- Instructions1
Look around you and determine what you have that might be useful in a small business. Perhaps you have a computer, a hobby, a large stash of products from a previously failed business, or an unusual set of skills.
- 2
Write down your best skills that you are often praised for. Do people say you are a natural sales person? Do people call when they need to pick a paint color or purchase a rug? Are you the kind of person who kids flock around and everyone asks you to babysit? Does your church call on you when it is time to organize an event, or do they call on you when they need administrative work done.
- 3
Once you have established all of your ingredients, you need to decide how to use them to make something great that you can use as the basis for your business. For example, if you have a closet full of creams and lotions from your old Mary Kay business, or perhaps a closet full of unsold Tupperware, and you are some who people call on for gift ideas, put your creativity to work and start a gift basket business using you inventory for your first set of gifts. As the items run out, you can purchase inexpensive versions and keep making your baskets.
- 4
Market your new business to people who already rely on your services. If church members appreciate your ability to organize an run events, then make sure you let everyone know that party organizing is your new business. If your friends and
family love your decorating advice, ask them to pass on the word that you are now a decorating consultant.
Steps
family love your decorating advice, ask them to pass on the word that you are now a decorating consultant.
Steps
- 1
Come up with an idea, product or service. Put it down on paper. You're more likely to succeed if you plan. Put down things like name of the business, what resources you need, short and long term business and financial goals.
- 2
Chart your way to financial success. What price do you intend to sell your product or service for? How much will it cost you to produce? Work out a roughly estimated profit remembering to factor in fixed costs like rent, energy etc.
- 3
Check out your competitors. How much are they selling a similar product for. Can you add something to it to make yours different and hence a better price?
- 4
Put down your Unique Selling Proposition. Also how are you going to market your product? Via newspapers, a website, through word of mouth?
- 5
Decide what type of business you would like to be -- an incorporation, LLC, etc. This is important for tax purposes.
- 6
Think of how you're going to finance your business initially. The bank, venture capitalists, angel investors, SBA grants(government), your own savings are all options. Remember the four F's for investment: founders (people who share your idea), family, friends and fools.
- 7
Make your product(s) or service available to customers using your marketing strategy above.
- 8
Keep a close eye on your running costs and keep them in-line with your projections.
- 9
Learn. Find buddies, mentors, local business-related organizations, Internet forums, and especially wikis to discuss the details of running a small business. It's much easier for everyone to perform their core businesses well and prosper when they don't waste time and energy "reinventing the wheel" on
housekeeping.
housekeeping.
- 10
Get your accounts in order right from the start. Saves you tedious work later.
- 11
Get a merchant account. A merchant account is a contract under which an acquiring bank extends a line of credit to a merchant, who wishes to accept payment card transactions of a particular card association brand. Without such a contract, one cannot accept payments by any of the major credit card brands.
- 12
Set up payment methods like credit card.
Keep in mind to always provide VALUE to those who may be your customers.
You probably can't beat a big business on price in commodity items, so develop and get recognized for your expertise. Let your customers know they'll ultimately do more (or enjoy more) with with your maybe-a-little-higher prices and superior guidance or service. Show off a few things on a wikis and make presentations to show your skills. You could even branch out into consulting.
You might be able to beat a big business in differentiated items like services or decorative goods, too, if you can do better at replacing costly hidebound practices like creating a perception of quality and recognition with an expensive location with cheaper, better ones like making it easy for your customers to praise your quality online.
By Hannah Nicholas, ninemsn Money
Got a great idea for a new business? Thinking of branching out on your own but not sure where to start?
We’ve got the low-down on all you need to get started in establishing a small business. After all, a great idea isn’t all it takes, think careful planning, research and execution — it’s vital you get the basics right before you start.
Keep in mind to always provide VALUE to those who may be your customers.
You probably can't beat a big business on price in commodity items, so develop and get recognized for your expertise. Let your customers know they'll ultimately do more (or enjoy more) with with your maybe-a-little-higher prices and superior guidance or service. Show off a few things on a wikis and make presentations to show your skills. You could even branch out into consulting.
You might be able to beat a big business in differentiated items like services or decorative goods, too, if you can do better at replacing costly hidebound practices like creating a perception of quality and recognition with an expensive location with cheaper, better ones like making it easy for your customers to praise your quality online.
By Hannah Nicholas, ninemsn Money
Got a great idea for a new business? Thinking of branching out on your own but not sure where to start?
We’ve got the low-down on all you need to get started in establishing a small business. After all, a great idea isn’t all it takes, think careful planning, research and execution — it’s vital you get the basics right before you start.
- 1. Researching your business idea and developing a business plan
Before starting a business, you need to answer the following fundamental questions.
Is your business idea viable?
Is there a market for your product/service?
What is that market?
Who are your competitors?
Do you have the financial capacity to get the business up and running?
These questions will be answered once you begin to research the market into which you wish to enter and when you set about establishing a business plan.
Researching your market
Whatever the product or service you are going to be offering, you need to be sure there’s a market for it — and that you can reach the right target audience too.
Take a good, long look at the market you wish to enter. In the long run, this research will also help you to evaluate the best forms of marketing for your business.
Research and look at the following:
Is your business idea viable?
Is there a market for your product/service?
What is that market?
Who are your competitors?
Do you have the financial capacity to get the business up and running?
These questions will be answered once you begin to research the market into which you wish to enter and when you set about establishing a business plan.
Researching your market
Whatever the product or service you are going to be offering, you need to be sure there’s a market for it — and that you can reach the right target audience too.
Take a good, long look at the market you wish to enter. In the long run, this research will also help you to evaluate the best forms of marketing for your business.
Research and look at the following:
- 1. Competitors. Examing your competitors will be vital for ensuring the success of your business. Find out:
Who your direct competitors are?
How successful are they and why?
What are their strengths and weaknesses?
What marketing do they undertake?
How successful are they and why?
What are their strengths and weaknesses?
What marketing do they undertake?
- 2. Reports and statistics. Look for information in market reports, government statistics, journals and industry association publications.
Once you’ve conducted this initial research and ensured your business idea is feasible, it’s time to formulate a business plan.
Establishing a business plan
A business plan is essential for any business, no matter its size. Generally a business plan should cover the following:
your business goals
marketing initiatives
industry research
operations/management plan
Establishing a business plan
A business plan is essential for any business, no matter its size. Generally a business plan should cover the following:
your business goals
marketing initiatives
industry research
operations/management plan
- financial plan
Remember, your business plan should be an ongoing initiative which is reviewed regularly. After all, it’s the blue-print for getting things right.
- Obtaining finance
Having finance — and the right amount of it — is crucial for the ongoing success of your business. Your business plan should cover you financial arrangements for start-up.
Be sure to contact your local banking or financial institution for finance options. Consider other sources of finance too. For the best advice, consult a business advisor and accountant — and have a solicitor look over any loan contract.
Be sure to contact your local banking or financial institution for finance options. Consider other sources of finance too. For the best advice, consult a business advisor and accountant — and have a solicitor look over any loan contract.
- 3. Choosing a business structure
There are several different types of business you can operate under — here’s a brief overview of your options.
Sole trader: a type of set-up whereby the business has no separate legal existence from its owner. You can use a business name or your own name and as a sole trader you are responsible for the liabilities of your business.
Partnership: unlike a sole trader, a partnership involves two or more people starting a business. All partners legally share profits, risks and looses according to the partnership contract (which is established at the onset of the business).
Company (Pty Ltd): a proprietary limited company is the most common type of company used by small business. Unlike partnerships and sole traders, it has more regulatory requirements and is a legal entity separate from its shareholders/owners.
In order to choose the right business structure, it's best to seek legal and professional advice before making a final decision.
Sole trader: a type of set-up whereby the business has no separate legal existence from its owner. You can use a business name or your own name and as a sole trader you are responsible for the liabilities of your business.
Partnership: unlike a sole trader, a partnership involves two or more people starting a business. All partners legally share profits, risks and looses according to the partnership contract (which is established at the onset of the business).
Company (Pty Ltd): a proprietary limited company is the most common type of company used by small business. Unlike partnerships and sole traders, it has more regulatory requirements and is a legal entity separate from its shareholders/owners.
In order to choose the right business structure, it's best to seek legal and professional advice before making a final decision.
- 4. The regulatory requirements of starting a business
Registering a company
All companies need to register a company name and Australian Company Number through the Australian Securities and Investments Commission (ASIC).
According to ASIC, when a company is registered under the Corporations Act 2001 it is automatically registered as an Australian company. This means that it can conduct business throughout Australia without needing to register in individual State and Territory jurisdictions.
Registering a business name
You are required to register your business name with the appropriate State/Territory authority (you can find a list at http://govforms.business.gov.au/). However, this is not necessary if the business is conducted under your name or your business partner(s); that is, first name and surname, or initials and surname.
Registering your business name as a trade mark
At the start of your business, you might want to consider registering your business name as a trade mark to give you the right to use your business name as a means to distinguish your product/service from that of other businesses. IP Australia has more information on this.
GST, ABNs and TFNs
If you expect to have annual sales over $50,000, you have to register for Goods and Services Tax (GST). If you register for GST, you will need to apply for an Australian Business Number (ABN), register online with Australian Business Register.
Sole traders can use their own personal Tax File Numbers (TFNs) but partnerships and companies need to apply for their own. For more information, contact the Australian Tax Office.
State government licences
All states and territories are responsible for different business licences, permits, registrations and certificates. You will need to check with the appropriate state government body.
Council permits/requirements
You need to check with your local council to find out about zoning, health regulations and whether you need to lodge a Development Application or Building Application before your business can start.
Domain name registration
Whether or not you will be establishing a website for your business in the early days, think about registering your preferred website name early on if you want to have an Internet presence at any stage. You can search for and register a domain name at Melbourne IT. For more information on domain names, visit Australian Domain Name Adminstrator.
All companies need to register a company name and Australian Company Number through the Australian Securities and Investments Commission (ASIC).
According to ASIC, when a company is registered under the Corporations Act 2001 it is automatically registered as an Australian company. This means that it can conduct business throughout Australia without needing to register in individual State and Territory jurisdictions.
Registering a business name
You are required to register your business name with the appropriate State/Territory authority (you can find a list at http://govforms.business.gov.au/). However, this is not necessary if the business is conducted under your name or your business partner(s); that is, first name and surname, or initials and surname.
Registering your business name as a trade mark
At the start of your business, you might want to consider registering your business name as a trade mark to give you the right to use your business name as a means to distinguish your product/service from that of other businesses. IP Australia has more information on this.
GST, ABNs and TFNs
If you expect to have annual sales over $50,000, you have to register for Goods and Services Tax (GST). If you register for GST, you will need to apply for an Australian Business Number (ABN), register online with Australian Business Register.
Sole traders can use their own personal Tax File Numbers (TFNs) but partnerships and companies need to apply for their own. For more information, contact the Australian Tax Office.
State government licences
All states and territories are responsible for different business licences, permits, registrations and certificates. You will need to check with the appropriate state government body.
Council permits/requirements
You need to check with your local council to find out about zoning, health regulations and whether you need to lodge a Development Application or Building Application before your business can start.
Domain name registration
Whether or not you will be establishing a website for your business in the early days, think about registering your preferred website name early on if you want to have an Internet presence at any stage. You can search for and register a domain name at Melbourne IT. For more information on domain names, visit Australian Domain Name Adminstrator.
- 5. Finding the right premises
When looking for a business premise, you should consider the following.
Location. Do you need to be located close to customers or are you able to service your clients remotely via the telephone or over the Internet? Do you need to be located close to suppliers?
Necessary features. What features must your premises have? i.e. size, street frontage, show rooms, parking or other special facilities.
Lease or purchase. Do you intend to lease or purchase your premises?
Working from home. Do you plan to operate your business from home?
Security. In any premises you consider, you’ll need to look at having the right level of security. Consider things like fencing and gates, lighting, entry and exit points.
Location. Do you need to be located close to customers or are you able to service your clients remotely via the telephone or over the Internet? Do you need to be located close to suppliers?
Necessary features. What features must your premises have? i.e. size, street frontage, show rooms, parking or other special facilities.
Lease or purchase. Do you intend to lease or purchase your premises?
Working from home. Do you plan to operate your business from home?
Security. In any premises you consider, you’ll need to look at having the right level of security. Consider things like fencing and gates, lighting, entry and exit points.
- 6. Insurance — protecting your business
Often overlooked but one of the most important parts of setting up a business, you must make sure you have the right insurance in place. After all, your business will be your livelihood.
What type of insurance will you need?
Depending on the type of business you’re running and the place from which you will be running it, you’ll need to consider insurance for the following.
Fire/other events: this is a must-have for any business operating from a premise. Depending on the insurance company, you will generally be covered for loss/damage from fire, storms, malicious damage or vandalism and accidental damage. Cover your business for damage to glass windows, signs and counters at your premises as they are often not included under fire/accident insurance.
Theft: be sure to protect your money, contents or stock from theft.
Legal liability: this type of insurance covers your business if you are sued for causing personal injury to another person (other than employees) or damage to property owned or controlled by someone else(public liability) or in connection with a product sold or supplied by your business (products liability).
Business interruption: this will cover you for a reduction in your business income as a result of damage to your property. There are often different levels of protection on offer.
Business vehicles: cover your business vehicles against accident, theft or attempted theft and fire.
Personal: if you’re going to be self-employed, look at purchasing life insurance and income protection insurance too.
Remember to:
Shop around for the best deal.
Make sure you do not under insure your business.
If you're working from home, don’t assume your general home and contents insurance will cover your business.
If you rent your business premises, your landlord's insurance could leave you out of pocket.
Seek advice to get the right insurance cover for your business.
What type of insurance will you need?
Depending on the type of business you’re running and the place from which you will be running it, you’ll need to consider insurance for the following.
Fire/other events: this is a must-have for any business operating from a premise. Depending on the insurance company, you will generally be covered for loss/damage from fire, storms, malicious damage or vandalism and accidental damage. Cover your business for damage to glass windows, signs and counters at your premises as they are often not included under fire/accident insurance.
Theft: be sure to protect your money, contents or stock from theft.
Legal liability: this type of insurance covers your business if you are sued for causing personal injury to another person (other than employees) or damage to property owned or controlled by someone else(public liability) or in connection with a product sold or supplied by your business (products liability).
Business interruption: this will cover you for a reduction in your business income as a result of damage to your property. There are often different levels of protection on offer.
Business vehicles: cover your business vehicles against accident, theft or attempted theft and fire.
Personal: if you’re going to be self-employed, look at purchasing life insurance and income protection insurance too.
Remember to:
Shop around for the best deal.
Make sure you do not under insure your business.
If you're working from home, don’t assume your general home and contents insurance will cover your business.
If you rent your business premises, your landlord's insurance could leave you out of pocket.
Seek advice to get the right insurance cover for your business.
- 7. Develop a marketing plan
Following on from the ideas raised in your business plan, you should put together a carefully thought out marketing plan. There’s no point having a great product/service if it isn’t going to reach your target market.
Whether you want to build a brand or simply advertise your services, there are lots of initiatives you can take. You might not have the biggest marketing budget, but don’t let that stop you from being creative with your marketing plans.
NSW Small Business says your marketing plan needs to answer the question: why am I in business, what do customers want and why will customers buy from me and not my competitors?
According to the Australian Government’s business.gov.au, “a good marketing plan sets clear, realistic and measurable objectives, includes deadlines, provides a budget and allocates responsibilities.”
Make sure your marketing plan covers:
analysis of your current market
your business objectives
key strategies
steps to achieving your objectives
proposed budget
implementation plan
Whether you want to build a brand or simply advertise your services, there are lots of initiatives you can take. You might not have the biggest marketing budget, but don’t let that stop you from being creative with your marketing plans.
NSW Small Business says your marketing plan needs to answer the question: why am I in business, what do customers want and why will customers buy from me and not my competitors?
According to the Australian Government’s business.gov.au, “a good marketing plan sets clear, realistic and measurable objectives, includes deadlines, provides a budget and allocates responsibilities.”
Make sure your marketing plan covers:
analysis of your current market
your business objectives
key strategies
steps to achieving your objectives
proposed budget
implementation plan
- 8. Financial records/accounts
In order to ensure the smooth running of your business you should keep financial records to fully understand your operations and financial situation. This should begin from the word go. Think about employing an accountant to help you sort through the piles of paperwork and accounts.
Financial reports: check with ASIC to see whether your organisation is legally required to lodge certain financial reports.
Tax requirements: check with the Tax Office for any tax obligations with which your business must apply.
Financial reports: check with ASIC to see whether your organisation is legally required to lodge certain financial reports.
Tax requirements: check with the Tax Office for any tax obligations with which your business must apply.
- 9. Employing staff
Employees will be one of the greatest assets of your company, so spend the right amount of time and investment to find good people.
Legal requirements
As an employer, you have certain obligations under common law. You also have obligations under federal and state and territory laws, industrial awards and agreements, tribunal decisions and contracts of employment.
For information visit;
Department of Employment and Workplace Relations
Australian government small business website
Legal requirements
As an employer, you have certain obligations under common law. You also have obligations under federal and state and territory laws, industrial awards and agreements, tribunal decisions and contracts of employment.
For information visit;
Department of Employment and Workplace Relations
Australian government small business website
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