On with the job

Once you have made the decision to start your own business, the real work begins. Well before the first product is sold or the first client is won comes the vital planning and preparation that will ensure the business starts off on a sound footing.

Here is a vital checklist that every new business owner should read.

Is there a market for your idea?
A business starts with an idea, but make sure it is feasible. Before you invest any money, take steps to understand your intended market. What is the state of the market or industry you are planning to enter?

Your preparation should include speaking to

• potential customers,
  
• suppliers and
  
• trade and industry associations.

Be informed
Setting up a business involves many options and variables, each with its own distinct requirements, responsibilities and legal obligations. There are many sources of information that explain what they are.

State government websites carry extensive information
and in many cases free advisory services.

Local governments are keen to attract small and micro businesses to their area -
speak to local economic development officers to see what assistance and incentives are available.

Business structure
Once you are satisfied that your idea has legs, decide on the most appropriate business structure.

Business owners can start out as

• sole traders or
• enter into partnerships (in this case use a solicitor to draft the partnership agreement to avoid any unpleasantness later on)
• or opt for a company structure.

Alternatively, becoming a franchisee will enable you to have your own business while being part of a larger organisation with existing infrastructure, marketing resources and expertise on tap.

By now you should have chosen and registered a business name.
Be sure it's a name that will stand the test of time.

Location and premises
Depending on the type of business and structure you opt for it may be smart to run your business from home - even if only at first - but check with your local council for any special requirements such as permits and zoning restrictions.

Startup ventures should also consider incubator parks, industry-specific precincts and serviced offices. Also consider sharing premises with other businesses in allied services.

This is the time to consider IT and telecommunications requirements, office furniture and equipment.

External expertise

Planning for your new business should involve the expertise and assistance of

• your accountant
• and solicitor.

If you do not already have these, choose with a view to forming a long-term relationship.

Also ask your bank what advisory support it can offer your business; if you are not satisfied, shop around.

Trade, industry and professional bodies are a valuable source of expertise, much of which can be accessed by members free of charge.

Peer support
No one need feel alone when setting up a business.

Consider asking someone you trust and respect to be your mentor during the formative stages of your business.

Develop an informal support network of trusted friends, peers and former colleagues and

join formal peer networks and entrepreneur clubs.

Courses in small business and entrepreneurship will provide you with the knowledge to set up your business and also provide a valuable support network.

Business planning
Even the best ideas require a structure to guide the business in those critical early stages.

• Your accountant should help in setting financial forecasts and determining what capital and cashflow you will need to establish and operate your new business.

• A business consultant may also prove a valuable resource in helping to create the most appropriate organisational structure to help your business on its way - particularly in areas such as staffing, pricing your products ar services and setting overheads.

Branding and corporate identity
Ensure your business has consistent branding and corporate identity.

Once you have registered your business name, have your logo and visual identity (such as stationery and business cards) designed by a graphic designer.

Your website should be professionally designed to ensure it is functional, informative and visually consistent with the values and objectives of your business, is possible to do your own branding, but usually you get what you pay for.

Organisational capacity
Determine how many employees your new business needs.

Your business plan should include

• the recruiting
• and training costs
• and staff wages.

In the early days, you will take on many tasks associated with running a business -

• administration,
• selling,
• marketing,
• business development

- but be prepared to shed some of these responsibilities as the business grows.

End game
Have an end game in mind when establishing your business.

What are the aims of the business?

Are you ...

1. buying a job for yourself,
2. are you creating an asset to build and sell within a defined period,
3. or are you building a long-term business to remain in the family after you retire?

Each is a reasonable option, but knowing your destination will ensure you are better able to plan the journey ahead

BRW 2009