Starting your Business workshop

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Resources from Business Victoria's workshop on what you need to know to make sure your new business gets off to a sound start.

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Starting your Business workshop

  1. 1. Before we start I’d like you to answer a few questions Why are you attending the workshop? Do you have any questions you would like answered in the workshop? Please list them on page 1 of your workbook
  2. 2. Will My Business Work? Evaluating yourself Setting up your business Business planning Financing the business Marketing the business Extra support available
  3. 3. Taking the First Steps Assess the feasibility of your business complete the checklist on pages 2 and 3 of your workbook Get support from workshops and seminars a range of low cost workshops and seminars are available across metropolitan and regional Victoria Pages 2-6
  4. 4. Taking the First Stepscont. What do you want your business to be known for? How will you make that happen? Complete the exercise on pages 4 - 5 of your workbook
  5. 5. Test and Develop your Product/Service Will you be filling a gap in the market? Are you entering a market where demand is greater than supply? Can you offer something different from your competitors e.g. Convenience, location or better quality? Page 6
  6. 6. –Business Victoria business.vic.gov.au –IBISWorld ibisworld.com.au (free access available at a Victorian Government Business Office near you) – INNOVIC innovic.com.au Market Research and Start Up Help
  7. 7. –As a group, what are some low-cost, practical, market research strategies you can come up with to implement in your businesses? Complete the exercise on page 8 of your workbook Market Research
  8. 8. Assess and Manage your Risks What are the risks that could have a negative effect on your business? How likely is each risk? How serious could the impact be? What can you do to either prevent it from happening, or to reduce its impact? Use the risk assessment table on page 9 of your workbook to consider the risks for your business.
  9. 9. Start from scratch, buy an existing business or go into a franchise – which is best for you? Page 11
  10. 10. Choosing your Business Structure Sole trader Partnerships Company Trading trusts Cooperatives Incorporated associations Types:
  11. 11. Choose the Best Structure for your Business Sole trader: one business owner Partnership: more than one business owner Proprietary limited company: separate legal body with its own tax return You may also wish to consider trusts or cooperatives Pages 13-15
  12. 12. Choose your Business Name Unless you are using your own name i.e. your first name and surname, you need to register your business name. Choose a name that: is unique and easy to remember stands out from those of your competitors emphasises what your business actually does. Pages 16-17
  13. 13. Register your Business or Company Name Business names are registered with Australian Securities and Investment Commission (ASIC) Go to asic.gov.au Company names are registered with the Australian Securities and Investments Commission Go to asic.gov.au Check with IP Australia re trade marks Go to ipaustralia.gov.au Find out about domain name registration and availability at auda.org.au Pages 16-18
  14. 14. Register for Taxation Common tax registrations for new starters: Tax File Number (TFN) Australian Business Number (ABN) Goods and Services Tax (GST) Pay As You Go (PAYG) withholding Register for taxation. Go to ato.gov.au Pages 21-23
  15. 15. Tax File Number (TFN) Partnerships, companies and trusts need to have a business TFN Apply for a business TFN at: abr.gov.au If you operate as a sole trader, you can use your own TFN for your business
  16. 16. Australian Business Number (ABN) You may not have to apply for an ABN, but if you do not have an ABN, other businesses can withhold 46.5% of payments to you You will need to apply for an ABN if you are registering for GST To register go to abr.gov.au Page 22
  17. 17. Goods and Services Tax (GST) You may choose to register if you are carrying on a business and your turnover is below the registration turnover threshold. You must register for GST if: you are an entity carrying on an enterprise (if you are in business and not a hobby you probably meet this requirement), and your annual turnover is at or above, the registration turnover threshold of $75,000; or you supply taxi travel in carrying on your enterprise
  18. 18. Australian Business Number of your business the words ‘Tax Invoice’ a section where the amount of GST charged is recorded (if you are registered for GST) When your business prepares an invoice to send out to your customers the following must be included somewhere in the invoice: What is a Tax Invoice?
  19. 19. PAYG Withholding If you pay employees and directors, you will need to be registered for pay as you go (PAYG) withholding Page 24
  20. 20. Business Activity Statement (BAS) What is it? Where do I find out more?
  21. 21. Registrations, Licences, Permits The type of licences, permits and registrations you will require will depend on the type of business you are running The Registration and Licence Finder provides information on the local, state and federal licences, permits and registrations you require. Go to business.vic.gov.au/licences Page 26
  22. 22. The Registration and Licence Finder Permits and licences you may require include: liquor licensing permit for a food premises building codes design standards for products environmental licensing signage permits customs registrations for import and export and many more
  23. 23. Choosing the Right Premises Things you’ll need to consider in choosing your premises: Will you need a planning permit and are you in the right zone for the intended use? Does your business set-up involve any building work? Should you buy or lease your business premises? What is the best location for your business to be profitable? Are you thinking of running the business at, or from, your home? Pages 27-31
  24. 24. Running a Business From Home You will not generally need a council planning permit to operate your business from your residence if: you employ no more than one other person who does not live there you use no more than 50 sq metres or 1/3 of the total area of your home However, there are limitations on some types of businesses operating from your home. Check with the Planning Unit at your local council. Page 30
  25. 25. Insurance Considerations Insure your business premises and contents Other insurance to consider is: Pages 30-31 public liability product liability professional indemnity motor vehicle personal injury and income protection WorkSafe Injury Insurance is required if: you pay or expect to pay more than $7,500 in wages, salaries, benefits and superannuation for employees or contractors you employ apprentices or trainees
  26. 26. Writing a Business Plan that’s Right for You Write a business plan that works Use the business plan template provided in your workbook on pages (BP1 – BP21) On the pages opposite your business plan, there is an example business plan to guide you through
  27. 27. What Should be in a Business Plan? 1. Clear achievable business objectives. 2. Marketplace information – including competitor analysis, research on who your customers are 3. Infrastructure, resources and logistic requirements 4. Financial requirements and budgeted financial performance 5. Action Plan
  28. 28. Get your Finances Right 1. How much cash do I need to get started? 2. How much cash do I need to operate? 3. When do I get my cash back? What is my breakeven point? 4. When is the business operating on its own cash? 5. How much return will I get on my investment? The measure of success is when a business is: 1. cash flow positive and 2. when investors or owners get their money back Before you start you need to ask:
  29. 29. Understand Financial Statements Profit and loss statement Cashflow statement Balance sheet Breakeven analysis Why are these important? Pages 34-35
  30. 30. Action Plan Break the major tasks into smaller ones Decide what needs to be actioned within the next 6 months Use the table on p.39 as a guide for your action plan Use the workbook as your checklist
  31. 31. Find Information and Support Business Tips on the Business Victoria website Small Business Mentoring Service (SBMS) Victorian Government Business Offices (VGBOs) Find an Adviser ATO Tax Basics Seminars Pages 56-61
  32. 32. FREE Mentoring Session Business mentors help you to identify a clear direction for you and your business Business mentors can also advise you on how to: conduct market research work out your breakeven point price and/or cost your products or services develop an effective marketing strategy use other business management tools To arrange a free mentoring session with a business mentor complete the evaluation form and select FREE Mentoring Session on page 2. You will then receive an email with details on claiming your free mentoring session.
  33. 33. Questions? Thank you for attending Check out business.vic.gov.au/events for more workshop information

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