So, You Want To Start Your Own Business?
Ah, yes! Welcome to the rest of your life. This is an exciting step, and will truly be one of the wildest adventures you’ll ever go on (well, maybe not ever, but it will be wild). Your patience, creativity and problem-solving skills will be tested but, if you execute with your wits, you’ll wonder why you didn’t work for yourself sooner.
That said, there are a couple of things you need to do before kicking off this next chapter. These may feel like annoying, extra administrative tasks but trust me, you’re reducing your admin down the track if you tackle these now.
You should start by asking yourself the following questions:
Is my business name registered with the right people?
If you wish to conduct business under a name other than your own in Australia then you must register your business name with the Australian Securities and Investments Commission (otherwise known as ASIC).
Do I have the correct insurances in place?
Depending on your industry, there might be in insurances you’ll need to consider. These could include public liability, professional indemnity, contract works and income protection. It’s worth asking around or having a Google.
What assets do I need and in what order of importance do I need them (ie. website, Instagram, Facebook, etc.)?
Think about this properly. These days, a business can do so much without a website. While eventually, yes, you will need one, ask yourself this for now: is it the right time? Websites can be very expensive (to do right) and social media can be a pretty powerful tool while getting set up. Consider this as well: Things may change A LOT in your first year of operation. It would be a shame to spend all that money on a site, only to feel in 12 months that it doesn’t truly represent you. Don’t cart-before-the-horse yourself, or mount extra initial financial stress unnecessarily.
Now, for some tips. Everyone loves tips!
Open a separate bank account for your business. I know this may seem like a no brainer, but you would be surprised how many people still use the same account to live AND run their business out of. Separating your personal from your professional spending is THE MOST important step in starting your own business, in my opinion. It will enable you to manage your accounts, keep track of your ingoings and outgoings, set your prices effectively, budget and hand any admin over to a bookkeeper (hi!) or tax agent.
Open a business savings account. This is to put money away for things like GST, BAS, tax or to save your profit. I actually recommend business owners open FIVE bank accounts eventually and follow the Profit First method – but that’s for another blog. For now, a business transaction account and a business savings account is a great start! BONUS TIP: Try not to view the money in your business savings account as “yours”. Remember if you are registered for GST you are collecting the money for the ATO.
Invest in an online accounting software. This will be one of the best investments you’ll ever make. Whether you’re managing your own books or outsourcing to someone like me, you must have accounting software. The way I see it, if your business doesn’t embrace technology you will get left behind. I’m a huge fan of the Xero platform – it’s is the best software I’ve ever worked with and easy for anyone to use. I mean, ANYONE. If you need a little help getting started, I can set you up, give you a tutorial then leave you to it. Drop me a line.
““Beware of little expenses. A small leak will sink a great ship.””
Review your financials monthly, if not weekly. It’s vital to know your numbers and how your business is tracking. Reviewing your financials more regularly will quickly identify any major leaks before they get too big. Set aside 30 minutes to an hour each week, sit down at your favourite café over your favourite beverage of choice and just GET IT DONE.
Ask for help. Dream jobs still have admin! Even those who are the most passionate about what they do (and great at it too) weren’t all blessed with instinctive business finesse. In the beginning, seeking out the right advice will only create a good foundation for you to grow from. Knowing when to outsource is also super important – for your sanity as much as anything else – and building a team of people who have your back right from the start is what real dreams are made from.
That’s all from me for now. Congrats on taking the leap! May your business-baby prosper in ways you couldn’t have imagined possible.
Amber x
(Ps. Just a little disclaimer: This is general advice and does not consider your specific circumstances. It would be so cool if I could read your mind, but unfortunately, I can’t, so this advice should only be acted on with full understanding of your own current financial situation, goals and objectives. If you need more specific advice – or you’re in a real tail spin – please contact by a fully qualified financial advisor.)
