Starting a new business is a very exciting endeavour and can be extremely rewarding if it becomes a success.
It can be extremely stressful but there are plenty of things a person can do to ensure that they are prepared and ready to become their own boss.
Here is a list of things to consider when you are starting a new business.
Figure Out Who Your Audience Is
This target demographic could be determined by many things such as their gender, age, socioeconomic status or cultural upbringing.
You need to also think about what social media platforms is your target audience using the most and what type of language and tone does your audience engage with and respond to the best.
Have A Meaningful Mission Statement
You need to think about how can your business enhance your customers quality of life and create value? Your business might also be tied to a social issue that it aims to promote for example; you might aim to be an environmentally friendly business or you might be focussed on mental health or being culturally inclusive.
Your customer should be the centrepiece of your business. The reality is that every business exists to create value for their customer. A compelling purpose that is entirely focused on how to create value for a customer is the starting point. Purpose statements that have nothing to do with the customer won’t drive traction within an organization.
Figure Out What Licenses and Permits You Will Need to Operate Your Business
For anyone who launches a business you will need to have an Australian Business Number (ABN) and also a Tax File Number (TFN). The Australian Tax Office (ATO) expects every Australian business owner to have a TFN so they can keep track of your tax obligations and make sure that you keep up to date with them.
You will also need to find out what license and permits you will need to operate your business. For example; if you run a bar or a venue where alcohol is serviced you will need to have a license to provide alcohol and you will also need to make sure that all your staff have a Responsible Service of Alcohol (RSA) certificate.
Have A Good Understanding of Your Finances and Know How Much It Will Cost to Launch Your Business
In regards to your set up costs you need to identify how much it is going to cost you to buy things such as; your equipment, your vehicles, your initial stock and your marketing material and any other costs you have to pay before you launch.
You also need to estimate how much cash you need to have in your savings in case any unexpected costs arise. You also need money in the bank to pay for the salaries of your employees who will be helping you run your business.
It is a great idea for you to make a cash flow forecast so that way you can determine any fluctuations that might occur in regards to your sales and your expenses. By creating a cash flow forecast this will make it easier for you to predict what times if year you will have more or less cash available.
Be Aware of Your Tax And Legal Obligations
“You need to understand the tax obligations relating to you, your business structure and how and why they apply. Not knowing what you owe, or are going to owe, the ATO and when is going to severely impact your cashflow within the business. You have a legal obligation to manage and maintain your compliance,” says Tyler Bisgrove from Vault Business Advisors.
Furthermore, there are also a number of legal obligations business owners need to be aware of prior to launching their business.
“Depending on the structure of your business, you may need to know your ASIC, Office of Fair Trading and other licencing and governance obligations. If you have employees, you need to be aware of SGC (Superannuation Guarantee Contributions), STP (Single Touch Payroll) obligations and WorkCover. These obligations may affect contractors and subcontractors as well as permanent employees, apprentices and casuals,” says Tyler Bisgrove.
You need to be aware of any industry licences such as construction, electrical, HVAC, gas, plumbing, real estate, liquor licencing – and ensure you have the right licence for the right structure. You might be personally registered with your industry governing body, but you might need a company registration as well if you’re not trading as a sole trader,” continues Tyler Bisgrove.
Make Sure You Have A Strong Marketing Plan
You need to put together a strong marketing plan so that people can find out about the existence of your business. In your marketing plan you need to identify who your desired customer and target audience is and decipher how you can grab the attention and appeal to people who belong to your desired target demographic.
Due to the way Search Engine Optimisation works, people have a better chance of finding you if your content is relevant to them. Ask yourself are you targeting, and what words are they using when they go online and start searching for products or services? What are their interests? What are their struggles? Which social media platforms do they use the most? Are they using Instagram or YouTube or Twitter? How do they like to consume content? Would they rather listen to a podcast, watch a video or read a blog post?
You need to ask yourself what are you trying to achieve? This will help you better understand where you need to spend marketing effort. Do you want to drive more traffic to a website? Do you want a better conversion rate? Are you trying to create more brand awareness? By knowing exactly what you are trying to accomplish will make it easier for you to figure out the appropriate marketing strategy.