Friday 4th of November 2022
Running a business is a financially liberating proposition for professionals who are born leaders
.... It extends the opportunity to control the entire...
Running a business is a financially liberating proposition for professionals who are born leaders. It extends the opportunity to control the entire enterprise without interference and take it to the next level through hard work and determination. It helps driven individuals to follow their passion and invest their energy in an endeavour that utilises their skills and strengths.
Entrepreneurship helps develop creativity, teamwork and competency to manage different functions in the company. However, starting a business from the ground up can be challenging. Besides a financial stake, it requires mental, physical and emotional investment from the owner. Thus, most aspiring entrepreneurs prefer buying a business for sale Sydney rather than starting it from scratch. If you wish to become self-employed, here are a few tips to get started.
The marketplace is filled with various brands and product types that are vying for the customer’s attention. It can be challenging for a start-up to grab the market share. Therefore, finding a niche segment that can be quickly captured with a high-value proposition is vital.
Be specific about the product you want to sell to a chosen target market. Evaluate the demand for the product among the buyers and check how it will fare in the future. It is easier to build a loyal customer base in a small segment with limited competition.
The idea or concept you have in mind must be put on paper before you start arranging logistics. A business plan is like the blueprint of the organisation. It offers details of the product, business goals, vision, mission, budget, funding, financial projections, employees, management, marketing etc.
The business plan should be prepared after researching the market and competitors to create strategies for marketing, operations and distribution. The business model should be scalable and flexible to adapt and grow without struggles.
Every business needs to have a structure that determines the way it operates. The structure will help you ascertain the cost of starting up and the tax liability of the entity. The four types of business structure include company, sole trader, partnership and trust. Once the type has been decided, you can determine your legal obligations, tax liabilities, control over the entity, reporting obligations and more.
You can start as a sole trader, which can be founded under your name and does not need to be registered as a separate business. It can be changed to a company or partnership if required.
Registering your business to get the Australian Business Number is mandatory because it provides an identity to the entity. It is needed to get a domain name for the business, claim GST credits and energy grants credits, and do away with PAYG tax on payments received.
At this point, you must pick a suitable name for the organisation, which should be unique, easily identifiable and aligned with the positioning of the brand. Check if the name is available and needs to be registered nationally with the Australian Securities and Investments Commission (ASIC).
Self-employment requires investing in the business you intend to start. Hire an accountant to evaluate the cost of setting up the venture and the working capital required until break-even. They should determine the amount of savings they can put into the business and the amount of financing required.
Entrepreneurs must set up a separate business bank account for business transactions and maintain records and reconciliation. They can apply for a business loan at a bank or find investors who will get a stake in the entity. The business plan will aid in persuading moneylenders about the success of the idea. You can also opt for crowdfunding and business grants offered by the government.
The legal requirements of a business include registering for goods and services tax (GST), pay-as-you-go (PAYG) withholding, tax file number (TFN), trademarks and website domain name. As an entrepreneur, you need to study the fair trading laws, codes of conduct, Small business & the Competition and Consumer Act, and consumer law.
Besides these, you will be signing contracts with partners, stakeholders, suppliers and employees. You must hire a lawyer to prepare these legally binding agreements and abide by the privacy laws when using your customer’s data. Similarly, you must know about employee laws, environmental protection laws, tax laws, etc.
Business insurance is necessary for the protection of the entity and some of them are even legal obligation, such as worker’s compensation insurance, third-party personal injury insurance and public liability insurance.
Entrepreneurs should also get stock, products and asset insurance, accident and liability insurance, technology and cybercrime insurance, and personal and loss of income insurance. These are needed to safeguard the assets, income and rights of customers, employees and the business owner.
Once all the documentation is over, the next step is to identify a location in Sydney that is within budget and can be leased for the long term with favourable terms. It should be positioned in a safe area and have spacious floor space, storage and parking. It must be equipped with all the modern amenities needed to run a business and attract talent and customers.
The office or shop should be comfortably visible to passers-by and have high exposure frontage to find customers quickly. It must have a specified area for signage and should be surrounded by other businesses and residential areas to get high passing foot traffic.
Besides getting the equipment, furniture and fixtures, you need to hire the right people to run different functions. You must set up a recruitment process to identify qualified candidates and complete their on-boarding process. Get everything organised and schedule the monthly calendar.
They need to be communicated about the policies and processes and their roles and responsibilities. They must be informed about their KPIs (key performance indicators) to help them align their goals with the business goals. They must be monitored by the management to ensure they are moving in the right direction.
A start-up does not have enough backing and support from customers because it is a new entrant in the market. It takes time to build credibility and loyalty for the brand. Thus, entrepreneurs who have a start-up or have bought a business for sale in Sydney must focus on advertising and marketing to position the brand in the market.
It requires developing the website, creating social media pages, SEO to gain online visibility and advertising through outdoor, radio and print media. It is essential to hire a marketing professional for media planning and identifying channels for campaigns that influence potential buyers.
Conclusion
Starting a business and becoming self-employed is a dream that is cherished by many. However, accomplishing it takes capital, motivation and the zeal to perform. If you wish to become an entrepreneur, you must use the tips mentioned above to avoid challenges.
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