Before you get started
What to consider before you start a business
A key to a successful business is preparation. Making sure you're prepared can save you precious time and money. Check if you're ready, both mentally and financially to take on the responsibility of owning and operating a business.
Check if you’re running a business or a hobby
Make sure you know if you're running a business or a hobby by reading our page on the difference between a business and a hobby.
Getting started with your business
1. Make key decisions
The decisions you make early on can affect many areas of your business. Including the licences you need, how much tax you pay and the volume of paperwork.
Decide on a business structure
The main structures are sole trader, partnership, company or trust. Choosing a structure for your business affects your tax, paperwork and finances. Consider getting expert advice to help you.
Learn how to choose a business name
There may be more to choosing a business name than you think. Consider whether the name is unique, available to use or exists as a protected trade mark before you decide.
Choose your business location
Each business has different needs for storage, equipment, or just being close to the right customers. Consider what’s important for your business before you decide where you’ll be based.
2. Plan for success
You’ve analysed your idea and yourself. Next you can plan your future and see how it all comes together.
Develop your business plan
Planning out your business gives you direction and keeps your business on track. You’ll also need a business plan if you seek finance.
Research your market
Research helps you figure out where your business fits in the market. Pay close attention to your location, customers and competitors.
Write your marketing plan
Need to tell everyone about your new business? A marketing plan can help you find and reach your customers and work out what makes your business different.
Develop your export strategy
Before you expand your goods or services overseas, make sure you plan ahead. An export plan can help you discover new markets and the best way your business can operate in them.
3. Register your business
To make it official, you’ll need to register. This makes sure your business gets taxed at the right rate, avoids penalties and protects your brand and ideas.
Apply for an Australian business number (ABN)
An Australian business number (ABN) is unique to your business. Customers, suppliers and the Australian Tax Office (ATO) use this number to help identify your business. An ABN is free to register.
Register your business name
A business name helps your customers identify your business from others. If your business name is different to your own name, you’ll need to register it.
Tax registration for your business
Not all taxes will apply to your business. It depends on the type of business you're starting, your activities and turnover. It's best to work out what taxes you need to register before you start your business.
Licences and permits
From zoning laws to a food licence, the licences and permits you need will vary. They often depend on the location of your business and the industry you’re in.
Register a company
A company is a legal entity in its own right. If you’ve decided a company is the right business structure for your business, you’ll need to register.
Register a business website
Thought about a website for your business? If you want it to match your business name, consider registering your web address as early as possible.
4. Prepare for tax
Getting on top of your taxes now can make things easier in the long run. It can help you avoid penalties and make sure your business is taxed at the correct rate.
Keep the right records
A good record keeping system can help you get on top of your records. It can also help you track your progress and seek finance if required.
Understand taxation for your business
Understanding tax requirements helps make sure your business is taxed correctly and avoids penalties. Get an overview of record keeping, registering for taxes and your options for paying tax.
Learn how to lodge and pay for tax
How you lodge your tax will depend on your business structure. Find out what you need to lodge and when a Business Activity Statement (BAS) is also needed..
5. Know the law
Finding out your business isn't entirely above board can cost you time and money. Start off strong by setting up and protecting your business legally. Consider speaking to a legal professional to help you along the way.
Learn the legal essentials for business
Your business may have different laws that apply to activities like leasing a property or handling private data. Keep on top of these laws to make sure your business stays legal.
Understand fair trading laws
Fair trading and consumer laws protect you, your business and your customers. Find out how you can make sure you protect your rights and those of your customers.
Learn the laws in your industry
Each industry has different laws, standards and codes of practice that apply to businesses working in that industry. Some standards and codes of practice are mandatory, so it’s best to check this before you start.
Understand contracts
When you agree to do a job for another person or business, you’re likely to be entering into a contract. Find out what makes a contract fair and what laws there are to protect you.
6. Prepare your finances
It's essential to take charge of your business finances and know how to manage your cash flow. It could make or break your business. If you need help, consider speaking to a financial adviser.
Learn how to organise your finances
Apart from a business bank account, you’ll need to know how to organise your finances. This includes managing cash flow, budgets, payments and invoices. Consider using a bookkeeping or finance system to help you.
Develop a pricing strategy
There’s a lot that goes into setting a price for your goods and services. Use the calculations and strategies available to help set your prices, so you don’t sell yourself short.
Apply for a business loan
Looking to boost your finances? There are a number of ways you can seek finance including applying for a loan. Give yourself a better chance of success, by finding out what you need to prepare before you apply.
Find resources to help finance your business
You don’t have to be a finance expert to run a business. Consider talking to a financial adviser, accountant or bookkeeper to help get your finances on the right track.
7. Protect your business
You invest too much time and money in your business to lose it. Protect your investment by planning ahead.
Understand business insurance
Insurance can help protect your business and your employees against the worst of situations. Find out which types of insurance are essential for your business and those you may want to consider.
Protect your intellectual property
Have a unique business idea and don’t want it getting into the hands of the competition? See how Intellectual Property (IP) can help protect your ideas here and overseas.
Prepare your business for an emergency
Planning ahead for what to do in an emergency can strengthen your business and help it recover quicker. To get started, see how you can backup and store your data and establish your emergency procedures.
8. Set up operations
Give yourself a head start by setting up your business operations now. Having all this out of the way will also give you more time to focus on running your business.
Learn about hiring employees
You can’t always run a business on your own. If you’re planning on hiring, make sure you know the steps you need to take and your legal responsibilities.
Market your business
Marketing can help you reach your target audience, boost your customer base and increase your bottom line. Start planning and preparing your marketing now, so when the time comes you’re ready to go.
Manage your suppliers
Are you selling products and need a supplier? See what you should consider when looking for a quality supplier and where you can search for them.
Communicate with customers
Providing good customer service is not just for when a customer buys from you. Find out what customer service skills you’ll need to create customer satisfaction and loyalty.