MUST HAVE'S for Starting a Business

By Joe Smith

As we approach the beginning of a new financial year you may be thinking of starting a new business.  There are lots of things to consider when starting a business and sometimes this can be a daunting process.  However my first tip would be to seek professional advice as an expert will be able to explain what is required in a simple and methodical manner.

One of my favourite quotes is ‘To fail to plan is to plan to fail’.  The preparation of a Business Plan is a definite MUST HAVE and you could have a go at preparing this yourself in the first instance and then have it reviewed by your adviser or you could invest in having your business advisor prepare this for you. 

Part of the planning process will include the structure that you intend to operate the business from.  I would strongly advise that you seek advice from a reputable accountant as the structure will affect the tax to be paid, protection of assets and many other issues.  This is another MUST HAVE.

The next MUST HAVE is a budget and cash flow projection for the business.  This can also form part of the Business Plan and again it would be beneficial to have this prepared by your accountant to ensure that the figures are accurate and achievable.  Your accountant should also have access to industry benchmarks that will assist in preparing your budgets.  These budgets may also be required by the bank if you are applying for a business loan.

One other MUST HAVE is your exit strategy - whether you plan to start the business and sell it in 5 to 10 years time or if you plan on being in business for a longer duration you need to consider how you will sell the business and what will make it attractive to a potential buyer.  Or you could be looking for a family member to take over in future and continue your legacy!

If you would like a no obligations chat with us regarding starting your business, please call or email us at Sothertons Gladstone on 4972 1300 or email sothertons@sothertonsgld.com.au