Start a Business in 2022
Entrepreneurism is on the rise across Australia. According to the Australia Bureau of statics, Australians registered more than 365,000 new businesses in 2021 — a 16 per cent increase from the previous year. After the pandemic, this trend has continued, and it seems not going to slow down any time soon. The message here is clear: if you are planning to start a business, 2022 is a great time to start your business. However, there are some important things to keep in mind when starting a business.
Be clear about your business
Successful start-ups begin from business ideas that fill the needs of the customers in a better way. A good business idea can be transformed into your business purpose. Your business purpose will determine the success and the failure of the business. Defining and understanding your business purpose will help you make decisions when you face challenges.
When you are starting a business ask yourself the following questions that can help to define your business purpose,
- What will your business give customers?
- Who are your customers?
- What makes your business different from your competitors?
- Why does the world need your business right now?
- What do you want your business’s legacy to be?
- What is your business’s social responsibility and how will you give back to your community?
Make a business plan
A business plan outlines the business’s entire framework including current and future goals. A business plan is a key resource in successful businesses. A key element of a business plan is market research. It helps you to understand your industry– as well as targeted customers, their needs, preferences and behaviour – as well as your competitors. Competitor analysis should highlight the strengths and weaknesses of companies that have similar products or services.
A business plan helps you figure out where your company is going, how it will overcome any potential difficulties and what you need to sustain it.
Register your business
Once you’ve worked out your business plan and know it has the potential to become successful in the market, it’s time to register your business to make it official. This ensures your business is taxed at the right rate, avoids penalties and protects your ideas and brand.
Important steps to follow in business registration.
Determine your business structure: – Australia has four common structures that investors can use when establishing a business. Depending on your plan, you might choose to register as a sole trader; partnership; company or trust.
- Get a tax file number: A Tax file number (TFN) is an essential requirement to do a business. Once you’ve started a business, educate yourself about your tax obligations, so you can work to meet them immediately.
- Get an ABN: – An ABN is a unique number given to your business to use when doing business with other businesses and the government. However, every business is not required to obtain ABN.
- Obtain licences and registrations required for your business:- it’s your responsibility to make sure that your business operates legally. You need to ensure your business has the right licences and registrations. The types of licences you need depend on your business type, industry and location.
- Get trademark:- Protect your business name, logo and other creations being used by others by registering it as a trade mark.
You can get more details from business.gov.au.
Arrange funds for your business
Great business ideas and good business plans become irrelevant if you are unable to obtain sufficient funding to start and grow the business. Most people finance their new business with their own money or by collecting funds from family or friends. However, these funds are often not enough to grow the company bigger. The following options are identified as vital sources of funding for the start-up business.
- Angel investors:- Angel investors are wealthy private investors focused on financing small business ventures in exchange for equity.
- Venture capitalists:- Venture capital firms invest in early-stage of companies in exchange for equity, or an ownership stake. Venture capital financings are hard to obtain. Venture capitalists often invest in start-ups that are pursuing big opportunities with high growth potential, and that have already shown some track records.
- Crowed funding: “Crowd funding” is the practice of raising funding through multiple funders, often via popular crowd funding websites. People who are interested in what you are trying to do can donate to your campaign, typically in exchange for some kind of reward for their donation
- Bank loans:- Bank loans are a common form of finance for small businesses.
Create your network
A good network of people is essential to running a business. Connection with fellow entrepreneurs is a fantastic way to be inspired, gain insight, and make new contacts. Your network could be both local and international. Connection with people in different sectors of industries allows you to solve problems that may arise in the future. Platforms like LinkedIn, Facebook, and Twitter are just a few social media networks that make it easier to expand your worldwide network.
Protect your business
You invest too much time and money while starting a business. It is important to protect your investment by planning ahead. Having the right insurance can help to protect your business, your customers and your income. Following are the commonly used insurance in the business.
Personal or loss of income insurance:- Helps to recover the loss of income due to business interruption.
Professional liability coverage:- Helps to recover legal charges if you’re sued for negligence or errors in the services you provide.
Stock, products and asset insurance:- helps pay for damages to your building, equipment, inventory, furniture and fixtures.
Click here to find out about Hiring accountants.
Create a brand for your business
You need to be extremely careful about branding your business. Your brand’s image is vital. People will remember your brand not necessarily for what it did for them but for how they felt due to their encounter with it. Make sure your product and services leave a lasting impression on your customers. Never underestimate the value of your product because it has the potential to gain or ruin your business.
An excellent brand name will increase your brand awareness and give your company identity. Therefore, every entrepreneur should develop the best brand name for their business. Contact TASC to start and grow your business.