Are you planning to start a new business in Australia but have no idea how to? There are a couple  of things that you must consider when starting a new business. 

The process can be quite complex and could take time to figure it out. Nevertheless, you must  fulfill certain criteria to start the business successfully. In this article we will list the top seven  things you should consider when starting a new business in Australia. 

1. Choose a suitable business structure 

A business structure is the legal framework of a given business organization in a given country.  Choosing a suitable structure is crucial for your business. The structure that you adopt can  determine various key features of your business. Such features are. 

  • Your degree of control over the business 
  • Your degree of personal liabilities owed towards the business. 
  • Regulatory obligations of the business. 
  • Tax obligations and payments by the business 
  • Health and safety regulations in the business place 

Accordingly, there are four types of business structures in Australia. They are, 

  1. Sole proprietorships – These are single-owner businesses that are managed and financed by the  owner him/herself. 
  2. Partnerships – This is an entity financed and controlled by a group of individuals known as  partners based on a mutual contract or an agreement. 
  3. Companies – This is an entity owned by the shareholders but managed by a board of directors.  The companies are separate legal entities from their shareholders. 
  4. Trusts – This is where a business is handed over to a third-party entity with the legal right to run  the business.

2. Create a business plan 

A business plan is crucial for your new startup. The business plan will give a quick snapshot of  the feasibility of the business. It documents the goals and objectives of the business, strategies to  achieve them, forecasted financial statements, etc. 

Preparing a business plan may not be easy as it looks. There are various factors you must consider.  The target audience, marketing plan, operational plan, and human resource recruitment plan must  also be included when preparing the comprehensive business plan.  

Therefore it could take time and effort to prepare a realistic business plan. The business plan will  also help apply for bank loans and convince the potential shareholders and partners to invest in the  business. 

3. Identify your capital sources 

You should have a clear idea of how to finance your business initially. Your sources of capital  should cover the startup cost and early operational costs. 

You could raise capital through internal sources and external sources. If you start a sole trader  business, the only internal capital you could raise will be your investments in the business.  However, if you start a partnership or a company, you could raise capital internally through the  partners or shareholders. 

You could also raise capital externally through bank loans and other financial institutions. However, this can be costly and increases the liabilities of your business. 

4. Register the business  

Business registration is crucial to start a new business in Australia. To register your business, you  should submit the required documents and supporting evidence depending on your business  structure. 

You must obtain an Australian Business Number (ABN) when starting a new business. The process  of registering a new business could be lengthy and complex based on the type of business structure. 

You might even have to obtain licenses and permits to start, depending on the nature of your  business.

5. Create a separate bank account for the business 

It’s a legal requirement to have a separate bank account for every business structure except for sole  proprietorships. However, it is recommended to open a separate bank account for the business  regardless of its structure. 

When you have a separate bank account, it is easy to track payments and cash receipts of your  business. You would not mix up your personal expenses with your business. This improves control  over the cash flow of the business. 

6. Get an insurance policy 

Accidents don’t happen with a pre-warning. Therefore you must be prepared to face accidents and  uncertainties for the business and its employees. 

Get a decent insurance policy covering fire accidents, floods and storms (depending on the area),  theft and workplace hazards, etc. 

This will help you to face the losses due to unexpected incidents which could affect the operations  of the business. 

7. Get registered for taxes 

There are various kinds of taxes imposed on businesses. Your business’s tax obligations towards  the government could change depending on the structure of your business. Some of these taxes are  income tax, capital gains tax, goods and services tax, etc. 

It doesn’t matter the scale or the structure of your business, you must register your business for  taxes in Australia. This is since you should submit the relevant statements to the Australian Taxation Office (ATO) within the given deadlines, even if you don’t owe taxes to the government. 

Why Should you contact SPS 

No, you can do all of this by yourself. But it could be more stressful and takes time to start a new  business depending on your chosen business structure. 

If you feel like you need professional help to get started, then by all means, don’t hesitate to contact  us. We are specialist consultants who can help you to get the necessary documents ready and advise  you on the best possible means to start your business.

Our team has helped hundreds of clients to manage their businesses and achieve outstanding  results. We know that we can help your startup be more successful.