This chapter discusses the major planning requirements for small businesses throughout their lifecycle. Businesses must comply with regulations regarding business registration, local bylaws, occupational health and safety, employment, equal opportunity, taxation, insurance, licensing and more. Thorough planning is also needed for physical and human resources, finances, and market research to understand products, target markets and competitors. Compliance with relevant laws and regulations, along with planning, is essential for small business success and sustainability.
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. 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. 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. 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. 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. 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. 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. 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
11. 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.
12. 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)
13. 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
14. 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
15. 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
16. Market research should aim to define;
Products
Target market
Competitors
Complete activity 7.9 into your workbooks.