How to start a business in 9 steps
Starting a business can be one of the most amazing, fulfilling and even life-changing experiences you'll have, but it's also incredibly hard-work.
It’s difficult to know where to begin, and things only get more confusing from there.
Instead of wasting your time and energy wondering which approach you should take, follow our complete 9-step guide on how you can start your own business. This guide will take you through the steps of becoming an entrepreneur, from creating your business plan, to registering your new business, to handling your business’ finances.
1. Have a clear business plan
Your business plan will be your blueprint for establishing your business. This document will help you flesh out your business idea, and communicate it to potential investors, partners, or employees.
A good business plan should include:
- A list of the products/services you’ll offer
- An analysis of the market you’ll be operating in
- An analysis of your product/service’s target audience
- A strategy for how you’ll price your products and services
2. Choose your business structure
Before you register your business, it’s important to figure out what kind of entity it will be. Your business structure will affect how much tax you owe, how much ownership you have over the business, and how liable you are if the business fails.
Your business can be set up as either a:
- Sole proprietorship
- Partnership
- Corporation
- Limited liability company (LLC)
Make sure you research each type of business structure thoroughly to decide which one suits you best.
3. Have a clear idea of your competition
Now that you have a clearer image of how your own business will operate, it’s time to scope out the competition.
Your competition includes the businesses who offer a similar product or service to you, as well as the businesses who offer your customers a different kind of solution to the same problem you’re trying to solve.
Researching your competition will give you a strong understanding of the space you’ll be operating in, which is essential for the next step in starting your business.
4. Do a SWOT analysis
With a good understanding of your business, as well as the businesses you’re up against, you can finally create your SWOT analysis.
SWOT stands:
- Strengths
- Weaknesses
- Opportunities
- Weaknesses
Analysing where your business stands in each of these categories will prepare you for success.
5. Register your business & get licences
It’s finally time to officially register your business with the government. Getting an ABN will allow you to legally start operating your business, which means you’ll be able to receive payment for the goods and services you offer without getting into hot water with the Australian Tax office.
Depending on the type of business you run, you may need to obtain other kinds of licences from the government as well.
6. Open a business bank account
Regardless of the type of structure you chose in Step 2, it’ll be important to separate your business and personal finances. A business bank account will allow you to buy from suppliers, invoice customers, apply for business loans, track your cash flow, and easily pay your taxes.
Finding the right bank account for your business can be tricky, so make sure to do your research or consult your accountant.
7. Establish your bookkeeping processes/strategies
Bookkeeping is the process of tracking and recording your business’ financial transactions. It’s essential that you establish good bookkeeping practices early on, to avoid financial issues later down the road.
Bookkeeping can be quite a time-intensive task, but there are plenty of ways to improve your businesses bookkeeping efficiency.
8. Choose an accounting software
One such way to streamline your bookkeeping is to use accounting software. These programs make invoicing customers, paying employees, and purchasing stock a lot easier.
Examples of paid accounting platforms you can utilise for your bookkeeping
- Xero
- MYOB
- Quickbooks
9. Hire an accountant, financial adviser, or bookkeeper
If you want to skip the previous three steps, hire an accounting expert to handle your finances for you.
It’ll save you time, which you can spend on building your business, and it might just save you money too.
Contact Us
As a business owner, reduce risks by seeking professional tax advice.
Let Piee become your partner in streamlining the process, enabling you to concentrate on what you do best.
To speak to an expert accountant about setting up your new business’ finances, get in touch with us.