Starting a business can change your lifestyle, both professionally and personally. It also involves a significant financial commitment. To give yourself the best chance for success, be sure to research your business idea before diving in.

This checklist will help you plan and determine if your idea is worth pursuing. Download a PDF version (2-page PDF 101 KB) for printing, or use the links on this page to quickly get what you need to start.

1. Your first step
2. Will it work?
3. Choose your business structure
4. Regulations and protections
5. Employing staff
6. Locations and leasing
7. Money matters
8. Marketing
9. Building your support team
10. What's next?

1. Your first step

Attend a BIZ Basics free information session at the Small Business Development Corporation (SBDC).

Assess yourself...

• Why do you want to start your own business?
• Will running your business provide what you are looking for?
• Do you have the relevant skills and industry experience to make this business a success?

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2. Will it work?

Research your business idea to ensure there is a demand for your products or services. For example:

• conduct a survey
• analyse your competitors - have others tried your idea and failed? Is the market saturated?
• find out what information already exists - visit the Australian Bureau of Statistics (ABS) the State Library internet, local libraries, industry reports (IBIS World) business benchmarks
• analyse the industry your business will be a part of - is it stagnating or in a period of growth?

Assess and manage your risk. What are the key risks that could have a negative influence on your business and how can you reduce their impact?

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3. Choose your business structure

Determine the legal structure of your business - The best business structure for your business will depend on a number of factors including number of owners, risk, liability and tax rate.

• sole trader
• partnership
• company
• trust or
• cooperative.

Seek professional advice from your accountant on the best structure for your situation.

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4. Regulations and protections

Register a business name or a company name with the Australian Securities Investments Commission (ASIC).

Register with the Australian Taxation Office (ATO) to get an:

• Australian Business Number (ABN) and if applicable
• register for GST (only applies if turning over $75,000 or more per year).

Identify necessary business licences and permits.

For those businesses planning to have a website, register a domain name

Contact IP Australia to protect:

• intellectual property or
• register a trade mark

Contact an insurance broker to determine what insurances your business will need.

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5. Employing Staff

Check which industrial relations system applies to your business - State or National.

Check your obligations towards staff, including insurance, occupational health and safety, and minimum conditions of employment.

• Arrange superannuation payments for yourself and your employees (compulsory even for some contractors).

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6. Location and leasing

Determine the most cost effective and practical location for your business:

• home based,
• business incubator, or
• commercial premises.

Read and review all the relevant documentation before signing a lease agreement.

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7. Money matters

Analyse your current financial situation.  Can you afford to start this business?

• Determine if your business needs any additional funding by completing the 'Establishment Expenses' spreadsheet.

• Complete 'Costs of Goods Sold' and 'Operating Expenses Forecast' spreadsheets to determine costing and pricing.

• Prepare a 12 month sales forecast using the 'Sales Forecast' spreadsheet.

• Prepare a 12 month cash flow forecast using the 'Cash Flow Forecast' spreadsheet.

• Determine the breakeven point of your business using the 'Breakeven Calculator'.

Open a business bank account.

Set up a financial records management system, such as MYOB or QuickBooks or use Excel spreadsheets.

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8. Marketing

Determine your 'unique selling proposition'. Why will your customers buy from you and not your competitors?

• Identify your target markets (for example, who is your product or service aimed at?) and determine the characteristics of these target markets.

• Create a brand for your business that matches these target groups - logo, colour theme, website, and culture - and then build awareness of your brand within these target markets.

Prepare a 12-month marketing calendar focusing on specific promotions for your target markets.

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9. Building your support team

Find an accountant to assist with business direction and taxation.

Find a lawyer to assist with business contracts and legal issues.

Join the relevant industry association or body to gain better understanding and support.

Join relevant business networks to build a support team and spread the word about your business.

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10. What's next?

Use all the information gathered through this checklist to prepare a practical, workable business plan.

Set SMART (specific, measurable, achievable, realistic, timed) goals for the business.

• Enrol to complete any relevant business workshops/training to build your knowledge.

• Purchase any relevant business books to build your knowledge and sign up to business e-newsletters and blogs.

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