How to Start a Business
If you want to start a business there is a lot you need to do. This page outlines some of the things you need to think about
Think first!
Before starting a business there are some things you need to think about:
- What business are you going to offer that is different to your competitors?
- Is there a need for your business?
- Do you have enough money to start and maintain your business?
- Talk to people you know who have gone through the process of setting up their own business.
- Write down your ideas and prepare a plan – this may help get you a loan to get started.
Registering your business name
All businesses have a name so you’ll have to think about one for your business. A business name that is not exactly the same as the owner’s name must be registered with the Office of Fair Trading. For example: you would not have to register your business name if it was ‘John Smith’ (your own name) however, you would have to register your business name if it was ‘John Smith Painting’. There is an application fee that is required when you register your business name and you must be 16 years or older to apply. Registration also lasts three years before you need to renew it.
Does your business need a licence?
Your business will probably need government licences and permits before it can start.
Incorporation – association or co-operative?
Give legal standing to your non-profit organisation by incorporating it as an association or a non-trading co-operative. Both entities provide members with important legal protection and are a relatively inexpensive means of establishing a legal entitiy. Incorporation provides a certain amount of limited liability for members, as long as they follow accepted business and community standards. A trading co-operative structure provides additional flexibility in that it can engage in commercial enterprise and return profits to its members. There are currently around 800 registered co-operatives in NSW operating in sectors as diverse as publishing, tourism, catering, dairy produce, taxis, housing, recycling and child care.
Choosing your business structure
The most common business structures are sole trader, partnership, proprietary limited company, association and co-operative. Try and get a clear understanding of each of the business structures so that you can see which one will best suit your business. You can get this information from a Business Enterprise Centre. When deciding which structure to choose, you will need to think about such things as taxation, type and size of business, finance requirements and establishment costs.
Running your business
Once your business is up and running, you will need to be aware of the laws that govern fair trading in the day-to-day operation of your business. Running a business, you should be aware that Federal laws will also have a bearing on your operations. One of the most important Federal laws is the Trade Practices Act 1974.
