in you can see an opportunity, a problem that no-one else is offering a solution for?
- Consider both the upside and the downside
- Common pitfalls
- Be prepared for hard work
- Assess the viability of your idea
- You’ve got to feel ready for running your own business
- Can you test the water first?
Maybe your idea is writing e-books, or selling perfume online, or setting up your own handyman business. See if you can trial it in the evenings or on the weekends, so you can confirm there will be sufficient demand for your service or product, to make it financially viable for you to embark on doing it full-time (However, even if you are trading only on a part time basis you will still need to register a business name and obtain an ABN)
- Choosing a business structure
- Choosing a business name
- Registering your business name in Australia
If this all seems a little complicated, get a couple of quotes from local Tax Agents as to what they would charge to complete it for you online. It's a fairly quick process to obtain an ABN for people familiar with navigating their way around the ATO procedures
Note that registering a business name is not the same as registering a company name. If you decide to set up your business as a company structure, the current ASIC fee for registering your company name at time of writing is $433. A company name has Pty. Ltd. at the end of it.
To register as a company, you can either attempt to do it yourself through the ASIC online portal (but it is somewhat complicated) or there are other commercial online services that help to simplify the process and charge less than $100 in addition to the ASIC fee. This compares to some accountants who will charge up to $1,800 to handle your company registration process.
If you do not decide to set up as a company structure, then the initial cost of registering a business name with ASIC at time of writing is $30.
There are subsequent annual renewal fees to maintain registration of your name as well.
- Your business plan
This is where you establish written goals for each of the major components of your business, and set out some actions, time-lines and strategies for achieving your goals. The level of detail in your plan will be determined by whether you are writing it for yourself, or in support of an application for a government grant or bank loan (these will typically require a greater level of detail).
At its simplest level, your business plan defines the objectives of your business, the target market, your sales and revenue goals and projected major operating costs for the year (this becomes your budget). It incorporates how you will market your business and differentiate yourself from your competition, including any major advertising and promotional strategies. Your business plan answers the basic questions of who will buy from you, why they should buy from you (and not your competitors) and how you will efficiently deliver to your customers what they have bought from you.
Your business plan is something that you should continue to keep in your line of sight, because it will provide you with focus and help you to judge priorities during the year
- In closing