SmallBusiness.wa.gov.au
The Small Business Specialists
Phone: 131 BIZ
Website: www.smallbusiness.wa.gov.au
For many people, the idea of going into business is appealing because it seems to offer direction and control over their lives.Sometimes the reality can be the opposite. So prepare yourself and your idea before risking your funds, by gathering as much information as possible prior to making any commitment. There are books, workshops and specialist services available from the Small Business Development Corporation (SBDC) and the Small Business Centre network to assist you.
For information on SBDC publications for sale and workshops, telephone 13 12 49 or go to the SBDC website.
Most successful business owners are hardworking, self-motivated, decisive and in good health. If you are considering going into business, you need to be aware of your skills and abilities and what motivates you. Make a list of your personal strengths and weaknesses and consider their impact on your business.
Has what you want to do been done before? Was it successful? Is what appears to be a good idea going to be a commercially successful idea? Do you have the skills to make it successful? Do you have the money (or access to it) to go into business at this time?
You need to find out if you require any licences and/or permits to operate the proposed business. You may need a permit from your local council if you plan to operate a home based business.
By answering the basic questions of Who? What? Where? When? and for How much? You can create a profile of your potential customers. You then need to identify the segment of the market (niche) that will be your target market. You also need to identify the strengths and weaknesses of your competitors so you can identify your competitive advantage.
A search of the trade mark databases before you register a business name, a company name or a domain name can help you to avoid potentially costly errors. A trade mark is a word, phrase, letter, number, logo, picture, sound, smell, shape, aspect of packaging or a combination of any of these. Copyright is not registered as it automatically vests in the creator.
A business plan is essential if you need to seek finance or impress a potential partner or investor. It will help with setting goals and staying on track. A business plan encapsulates the business idea and the financial, marketing and operational strategies to achieve success.
The location of a business can be critical to its success and an unsatisfactory lease can lead to business failure. Most retail leases in Western Australia are regulated by the Commercial Tenancy (Retail Shops) Agreements Act 1985. Do not accept or sign any offers to lease before receiving ALL relevant documentation including a disclosure statement, tenant guide, expenses budget and a form of the lease.
Good financial management is critical to the ongoing success of your business. This includes costing and pricing accurately, knowing your breakeven point, preparing sales projections and cashflow forecasts, and keeping bookkeeping and other records up-to-date.
Generally there are no government grants to start or buy a business. When you have ascertained your start-up costs and estimated income and operating costs for at least the first 12 months, consider how any shortfall will be funded. Possible sources of funding include savings, friends, partners, or a bank or other financier. Lenders will generally require a business plan, including cashflow forecasts and sufficient collateral as security.
Legal obligations for employers not only include complying with awards and minimum conditions of employment but a range of other matters such as equal employment opportunity and occupational safety and health.
Most small businesses operate as a sole trader, partnership, proprietary company or a trust.
It is recommended that you seek professional advice from your accountant on your choice of business structure.
Working capital is money available to cover the day-to-day operation of the business. The management of working capital involves managing the levels of both current assets and current liabilities and their impact on the cash available for day-to-day operations. Business expansion generally increases the need for working capital.
Business owners need to insure their life, their income and their commercial risk. Workers’ compensation insurance cover and superannuation guarantee contributions are compulsory for employees and some contractors.
If you operate as a sole trader or a partnership you can operate under your own name(s), but if you use any other name you need to register it as a business name. A new national business name registration system commenced on 28 May 2012 under ASIC. For more information see ASIC's website.
If you operate a business you are entitled to an Australian business number (ABN). If your turnover is at or exceeds $75,000 per annum you are required to register for goods and services tax (GST) with the Australian Taxation Office. Below this turnover, registration is optional.
Marketing means more than selling, it is concerned with every aspect of the product or service from inception, design, pricing, distribution, selling and promotion through to after sales service and measurement of customer satisfaction. Your market research will form the basis of your marketing strategies. Promotions can include advertising, radio spots, sponsorships, brochures, signage, business cards, referrals, direct mail and guest speaking.
Keep up with new developments. Evaluate the standard and performance of your fax machine, telephone system, photocopier, answering machine, pagers, website, social media, mobile phones, two-way radio, teleconferencing facilities, cash registers, security systems, computers, software applications and your broadband or modem internet access.