There is no doubt that starting a business is a big decision. It involves a good amount of preparation and planning as well as a level of risk.
While there are external factors that you cannot control that can impact the success of your business, there are plenty of things that you can do when establishing your business to help minimise some of the risks and set yourself up for the best chance of success.
There are lots of things to consider when starting a business from fine-tuning your product or service offering to establishing the most appropriate business structure, payment and billing systems and tax obligations, just to name a few.
It is to be expected that over time, your business, and its needs, will grow and change. But starting off on the right foot can make a huge difference, in both the short and long term. So “What do I do to get started on the right foot?”, we hear you ask.
At The Quinn Group, we have over 30 years of experience advising and facilitating the process of setting up a business in Australia. As an integrated team of accounting, taxation and legal professionals we are perfectly placed to guide you through every aspect of establishing a new business. Seeking professional advice from the earliest stages of your business building idea is one of our 5 top tips to starting a business in Australia.
1. Do Your Research
This may seem pretty obvious, but it is important to have a clear idea of the type of business that you will be operating. Carefully consider questions such as:
- What will you be selling?
- How will you sell it?
- Who are the customers?
- Who are your competitors?
- Are there any regulations or licensing requirements for the industry that you will be operating in?
A great way to clarify your goals and intentions for the business, for both yourself and other potential stakeholders, is by preparing a business plan. Having clear and timely strategies assists in keeping your business on track in the long term and can also help to ensure that your business is well positioned to respond appropriately to changes and opportunities that may arise from within or outside your business.
Research can come in many forms, such as gathering information online, from relevant organisations or industry bodies, as well as asking questions of those who have started their own business and/or are in the industry that you intend to operate in.
2. Get Professional Advice Early
Part of the research and initial planning for your business should involve seeking professional advice. Professional advice is integral to helping you make better informed decisions about many aspects of your business and ultimately contributing to your future chances of success.
The type of advice that you might need can vary greatly depending on the type of business that you are looking to establish, and the relevant skills and experience that you already have yourself.
The facets of running a business are broad. You might seek professional advice to better understand business operations, equipment or resources options or industry or government regulations. Anything that you feel you need some help and guidance with really.
For most, if not all, business owners, there is no doubt that they will benefit greatly from professional accounting, taxation and legal advice. These areas can be complex to navigate and constantly changing. Engaging a professional whose role it is to stay abreast of all the latest requirements and obligations, means that you can be sure those important things are being taken care of, while you focus on all of the other things that you have to do!
In a recent “Do Better Business” survey completed by small business platform Xero, a staggering 83% of respondents admitted to making costly mistakes over the course of running their business. That’s not to say that by seeking professional help you will never make a mistake, but seeking the advice of professionals right from the beginning, and continuing to access that advice as you carry on your business, can certainly lead to you making better informed decisions and help to minimise the instances of those costly mistakes.
3. Hire an Accountant
It is strongly recommended that all new business owners engage the services of an experienced accountant.
Having a trusted accountant on board from the very beginning means that you are laying a strong foundational structure for the future growth of your business.
In the initial stages, accountants can assist with a wide range of advice and services such as registering business names, obtaining ABNs, choosing the right business structure, taxation advice and registration, payment and billing systems and many more.
Once your business is up and running, your accountant is then well placed to give ongoing support and advice to maximise your business potential, as they have a thorough understanding of your business dealings.
4. Choose the Right Business Structure
When you start a business, it’s very important to choose the business structure that best suits your needs. As mentioned above, an experienced accountant is the best person to discuss your business structure options with. They will be able to understand your personal situation and goals and then advise on the most appropriate structure for your business.
The four business structures are:
- Sole Trader
- Partnership
- Company
- Trust
Each business structure has its own set of pros and cons which is why it is important to seek professional advice to be sure that you are making the right choice for your particular circumstances. Choosing the wrong business structure in the beginning can potentially cause problems down the track.
5. Establish a Solid Financial Management System
Another interesting finding from the “Do Better Business” survey was that 73% of those surveyed rated the need to implement strong financial management practices in the top 3 priorities that those starting a small business should focus on.
There are obviously a lot of financial decisions and considerations when you are planning and establishing a new business.
The four crucial things to consider are:
- Raising Capital
- Cash Flow
- Taxation
- Bookkeeping
An accounting and taxation expert can provide advice on the above crucial financial aspects, and help you to establish a solid financial management system by:
- Advising the best options and facilitating set up of your invoicing, payments and records systems
- Establishing and overseeing systems and procedures for invoicing customers, paying creditors and keeping records, which are all essential parts of running your business
- Helping you to understand and meet your taxation obligations
- Regular tax planning and cash flow advice
Expert Advice when Starting a Business
Starting a business in Australia can be quite complex but also extremely rewarding. It takes a big commitment of time, and also money, and so it is important to get things right the first time around to avoid wasting that precious time and hard earned money. With the help of expert accountants, tax advisors and lawyers at The Quinn Group you can be confident that you are giving yourself, and your new business, the best chance of success from the very beginning.
Contact us on 1300 QUINNS (1300 784 667) or +61 2 9223 9166 or submit an online enquiry to arrange an appointment to discuss starting your new business in Australia.
Access Your Copy of The Definitive Guide to Starting a Business in Australia
Michael Quinn and Julia Kharlamova of The Quinn Group have created The Definitive Guide to Starting a Business in Australia.
This informative resource includes vital information on many areas related to starting a business in Australia, including taxation, accounting, bookkeeping, insurance, legalities, and immigration.
It’s comprehensive contents is designed to assist you to:
- Develop a business plan and strategy
- Understand different business structures
- Understand all the relevant Australian taxes payable
- Register your business for GST, obtain an ABN and other essential registrations
- Keep appropriate records of your business
- Comprehend the legalities surrounding a business
- Understand Human Resources, payroll and employment of staff in a business
- Know how to market your business
A full version of this amazing resource is provided as part of our Starting a Business consultation. If you are thinking about starting a business in Australia, the team at The Quinn Group can provide personalised comprehensive, expert advice for your individual circumstances.
Contact us by calling +61 2 9223 9166 or complete and submit an online enquiry form to arrange an appointment.
