Setting up your new business properly
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It’s such an exciting time starting your own business. Whether you are buying an established business, creating your own or moving out of employment. Whatever your reason may be, there is just something different about being in control of your destiny.
Often people can get swept up in the excitement of creating their own business and skim over important details in the planning and preparation stages. Unfortunately this is all too common when establishing a small business. With cash flow being a major factor for most small businesses that fail within the first two years, it is vital to ensure the backbone of the business (often the boring bits for entrepreneurs) is properly planned and structured for success.
In the beginning we are fuelled with passion and belief in our product and often we set up with the idea that we can worry about budgets and planning AFTER we start making money. However, overlooking key components of your set up will end up causing pressure on not only you the business owner, but also the overall success of the new venture.
The following is just a number of key components that should be considered before starting a business:
- Registrations (ATO, ASIC, industry specific)
- Which structure to use and why
- Business plan
- Budgeting and cashflow
- Funding of business and assets (finance, lease etc)
- Employing staff (PAYG withholding, superannuation, workers compensation etc)
- Bookkeeping (electronic v manual)
An independent study of new business owners revealed that the best advice they received when setting up was “outsource what you’re not good at and focus on being the expert on what you are good at”. With cash flow issues attributing to 29% of failed new small businesses, we cant stress enough the benefit any new business will receive by seeking professional financial advice. With ongoing support and setting up your business properly with the help of an expert, your new business will be hitting more goals on target.
Being mindful of your future expenses, such as, hiring staff, investing in new equipment, insurances and business assets, at the beginning of your journey, will allow you the freedom of growing at a rate you can manage, without falling at the first statement of costs.
At Bishop Collins we have a wealth of experience and expertise in dealing with small business startups. Our professional and dedicated staff can assist and support you throughout the entire process so your energy and expertise can be spent working in the business.
Thinking of starting a new business? Then give us a call to book an appointment.
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