Starting a New Business

The Idea

The concept of your new business idea was being tested initially in the form of a hobby. You found this concept worthy of further research and development. Now it needs to be tested in the form of a very basic business plan to decide whether it is still worth developing.

The Business Plan

This is the blueprint for building the business and a useful tool for reaching goals. At this point the idea is the central focus of the business and business plan. Right now your business does not exist, but there is an opportunity. Visualising how different aspects of the business will appear, researching the market, validating assumptions held, and compiling some fundamental financial projections will have the prospective business owner functioning in the planning process. Researching and planning, will improve the understanding of the business, the competition, market conditions, and risks.

Business Name

When choosing a business name you need to consider the marketing potential and legal aspects. Soul Horse is a descriptive business name permitting prospective clients to ascertain the philosophy of this consultancy. Soul Horse as a business name has great branding potential because it is easy to remember when educating clients as to the services and product offerings actually supplied. Soul Horse is simple, easy to remember, and inspiring.

The Australian Securities and Investment Commision website will allow you to search for business names. http://www.asic.gov.au/asic/asic.nsf#

IP Australia will freely permit you to check the Trademarks Database of all trademarks listed with them. Check the internet and domain names too. If no one else has that name – swiftly register it. Register the name in the Business Names Register. This will be accomplished at the Department of Fair Trading in Queensland.

Form of Business Ownership

This is the legal structuring of your business. Factors influencing your decision on the structure of your business will include:

size and nature of the business
compliance requirements
insurance cover
establishment costs.

Choosing a business structure can be a difficult decision. Each type of structure has advantages and disadvantages.

Sole trader.

The simplest and least expensive to set up. A sole trader is not a separate legal entity. You are responsible as an individual, for all the actions of the business. You will be liable for any debts incurred.

Partnership

A partnership is defined by the Partnership Act. It is the agreement and relationship which exists between persons carrying on a business in common with a view to profit. A partnership involves an agreement between two or more parties to have a legally-binding business relationship.

Company Pty Ltd

This is a private company. The company name ends with 'Pty Ltd'. It is run by directors and owned by shareholders.

Association

This structure suits small, non-profit groups. Examples include interest groups, sporting clubs, industry and hobby concerns.

Cooperative

Here five or more individual members own the business. A cooperative supplies goods and services to members and in some cases, to the general public.
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Finance

Frequently new businesses are financed out of their founder‘s pocket. The prospect of achieving business loans for a new business start up is not good. Banks are interested in being able to get their money back. Loan repayments will eat in to the profits and limit the business‘ ability to trade successfully. Frequently gaining monies from business angels will mean giving up a certain percentage of control and running of the business; this can hamper your progress.

The early phase of business start-up is frequently funded by bootstrapping. Bootstrapping means making do with savings, loans from friends and family, sharing resources with another business, personal credit cards, and of course money that fools are willing to part with. Venture capitalists are more interested in funding new businesses which have been able to prove themselves to be financially sound and well managed.

Business License

Smart License Queensland is able to tell you if your business requires you to have specific licenses. http://www.business.qld.gov.au/dsdweb/htdocs/slol/

Register for Goods and Services Tax (GST)

You can also register online.
The Australian Taxation Office has a business portal which is helpful. http://www.ato.gov.au/businesses/
ABN entitlement tool http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=ABN_Entitlement.xr4&go=ok

Employees

Fair Work Australia came into force on 1st January 2010 and seeks to find a balance in regards to the workplace laws, rights, bargaining and other issues
http://www.fairworkaust.com/

The Australian Taxation Office has helpful information concerning employee wages http://www.ato.gov.au/businesses/

There is also an Employee/Contractor Decision Tool http://www.ato.gov.au/businesses/content.asp?doc=/content/00095062.htm&mnu=42711&mfp=001/003

Superannuation
http://ato.gov.au/businesses/pathway.asp?pc=001/003/090

Workers Compensation - see Workcover Queensland http://www.workcoverqld.com.au/employer/Employerhome/Accide773urance/Taking580Policy/Whosho192sation.html

Awards and Agreements can be found in the Office of Fair and Safe Work Queensland
http://www.deir.qld.gov.au/industrial/law/awards/index.htm

Workplace Health and Safety http://www.deir.qld.gov.au/workplace/index.htm

Antidiscrimination Laws Queensland
http://www.adcq.qld.gov.au/


Antidiscrimination Laws Federal Level is administered by the Australian Human Rights Commission:
Age Discrimination Act 2004
Australian Human Rights Commission Act 1986
Disability Discrimination Act 1992
Racial Discrimination Act 1975
Sex Discrimination Act 1984

Business Records

The Australian Taxation Office has a resource which will help you to find out what business records to keep and how well you are maintaining them. http://ato.gov.au/businesses/content.asp?doc=/content/40542.htm

Keep all business records for taxation in one year separate and accessible.
Store Business Records Safely for 7 years after the taxation year to which they relate.

The Business Bank Account

Keep personal finances separate from the business finances.
Separate Credit Card for business expenses.
Business Travel Kilometre Log
When using your car to earn an income the log book is invaluable. http://www.ato.gov.au/individuals/content.asp?doc=/content/33886.htm

Business Compliance

Every business must meet compliance requirements.-this is the law.
The number and complexity of compliance requirements depends on:
your business structure
the type or business you will operate
the industry your business will operate in.

Compliance means the observance and application of all legal, tax, accounting, workplace and safety laws and regulations that affect your business.
Depending on your business, the following Government Departments require compliance and application of their requirements:

The Australian Securities and Investment Commission
http://www.asic.gov.au/asic/asic.nsf

The Australian Taxation Office
http://www.ato.gov.au/

The Australian Competition and Consumers Commission
http://www.accc.gov.au/content/index.phtml/itemId/142

Business Insurance

Operating a business carries with it risks. Get a good business insurance broker. Shop around as advice and rates vary. Discuss your needs with several commercial insurance agents; they will be able to advise you of your need of any of the following types of insurance:

Personal Accident and Illness
Public Liability
Professional Indemnity
Workers Compensation
Fire and Burglary
Cash in Transit Insurance Brokers and Companies.