Top Tips for Starting Your Business

When putting your vision into action, there are a number of important factors to consider and tips that can make everything from registration to operation of your business much easier.

Before Starting Your Business: Tips to Ensure You Succeed

The following tips address important aspects to consider before implementing your business vision.

Evaluate yourself

Know yourself, your true motivational level, the amount of money you can risk, and what you're willing to do to be successful.
Firstly, why do you want to start a business? Use this question to guide what kind of business you want to start. Different reasons may lead to different styles of business. For example, if you want extra money, maybe you should start a side hustle, or if you want more freedom, maybe it's time to leave your 9-to-5 job and start something new.
Once you have the reason, start asking yourself even more questions to help you figure out the type of business you should start, and if you have what it takes.

The following are important questions to ask to ensure you are picking a business you can succeed at:

• What skills do you have?
  
• Where does your passion lie?
  
• Where is your area of expertise?
  
• How much can you afford to spend, knowing that most businesses fail?
  
• How much capital do you need?
  
• What sort of lifestyle do you want to live?
  
• Are you even ready to be an entrepreneur?

Be completely honest with your answers. This will create a foundation for everything you do moving forward, so it's better to know the truth now than later.

Choose the Right Business for You

Performing an honest analysis will then help with finding a need that you have the skillset to fill, that you want to fill, and that will produce enough income to build a profitable business.
If yet to develop your business idea, there are ways several questions that can aid with finding the need that you can fill:

 Ask yourself what's next. What technology or advancement is coming soon, and how will that change the business landscape as we know it? Can you get ahead of the curve?

Fix something that bugs you. People would rather have less of a bad thing than more of a good thing. If your business can fix a problem for your customers, they'll thank you for it.

Apply your skills to an entirely new field. Many businesses and industries do things one way because that's the way they've always been done. In those cases, a fresh set of eyes from a new perspective can make all the difference.

Use the better, cheaper, faster approach. Do you have a business idea that isn’t completely new? If so, think about the current offerings and focus on how you can create something better, cheaper or faster.

As part of these, consider the operational needs of the business and if they are feasible for your situation and skills.

For instance, if you’re selling items, how will they be delivered? How much customer support will be needed – either to answer questions about the product, or to respond to people whose shipments haven’t arrived? Will you need to accept credit cards? Will you invoice customers? Who will follow up to be sure you’re paid? Who will build and maintain your website and social media presence?  Will you be able to use a virtual assistant for such tasks, or will you have to hire employees? Even if you’re starting a small personal service business, these are issues you should consider and plan for.

Do market research

Often, this step should be done in conjunction with the previous step, as the best ideas are developed in combination with solid research.

One of the biggest mistakes startups make is to assume a lot of people will want to buy a particular product or service, because the business owner likes the ideas or knows one or two people who want the product or service. To minimize your risk for loss, never assume there is a market. Research the idea.

Talk to real potential prospects (who aren't family and friends) to find out if what you want to sell is something they'd be interested in buying, and if so, what they'd pay for the product or service. For example, you can conduct interviews by telephone or face to face. You can also offer surveys or questionnaires that ask questions like “What factors do you consider when purchasing this product or service?” and “What areas would you suggest for improvement?”.

Let people interact with your product or service and see what their take is on it. A fresh set of eyes can help point out a problem you might have missed. Plus, these people will become your first brand advocates, especially if you listen to their input and they like the product.

Furthermore, research your competitors.

No matter what type of business you are starting or running, you will have competitors. Even if there is no other business offering exactly what you plan to sell, there is very likely to be other products or services your target customers are using to satisfy their need.  To be successful, you need to research the competition and find out as much as possible about what they sell and how they sell it. Competitive research is something you should plan on doing on an ongoing basis, too.

Making It Official

Once you have considered all the above important factors and taken all actions to be prepared for the success of your business, it is time to action your vision.
It is important to register your business legally, to ensure you can protect your idea and begin operations in the most efficient way.

This includes:

Registering your Company

Company registration in Australia involves setting up a company as its own legal entity, which lets you conduct business throughout Australia.
You can also make use of other privileges, such as corporate tax rates or limited liability.

Step 1: fill in a company registration form at Company123
Step 2: receive all company documents within minutes, sign and file
Step 3: recieve ABN, TFN and GST registration (if necessary) and begin operations

For some more information on the registration process see the ASIC website.

If in doubt we recommend that you discuss your needs with an accountant or solicitor for professional advice. Company123 provides free consultations if needed and over the phone advice within business hours of 9-6pm at 03 9832 0660.

Apply for ABN/TFN/GST

ABNs are not compulsory. However, there are many good reasons to have one, for example, ABNs help you:

• to deal with the ATO;
• in dealing with other businesses when supplying goods or services to them, or when purchasing goods and services.
  confirm your business identity to others when ordering or invoicing
• avoid Pay As You Go (PAYG) tax on payments you receive.
  
• claim energy grants credits
• obtain an Australian domain name
  

Also, you need an ABN to register for GST. Entities carrying on an enterprise in Australia with a GST turnover of $75,000 must register for GST.
More information can be found at ato.gov.au.

As registered tax agents, Company123 can register your company for ABN/TFN/GST during the company registration process.

Trademarking your Brand

Trademarks are a form of Intellectual Property that allows your to distinguish the goods or services of your business from those of other businesses.
 It gives you exclusive rights to commercially use, license or sell the trade mark.

Registering an Australian trademark means that no one else in Australia can commercially use your trade mark within the class of goods and services its registered under.
Likewise, for International trademarks, depending on the countries selected.

Company123 are IP agents that can guide you through the application and registration of both Australian and International trademarks.
You can find more information on the process here.

Financing your Business

It is important to consider multiple potential avenues of funding, which could include:

• Fund your startup yourself
  
• Pitch your needs to friends and family
  
• Request a small-business grant
  
• Start a crowdfunding campaign online
  
• Apply to local angel investor groups
  
• Solicit venture capital investors
  
• Join a startup incubator or accelerator
  
• Negotiate an advance from strategic partner or customer
  
• Trade equity or services for startup help
  
• Seek a bank loan or line of credit

Take a look and consider your own resources, circumstances and life state to figure out which one works best for you.

Traditional lenders don't like new ideas and giving money to new businesses that do not have a proven track record. Save up first, as well as approach potential investors. Work out your financial fall-back plan first, and it will ensure you do not hit a snag while building your business due to running out of money.

Materializing your Business

This includes finding a location and building a team. 

In terms of a Location, your priorities will differ depending on need but its important to consider factors such as: demographics, foot tragic, competition, infrastructure, styles of operation etc.

In terms of building a team, it important to remember that handing off responsibilities can allow for higher collaboration and specialisation. As part of this, it is important to seek professional help when needed. If you're not an accountant or bookkeeper, hire one (or both). If you need to write up a contract, and you're not a lawyer, hire one. You will waste more time and possibly money in the long run trying to do things yourself that you are not qualified to do.

Extra Tips for Continued Success

Write a Business Plan

An analysis by researchers at the University of Oregon Department of Economics assessed the success of business plans in aiding with business growth. They found that getting a business plan correlated with increased success in every one of the business goals included in the study, especially financing needs.

Industry experts agree that having a business plan is more than just a bureaucratic checklist to secure a loan, but an essential ingredient for a business's growth and guidance.

Critical elements of a business plan include detailed projections, marketing strategy, management and ownership experience, and value propositions that entice investors. A strong business plan that includes detailed projections, but also communicates important facts, idea and the strong potential of a business can successfully propel the business into their desired future.

Whether it be shareholder agreements, director duties, raising finance or aiming to be on the stock exchange, we can create a plan for you.

On the Company123 website, you can choose from Standard, Advanced and Professional business plans, depending on your needs.

The Standard plans can be the first step in applying for more financing, assisting with rental lease applications, outlining your company's mission statement and drawing up business projections.

The Advanced plans are perfect for business loan applications, sale of business and raising finance.

The Professional plans are our most comprehensive and robust business plan includes, and can include by discussion with our expert team, absolutely anything needed for the running and future goals of the company.

Company123 can tailor our business plans to any of your needs. Simply click the following Link & complete a short form.

Never Stop Learning and Trying New Things

You'll constantly be competing for these customers in the marketplace, and you can never simply rest on your laurels.

What's profitable now, won't necessarily be profitable next year or 10 years from now. So, don't let yourself fall into the "this is the way I've always done things" rut. Keep your eyes and ears open for new things. Are there newer or better ways to market your products and services? Are customers asking for something you're not offering? Is there a different type of customer you should be targeting? Get answers by reading everything you can about your industry and listening to your customers.

Keep researching the market, hiring good people and making a superior product and you'll be on your way to building the empire you always dreamed about.