Starting your business
Starting a business is a big decision, one that merits careful research and planning well before you start trading.
To begin with, you need to figure out what type of business you’re going to be operating and then design a structure to suit that business type. You’ll need to think about the premises from which you’re going to run your business, as well as the most appropriate billing, paying and record-keeping systems for it.
It’s essential you find out sooner rather than later what your tax and superannuation obligations are going to be and whether or not you need to register your business.
Some quick and simple research can save you time, money and angst. Find tips on business benchmarks, a checklist for people starting a new business and a guide for contractors. You may want to talk to a financial planner, business advisor or seek advice from one of the many government support services. It is also a good idea to develop a business plan.
One of the very first steps is to work out if you are operating a business or if your activity is actually a hobby. This affects what income you need to declare along with deductions and losses you can claim.
Choosing your business structure
When you start a business, it’s very important to choose the business structure that best suits your needs.
You may need to register for a range of obligations, such as goods and services tax. You can register for many of these using the one registration form.
Setting up your invoicing, payments and records systems
Invoicing customers, paying creditors and keeping records are essential parts of running your business.
Setting up a home-based business
Many small businesses are operated as home-based businesses. A home-based business is one where you operate the business either:
o at home – that is, you carry out most of the work at your home (for example, a dressmaker who does all the work at home and has clients coming to their home for fittings)
o from home – that is, the business does not own or rent any premises other than your home (for example, a tiler who does most of their work on clients’ premises but does not have any other business premises).
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