[click to return to Clients Home]

STARTING A SMALL BUSINESS

When looking at starting your own business, it is important that you take the following into account:-

1.  Being honest with yourself and your family to ensure that you have the personal qualities and support needed to own and operate a business.  Simply If you do not like dealing with people and lack family support for the venture then it will be very difficult to be successful.

2.  Home work. Research your business ideas and satisfy yourself that the idea is commercially viable. Inventors come up with brilliant ideas daily but few make it to commercial production.

3. Planning. Take the time to sit down and write a business plan for your new venture. Part of this will be to analyse the industry and opposition and write down what makes your business unique. If you do not know your industry or what your opposition are then you will not succeed.

4. Use your accountant to help decide which of the Four types of business structure best suits your individual situation.

 The main types of  business structures are:-

• Sole trader
• Partnerships of individuals, companies, trusts
• Pty Ltd company (incorporated);
• Discretionary (Family) or unit trust; or
• A combination of some of the above.

The choice should take into consideration the type and profitability of the business venture and the relationship ( family, financial  and tax  positions) of the people starting the business. 

Your structure should:

1. Maximise protection of assets;
2. Minimise tax (including capital gains tax); 
3. Allow for future additions such as children entering the business ( Succession Planning) 
4. be flexible.

• If you do not have previous management experience, then you should seriously look at some formal training such as a TAFE small business program.  There is more to running a business than knowing how to repair a car engine.
  
  To make a profit, a small business operator must acquire skills in bookkeeping, marketing, staff selection, staff supervision and stock control. If you do not have these skills then you will have to employ others with this expertise to be successful .

  To become a successful business person requires hard work and the ability to seek help to fill the gaps in your knowledge base.