Starting a Business 2

8/3/2019 Starting a Business 2

1/34

Small BusinessVictoria

Starting your Businessa short guide to success for new starters


2/34

Contents page

DeciDing to Start a new BuSineSS

Assessingyourselandtheeasibilityoyourbusiness 4-5

Gettingsupportromstep-by-stepguides 5

Gettingsupportromworkshopsandseminars 6

Testinganddevelopingyourproductorservice 6

Assessingandmanagingtherisks 7

Startingromscratch,buyinganexistingbusinessorbuyingaranchise 8

getting StarteD checkliSt

Choosingtherightstructureoryourbusiness 9-10

Registeringyourbusinessorcompanyname 11-12

Protectingyourbusinessorcompanyname 13-14

Registeringortaxation 14-16

Findingoutaboutlicences,permitsandregistrations 17

Choosingtherightpremisesandinsuringthebusiness 18-21

BuilDing on a gooD Start

Developingyourbusinessplan 22-26

Accessingresources,adviceandsupport 27-28

templateS anD noteS 29-34

3SmallBusinessVictoria


3/34

1.q2.q3.q

1.q2.q3.q

1.q2.q3.q

1.q2.q3.q

1.q2.q3.q

1.q2.q3.q

Topicsinthissection:

a. Assessingyourselfandthefeasibilityofyourbusiness

b. Gettingsupportfromstep-by-stepguides

c. Gettingsupportfromworkshopsandseminars

d. Testinganddevelopingyourproductorservice

e. Assessingandmanagingtherisks

f. Startingfromscratch,buyinganexistingbusinessorbuyingafranchise

iti p

n bsss ss

:

- theVictorianBusinessLineon13 22 15

- BusinessVictoriawebsitebsss.v.v.

- VictorianBusinessCentres(locationsatendoguide)

Deinition

Thewordeasiblemeans

somethingthatiscapableobeingdone.Soaeasiblebusinessideaorplanisonethatisrealisticandworkable.

DiD You know?

Governmentstatisticsshowthatthemostsuccessulnewbusinessstartersarepeoplewhohavehadalot

oexperienceintheindustrytheyresettingupin.

Decidingtostartanewbusiness

a.Assessingyourselandtheeasibilityoyourbusiness

Takeaewminutestoassesshowreadyyouaretostartanewbusiness.Someotheollowing

statementswillocusonyourpersonalqualities,whileotherswillocusmoreonhoweasible

yourplansorthebusinessare.

Foreachstatement,tickyourselonascaleo1to3asollows:

1.q=No,thatdoesntapplytome.

2.q=Imnotsure.

3.q=Yes,Imcondentaboutthat.

1.IamhighlymotivatedandIdontgiveupwhenthegoinggetstough.

2.IknowabouttheindustryImgettinginto,IvegotplentyoexperienceandImgoodat

whatIdo.

3.Atleastoneothesedescribeswhatmybusinesswillbedoing:

-llingagapthatexistsinthemarket

-enteringanexistingmarketwheredemandisgreaterthansupply

-providingarealdierenceorcustomers,likebetterpriceorlocation

4.Whenthingsgettough,IknowIwillhavetheunderstandingandsupportomyamily

andriendstoallbackon.

5.Icanaccesstheundsneededtocoverstartupcostsandsurviveuntilthebusiness

startstopayoritsel.

6.IhaveanetworkoexperiencedpeopletoturntowhenIneedinormation,

adviceandsupport.

3

3

3

4 StartingyourBusiness


4/34

Step-By-Step:StartingaBusinessistherstotheBusinessVictoriaonline,interactiveguides.Formoredetails,visittheBusinessVictoriawebsite.(business.vic.gov.au/stepbystep)q

a

1.q2.q3.q

1.q2.q3.q

1.q2.q3.q

1.q2.q3.q

7.Atleastoneotheseappliestome:

-Ihaveagoodunderstandingotaxationandrecordkeeping

-Icanpayortheservicesoataxadviserandareliableaccountant

8. Ihavegoodcommunicationskills,andcanbepersuasivewithotherswhenitcomesto

gettingbillspaidandsolvingsimilarbusiness-relatedproblems.

9.IthebusinessslowsdownorreasonsIcantcontrol,Ihavetheresourcestokeep

goinguntilitpicksupagain.

10.IhavedevelopedaBusinessPlanorthersttwelvemonthsooperations,complete

withamarketingplan,cashfowandprojectedcosts.

Totalscore:

h dd y s?

Iyourtotalscoreisbetween25and30,congratulations.Youreobviouslywellonyourway.Readthisguidethoroughlyandollowthedirectionstoawiderangeoresources,

adviceandsupportoryournewbusiness.

Iyourtotalislowerthan25,dontgiveup.Acareulreadingothisguidewillbetherst

steptowardsimprovingtheprospectsoyournewbusiness.Iyounishtheguideand

yourguteelingistellingyounottogoahead,youwillknowthatyourdecisioniswell

inormedandcanbereviewedatalaterstage.

b.Gettingsupportromstep-by-stepguides

TheBusinessVictoriawebsite(business.vic.gov.au/stepbystep)providesarangeointeractivestep-by-stepguidescoveringtheollowingareas:

S y bsss:businessregistration,nancialmanagement

Y bsss:home-basedbusiness,planning/buildingpermits

S bsss ys:includesood,hairdressingandaccommodation

ey s:taxobligations,superannuationandworkplacesaety

g y bsss:eventorganisation,buildingawebsite,exporting

Theguidesaredesignedtoreacttoyourindividualresponses,andyounisheachone

withapersonalisedlistoresourcestohelpyoutakethenextsteps.



5/34

c.GettingsupportromworkshopsandseminarsTheud n mprogramdeliversworkshopsandseminarsacross

metropolitanandregionalVictoria.Theyareaimedatpeoplewhoarestartingorbuyinga

business,home-basedbusinessesandranchisees.Supportedbylocalcouncilsandindustry

associations,theyarerunlocallyandatalowcostorparticipants.

Theg Bsssworkshopintroducesyouto:sel-assessment,marketing,nancing,

planningandndingsupportservices.Youaregivenpracticaladvicethatwillmatchtheneeds

oyourbusiness.Visitthewebsiteatbusiness.vic.gov.au/workshopsormoreinormationon

workshops,seminars,datesandlocations.

d.Testinganddevelopingyourproductorservice

Tosurviveinacompetitiveenvironment,allbusinessesneedtobeinatleastoneothe

ollowingcategories:

ss

e s dd s sy

pvd d ss, b

who can help?

Iyournewbusinessinvolvesanewidea,productorservice,itneedstobetestedandresearchedbeoreyoustartinvestingmoney.Eveniyoureusinganexistingidea,product

orservice,itneedstobedevelopedurthersoitbecomesanimprovedversionowhatis

alreadythere.

Theollowingorganisationsprovidemarketresearchandassistance:

iBiSwd(ibisworld.com.au)isAustraliasleadingmarketresearchcompany,supplying

detailed,industry-specicanalysisandorecasting

innoVic(innovic.com.au)isanon-protprovideroarangeoservicesaimedatturning

goodideasintoeasiblebusinesses

ti p

BookintoanUnderNewManagementworkshoporseminarbycontactingtheVictorianBusinessLine(VBL)on13 22 15.

DiD You know?

YoucangetreeaccesstoIBISWorldmarketresearchattheVictorianBusinessCentre(VBC)inyourlocalarea.Aull

listoVBClocationsisattheendothisguide.




6/34

e.AssessingandmanagingtherisksThebesttimetobenegativeaboutyourbusinessisbeoreitstarts,andthebestquestionstoaskyourselare:

Whataretherisksthatcouldhaveanegativeimpactonmybusiness?

Howlikelyiseachrisk?

Howseriouscouldtheimpactbe?

WhatcanIdotoeitherpreventitromhappening,orreduceitsimpact?

Lookatsomebusinessrisksbelowandhowtheymightbemanagedwithapreventionplan.Completethetable

bylistingthetopthreerisksoryourbusiness,andincludeapreventionplanyoucouldusetomanageeachrisk.

rs h y:

1.verylikely2.possible3.unlikely

i:

1.high2.medium3.low

pv

Anewcompetitorwithasimilarbutcheaperproduct/serviceissettingupinyourarea.

2 1 Reviewyourpricingandmarketingstrategies,andstartdevelopingnewproductsorservices.

Oneoyourtopthreeclientsiscausingacashfowcrisisbydelayingabigpayment.

1 2 Maketheestablishmentoacontingency(emergency)undanimportantpartoyournancialplan.

Youarehospitalisedwitha

suddenillnessandcouldbeoworkoraewmonths.

3 1 Trainyourpar tnerorasenioremployee

toabasiclevelomanagementandadministration.

Theharddriveonyourmaincomputerhascrashedandallyourlesarelost.

2 2 Reviewyourupdatingandbackingupprocedures,andconsiderpayingorsomebasicITsupport

Y ss h y i pv



7/34

psvs nvs ky ps

S

s

-reedomtomakeyourown

decisions

-nopaymentneededorbusinessgoodwill

-youchooseyourlocation,premises,equipmentandsuppliers

-youdevelopyourownoperatingsystems

-youhireyourchoiceostaandtrainthemaccordingtoyourneeds

-researchingyourbusiness

ideaandriskassessmentcantaketimeandmoney

-gettingtheinitialnancecanbedicult

-buildinggoodwillusuallytakesalototime

-suppliersmaynotextendcreditatrst

-cantakealongtimetobecomeprotable

Existingbusinesseshave

existingcustomersandranchiseshaveaprovenormulathatworks.

Yournewbusinessmustcreateanewdemandinthemarket.Andyourtargetmarketmustbelargeenoughorthebusinesstobecomeprotable.Dosomebasicmarketresearch.

By

s

bsss

-customerbaseandgoodwillarealreadyestablished

-systems,stocklevelsandequipmentexist

-staarealreadytrained

-costseasiertoestimateandnancialplanningeasiertopredict

-maysuerrompreviousownersbadreputation

-maybetakingonbaddebtors,unknowncreditors,orothersimilarnancialorlegalliabilities

-otendiculttoestimatethegoodwillwhichcanbeovervalued

as ys s qss:

-canthebusinessstandindependentlyopreviousowner/s?

-howmuchuturepotentialwalksoutthedoorwhenthepreviousownerleaves?

-canyougrowthebusiness,orisitalreadynearitsullcapacity?

By

s

-shouldhaveaprovenrecordosuccess

-supportromtheranchisorgoodorpeoplewithlimitedmanagementskills

-collectivebuyingpowerwillhelptomakeyoumorecompetitive

-youenjoybettermarketexposurethanmostsmallbusinesses

-youroperationsandbusinessplanningarerestrictedbytheranchiseagreement

-damagetoyourreputationcausedbyotherranchiseeswhoareperormingpoorly

-yoursuccessdependsoncontinuingsuccessandcommitmentromyourranchisor

ud s cd cd, ss qd v sv s:

-aproposedranchiseagreement

-adisclosurestatement.

Iyouareunsureaboutthecontentothesedocuments,seekguidanceromalawyerbeoresigninganything.

ti p

BookintotheBy s(UnderNewManagement)workshoporprospectiveranchiseesbycontactingtheVictorianBusinessLineon13 22 15.

.Startingromscratch,buyinganexistingbusinessorbuyingaranchise

Whetheryouarestartingromscratch,buyinganexistingbusinessorbuyingaranchise,itisuseultoclariywhat

makeseachothesescenariosdierentromeachother.Belowisanoutlineothepositivesandnegativesor

each,andalsosomekeypointstowatchoutor.




8/34

FindoutmoreabouttherangeobusinessstructuresattheBusinessVictoriawebsite(business.vic.gov.au).

Majortasksinthechecklist:

a. Choosingtherightstructureforyourbusiness

b. Registeringyourbusinessorcompanyname

c. Protectingyourbusinessorcompanyname

d. Registeringfortaxation

e. Findingoutaboutlicences,permitsandregistrations

f. Choosingtherightpremisesandinsuringthebusiness

i

Gettingstartedchecklist

TheGettingstartedchecklistwilltakeyouthroughthebasicstepstogetyourbusinessupand

running.Workyourwaythroughthechecklistandtickoqthem s dbox

whenyounisheachone.

Alsotickothe boxesthatapplytoyou.Thiswillcreatealistoresources,

adviceandsupportoryourutureuse.

a.Choosingtherightstructureoryourbusiness

Sole traDerS, partnerShipS anD companieS

Topayyourbusinesstaxes,claimdeductionsorbusinessexpenses,openaccountsandtrade

legally,youneedtochoosethebusinessstructurethatwillberightoryou.Fornewbusinesses,

thethreemostpopularstructuresare:

s d:thereisonlyonebusinessowner

s:thereismorethanonebusinessowner

d by y:aseparatelegalbodywithitsowntaxreturn

Theyhaveimportantdierencesinstructureanddierentrequirementsortax.

truStS anD cooperatiVeS

Youmayalsowanttoconsidertheollowingtwostructures:

s:thetrusteemanagespropertyorincomeorthebenetootherswhoareknown

asbeneciaries

v:allmembersparticipateequally,andthegeneralaimisprovidingservices

ormembersratherthanmakingprots

3

major taSkcompleteD

cs

s y bsss

Ticktheboxqwhenthetaskhasbeencompleted.

3

q a

q



9/34

UseFindaCPAtolocateacertiedpractisingaccountantinyourlocalareaattheCPAAustraliawebsite(cpaaustralia.com.au).

FindoutmoreaboutbusinessstructuresandtaximplicationsattheTaxOcewebsite(ato.gov.au).

S Ds t s

S d -youreinbusinessbyyourselwhichisthesimplestormobusinessstructure

-establishmentcostsaregenerallylow

-youenjoyallcapitalgrowthandprot

-asthereisnolegalseparationbetweenyouandthebusiness,yourliabilityorbusinessdebtisunlimitedandcouldextendtoyourtotalpersonalassets

-astheirbusinessgrows,soletradersusuallyprogresstoanotherstructure

-protromthebusinessistreatedastheownersindividualincome

-ownerdoesnothavetocompleteaseparatetaxreturnorthebusiness

-yourpersonalincometaxreturnisusedtoreportyourbusinessincomeandthedeductionsyouclaimoryourbusinessexpenses

-yourpersonalTaxFileNumberisalsousedorincometaxpurposes

ps -twoormorepeoplestartabusiness,andsharethecosts,protsandlosses

-allowstwoormorepartnerstocombinetheirdierentskillsandresources

-liabilityorbusinessdebtisunlimitedandcould

extendtopersonalassets-toavoiduturedisputesbetweenpartners,

aormalPartnershipAgreementshouldbedrawnupbyanaccountantorlawyer

-apartnershipisnotaseparatelegalentityanddoesnotpayincometaxonincomeearned

-eachpartnerpaystaxontheirshareonetpartnershipincome

-alsoneedtocompleteapartnershiptax

returnshowingpartnershipsincomeanddeductions,andhowprotorlosswasshared

-musthaveitsownTaxFileNumber

ld

by

y

-hasshareholderswhoownthecompanyanddirectorswhorunit

-shareholderscanalsobedirectorsandemployees,asinamilybusinesses

-allowsyoutodistanceyourselnanciallyromthebusiness

-limitsexposureoliabilityordebtstobusinessassetsnotpersonalassets

-isaseparatelegalentitythatpaysincometaxonitsprotsatcompanytaxrates,whiletheowneristaxedonsalaryand/ordirectorsees

-compliancecostsaregenerallyhigherandrecordkeepingismorestrict

-personalservicesincomerulesmayapplyiyoureaconsultantorcontractorwithyourowncompany

-musthaveitsownTaxFileNumber

ti p

Iyoureanindependentcontractor,abusinessstructureworthconsideringistheone-personcompany,whereyouarethedirectorandtheonlyshareholder.Getproessionaladviceromyouraccountantorlawyer.

a.Choosingtherightstructureoryourbusiness (continued)

Thistableoutlinesthemaincharacteristicsosoletraders,partnershipsandcompanies(alsocalledcorporations),

andwhatthetaximplicationsareoreach.Furthertaximplications(orexample,GSTimplications)areexplained

intheRegisteringortaxationsectionothechecklist.

who can help?

Iyounishthisguideandyourestillunsureabouttherightstructureoryourbusiness,youshouldgetsome

proessionalassistanceromanaccountantand/oralawyer.Asastartingpoint,visittheCertiedPractising

Accountants(CPA)Australiawebsite.


q a

q a



10/34

RegisterthebusinessnameonlineattheCAVwebsite(consumer.vic.gov.au).

Fortrademarks,checktheAustralianTradeMarksOnlineSearchSystemattheIPAustraliawebsite(ipaustralia.gov.au).

Forcompanynames,checktheNationalNamesIndexattheASICwebsite(asic.gov.au).

ti p

PersonalassistanceisalsoavailableatVBsss cslocated

acrossmetropolitanandregionalVictoria.Contactdetailscanbeoundinthelastsectionothisguide.

b.RegisteringyourbusinessorcompanynameBusinessnamesorsoletraders,partnerships,trustsandcooperativesareregisteredwith

ConsumerAairsVictoria(CAV).CompanynamesareregisteredwiththeAustralianSecurities

andInvestmentsCommission(ASIC).Aswellasitscompanyname,itisalsocommonora

companytoregisterabusinessnametobeusedasatradingname.

chooSing Your BuSineSS name

Unlessyouplantorunthebusinessusingtherstnameandsurnameoyourseloryour

businesspartner(likeAlexSmith),orinitialsandsurname(likeA.Smith),youneedtoregister

abusinessname.Yourbusinessnamewillbeimportantoridentiyingandpromotingthe

business,sochooseanamethat:

isuniqueandeasytoremember

standsoutromyourcompetitors

emphasiseswhatthebusinessactuallydoes

iS the name You haVe choSen aVailaBle?

Yournextstepistocheckthatthenameisavailabletobeused.Thequickestwayodoingthis

isanonlinecheckwiththeollowingseparateauthorities:

ConsumerAairsVictoria(CAV)VictorianNamesRegistertocheckthatyourbusinessname

isnotregisteredinVictoria

AustralianSecuritiesandInvestmentsCommission(ASIC)NationalNamesIndextocheck

thatyournameisnotregisteredinAustraliaasacompany

IPAustraliaAustralianTradeMarksOnlineSearchSystemtocheckthatyournameisnot

inringingaregisteredorpendingtrademark

when Youre reaDY to regiSter

Toregisteryourbusinessnameonline,gotoBusinessNamesontheCAVwebsite,ollow

thepromptsandpaytheeewithyourcreditcard.Alternatively,youcanwalkintotheVictorian

ConsumerandBusinessCentre,locatedat113ExhibitionStreetMelbourne,oradviceand

over-the-counterhelpwithallyourregistrationrequirements.Notethatthebusinessnameeeis

notaone-opayment.TostayactiveitneedstoberenewedwithCAVeverythreeyears.

ForbusinessnamesinVictoria,checktheVictorianNamesRegisterattheCAVwebsite(consumer.vic.gov.au).

DiD You know?

Acommonquestionis,whatisthedierencebetweenabusinessnameandatradingname?Theansweristhere

isntone.Abusinessnameisalsoatradingname.

major taSkcompleteD

rs y bsss

y Ticktheboxqwhenthetaskhasbeencompleted.

3

q a

q a

q a

q a

q



11/34

RegisterthecompanynameonlineattheASICwebsite(asic.gov.au).

Forcompanynames,checktheNationalNamesIndexattheASICwebsite(asic.gov.au).

Fortrademarks,checktheAustralianTradeMarksOnlineSearchSystemattheIPAustraliawebsite(ipaustralia.gov.au).

ForbusinessnamesinVictoria,checktheVictorianNamesRegisterattheCAVwebsite(consumer.vic.gov.au).

DiD You know

YourACNisnotthesameasyourABNandtheyshouldnotbeconused.YourABNisexplainedinthers sectionotheGettingstartedchecklist.

b.Registeringyourbusinessorcompanyname(continued)

chooSing a companY name

Choosingacompanynameshouldollowthesameguidelinesaschoosingabusinessname.Inotherwords,it

shouldbeunique,standoutromyourcompetitorsandemphasisewhatthecompanyactuallydoes.Additionally,

acompanynamemustindicatethe:

ss y

Proprietarysimplymeansacompanywhichisnotlistedonthestockexchangeasapubliccompany.

AproprietarycompanynamemustincludethewordProprietaryoritsabbreviationPty.

by y bs

LiabilityisusuallylimitedsothenamemustincludethewordLimitedoritsabbreviationLtd.

iS the name You haVe choSen aVailaBle?

Youcannotuseanamethatisalreadyregisteredasacompany,soyouneedtochecktheavailabilityoyour

namewiththeollowingseparateauthorities:

AustralianSecuritiesandInvestmentsCommission(ASIC)NationalNamesIndex,tocheckthenameisnot

registeredinAustraliaasacompany

IPAustraliaAustralianTradeMarksOnlineSearchSystem,tocheckyournameisnotinringingaregisteredor

pendingtrademark

ConsumerAairsVictoria(CAV)VictorianNamesRegistertocheckthatyourbusinessnameisnotregistered

inVictoria

when Youre reaDY to regiSter

Toregisteryourcompanynameonline,gotoStartingontheASICwebsite,ollowthepromptsandpaytheee

withyourcreditcard.Alternatively,youmayengageasolicitororaccountanttocarryouttheregistrationprocess

oryou.Notethatthecompanynameregistrationeeisnotaone-opayment.Tostayactiveitneedstobe

renewedwithASIConanannualbasis.

Your auStralian companY numBer

Whenyouregisteryourcompanyname,youwillbeissuedwithanAustralianCompanyNumber(ACN).This

isyouruniqueidentiyingnumbertobeusedwhenthecompanydealswithotherbusinesses,individualsand

governmentagencies.TheACNmustbedisplayedonallyourpublicdocuments,suchasinvoicesandreceipts.


q a

q a

q a

q a



12/34

InvestigateregisteringadomainnameattheAustralianDomainNameAdministratorwebsite(auda.org.au).

FindoutaboutthetrademarkapplicationprocessattheIPAustraliawebsite(ipaustralia.gov.au).

GetanoverviewointellectualpropertyissuesattheIPAustraliawebsite(ipaustralia.gov.au).

watch out

Trademark,domainnameandinterstateprotectionareallcostlyintermsotimeandmoney.Dosomehomeworkandmakesureyourbusiness

willgetvalueormoneyromthissortoinvestment.

c.ProtectingyourbusinessorcompanynameWhenyoustartanewbusiness,registeranewnameordevelopanewproduct,youshouldgive

considerationtosomeormoprotectionoryourintellectualproperty(IP).

EventhoughanewbusinessnamehasbeenregisteredwithConsumerAairsVictoria,iitisnot

protected,acompetitorcanstilllegallyregister:

asimilarcompanynamewithASIC

asimilartrademarkwithIPAustralia

asimilardomainname

thesamebusinessnameinanotherstateorterritory

ForanintroductiontoIPissues,gotoSmartStartontheIPAustraliawebsite.

ThethreemainwaysoprovidingAustralia-wideprotectionare:

trademarkprotection

domainnameprotection

interstateprotection

traDe mark protection

Registeringyourbusinessorcompanynameasatrademarkgivesyoulegalownershiprightsto

thenameacrossAustralia,andpreventsothersromtradingunderit.Atrademarkcanbealetter,

word,phrase,number,sound,scent,logoorimage,anditcanbeaneectivemarketingtool,

makingabusinessstandoutromtherest.Tondoutaboutthetrademarkapplicationprocess,

gotoTradeMarksontheIPAustraliawebsite.ConsiderusingtheAssistedFilingService.

Domain name protection

Thedomainnameisthemainpartoawebaddress(URL)thatollowswwwandisusedto

identiythelocationothewebsite.

Twoimportantpointstonoteare:

1.Justbecauseyouhaveregisteredabusinessorcompanynameortrademark,doesnot

meanyoucanautomaticallyuseitasadomainname.

2.Youmaynotbeabletostopsomeoneusingadomainnamethatisthesameasyour

businessname,companynameortrademark.

Formoreinormationandtobeguidedthroughtheregistrationoadomainname,visitthe

AustralianDomainNameAdministratorwebsite.

DiD You know?

Iyouapplyoratrademarkandyourapplicationisaccepted,aregistrationeemustbepaidbeoreyourtrademarkcanberegistered.

major taSkcompleteD

p y bsss

y Ticktheboxqwhenthetaskhasbeencompleted.

3

q a

q a

q a

q



13/34

ti p

Iyouwanttoregisteryourbusinessnameinterstate,butdontneedtosetuppremisesthere,anaccountantorlawyercanprovideyouwitharegisteredbusinessaddress.

c.Protectingyourbusinessorcompanyname (continued)

interState protection

Togiveyourbusinessnameinterstateprotection,youneedtoregisterthenameineachstateorterritorywhere

youintendtooperate.Yourrststepistochecktheregisterobusinessnamesineachrelevantstateorterritory.

Yourbusinessnamewillonlybeacceptediitisnottoosimilartoanalreadyexistingname.

AulllistoallbusinessnameregistersandtheircontactdetailsisavailableontheBusinessVictoriawebsite.

TypeInterstateBusinessNameRegistrationintothehomepagesearch.

FindoutaboutinterstatebusinessnameregistrationattheBusinessVictoriawebsite(business.vic.gov.au).

d.Registeringortaxation

TheAustralianTaxationOce(ATO)websitehasanumberoreeresourcesandtoolstohelpyouwithyourtax

obligationsandcalculations.Theyinclude:

cs bsss:canbeaccessedandcompletedonline

t bss s bsss:canbedownloadedandprinted

-rd:recordkeepingtoolorcash-basedsmallbusinesses

h ss :calculatesyourtaxdeductions

Toaccesstheseresources,typethetitlesintothehomepagesearchontheATOwebsite,orringtheirpublications

orderingserviceon1300720092.

Digital certiicateS

ManyotheATOonlineservicesorsmallbusinessareonlyaccessiblebyusinganATOdigitalcerticate.

AcerticatewillensurethesecurityoyouronlinetransactionsbecauseitidentiesyoutotheATO,andallows

youtodigitallysignelectronicdocumentslikeBusinessActivityStatements.

tax regiStrationS or new StarterS

Themostcommontaxregistrationsrequiredbynewstartersare:

t nb (tn)

as Bsss nb (aBn)

gds d Svs t (gSt)

py as Y g (paYg) d

ExploreonlineresourcesandregisteroradigitalcerticateattheATOwebsite(ato.gov.au).

major taSk

completeD

rs Ticktheboxqwhenthetaskhasbeencompleted.

3


q a

q a

q



14/34

Register or GST at the Australian Business Register website(abr.gov.au).

Find out more about registering or GST under Tax topicsexplained at the ATO website (ato.gov.au).

Register an ABN and TFNat the Australian Business Register website (abr.gov.au).

TI P

Even i youre not requiredto register or GST, you maystill want to in order to takeadvantage o the businessbenefts, especially claimingGST credits on yourbusiness expenses.

Your Tax FIle Number

The Tax File Number (TFN) is a basic requirement or completing your annual income tax return.

Sole traders can use their personal TFN or both their business dealings and their personal

dealings with the Tax Ofce. Partnerships, companies and trusts are required to have a separate

TFN. This can be obtained at the same time as you apply or an Australian Business Number.

Your ausTralIaN busINess Number

All businesses need an Australian Business Number (ABN) to:

register or GST, PAYG withholding, ringe benefts and other taxes

deal with other businesses where your ABN must be quoted

avoid having amounts withheld rom payments rom other businesses

aPPlYINg For Your abN aNd TFN

To apply or your ABN and TFN, go to the Australian Business Register website and ollow the

directions. I you are a registered company issued with an Australian Company Number (ACN),

your ABN will usually be the same as your ACN, with two extra digits at the beginning.

do You Need To regIsTer For gsT?

You are required to register or GST i either or both o the ollowing apply:

your current or projected annual turnover is $75,000 or more (As soon as you know your

turnover is $75,000 or more, you have 21 days to register.)

you are a taxi or hire car operator, regardless o your annual turnover

Like your ABN and TFN applications, registering or GST can be completed at the same time on

the Australian Business Register website. Your ABN will also be your GST registration number.

Registering or GST means you are required to complete a Business Activity Statement at

the end o each tax period. Small businesses usually have quarterly tax periods, but you can

choose to report monthly to the Tax Ofce.

dId You KNoW?

I you cant quote your ABN

on your invoices, otherbusinesses that are makingpayments to you are legallyrequired to withhold 46.5%o those payments.

qFth actin

qFth actin

qFth actin

15Small Business Victoria


15/34

RegisterorPAYGwithholdingattheAustralianBusinessRegisterwebsite(abr.gov.au).

FindoutaboutregisteringorPAYGwithholdingunderEmployerEssentialsinTaxbasicsorsmallbusinessattheATOwebsite(ato.gov.au).

DiD You know?

Forstraightorwardsmallbusinesseswithaturnoverolessthan$1,000,000,theATOhasanalternativeSimpliedTaxSystem(STS).Gotoato.gov.auormoredetailsandtoseeiyourbusinessiseligible.

d.Registeringortaxation (continued)

Do You neeD to regiSter or paYg withholDing?

Iyouhaveemployees,youmustregisterorPAYGwithholdingwhenyourbusinessmakespaymentsthatyouare

requiredtowithholdamountsrom;orexample,takingtaxorsuperannuationromemployeeswages.Themost

commonexamplesoPAYGwithholdingare:

makingpaymentsoremployees(includingworkingdirectorsoacompany)and/orcontractors

withholding46.5%rompaymentstosupplierswhocannotquoteanABN

Iyouareasoletraderorpartner,youarenotregardedbytheTaxOceasyourownemployee.Youdraw

moneyromthebusinesstoliveon,butthisisnotseenasanormalwageorsalary.Sothereisnoneedto

withholdromyourdrawingsorregisterorPAYGwithholding,unlesstheexamplesaboveapply.

Beoreyouwithholdanypayments,youneedtoregisterorPAYGwithholding.LikeyourGSTregistration,thiscan

becompletedatthesametimeontheAustralianBusinessRegisterwebsite.RegisteringorPAYGwithholding

meansyouwillhaveeitherquarterlyormonthlyreporting,dependingonyourlevelopaymentstoemployees.

t as i

bs

(Bt)

-employerswhoprovidebenetsoremployees(includingworkingdirectors),orassociates(usuallyamilymembers)

-benetssuchas,allowingaworkcartobeusedorprivatepurposes,orpayingorentertainmentexpenses

ATOwebsitepublication:FBT or small business: a guideto the most commonly providedringe benefts or small business

w

qs (wet)

-manuacturers,wholesalersandimportersowine

-thelastwholesalesaleowinebeoreGSTisadded

ATOwebsite:

clickExcise,thenWineunderTaxtopicsexplained

ly

(lct)

-retailers,wholesalersandmanuacturersoluxurycars

-thepointatwhichaluxurycarissoldattheretaillevel

ATOwebsitepublication:Luxury car tax: how to meet your

luxury car tax (LCT) obligations

es dy -businessesdealingwithpetrol,alcoholortobaccoproductsmadeinAustralia

-manuacturersanddealerswhosel-assessandcalculatetheamountoduty

ATOwebsite:clickExciseunderTaxtopicsexplained

V

gv dy

(s dy)

-businessesdealingwitharangeotransactions,suchaslandtransers,motorvehicledutyorhireogoods

VisitStateRevenueOcewebsite(sro.vic.gov.au)andgotoTaxesandDuties

ld -ownersolandwithatotaltaxablevalueo$200,000

ormore

VisitStateRevenueOcewebsite

(sro.vic.gov.au)andgotoTaxesandDuties

py- -employerswhopaywagestotallingmorethan$45,833permonth,or$550,000overaullnancialyear

VisitStateRevenueOcewebsite(sro.vic.gov.au)andgotoTaxesandDuties

Do anY aDDitional taxeS applY to Your BuSineSS?

Theollowingtableoutlinesadditionaltaxesthatmayormaynotapplytoyourbusiness,howthesetaxesare

generallyapplicableandwhereyoucanndurtherinormationoneachadditionaltax.


q a

q a



16/34

ti p

YourBliSreportcanbecreatedinminutes.Itcanbedownloadedandprinted,

emailedtoyourpreerredaddressor,whenyoureloggedon,savedtoyourreeaccountatBusinessVictoria.

e.Findingoutaboutlicences,permitsandregistrationsThelicences,permitsandregistrationsyouneedaremainlydependenton:

whatsortobusinessyouarerunning

whatactivitiesyouwanttoincludeinyouroperations

Asanexample,startingupatypicalrestaurantislikelytoneedtheollowing:

s bsss :businessnameregistrationwithConsumerAairsVictoria

s : TaxFileNumber,AustralianBusinessNumber,GSTandPAYG

withholdingregistrationswiththeTaxOce

d sv s:aplanningpermitandaoodpremisesregistrationwiththe

localcouncil

s d sv : aplanningpermitromthelocalcouncilandageneralliquor

licenceromConsumerAairsVictoria

y dd s:abackgroundmusiclicenceromtheAustralianPerorming

RightsAssociation

v bs d s : apermittoestablishanoutdooreating

acilityromthelocalcouncil

make the joB eaSY uSe BliS

Theeasiestwaytoidentiytherangeolocal,stateandederallicences,permitsand

registrationsyouwillneedistousetheBsss l i Sv (BliS)

whenyouvisittheBusinessVictoriawebsite.Gotobusiness.vic.gov.au/BLIS,clickSearchthe

VictorianBusinessLicenceInormationService(BLIS),choosethetypeoBLISreportyouwant

andollowthesteps.

BLISwillthencreateanonlinereportthatprovidesyouwith:

thelocal,stateandederallicences,permitsandregistrationsyouwillneedoryourbusiness

setup,suchasaplanningpermitandGSTregistration

downloadableapplicationorms,orlinkstoonlineregistrationsorthoselicences

contactdetailsoryourlocalcouncilandtheotherrelevantauthoritiesyouwillneed

todealwith

watch out!

SometimespeoplesignaleaseorevenstartabusinessjustbecausetheyvegotaverbalOKromthecounciloraplanningpermit.Youcouldbenediyouareoperating

withoutallyourrequiredandcompletedlicences.

major taSkcompleteD

d b s,

s d ss Ticktheboxqwhenthetaskhasbeencompleted.

3

CreateaBLISonlinereportattheBusinessVictoriawebsite(business.vic.gov.au/BLIS).OrcontacttheVictorianBusinessLine132215

q a

q



17/34

.ChoosingtherightpremisesandinsuringthebusinessWhenchoosingyourbusinesspremises,thebasicquestionsare:

Willyouneedaplanningpermitandareyouintherightzone?

Doesyourbusinesssetupinvolveanybuildingwork?

Shouldyoubuyorleaseyourcommercialpremises?

Whatisthebestlocationoryourbusinesstobeprotable?

Areyouthinkingoahome-basedbusinesspremises?

will You neeD a planning permit anD are You in the right zone?

Iyouresettingupanewbusiness,undertakinglandorbuildingdevelopment,orchangingthepurposeoa

property,yourrststepistoapplyoraplanningpermitromyourlocalcouncil.Theplanningpermitprovides

evidencethatthecouncilhasgivenapprovaloryourdevelopmenttogoahead.

Makeanappointmentwithacouncilplanningocerwhowilltakeyouthroughtheapplicationprocess.Youwill

beadvisedonthezoningoyourlandandanyotherlocalplanningconditionsthatapplytoyourdevelopment.

Togetcontactdetailsoryourlocalcouncil,usetheFindYourLocalCouncilsearchattheDepartmentor

VictorianCommunities(DVC)website.

DoeS Your BuSineSS Set up inVolVe anY BuilDing work?

Ibuildingworkisinvolved,particularlystructuralwork,bothaplanningpermitandabuildingpermitwillprobably

berequired.Theplanningpermitgivescouncilapprovaloryourdevelopmenttogoahead,whilethebuilding

permitgivesaregisteredbuildingsurveyorspermissionoryourbuildingworktogoahead,andensuresthat

buildingregulationsareollowed.

Themostcommonreasonsorneedingabuildingpermitareto:

constructanewbuilding

demolishallorpartoabuilding

alterorextendanexistingbuilding

removeallorpartoabuilding

changetheuseoanexistingbuilding

Contactthemunicipalbuildingsurveyoratyourlocalcouncil.Alternatively,visittheBuildingCommissionwebsite

tondaprivateregisteredbuildingsurveyor.

major taSkcompleteD

cs

ss d s

bsssTicktheboxqwhenthetaskhasbeencompleted.

3

MakecontactwiththelocalcouncilusingtheFindYourLocalCouncilsearchattheDVCwebsite(dvc.vic.gov.au).

FindalocalbuildingsurveyorbyusingFindingaRegisteredBuildingPractitionerattheBuildingCommissionwebsite(buildingcommission.com.au).


q a

q a

q



18/34

ti p

BookintotheS r l(UnderNewManagement)workshopbycontactingtheVictorianBusinessLineon13 22 15.

ShoulD You BuY or leaSe Your commercial premiSeS?

Thisshouldbeacommercialdecisionbasedonwhatwillgiveyouthebestreturn.Thetable

belowoutlinestheadvantagesanddisadvantagesoreach.

advs Dsdvs

By -thepropertywillbeoneoyourmajorbusinessassets

-youenjoythebenetsocapitalgrowthandsecurityotenure

-nolandlordmeansnorestrictions,soyoucontrolhowthepropertyisdeveloped

-youcanclaimdepreciationoxturesandttingsortaxpurposes(alsoappliesiyouleaseandprovidethettingout)

-startupcostswillprobablybehigher

-nolandlordmeansyoutakeullnancialresponsibilityorimprovements,repairs,ratesandallotherongoingexpenses

-youaresubjecttotheincreasingcostorealestateborrowing;orexample,risinginterestrates

-irelocationbecomesnecessary,sellingthepremisesmaybedicult

ls -startupcostsareusuallylessexpensive

-possiblesharingospeciedcostswiththelandlord;orexample,maintainingthepremisesandpayinglandtax

-youcanclaimleasepaymentsasbusinessexpensesortaxpurposes

-youhavethefexibilityorelocatingtomoresuitablepremisesitheleaserunsoutorotherproblemsarise

-moneyspentonrentdoesnotcontributetoyourbusinessassets

-youaredependentonthelandlordirenovationworkisneeded

-youcanbelegallyliableorleaseresponsibilitiesatertheleasehasbeen

assignedtosomeoneelse

-youcannotclaimdepreciationontheactualbuildingortaxpurposes

what iS the BeSt location or Your BuSineSS to Be proitaBle?

Whenchoosingyourlocation,askyoursel:

CanIrunthistypeobusinessinthislocation?

HowclosedoIneedtobetomycustomers?

HowclosedoIneedtobetomysuppliers?

Howmuchcompetitionisinthearea?

Aretheservicesandinrastructureadequate?

Aretransportandparkingacilitiesadequate?

Doesthelocationrefecttheimagemybusinessisaimingor?

Toassistyoursearchortherightlocation,usetheKnowYourArearesearchtoolatthe

BusinessVictoriawebsite.OnthehomepagegotoStartingaBusiness,thenBusiness

LocationandPremises.UsingKnowYourArea,selectthelocationyouwanttoresearchand

thetoolwillprovidecurrentdataontheareaanditspopulation.

ResearchsomelocationsusingtheKnowYourAreatoolattheBusinessVictoriawebsite(business.vic.gov.au).q

a



19/34

ti p

S-By-S: S

Bsss hisaBusinessVictoriainteractiveguidethathasprovedtobeavaluableresourceorhome-basedbusinesses.Visitthewebsiteormoredetails.bsss.v.v./

sbys

.Choosingtherightpremisesandinsuringthebusiness(continued)

are You thinking o running Your BuSineSS rom home?

Iyourethinkingostartingahome-basedbusiness,yourrststepistocontactyourlocalcouncilsplanning

departmenttogetacopyotheirspecicguidelinesorhome-basedbusinesses.Tocontactyourlocalcouncil,

usethed Y l csearchattheDepartmentorVictorianCommunitieswebsite.

Generallyspeaking,youcanrunahome-basedbusinessi:

thehomeisyourmainplaceoresidence

youemploynomorethanonepersonwhodoesnotlivethere

thetotalfoorareausedinthebusinessisnotmorethan50squaremetres,oronethirdothetotalfoorareaothehome

thebusinessdoesnotusemoreelectricity,gasorwaterthannormaldomesticusage,anditdoesnotdecrease

theattractivenessorvalueotheneighbourhood;orexample,bycreatinganexcessiveamountonoise

nothingisoeredorsale,exceptgoodsmadeorrepairedonthesite

nogoodsaredisplayedsothattheyarevisibleromoutsidethesite

novehicleisuelled,servicedorrepairedontheproperty

onlyonecommercialvehicle,notexceedingtwotonnescapacityandregisteredtoaresident,ispresentat

anytime

inSuring Your BuSineSS

Insuringyourpremisesandassetsisacriticalpartoyourbusinesssetup.Fornewstarters,insurancecanseem

likeacostlyadditiontoanalreadylonglistoexpenses.However,iyourbusinessisuninsured,youmaynot

recovernanciallyromadisaster,likeburglary,vandalism,reorstorm.Aboveall,adequateinsurancecoverwill

ensurethatyoucancontinuetrading,evenipremisesorassetsaredamaged,stolenordestroyed.

Aswellasinsuringyourpremisesandassets,someorallotheseadditionalinsurancescouldbecritical,

dependingonyourcircumstances:

publicliabilitytocoverclientsandvisitors

coverorcontents,equipment,stock,urnishingsandxtures

proessionalindemnityinsuranceiyourbusinessisinaserviceindustry

productinsuranceiyourbusinessisinamanuacturingindustry

motorvehicleinsuranceiyourvehicleisusedorbusinesspurposes

personalinjuryand/orincomeprotection,particularlyiWorkCoverisnotapplicabletoyourbusiness

(seewcv stopic).Personalinjuryandincomeprotectionareotenappropriateor,

andusedby,soletradersandpartnerships.

ContactthelocalcouncilplanningdepartmentusingFindYourLocalCouncilattheDVCwebsite(dvc.vic.gov.au).

ti p

UsetheATOsonlineh ss toclaimtaxdeductionsoroperatingyourhome-basedbusiness.VisittheATOwebsite(ato.gov.au)ormoredetails.

watch out!

Mosthome-basedbusinessesarenotadequatelycoveredbyastandardHomeandContentspolicy.Thepublicliabilitypartoitbecomesvoidonceabusinessisstartedonthepremises.Getadvice

romyourinsureraboutadditionalinsurance.


q a



20/34

FindoutaboutbusinessinsuranceandlocateaninsurancebrokerattheNIBAwebsite(niba.com.au).

FindoutaboutworkplaceinjuryinsuranceattheWorkCoverwebsite(workcover.vic.gov.au).

uSe an expert uSe an inSurance Broker

Toinvestigatetheinsuranceneedsoyourbusiness,youcouldconsiderusingtheservices

oaninsurancebroker.Brokersareexpertsinmatchingbusinessneedswiththerangeo

insurancesavailable.Theycanalsoarrangeabusinessinsurancepackagewhichwillalmost

certainlybecheaperthantakingoutanumberoindividualpolicies.Formoreinormationandto

ndabrokerinyourarea,visittheNationalInsuranceBrokersAssociation(NIBA)website.

workcoVer inSurance

Aswellasyourbusinessinsurances,youarealsolegallyrequiredtohaveworkplaceinjury

(WorkCover)insuranceiyourbusinessallsintooneorbothotheollowingtwocategories:

youpayorexpecttopaymorethan$7,500inwages,benetsandsuperannuation

oremployees

youemployapprenticesortrainees

Ineitherothosecategoriesappliestoyourbusiness,aworkplaceinjuryinsurancepolicyisnot

alegalrequirement.However,youshouldbeawarethatWorkCoverhasdierentclassications

oremployeeandcontractor,andthiscandeterminewhetheryouneedapolicyornot.

AquickvisittotheVictorianWorkCoverwebsiteshouldclariythisissue.Typeworkplaceinjury

insuranceintothehomepagesearchanddosomeinvestigation.

q a

q a



21/34

Topicsinthissection:

a.Developingyourbusinessplan

b.Accessingresources,adviceandsupport

iti p

BookintotheSBsss p(UnderNewManagement)workshopbycontactingtheVictorianBusinessLineon13 22 15.

Buildingonagoodstart

a.Developingyourbusinessplan

Agoodbusinessplanwillallowyoutoborrowromthebank,butitwillalsodeliveralot

more.UsetheollowingBUSINESSPLANWRITINGGUIDEto:

sharpenyourideasandmakethemmoreeasible

giveyouacleardirectionandanactionplantostartonimmediately

provideanessentialdocumentoryourdealingswith:

-lendersyouneedtoborrowrom

-suppliersyouneedcreditrom

-propertyagentsiyouareleasingyourpremises

-governmentandotherundingbodiesyoumayneedtosubmitormalapplications

toorgrantsandotherassistance

the BuSineSS plan writing guiDe

Themainaimothisguideissimplytoshowyouwhattowriteineachsection.

Theplanhastwoparts,the BuSineSS SummarYandtheDetaileD plan.

BuSineSS SummarY

ThisisjustacoversheettobewrittenateryouwritetheDETAILEDPLAN.

Bsss vv

Describetheindustryyourein,yourproducts/services,yourcustomers,whereyou

expectthebusinesstobeinaewyearsandhowthiswillbeachieved.

pd sv s

Explainexactlywhatyouaregoingtosell.Statetheeaturesoyourproductorservice

thatwillgiveyouanedgeinthemarket.

m yss

Explainthepartothemarketyouexpectyourproductorservicewillsellto,including

anyresearchyouvedonetosupportthis.

m sy

ThisisabriestatementaboutyourMarketingPlanandthetoolsyouwilluse.

ky bvs

Listonlytwoorthreeoyourmustachieveobjectives.Forexample:

-achieverstyearsaleso$xatagrossmargino$y

-achievearstyearprotbeoretaxo$x



22/34

DetaileD plan

Thisprovidesocusanddirection,andshouldbesetoutasollows:

m yss

Toshowthatastrongcustomerbaseexists,youneedto:

-identiyexactlywhowillbuyyourproductorservice

-explainhowyouwillreachthosecustomers

-explainithemarketisgrowing,decliningorsegmented

-describethemaininfuencesaectingthemarket

-deneyourgeographicalarea

-describeanyseasonaltrends

-explainthecompetitiveedgeyoubelieveyouhave

t

Lookatyourproductorserviceandyourcustomerserviceromthecustomerspointo

view,andaskhowyoucomparewithyourcompetition.Ithereareanynegativeresults

youneedtoaddressthembycreatingacompetitiveedge.

pd sv

Describetheproduct/sorservice/syourbusinesswillbeoering.Whereapplicable,

brandingandpackagingshouldbedetailedandongoingproductorservice

developmentshouldbeexplained.Theeaturesandbenetsoyourproductorservice

shouldalsobecomparedwithyourmajorcompetitors.

m

Listyourkeymarketingstrategies,explaininghoweachonewillwork,howmuch

itwillcostortherstyearandhowthestrategiessupporteachother.

Considertheollowing:

-:willyoupriceasaqualityitem,ortrytoundercutthe

competition,orencouragebulkbuying(buyone,getoneree)?

-dvs:willyouincludetheinternet,printorothermedia?

-d :willyoucontactbymail,emailorphone?

-b s:shouldyouhaveapubliclaunchorapressrelease,

orsponsoracommunitygroup?

-d ss vs:howwillyouassesscustomerinterest?

-s sv:howcanyoubeassuredogoodwordomouth

(moneybackguarantee,customerloyaltyclub)?

proDuct or SerVice proDuction

Explainhowtheproduct/sorservice/swillbeproduced,costedandpriced.Fora

product,youneedtocalculateandshowhowmaterials,labourandoverheadrecovery

allrelatetothesellingprice.Foraservice,youneedtocalculateandshowhowthe

servicewillbechargedouttoclients.

ti p

Manycouncilshavelocalbusinessdirectoriesontheirwebsiteswhichprovideagoodoverviewowhatbusinessesareinthearea.Thisishelpulwhenyoureidentiyingyourcompetition.



23/34

a.Developingyourbusinessplan(continued)

DetaileD plan

Swot yss (Ss, wsss, os, ts)

Listthestrengthsandweaknesseswithinthebusinessitsel,andidentiytheopportunitiesandthreatsthat

existintheexternalenvironment.Asanexample,thetablebelowoutlinesthestartoagenericSWOTanalysis

orapartnership.

Bsss s

Describetheownershipstructureothebusinessandrelatedissues,suchas:

-reasonswhythatstructurewaschosen

-businessorcompanyname/syouwilltradeunder

-trademarkand/ordomainnameprotectingintellectualproperty

m d s

Listthekeypersonsinthebusiness,andanyotherstaorcontractorsthatmaybeneeded,andthelevelo

paymentthatcanbeexpectedorthoseservices.Includeanyotherissuesrelevanttotheemploymentosta.

ky bvs

Listyourgoalsortherstyearooperations.Theyshouldbebrieandmeasurable.Forexample:

Salesandmarketingkeyobjectives:

-toachievesalesintherstquartero$10,000

-toreach10%othemarketsharebytheendotherstyear

Financialkeyobjectives:

-toachieve60daysasmaximumperiodorunpaiddebts

-toreducetheoverdratby$20,000intherstyear

Thisinvolvesnancialanalysisandthepreparationoprojectedstatementsortherstyearoyourbusiness

operations.Settheseoutasollows:

esbs ss

Assessthetotalundsthatwillbeneededtoestablishthebusinessandcoveritsoperatingcostsuntilitbecomes

protable.Establishmentcostsincludeallexpenditurerequiredtosetupandsupportthebusinessuntilitgetsto

apositionwhereitcansupportitsel.Atemplatetoassistyouassessthesecostscanbeoundattheendo

thisguide.

Ss wsss

-Youarepreparedtoworkhardandbelieve

thatthequalityoyourworkwillbuildagoodlocalreputation.

-Yourbusinesspartnerhasgoodbookkeepingskillssoyoudontneedtoemploysomeonetodothis.

-Youtendtodominatethepartnershipandneedtoshare

themorephysicalworkwithyouryoungerpartner.

-Youarewellintoyourortiesandlongterminjuriesarebeginningtoaectyourabilitytodoheavywork.

os ts

-Itmaybecheapertogetapart-timepersonorbasicbookkeeping,lettingyourpartnerdomoreotheheavywork.

-Anewcompetitoroperatingasanationallyknownranchisehasplanstosetupinyourarea.




24/34

dv s

goods

orservices

produced

fxedc

ost

sale

s

proftz

one

breakevenpoint

p d ss

Foranewbusiness,theprotandlossstatementorthersttwelvemonthsshouldbe

calculatedonamonthlybasis,andshouldincludetheestablishmentcostsasmentionedabove.

Keycategoriesthatneedtobeestimatedasaccuratelyaspossibleare;productorservice

costs,salesrevenue,grossprot/lossandoverheadexpenses.

A d ss canbeoundattheendothisguide.

cs f

Thecashfowstatementisprobablythemostimportantpartoyourbusinessplan.Regardless

onormalbusinessupsanddowns,itiscriticalthatyoudonotrunoutocash.Putsimply,the

cashfowisarecordowhenallincomeisreceivedbythebusiness,andwhenallpaymentsare

madebythebusinessoressentials,likeproduct,supplies,services,overheadsandtax.Your

statementneedstostartatthesetupstagewithazerobankbalanceandinitialcashrecorded,

ensuringthatthetruecashrequirementoryourbusinessistrackedromtheverybeginning.

As f canbeoundattheendothisguide.

B s

Themainaimoyourbalancesheetistoidentiythenetworthothebusinessowner/s.Itbrings

togethertheresultsoboththeprotandlossstatementandthecashfowstatement.For

newbusinesses,themostcommoncauseoailureisnothavingenoughequity.Itisstrongly

suggestedthatyougetanaccuratepictureoyourequityatstartup,atsixmonthsandat

twelvemonths.

Ab s canbeoundattheendothisguide.

S

Thisiswhereyouprovidedetailsothesourceoyournance.Youshouldalsoaimtomatch

yournancingwiththelieoyourassets.Shorttermnancingshouldbeusedoritemsthat

depreciatequickly,likecomputersorcars,whilebuildingsandmachineryneedlonger

termnancing.

Forwomennewstarterswhoneedtotakeoutaloan,theBusinessVictoriawebsitehasauser-

riendlyguidecalledShowMetheMoney.Itcanbedownloadedandtherelevantchapteris

SelectingaDebtProductorYou.

Bv yss

Theaimhereistoshowthelevelosalesthatwillberequiredtopayorallxedcosts

(overheads),andatleastcomeouteven.Everydollarabovethebreakevenpointwillcontribute

toprots.Thebreakevenanalysisiscalculatedoveratwelve-monthperiodandshouldbe

constructedusingyourprotandloss,andcashfowstatements.

Usethisthreestepprocesstocompleteyourbreakevenanalysis:

1.calculatethenumberoproductivehoursinatwelvemonthperiod

2.calculateyourxedcosts,likerentandwages,orthesameperiod

3.calculatethenumberoproductivehoursrequiredtocoverxedcosts

ti p

TheATOs-rdisareerecordkeepingtoolorsmallbusinessnances.Itisdesignedorcash-basedbusinesseswithonebankaccount,andcanbedownloadedromthewebsite(ato.gov.au),ororderedromtheATOasaCD.

watch out!

GSTandPAYGobligationsareusuallypartoaquarterlyATOreturn.Newbusinessesotenorgetthatthesearepartotheirregularpayments.Itmaybeworthrecordingtheseonaseparatelineinyourcashfow,sothemoneyisputasidetoearninterestandyouarenotcaughtshortevery3months.

DownloadShow Me the MoneyromtheBusinessVictoriawebsite(business.vic.gov.au).q

a



25/34

a.Developingyourbusinessplan(continued)

r vs

Theaimhereistoprovideanindicationothereturnthatcanbeexpectedromanypersonalmoneythathas

beeninvestedintothebusiness.Thereturnoninvestment(ROI)isusuallycalculatedoveratwelvemonthperiod.

ItisusuallystatedasapercentagebecauseanROIcannotbeeasilyassessedorcomparedusingmonetary

values.Asanexample,anexpectedROIo20%givesamuchmoreaccuratepicturethansimplysayingthe

investmentisexpectedtoreturnxamountodollars.

Thelastpartoyourbusinessplanshouldensurethatallthiswillreallyhappen.Listyourmainobjectives

andrealistictasks,alongwiththenamesothoseresponsibleandthedateswhenyouexpectthetasksto

becompleted.

ThemajortasksontheGettingstartedchecklistare:

-Choosingtherightstructureoryourbusiness

-Registeringyourbusinessorcompanyname

-Protectingyourbusinessorcompanyname

-Registeringortaxation

-Findingoutaboutlicences,permitsandregistrations

-Choosingtherightpremisesandinsuringthebusiness

Gobackoverthechecklistandocusontasksneedingtobeactionednow.

Thencompleteyouractionplanassetoutinthetablebelow.Yourmainobjectivesshouldcomeunder

theheadingsusedinthebusinessplan.Yourtasksshouldnotbetoodetailedortheybecomeunworkable.

Asastartingpoint,agenericexamplehasbeenenteredintherstline.

ti p

Fornewbusinessstarters,aneectiveactionplanshouldocusontasksthatcanberealisticallycompletedwithinthes s s.Limitingyourseltoashortlengthotimelikethisallowsyoutoestimateairlyaccuratelyhowlongeachtaskwilltake.

m bvs

tss

ps/sssb

Dd

S

-negotiateloanandrepaymentdetailswithbank

-nishnaldratoBusinessPlananddelivertobank

-appointmentwithcasemanagerandsignoonallloandocuments

Anna

Marco,Anna

March19

March22




26/34

b.Accessingresources,adviceandsupportuSe the BuSineSS Victoria weBSite anD the Victorian BuSineSS line

MostsmallbusinessquestionscanbeansweredbygoingtotheBusinessVictoriawebsite

(business.vic.gov.au)andusingtheas a Qsserviceonthehomepage.

Forover-the-phoneassistancewithallyoursmallbusinessenquiries,contacttheVictorian

BusinessLine(VBL)on13 22 15.

Victorian BuSineSS centreS thereS one in Your area

TheVictorianConsumerandBusinessCentreislocatedat113ExhibitionStreet,Melbourne.

ItisoperatedjointlybytheOceoSmallBusinessandConsumerAairsVictoria,andprovides

over-the-counterassistancewith:

smallbusinessenquiries

businessstartupessentials

registrationsandlicences

print-basedandonlineresources

workshopsandseminars

Providingsupportortheirlocalbusinesscommunities,VictorianBusinessCentresalsooperate

romtheollowingmetropolitanandregionallocations:

DiD You know?

Iyouneedtheservicesoanaccountant,solicitororbusinessadvisor,theVictorianBusinessLinecanorganiseanhouroreeconsultation.Ring13 22 15.

B

(53205900

48SturtStreet

BallaratVIC3350

Bd

(54424100

46EdwardStreet

BendigoVIC3550

Dd

(97918572

314ThomasStreet

DandenongVIC3175

g

(52290641

69-71MooraboolStreet

GeelongVIC3220

gy

(93044344

SuiteA,3BelairAvenue

GlenroyVIC3046

mb cBD

(132215

113ExhibitionStreet

MelbourneVIC3000

md

(50512000

131LangtreeAvenue

MilduraVIC3500

S

(58211811

3/164WelsordStreet

SheppartonVIC3630

t

(51749233

33BreedStreet

TraralgonVIC3844

V

(98745733

520CanterburyRoad

VermontVIC3133

w

(57216988

27-29FaithullStreet

WangarattaVIC3677

wd

(60562166

6/22StanleyStreet

WodongaVIC3690



27/34

FindoutmoreaboutTaxBasicsseminarsandgetcontactdetailsattheATOwebsite(ato.gov.au).

b.Accessingresources,adviceandsupport(continued)

Small BuSineSS mentoring SerVice

TheSmallBusinessMentoringService(SBMS)isanindependent,non-protorganisationthatprovides

experiencedcounsellorsandcoachesorsmallbusinesses.Theserviceisorpeoplestartinganewbusiness,

peoplebuyingintoanexistingbusinessandbusinesseswantingtoacceleratetheirperormance.Theonly

requirementisthatyoumusthaveacompleteddratoyourbusinessplan.

Formoreinormation,visittheSBMSwebsite(sbms.org.au).Youcanmakeanonlinebooking,oralternatively,

arrangetoseeacounsellorbycontactingtheVictorianBusinessLineoryournearestVictorianBusinessCentre.

tax BaSicS SeminarS

TheAustralianTaxationOce(ATO)hasdesignedaseriesoreeseminars.Theseminarsareprimarily

aimedatpeoplejuststartingoutinbusiness,butmanyestablishedsmallbusinessoperatorsarealsonding

themavaluableresource.MoreinormationisontheATOwebsite,orringtheseminarcoordinatordirectly

on1300 661 104.

DiD You know?

TheSmallBusinessMentoringServiceregularlysurveysitsclientsandhasasatisactionratingoover90%.VisitSBMS.org.auandclickSuccessStories.

ContactthenearestVictorianBusinessCentreandarrangeanappointmentwithanSBMScounsellor.


Yourtopthreesourcesoup-to-dateinormationandsupportare:

theVictorianBusinessLineon13 22 15

theBusinessVictoriawebsite(bsss.v.v. )

VictorianBusinessCentresacrossmetropolitanandregionalVictoria

q a

q a



28/34

TemplatesorStartingabusinessguide

Balance Sheet S D S ms Y ed

aSSetS

Cash

Debtors

StockCapital(plant&equipment)

Other

total aSSetS

liaBilitieS

Loan

Overdrat

Creditors

Provisions

total liaBilitieS

net aSSetS

ShareholDerS eQuitY

Capital(shares)

RetainedProts

retaineD ShareholDerS eQuitY

BalanceSheetTemplate



29/34

j a S o nv D j b m a my j jy

opening Bank

Balance

caSh receiptS

Investments

SalesIncome

BankInterest

OtherIncome

caSh inlow

TotalCashAvailable

CashPayments

Admin.OutgoingsMarketing

CostoGoods

InterestExpense

CapitalCosts

Tax

OtherPayments

total paYmentS

net moVement

cloSing Bank

Balance

CashFlowTemplaterstyear

TemplatesorStartingabusinessguide

projecteD

caSh low



30/34

j a S o nv D j b m a my j t

SalesRevenue

Less

ProductCosts

groSS margin

%oSales

leSS expenSeS

Salaries

Rent

Telephone

Electricity

Advertising

Entertainment

Insurance

Legal

OceSupplies

MotorVehicle

Etc

total expenSeS

net proit

ProvisionorTax

proit ater tax

ProtandLossTemplaterstyear

projecteD

proit & loSS



31/34


Notes


32/34


Notes


33/34


Notes


34/34

Ballarat

(5320 5900

48 Sturt Street

Ballarat VIC 3350

Bendigo

(5442 4100

46 Edward Street

Bendigo VIC 3550

Dandenong

(9791 8572

314 Thomas Street

Dandenong VIC 3175

Geelong

(5229 0641

69-71 Moorabool Street

Geelong VIC 3220

Glenroy

(9304 4344

Suite A, 3 Belair Avenue

Glenroy VIC 3046

Melbourne CBD

(13 22 15

113 Exhibition Street

Melbourne VIC 3000

Mildura

(5051 2000

131 Langtree Avenue

Mildura VIC 3500

Shepparton

(5821 1811

3/164 Welsford Street

Shepparton VIC 3630

Traralgon

(5174 9233

33 Breed Street

Traralgon VIC 3844

Vermont

(9874 5733

520 Canterbury Road

Vermont VIC 3133

Wangaratta

(5721 6988

27-29 Faithfull Street

Wangaratta VIC 3677

Wodonga

(6056 2166

6/22 Stanley Street

Wodonga VIC 3690

Your top three sources of up-to-date information and support are: the Victorian Business Line on 13 22 15

the Business Victoria website (business.vic.gov.au)

Victorian Business Centres across metropolitan and regional Victoria

Victorian Business Centre Network

Starting a Business 2

Documents

Transcript of Starting a Business 2