As promised here is the second instalment of Tips for Startup Success, Let’s Get Technical this time.
So you’ve found your passion, you’re focused and excited to begin the journey of starting your own business. Now what? Where do you go from here?
#1 Start with a business plan.
I know its sounds so boring, and I have struggled with this in the past myself. However a business plan doesn’t have to be a formal and regimented document. Mine is a running list of plans and ideas for my businesses. As long as you keep a record of your ideas and goals, and have them there to refer to. You should include in your business plan how much money you need to invest in your idea, and a marketing plan. If you are planning on going to the bank to request finance for your start- up, something formal document is recommended. Here you can find some free business plan templates and information on preparing an effective business plan.
Unfortunately, start-up’s can take a while to become profitable. So perhaps quitting your day job is a touch hasty in the beginning. If you must leave steady employment I would suggest having 3 – 6 months of living expenses saved, plus and extra amount for any unforeseen business expenses that are always sure to pop up, believe me!
#3 Get organised with your banking:
I highly suggest opening a business bank account straight away and running all business transactions through this account. The big banks offer great business account packages with merchant facilities, access to higher daily transfer limits and facilities for batch payment of bills and wages. I use the Commonwealth Bank for all my business accounts, and am really enjoying it. I pay one low monthly fee of $10. They have a great mobile app where you can easily check your accounts, transfer money, BPAY anyone, or use the very cool “Tap & Pay”. “Tap & Pay” uses your Android or iPhone to make purchases. You must order a PayTag for $2.99, stick it to your phone and tap it on the terminal next time you are out shopping. Very cool, soon there will be no need for wallets!
#4: Star with an End:
I know this sounds crazy. You’re just getting started and now you want me to think about the end? Yes, you should always go into business with a long term plan and a potential exit strategy. Dream big, plan to build it up so you can sell up big. Its a fantastic way to plan. Imagine you are going to sell tomorrow, even if you never do at least your options are open if the opportunity ever arises! You want to create a “turnkey” business. (I’ll right a post on this topic another time)
#5 Nuts and Bolts:
Apply for an ABN, register your business name, decide on your business structure and weather you will be registered for GST. Make sure you understand all your responsibilities regarding PAYG, GST, and Superannuation. If all of this seems like way too much to take on, contact me anytime. email@example.com.
Have you started a business recently? Are you thinking about it? Get in touch, I am always happy to have a chat and answer any questions you have.