Starting a Business Business Briefs

The SBDC has created a series of "business briefs" which are one or two page outlines covering many topics as a quick reference.

Here you can find valuable information on the following topics:

Business structures

What is a business structure?

How do you structure your business, and which structure is best for you? There are lots of options for the way you set up your business.

You can be a sole trader or a partnership, or if you are thinking big maybe a company or trust is the right way to go. You will need to take into account costs, tax issues and the feasibility of each option.

It’s a very important decision so think wisely, and get some professional advice from an accountant or business advisor.

You can find out more about business structures at the 2 hour “Starting a business” workshop run by the Small Business Development Corporation (SBDC). If you’re a Young Business Network (YBN) member you’re eligible for the special 50% discount price of $25 for the workshop, which includes a manual, (A Guide for operating a small business, value $25.00) GST and refreshments. You can book by phone (08) 9220 0235, or online. Another option is to visit the Business Information and Licence Centre (BILC) to read the “Business structures” booklet.

» Download the 'Business structures' Business Brief

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Partners in business

Sharing is Caring!

Thinking of setting up a business partnership?

It’s a great way to run a business, share the costs and work-load, and make a profit! But remember… before agreeing to a partnership there are many important things to consider.

Even if you’re going into business with family and friends you should write and register a partnership agreement which sets out all the terms and conditions of the arrangement. It should include such things as responsibilities of each partner, a partner leaving, bringing in a new partner, sharing of workload and profits and losses, and even what will happen when the partnership needs to be dissolved.

Be prepared to compromise in coming to an agreement on the finer points of your venture. Understand that you will have to establish clear communication channels, and accept and delegate responsibility. You need to get some professional advice, and think very seriously about a signing the formal partnership agreement, as it becomes a legal contract which must be adhered to.

You can find some excellent information on partnerships, and a checklist of issues to consider when writing your partnership agreement, in the SBDC’s booklet “Business structures” costing $5.50, available from the BILC, or from the online bookshop.

» Download the 'Partners in business' Business Brief

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Business planning

Why do I need a business plan?

Now that you have your idea, you need to put it on paper. Writing a business plan can help you to sort out, and put into order, all those great ideas you have for your business. A well prepared business plan will take you a step closer to making your business idea a reality and can be one of the most important things you can do for your business.

By writing everything down in a structured plan, it will help you to decide if your business is feasible. You can outline your strengths and weaknesses and marketing strategies.

It’s a good way to bring all of the information together in a format you can show to others, including bank managers if you need to apply for finance. You will also need a business plan to be eligible to win cash or prizes in competitions such as Nescafe Big Break or Yellow Pages® Business Ideas Grants.

Starting your business plan may seem daunting at first, but remember…… you are not on your own, ask questions, talk to other young entrepreneurs through our interactive forum, and remember the SBDC is always there to help with advice by phone (08) 9220 0222 or 1800 199 125 toll free for regional WA callers.

You can find some excellent information on business planning in the SBDC’s publication “Step-by-step business plan” costing $25.00, available from the BILC, or from the online bookshop, or you receive it free if you go to the "Business planning" workshop which costs $25.00 (with the special 50% discount for YBN members).

» Download the 'Business planning' Business Brief

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Market research

Test Your Market and find out who, what and where it is.

Your ‘market’ is the people or ‘consumers’ your business is aimed at reaching.

Market research is a great way to find out information to help you make realistic business choices.

It can do a lot for your business - you can pinpoint prospective customers, understand your present customers, set practical targets, develop strategies, solve problems and identify opportunities. It also helps you to decide on product range and stock levels.

Effective market research is an excellent tool for your business, but be careful because poor research can lead to poor decisions, so ask for help or advice if you’re not sure about how to conduct your research.

If you don’t know who your customers are how can you give them what they want?

An excellent way to find out how to do your market research, and what to do with the information once you’ve got it, is to attend the SBDC’s 2 hour “Intro to Market Research” workshop, or visit the BILC.

» Download the 'Market research' Business Brief

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Buying a business

“One Business Please”

Thinking of buying an already established business? It’s a big decision and there are many important things to consider.

The business should suit your lifestyle and commitments. Do you have the time, money and skills to make it a success? ……and can you really afford it?

It’s a good idea to do a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis of yourself and the business. It will help you determine if the price is right and if it’s a feasible option for you.

There are lots of issues and specific information to consider so research well, ask to see the financials, or profit and loss statements of the business for the past 2 or 3 years, any lease agreements, client lists, or any other important information that can help you assess the value of the business to ensure that you make your decision based on solid information. Seek professional advice and don’t sign anything until you have thoroughly checked out everything and have all the necessary business information.

You can visit the BILC to read through the book “A Guide to buying a small business” costing $10.95 which is packed full of information on how to establish the goodwill of the business, steps to take and a checklist of issues to consider when buying any business.

Once the business is yours, you can use your youth and enthusiasm to make it a success!

You can take advantage of the great 50% discount offer for YBN members to attend the 2 hour “How to buy a business” workshop and get the book “A Guide to buying a small business” for free.

» Download the 'Buying a business' Business Brief

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Applying for finance

Need Money Huh?

Yes, a visit to the bank manager to borrow money is a scary thought, but armed with the right material you can make it a profitable, and relatively painless expedition.

As long as you don’t ask for too much or too little, and you can show the lender exactly how you’re going to pay it back, you will have a better chance of succeeding in your mission.

Businesses need finance for all sorts of reasons, but one thing every business needs is a detailed application, so the lender can assess you on your strengths and weaknesses, and your past or projected business performance. They have to be confident in your ability to make your business work, or they won’t be interested in taking a chance on you.

The lender will want to see your business plan, to assess the feasibility, marketing strategy, and financial strength of your business proposal.

You will need to be specific about just how much money you need and how you are going to repay the amount.

Finally, you will also need to provide full details of anything you can secure your loan against. Mostly lenders will prefer “bricks and mortar”.

Approaching a lender can be daunting, but if you prepare well you stand a greater chance of securing those funds. To help you complete your application the SBDC runs a 2 hour workshop “Applying for finance” which works on your own application using your own figures.

» Download the 'Applying for finance' Business Brief

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Leasing commercial property

Location, Location, Location…….My Business Needs a Home.

There are lots of issues involved in leasing. Firstly you can call in to the BILC to buy the very useful leasing booklets “How to negotiate your way to a better retail lease” and “Common questions about the Commercial Tenancy Act”.

Leasing premises which have a great location is a great way to boost the value and future sale of your business, but you must be very careful about entering into a lease agreement, as in some cases it could bind you financially even after your business closes down.

A lease is a legally binding contract. It can be complex and hard to understand. Your lease should be tailored to your needs. The premises should undergo a thorough inspection and you should spend plenty of time negotiating the correct terms for the lease. Don’t be intimidated and don’t be afraid to ask questions.

You should definitely talk to the specialist leasing person at SBDC, Tel: (08) 9220 0222 or 1800 199 125 toll free for country WA callers, and seek help from a professional. Remember don’t sign anything until you are completely confident you have everything covered.

» Download the 'Leasing commercial property' Business Brief

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Credit management

Credit management is all about controlling the money in your business.

Your aim is to reduce the number of people who owe you money, encourage quick payments and reduce your chances of getting into debt. The longer a debt is outstanding, the harder it is to recover.

It’s a good idea to set up an accounting system which is simple but reliable. Talk to your Accountant to ensure that your system is compatible with theirs, to ensure a smooth and efficient transfer of financial data as required and for end of year accounts.

This information sheet will give you practical suggestions… such as creating a set of ‘terms of trade’, giving your clients a written quote, then getting back written acceptance, requiring a deposit, imposing a late payment fee, or a more friendly “discount for early payment”, running a ‘credit check’ on new clients and establishing an accounting system that will keep track of everyone who hasn’t paid you.

» Download the 'Credit management' Business Brief

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Recovery of a debt

So what do you do if someone refuses to pay?

What are your rights and how can you claim money that is owed to you?

There are three ways to recover an outstanding debt:

  1. Negotiate with the debtor,
  2. Get someone else to negotiate on your behalf, like a mediator or debt collection agency; or
  3. Issue a summons through the small claims division of the local court if the amount is less than $3,000.

If you are owed more than $3000 you will need to contact a solicitor to make a claim though the supreme court. This information sheet will explain the procedures and provides contacts for guidance and support.

» Download the 'Recovery of a debt' Business Brief

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Personal security for retailers

What if you get robbed? Or assaulted?

This information sheet will help you to prepare a ‘security strategy’ which can reduce the risk of personal injury and the loss of money or products from your business premises.

Strategies include: clearing excess cash, installing alarms, encouraging cashless purchases (such as eftpos) locating the point of sale area away from entrances and exits and looking outside and removing unnecessary shrubs that could provide disguise.

» Download the 'Personal security for retailers' Business Brief

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Employment

Business is booming. Need more hands on deck? You can’t always do everything on your own.

One way to get some help is to employ someone, but there are many issues and responsibilities you need to consider before you do.

This information sheet will explain your legal obligations in relation to: insurance, long service leave, superannuation, record keeping, health and safety and equal opportunity, etc.

There is also a complete list of government departments you will need to deal with, who also provide further information for employers.

It’s a good idea to attend the SBDC’s 2 hour workshop “Employment today” (for employing the first time), and don’t forget the special 50% discount for YBN members.

» Download the 'Employment' Business Brief

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The Name of the game

business names - company names - domain names - trade marks

What’s in a name?

When you chose a business name, company name, trade mark, or domain name for your business it can become the biggest asset of your business. It presents your image and reputation to the world, therefore it must have impact, make your business stand out from your competitors, and stick in the minds of your clients.

You need to understand the different protection offered by each and how to ensure that you are fully protected from other people infringing on your name, or from your name infringing on others.

So, don’t forget to do your research, check that the name you want to use is not already in use, and protect your asset !!

This information sheet will point you in the right direction.

» Download the 'The Name of the game' Business Brief

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Intellectual property

Intellectual property (IP) is an asset created with the mind or intellect.

Obtaining a patent, trademark or expressing copyright are some of the methods used to protect your business idea from being stolen and used by someone else. It also saves you from making the mistake of using the IP of another business who may decide to sue you for infringing on their IP. Your IP is a valuable asset for your business and needs to be protected.

This information sheet provides explanations and details of who you can contact, and the IP Australia website provides comprehensive and valuable information.

» Download the 'Intellectual property' Business Brief

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Insurance for small business

Do I need Insurance?

Obtaining insurance gives your business protection. It allows you to pay a fee each year, in return for full or part replacement or complete payout if things go unexpectedly wrong.

You may have a fire, someone may be injured in a fall at your place of business, you may fall ill, your workers may injure themselves, or your precious equipment may get damaged or go missing. You need to talk to an Insurance Agent or Broker to get some professional advice on your needs.

There are some insurances like ‘Workers’ Compensation’ that are compulsory if you employ people. Other types may be a requirement of businesses you deal closely with…. such as landlords, companies and private businesses you do contract work for.

This information sheet guides you through points to keep in mind whilst assessing your needs for business insurance.

Important Note: Home insurance does not always cover a business operating from home, and some policies become void if a business is run from the home. Be sure to check with your insurer.

» Download the 'Insurance for small business' Business Brief

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Dispute resolution

So you have a disagreement? or “we have a problem”

Stay calm!! Disagreements between traders are common. Many are easily resolved and do not become a major hazard to business survival. You can resolve a dispute in various ways, such as negotiation, mediation and listening to all sides.

Going to court is absolutely the last resort…. Instead this information sheet will encourage you to take a deep breath, step back from your situation and ask yourself:

Am I willing to view this problem from another perspective?

What solution could I suggest that can benefit both our businesses?

How can I prevent this happening in the future?

Read this business brief for some insight into resolving your issues.

» Download the 'Dispute resolution' Business Brief

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Charging customers credit card fees

If you have a facility to pay for your goods/services by credit card then the credit card company will charge you for this service.

New laws mean that you can now charge your customers a fee to recover this cost….You just have to make sure that you make your customer aware of this charge before the transaction has been entered into.

However, you need to consider the impact of passing on the credit fee charges to customers, as there may be some who will shop elsewhere if they feel that you are charging them extra for using their credit card.

» Download the 'Charging customers credit card fees' Business Brief

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Government assistance for small business

Is there a grant to start my business?

There is very little financial support available from the Government to start a business, except for the New Enterprise Incentive Scheme (NEIS) if you’re unemployed and registered with Centrelink.

However, one advantage of being a young entrepreneur is that you can enter competitions such as Nescafe Big Break and Yellowpages Big Ideas Grants which provide cash and goods as prizes. This can give you a much needed kick start, like our YBN member Louisa Wood.

Most government assistance is in the form of information and guidance. For example, in the BILC you can obtain a complete information and licence package specific to your business, use the free business reference and research area, get free tax advice, and gain free business internet access.

If you need any business guidance you can call (08) 9220 0222 or email youngbusinessnetwork@sbdc.com.au to speak to one of SBDC’s Small Business Service team, or make a free and confidential appointment.

The Australian Tax Office (ATO) runs an excellent series of free tax workshops.

Young entrepreneurs who become a YBN member can attend SBDC workshops at a discounted price.

There are many other websites or organisations where you can keep in touch with occasional grant funding which may become available from time to time and this information sheet can give you more information on how to find them.

» Download the 'Government assistance for small business' Business Brief

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Importing : the 10 basic steps

I've found a really cheap product overseas or an amazing new product that nobody has ever seen here before.  I could import it and sell it at a profit. 

Sounds like a great idea.  How can I do it and make a fortune? 


Of cource e-commerce has made importing much easier and within the reach of micro or small businesses, but there are many import regulations, restrictions and hidden costs to consider.  You may need a licence or permit to bring it into Western Australia.  Does it comply with Australian standards.  What about trade marks and copyright? 

You need to thoroughly research all aspects talking into account the actual cost of landing the goods here and how much you will need to sell them for to cover these costs and make a profit.  To fully understand the process of costing and pricing your goods once you have them in your possession you can attend the SBDC's 2 hour Cost and Pricing of Goods and Services workshop with your 50% YBN discount.

The SBDC has some excellent importing books available to read or purchase in the Business Information and Licence Centre, 553 Hay Street (Cnr Pier) Perth or from the online bookshop.

The Importing business brief covers the process of importing and you can follow the guide to calculate your landed costs.

» Download the 'Importing' Business Brief

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Exporting : the Ten Commandments

I’m ready to hit the big time, should I expand into exporting?

With the use of e-commerce exporting has become easier, and is no longer out of reach for micro or small businesses. With good planning it can increase your turnover and turn your business from just good to great.

If your business is thriving and you want to expand into export markets, help in getting started is available through SBDC.

There is some financial assistance available from Austrade and the Dept of Industry and Resources.

The SBDC has some very useful books available in the bookshop and runs a great 4 hour Exporting Starts with an “e” workshop which covers all aspects of using the internet to find markets, partners, export assistance as well as how to market your product, find new products, simplify exporting with electronic documents and contracts and ensure your receive payment for all your hard work.

This information sheet sets out the 10 most important steps to becoming a successful exporter and other relevant contacts.

» Download the 'Exporting : the Ten Commandments' Business Brief

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