Chapter 7:
Major planning throughout the life
of a small business
Business registration – The Business Names Act 1962 requires the registration
of the names of all businesses in Victoria u...
Occupational health and safety laws – In Victoria the
Occupational Health and Safety Act 2004 obliges all
employers to pro...
Regulations affecting the employment of staff
• Superannuation: an employee retirement fund that an employer
contributes t...
Equal Opportunity and anti-discrimination
legislation – Anti-discrimination laws protect
employees from discrimination on ...
State Government laws regulate trading hours – Different types of business will
have different trading hours allowed (Good...
Consumer protection laws – there a laws that have been enacted to
protect consumers from unscrupulous (dodgy) business pra...
Taxation – an old saying say ‘only 2 thing in life are certain: death and taxes’. A
small business will need to contact th...
Insurance – every small business will require
insurance of some description. An insurance
policy works in this manner:
• T...
Business licences, permits and approvals –
every business will require some type of
licence, permit or approval from a
gov...
Planning includes making sure you have enough physical and human resources needed for the ongoing
process of your business...
Factors to consider when planning your finances for a new small business are:
Purpose of finance
Amount required
Time peri...
There are 3 different sources of finance available to
business:
Owner/shareholder equity – own money
Reserves – Profits fr...
Market research is the first step in gathering information about a
market, conducting research could include;
Discussions ...
Market research should aim to define;
Products
Target market
Competitors
Complete activity 7.9 into your workbooks.
END OF CHAPTER
PLEASE COMPLETE
CHAPTER SUMMARYT
QUESTIONS
Bm u1 chapter 7
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Bm u1 chapter 7

  1. 1. Chapter 7: Major planning throughout the life of a small business
  2. 2. Business registration – The Business Names Act 1962 requires the registration of the names of all businesses in Victoria under a business name. Local government by-laws – By-laws are legal obligations imposed by a local government authority onto businesses operating in their shire, municipality or city. Some examples of by-laws affecting small business include Building and planning (zoning) Parking restrictions Times of operation Health regulations covering hygiene and food handling Activities such as outdoor dining
  3. 3. Occupational health and safety laws – In Victoria the Occupational Health and Safety Act 2004 obliges all employers to provide a safe workplace by proactively working to reduce all physical, chemical and behavioural hazards as far as is practical. Occupational Health and Safety (OHS) laws aim to prevent accidents in the workplace by involving everyone within the business. A list of employers obligations and areas for OH&S consideration are on pg. 107 of your text. Complete Activity 7.2 into your workbooks.
  4. 4. Regulations affecting the employment of staff • Superannuation: an employee retirement fund that an employer contributes to on a regular basis • Worker’s Compensation: a scheme whereby employees are insured against injury while at work • Employee Relations: the negotiations that take place between workers or their representatives and their employer about wages and conditions • Enterprise bargaining: a system where employees and employers sit down and negotiate pay and working conditions at each individual worksite. At the end of this process a enterprise bargaining agreement can be signed by both parities. • Collective bargaining agreement: As above but more commonly called now. This is often negotiated by the union on behalf of the employees. Complete activity 7.3 into your workbooks.
  5. 5. Equal Opportunity and anti-discrimination legislation – Anti-discrimination laws protect employees from discrimination on the grounds of race, gender, sexual preference, religion, pregnancy, ethic background, disability or any personal characteristic. Affirmative actions laws aim to improve the chances for career advancement in groups such as women and non- Angelo ethnic backgrounds. And lastly Federal sexual harassment laws protect workers from unwanted or uninvited sexual behaviour that is offensive, embarrassing or humiliating.
  6. 6. State Government laws regulate trading hours – Different types of business will have different trading hours allowed (Good Friday, Christmas Day). Environment protection laws – these laws are enacted by governments at all levels to protect the environment, things that can fall under these laws are: Noise Waste discharge Use of toxic substance Emission into environment
  7. 7. Consumer protection laws – there a laws that have been enacted to protect consumers from unscrupulous (dodgy) business practices. Laws such as: Sale of goods act – goods sold must match their description, be of good quality, suited for the purpose they are sold. Trade practices act 1974 – prohibits any misleading or deceptive conduct in trade as well as restrictive trade practices. Other areas to consider are: • Weights/measurements • Packaging requirements • Labelling • Cooling-off periods (def. Pg. 111) • Pricing • Mailing regulations • Refunds and exchanges Complete activity 7.6 Question 1 into your workbooks
  8. 8. Taxation – an old saying say ‘only 2 thing in life are certain: death and taxes’. A small business will need to contact the Australian Taxation Office (ATO) in regards to: Obtaining an Australian Business Number (ABN) or a Tax File Number (TFN) for companies Paying tax to the ATO Collection of Goods and Services Tax (GST) Submitting Business Activity Statements (BAS) Reporting Fringe Benefits tax (FBT) and Capital Gains Tax (CGT) is applicable
  9. 9. Insurance – every small business will require insurance of some description. An insurance policy works in this manner: • The insured (client) pays a sum of money (premium) to an insurer (insurance company) • In return, the insurer provides financial assistance for the insured event should that event occur. (ie, insured for damage and a window gets broken). The premium will be different for each business depending on their individual risk. The amount a premium will be can be found by conducting a risk assessment on the business. • Two types of business are compulsory for small business they are • Workers compensation • 3rd party motor vehicle
  10. 10. Business licences, permits and approvals – every business will require some type of licence, permit or approval from a government authority in order to operate, these could include: • Food premises registration for preparing and selling meals • Liquor licensing for selling alcohol • APRA copyright licensing for playing music • Work cover, taxation and superannuation for employing staff • Local council permits for footpath seating Complete activity 7.8 into your workbooks.
  11. 11. Planning includes making sure you have enough physical and human resources needed for the ongoing process of your business. The physical includes; Sourcing raw materials Negotiation on purchase arrangements Maintaining supplies Servicing/maintaining equipment Replacing resources at end of life cycle. The human includes: Workforce planning (def pg. 116)
  12. 12. Factors to consider when planning your finances for a new small business are: Purpose of finance Amount required Time period Costs associated with loan amount Current financial situation External factors
  13. 13. There are 3 different sources of finance available to business: Owner/shareholder equity – own money Reserves – Profits from business reinvested back into the business Borrowed funds – from banks or investors
  14. 14. Market research is the first step in gathering information about a market, conducting research could include; Discussions with like companies Employing a market research company The internet Australian bureau of statistics ABS
  15. 15. Market research should aim to define; Products Target market Competitors Complete activity 7.9 into your workbooks.
  16. 16. END OF CHAPTER PLEASE COMPLETE CHAPTER SUMMARYT QUESTIONS

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