Starting a Business Step Into Business
18 steps – action plan for young entrepreneurs
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.
You can use this Action Plan as a starting point to prepare yourself and your idea before risking your money or wasting your time. You need to gather as much information as possible prior to making any commitment.
There are books, workshops, and specialist services available to assist you from the Small Business Development Corporation (SBDC) and the metropolitan Small Business Centres. If you’re in regional Western Australia there are 26 country Small Business Centress spread from Kununurra to Esperance.
You stand a much better chance of making your dream a reality if you understand the many things you need to know before you start your exciting journey on the road to success. Here are at least 18 steps you can take towards a more successful business.
| WHAT TO DO | WHERE TO GO |
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STEP 1GET ORGANISED COLLECT YOUR RESEARCH |
Make a list of your personal strengths and weaknesses and consider how they will affect your business idea. Set up a file and fill it with information you have found from research. Here’s a place to start…
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STEP 2BRAINSTORM EVALUATE YOUR IDEA |
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?
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STEP 3GET APPROVAL LICENCES OR PERMITS |
Do you know if there are any licences or permits required to operate your business ? If you operate from/at home you may need a Home Occupation Licence. Check out what other licences or regulations may apply to your business at:
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STEP 4WHO ARE YOU BUSINESS STRUCTURE |
Most small businesses operate as either a sole trader, partnership, proprietary company or a trust. You need to decide which is the most suitable business structure for you. For information consult:
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STEP 5WHAT’S IN A NAME REGISTERING AND PROTECTING YOUR BUSINESS NAME TRADE, MARK AND WEBSITE |
If you operate as a sole trader or a partnership you can operate under your own name(s). However, if you add any words or wish to operate under a name that is not your own you will need to register it:
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STEP 6THE TAX MAN TAXATION ISSUES |
It’s your responsibility to know everything you need to know about tax. Ignorance is no excuse. To stay within the tax laws you can:
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STEP 7LOCATION ! LOCATION ! LOCATION ! LEASES AND BUSINESS PREMISES |
If you need low cost business accommodation that has flexible-term lease agreements, no up-front fees, shared administrative facilities available, conference/training facilities, and meeting rooms for hire check out the Business Incubators:
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STEP 8ANYTHING COULD HAPPEN INSURANCES AND SUPERANNUATION |
Business owners should insure their life, their income, and their commercial risk. Workers’ compensation insurance cover is not available for sole traders, partners, or most company directors, but is compulsory for their employees and some contractors. Contributions to a superannuation fund for employees and some contractors are compulsory. Sole traders and partners may choose to contribute to a fund. Check insurance information in the “Starting a Business” section of the SBDC. Discuss your requirements with an insurance broker or insurance company:
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STEP 9GRANTS FINANCE TO GET STARTED |
There is generally no financial assistance to start or develop a business in Western Australia, however, SBDC has an online register of State and Federal government (and some private sector) financial assistance programs to assist you to identify any possible sources of funding, and the eligibility criteria for that funding, with a link to the web site of each program at www.sbdc.com.au. Entering competitions and awards can bring prizes of cash or goods to help you start or expand. You can use your Business Plan to enter competitions such as:
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STEP 10THE MONEY MACHINE FINANCIAL MANAGEMENT |
Good financial management is critical to the success of your business. This includes costing and pricing accurately, knowing your breakeven point, preparing sales projections, cashflow forecasts, tax obligations and keeping the bookkeeping and other records up-to-date.
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STEP 11FLOAT, DON’T SINK WORKING CAPITAL |
Good financial management impacts on the amount of working capital needed for day to day operations of your business. Tips for minimising working capital needs include:
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STEP 12YOUR LIFE BLOOD MARKET IT MAKES THE DIFFERENCE |
You need to know all about your potential customers, identify their profile and the size of your market:
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STEP 13SPREAD THE WORD MARKETING AND PROMOTION |
Your market research forms the basis of your marketing strategy. It will influence your choice of product or service, pricing, distribution and promotion. This should be reflected initially in your marketing plan and then in your Business Plan. Promotions can include:
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STEP 14MAP YOUR JOURNEY BUSINESS |
A business plan is the solid base from which your business can grow. It describes your idea and how your financial, marketing, and operational strategies will achieve success. A business plan is essential if you need to seek finance, impress a potential partner or investor, and as a means for setting goals and keeping your business performance on track. You need to:
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STEP 15GET PROTECTION TRADE MARKS, PATENTS and DESIGNS |
Can you protect the intellectual property (IP) components of your product or service by registering a patent, trademark or design? What’s the difference between them ? Can you copyright an idea ? Are you infringing on somebody else’s IP ? Find out more at:
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STEP 16BEAM ME UP! THE JOYS OF |
Using technology wisely can save valuable time and money, streamline your business operations, keep you safe, market your business, and much more. Technology includes such things as your telephone system, digital camera, fax, answering machine, photocopier, pager, mobile phone, two-way radio, teleconferencing facilities, cash registers, security systems, computers, software applications, manufacturing equipment. Keep up with new developments. Your internet connection and email facility can be a window to the world where you can conduct B2B transactions, purchasing, selling, banking, marketing, and maintaining open communication lines. Discover and exploit its potential.
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STEP 17BEING THE BOSS EMPLOYING |
There are various legal obligations for employers which include complying with awards and minimum conditions of employment, workers compensation insurance, superannuation, taxation, and keeping accurate records. It’s not difficult if you understand your obligations:
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STEP 18LEGALITIES |
There are many legal documents that you may require in the operation of your business and it is essential to obtain legal advice when drawing up contracts and entering into any binding agreement such as partnership, agency, confidentiality, commission agreements and employment contracts to name a few. An offer to purchase a business, a lease, contract for service, and your terms and conditions of trade are a few more. Don’t try to save money by ignoring this important issue, a poorly constructed document can still be legal and binding to both parties. You can find some very basic documents in software packages sold through software retailers, and research information on the internet. |
LEGEND / CONTACT DETAILS / YOUR MOST FREQUENT NUMBERS:ATO – Australian Taxation Office 13 24 78 |
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