starting your business workshop
DESCRIPTION
Resources from Business Victoria's workshop on what you need to know to make sure your new business gets off to a sound start.TRANSCRIPT
Before we start I’d like you to answer a few questions
Why are you attending the workshop?
Do you have any questions you would like answered in the workshop? Please list them on page 1 of your workbook
Will My Business Work?
Evaluating yourself
Setting up your business
Business planning
Financing the business
Marketing the business
Extra support available
Taking the First Steps
Assess the feasibility of your business
complete the checklist on pages 2 and 3 of your workbook
Get support from workshops and seminars
a range of low cost workshops and seminars are available across metropolitan and regional Victoria
Pages 5-6
Taking the First Steps
What do you want your business to be known for? How will you make that happen?
Complete the exercise on pages 4 - 5 of your workbook
Test and Develop your Product/Service
Will you be filling a gap in the market? Are you entering a market where demand is greater than supply? Can you offer something different from your competitors e.g. Convenience, location or better quality?
Page 6
Business Victoria business.vic.gov.au
IBISWorld ibisworld.com.au (free access available at a Victorian Government Business Office near you)
INNOVIC innovic.com.au
Market Research and Start Up Help
As a group, what are some low-cost, practical, market research strategies you can come up with to implement in your businesses?
Complete the exercise on page 8 of your workbook
Market Research
Assess and Manage your Risks
What are the risks that could have a negative effect on your business?
How likely is each risk?
How serious could the impact be?
What can you do to either prevent it from happening, or to reduce its impact?
Use the risk assessment table on page 9 of your workbook to consider the risks for your business.
Start from scratch, buy an existing business or go into a franchise – which is best for you?
Page 11
Choosing your Business Structure
Sole traderPartnershipsCompanyTrading trustsCooperativesIncorporatedassociations
Types:
Choose the Best Structure for your Business
Sole trader: one business owner
Partnership: more than one business owner
Proprietary limited company: separate legal body with its own tax return
You may also wish to consider trusts or cooperatives
Pages 13-15
Choose your Business Name
Unless you are using your own name i.e. your first name and surname, you need to register your business name.
Choose a name that:is unique and easy to remember
stands out from those of your competitors
emphasises what your business actually does.
Pages 16-17
Register your Business or Company Name
Business names are registered with Australian Securities and Investment Commission (ASIC)
Go to asic.gov.au
Company names are registered with the Australian Securities and Investments CommissionGo to asic.gov.au
Check with IP Australia re trade marksGo to ipaustralia.gov.au
Find out about domain name registration and availability at auda.org.au
Pages 16-18
Register for Taxation
Common tax registrations for new starters:Tax File Number (TFN)
Australian Business Number (ABN)
Goods and Services Tax (GST)
Pay As You Go (PAYG) withholding
Register for taxation. Go to ato.gov.au
Pages 21-23
Tax File Number (TFN)
Partnerships, companies and trusts need to have a business TFN
Apply for a business TFN at: abr.gov.au
If you operate as a sole trader, you can use your own TFN for your business
Australian Business Number (ABN)
You may not have to apply for an ABN, but if you do not have an ABN, other businesses can withhold 46.5% of payments to youYou will need to apply for an ABN if you are registering for GST
To register go to abr.gov.au
Page 22
Goods and Services Tax (GST)
You may choose to register if you are carrying on a business and your turnover is below the registration turnover threshold.
You must register for GST if:
you are an entity carrying on an enterprise (if you are in business and not a hobby you probably meet this requirement), and your annual turnover is at or above, the registration turnover threshold of $75,000; or
you supply taxi travel in carrying on your enterprise
Australian Business Number of your business
the words ‘Tax Invoice’
a section where the amount of GST charged is recorded (if you are registered for GST)
When your business prepares an invoice to send out to your customers the following must be included somewhere in the invoice:
What is a Tax Invoice?
PAYG Withholding
If you pay employees and directors, you will need to be registered for pay as you go (PAYG) withholding
Page 24
Business Activity Statement (BAS)
What is it?
Where do I find out more?
Registrations, Licences, Permits
The type of licences, permits and registrations you will require will depend on the type of business you are running
The Registration and Licence Finder provides information on the local, state and federal licences, permits and registrations you require. Go to business.vic.gov.au/licences
Page 26
The Registration and Licence Finder
Permits and licences you may require include:
liquor licensing
permit for a food premises
building codes
design standards for products
environmental licensing
signage permits
customs registrations for import and export
and many more
Choosing the Right Premises
Things you’ll need to consider in choosing your premises:
Will you need a planning permit and are you in the right zone for the intended use?
Does your business set-up involve any building work?
Should you buy or lease your business premises?
What is the best location for your business to be profitable?
Are you thinking of running the business at, or from, your home?
Pages 27-31
Running a Business From Home
You will not generally need a council planning permit to operate your business from your residence if:you employ no more than one other person who does not live there
you use no more than 50 sq metres or 1/3 of the total area of your homeHowever, there are limitations on some types of businesses operating from your home.
Check with the Planning Unit at your local council.
Page 30
Insurance Considerations
Insure your business premises and contents
Other insurance to consider is:
Pages 30-31
public liabilityproduct liabilityprofessional indemnity
motor vehiclepersonal injury and
income protection
WorkSafe Injury Insurance is required if:you pay or expect to pay more than $7,500 in wages, salaries, benefits and superannuation for employees or contractorsyou employ apprentices or trainees
Writing a Business Plan that’s Right for You
Write a business plan that works
Use the business plan template provided in your workbook on pages (BP1 – BP21)
On the pages opposite your business plan, there is an example business plan to guide
you through
What Should be in a Business Plan?
1. Clear achievable business objectives.
2. Marketplace information – including competitor analysis, research on who your customers are
3. Infrastructure, resources and logistic requirements
4. Financial requirements and budgeted financial performance
5. Action plan
Get your Finances Right
1. How much cash do I need to get started?
2. How much cash do I need to operate?
3. When do I get my cash back? What is my breakeven point?
4. When is the business operating on its own cash?
5. How much return will I get on my investment?
The measure of success is when a business is: 6. cash flow positive and 7. when investors or owners get their money back
Before you start you need to ask:
Understand Financial Statements
Profit and loss statement Cashflow statementBalance sheet Breakeven analysis
Why are these important?
Pages 34-35
Action Plan
Break the major tasks into smaller ones
Decide what needs to be actioned within the next 6 months
Use the table on p.39 as a guide for your action plan
Use the workbook as your checklist
Find Information and Support
Business Tips on the Business Victoria websiteSmall Business Mentoring Service (SBMS)Victorian Government Business Offices (VGBOs)Find an AdviserATO Tax Basics Seminars
Pages 56-61
Using your FREE SBMS voucher
Business mentors help you to identify a clear direction for you and your businessBusiness mentors can also advise you on how to:
conduct market researchwork out your breakeven pointprice and/or cost your products or servicesdevelop an effective marketing strategyuse other business management tools
To arrange a session with a business mentor go to:
www.sbms.org.au/OurPrograms/SpecialistVouchers.aspx
and type in WASD as your code
Questions?
Thank you for attending
Check outbusiness.vic.gov.au/workshops
for more workshop information