Starting a Business

Establishing a Business Plan

Launching a comprehensive business plan allows you to strategically outline how your business will function, and therefore allows you to have a consistent and detailed guide for operating your business so that you always stay on track. Depending on the type of business you plan to manage, your plan may include an executive summary, financial plan and policy, management plan, marketing proposals, anticipated demand, products/services details, insurance, expectations and regulations for employees, intellectual property details, and more.

Establishing a Marketing Plan

A marketing plan presents a business’ objectives and provides an outline of strategies and policies to effectively satisfy customers through exemplary service/products. A marketing plan may include customer profiles, competitor profiles, integral marketing strategies, key objectives, budgets, marketing analysis, and a timeframe.

Obtaining Finance

Before sourcing finance, be sure to consider how much finance opening your business will require and your ability to pay back your desired loan in the given timeframe.

Sources to consider include:

  • Loans from banks or other financial institutions,
  • Personal savings,
  • Private investors,
  • Crowd funding,
  • Venture capital,
  • Government funding.

Structuring Your Business

Before starting your business, it’s vital that you consider all possible types of business structures and decide which structure best suits your business. The main types of structures include:

  1. Sole trader
  • A sole trader is a business structure where the owner is responsible entirely for all elements and liabilities of their business. The owner has complete control of the business, and is legally considered to be unified with the business.
  1. Partnership
  • A partnership is a type of business structure established by a partnership agreement between two or more people who all legally share responsibilities and profits.
  1. Trust
  • A trust is a relationship where owners of a business transfer the control and responsibility of operating their business to a trustee, who manages the business for the benefit of the original owners and is legally responsible for all aspects of the business.
  1. Company
  • A company is a business structure owned by, but separate from, share-holders who have limited liability and run by a director who has greater obligations and liabilities.

Licenses and Registering Your Business

  • Apply for an Australian Business Number (ABN) online at the Australian Business Register. Before you can apply for a business name, you are required to have an ABN or an ABN application number.
  • Partnerships, trusts, and companies must apply for a Tax File Number (TFN) while businesses operated as sole traders can use their individual Tax File Number.
  • Register your Business Name with ASIC
    • You do not need to register a business name if the entity is:
      • An individual and the individual’s name is the name of the business,
      • A registered company and the business name is the company’s name, or
      • A partnership and all of the partners’ names constitute the business name.
    • Inquire online at the Australian Business Licence & Information Service to learn what licenses you are required to obtain to legally open your business.

Contact us

For more information and legal advice regarding this subject, call our experienced solicitors on (02) 9233 7776 or email us.

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