The document provides information on starting a good business, including different business structures like sole trader, partnership, and company. It discusses the advantages of each structure and notes that a company provides limited liability for shareholders but has higher setup costs. The document also emphasizes the importance of writing a business plan that outlines key elements like the company description, market analysis, products/services, and marketing/sales strategies. Additionally, it states that choosing the right business location and registering a business name are important initial steps when starting a new company.

1. HOWTO START A
GOOD BUSINESS
Presented By: M ArslanAkram

2. Types Of Business:
■ SoleTrader:
A sole trader is the simplest form of business structure and is relatively easy and
inexpensive to set up. As a sole trader you will be legally responsible for all aspects of the
business.You’ll generally make all the decisions about starting and running your business and
you can employ people.
Advantages
■ Simple to set up and operate.
■ You retain complete control of your assets and business decisions.
■ Fewer reporting requirements.
■ Any losses incurred by your business activities may be offset against other income, such as
your investment income or wages (subject to certain conditions).
■ Allows you to use your individual tax file number (TFN) to lodge tax returns.
■ You are not considered an employee of your own business and therefore don’t pay payroll
tax,

3. Partnership:
■ A partnership involves two or more people (up to 20, with some exceptions) going into
business together with a view to making a profit.
There are two types of partnership – “general and limited”.
■ A general partnership is where all partners participate to some extent in the day-to-
day management of the business.
■ A limited partnership is one formed by up to 20 people. It has at least one general
partner who controls the company’s day-to-day operations and is personally liable for
business debts, and passive partners called limited partners.
Advantages:
■ Simple and inexpensive to set up.
■ Minimal reporting requirements.
■ Shared control and management with other partners.
■ Relatively easy to dissolve the partnership or to resign and recover your share.

4. Company:
■ A company is a separate legal entity and can incur debt, sue and be
sued.The company’s shareholders (the owners) can limit their personal
liability and are generally not responsible for company debts .A
company is a complex business structure and has high set-up and
reporting costs.You can form a company as either a private (also known
as proprietary) or public entity.
Advantages
■ Limited liability for shareholders.
■ Well understood and accepted structure.
■ Able to raise significant capital.
■ Can carry forward losses indefinitely to offset against future profits.
■ Easy to sell and pass on ownership.
■ Profits can be reinvested in the company or paid to the shareholders as
dividends.

5. Write a Business Plan…
A good business plan guides you through each stage of starting and
managing your business.You'll use your business plan as a roadmap for
how to structure, run, and grow your new business. It's a way to think
through the key elements of your business.
ComponentsOf Business Plan:
■ Company Description. ...
■ Market Analysis. ...
■ CompetitiveAnalysis. ...
■ Description of Management and Organization. ...
■ Breakdown ofYour Products and Services. ...
■ Marketing Plan. ...
■ Sales Strategy.

6. Business Location:
When starting a new business choosing the location is most important and essential.
There are a number of factors that need to be considered in choosing a location for
a business. One of the earliest decisions any entrepreneur has to make is where to locate
his or her business.

7. Register a Business name:
■ To be identified for legal & business purposes
(i.e. “Ltd”, “Pvt Ltd”).
■ The name should not be similar to existing for
the company but In Sole Ownership there is no
such procedure is needed.