Business 101: Types of Businesses- Things to Consider in Starting a Small Business

 

If you are planning to start a business, another thing to consider is the type of business that you would want to set up.

 

Some common types of businesses are:

 
  • Small business

  • Franchise

  • Online business

  • Family business

  • Home-based business

  • Independent contractor

  • Importer

  • Exporter

Different types may require different things for set up. For now, let us look into the small business.

 

To start a small business you need to consider the following:

 

Registration and Licensing

 

As someone starting a small business applying for registration and license may sound intimidating.

 

The good news is, it is easy to do so just by visiting the Australian Business License and Information Service (ABLIS).

 

ABLIS “creates a personalised report for your small business circumstance” then it gives you:

 
  • a list of state/territory, local and Australian government requirements

  • License fees

  • How to apply including periods of cover and renewals

  • How to access application and renewal forms

  • Other information that you might need.

To know more about registration click here: (insert Steps to Start a Small Business)

 

Business Planning

 

Any sound business should have a business plan.

 

A business plan is defined as “a written document that describes in detail how a new business is going to achieve its goals. A business plan will lay out a written plan from a marketing, financial and operational viewpoint.”

 

A good business plan will also help you come up with a good name for your brand. Branding is essential to get people remember your product or service. Also, registering your company name, domain name and even trademark cost some money, effort and time so you really have to make sure that your chosen name would best stand for the business you have in mind.

 

Business Finances

 

Business is not all about that brilliant idea or a niche you think you can fill. As you probably already know, it needs money to start and keep going. In short, you also need to have at least the basic idea about bookkeeping so you know how cash flows in and out of your business.

 

As a business owner you should have knowledge in:

 
  • setting up a business bank account

  • setting up a basic bookkeeping system

  • sourcing finance

  • managing your cash flow

  • preparing financial reports

  • seeking financial help.

Professionals can also help you with your finances but this also comes at a cost.

 

You can hire a bookkeeper to do the day to day money management of your business. They can also be in charge of banking, payment collection, payroll and in preparing some financial statements.

 

Accountants may do more including help with your business financial needs, financial statements, managing tax and even provide you with some advice but they may cost a little higher than a bookkeeper.

 

However to lodge your Business Activity Statement or BAS, you need to make sure that your bookkeeper or accountant is a BAS registered agent or hire a BAS agent for that sole purpose.

 

Taxation

 

Small businesses with an annual gross turnover of less than AUD$ 2 million then you are eligible for a small business tax concession from the Australian Tax Office or ATO.

 

At the same time, the government started giving out more incentives to small business owners by funding the Jobs and Small Business package in the 2015-16 budget. Some of these include:

 
  • Tax cuts like 1.4% tax cut for companies, 5%tax discounts for other small businesses and assets deductions

  • Red tape reduction like Fringe Benefit Tax changes, Capital Gains Tax changes and reducing compliance cost for small companies.

  • Help for startups, employers and jobseekers

Suppliers and Equipment

 

Suppliers are a big deal for any small business.

 

Having the right supplier and best deal for your product needs and/or equipment for services you offer may aid in making or breaking your business.

 

Be alert for deals available in the market and consider joining subscriptions and the like. In addition, make sure that your supplier is legitimate by downloading Australian

 

Securities and Investment Commission or ASIC Business check app. Using the app may just save you from dealing with fake, fly-by-night businesses.

 

Business Premise

 

Looking for the right location is also important for a business to flourish. For example, starting a young and hip restaurant may be best placed near universities or company buildings with a young employee population rather than locating the restaurant in around an area where elderly homes are set up.

 

You may also consider leasing an office, starting the business at home or to go purely online to minise rental cost.

 

Getting Online

 

Pretty much everyone is online and it is a good idea to have an online presence.

 

However, it is never a good move to have an outdated and static website up.

 

Your company website and social media sites can serve as a marketing tool and your 24/7 customer service platform as well.

 

If your business needs an online and social media  presence then you should consider hiring someone to do that for you while you run your real business.

 

These days, hiring people to write content and market your product can be done by freelancers – meaning you may not hire them as regular employees but only when needed especially if you are just trying it out.

 

If you need permanent writers, marketers, SEO and other specialist then it is time to consider hiring the best person depending on the expertise you need. Or hire several if your online needs are varied.

 

And because it is online, that means technology is available to actually hire from overseas as well – why not if the expert you need is somewhere else?

 

Starting a business may be scary and a little confusing but thanks to the advancement of technology and  the initiative of the government and business sectors, almost everything you need is available at your fingertips.

 

The only thing left to do is to grasp it and take advantage.

Candice C

Candice is a school teacher and a mother, She loves writing about practical guides and of course, parenting advice.

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