Starting and Succeeding in Business

Answer: Some Government departments you may need to contact before establishing your business include:
· Australian Taxation Office – for information on the New Tax System. Contact http://www.ato.com.au/
· The Department of Fair Trading – for information on Business Name Registration, Business Licences, Product and Safety Standards, Trade Measurement and Cooperatives. Contact http://www.fairtrading.nsw.gov.au/
· The Australian Securities Investment Commission – if you need to set up a private company, or if you need information about private or public companies in Australia. Contact http://www.asic.gov.au/
· Your local government council – to make sure you comply with any zoning regulations they may have in place also for health regulations and trade waste disposal.
· WorkCover NSW - to make sure you comply with industry specific OH&S requirements and workers compensation requirements. Contact http://www.workcover.nsw.gov.au/
· Federal and State Government Departments of Industrial Relations – to find out information regarding the awards which are applicable to your employees.
· Austrade – if you intend to export. Contact http://www.austrade.gov.au/
· Australian Customs – if you intend to import. Contact http://www.customs.gov.au/
· Australian Bureau of Statistics – to find out demographic information about your customers. Contact http://www.abs.gov.au/

Q2. What type of licences or permits do I need?

Answer: The Department of Fair Trading NSW has a Business Licence Information Service which provides all the relevant information on which types of licences are required for your particular business. They can be contacted on 13 3220.

Q3. What regulatory requirements do I need to comply with?

Answer: Some of the regulatory requirements that a small business may need to comply with are:

Health Regulations – particularly in food preparation, distribution and transport.
Environmental Protection Regulations – covering quality of air and water emissions and noise control.
Licensing of premises and licensing of tradespeople.
Registering with the ATO for and Australian Business Number (ABN).

Q4. Can I work from home?

Answer: Some businesses are better suited to home locations than others. Where the operator travels to the clients’ premises and does the desk work at the home/office this style of operation is appropriate.

Working from home can be isolating, and those who work from home generally do so on their own, so they are unable to rely on outside motivation. Home based business operators are advised to join clubs or business network groups to ensure that they keep abreast of industry issues that may affect their business.

Before you start operating your business from home, it is advisable to check with your local council to see if there are any permits that may be required.

Q5. Do I need to speak to my local council before starting business?

Answer: Before signing a lease or commencing a business from home it is necessary to speak to your local council to check that the area is zoned for that type of business. In some instances special permits or licences may be required. Also it is necessary to make sure you comply with some of the regulatory requirements such as health issues – particularly in food preparation and distribution, and also environmental protection regulations regarding air and water pollution and noise control.

Q6. What do I need to succeed in business?

Answer: Some of the things that it is often noted of successful business people are:

Vision and Passion for their enterprise
Good Management Ability – including sound financial skills
Industry Experience
Sound Planning

Q7. Are there any traps I should be aware of when starting up my own business?

Answer: There are 7 main traps that beginners can avoid by considering the following:

1. Locate your business in the right place
2. Know your customers and their needs
3. Always be in control of your finances
4. Choose the most appropriate business structure
5. Read any business or lease agreement carefully before signing (if in doubt get professional advice)
6. Buy an existing viable business – not someone else’s failed dream
7. Recognise that revenue is not clear profit and must cover all the operating expenses

Q8. Do I have what it takes to own/manage a small business?

Answer: You will be your own most important employee, so an objective appraisal of your strengths and weaknesses is essential. Some questions to ask yourself are:

Am I a self-starter?
How well do I get along with a variety of personalities?
How good am I at making decisions?
Do I have the physical and emotional stamina to run a business?
How well do I plan and organise?
Are my attitudes and drive strong enough to maintain motivation?
How will the business affect my family?

Most BECs run Small Business Introduction courses and have other services available that can help you assess your business idea.

Q9. What things should I consider before getting into a new business?

Answer: If your goal involves building a financial vehicle for yourself; it is a good idea to make sure that you are on the right road and travelling in the correct direction. Some things to consider are:

Remember that if you fail to plan, you plan to fail. This is where you have to start with your planning – when you first begin your evaluation.

Make the right decisions for the right reasons. This implies that you need to do a lot of research and level headed thinking.

Avoid getting caught up in the addictive and medicating rush that entrepreneurs often experience causing impulsive and improper decisions.

Have you explored your options? Make sure you have several options before selecting the business to go into. Don't just go into the first business opportunity that comes along.

Are your family, close friends, banker, lawyer, accountant and coach/mentor supportive of this venture? They may not always be right, but listen carefully to their feedback.

Does this opportunity have low enough overhead (relative to your financial position) so that you will have flexibility and be able to afford the inevitable learning curve?

Study or even apprentice before you commit yourself to hours of day to day activity that may not be satisfying.

Excellent products and services? In evaluating the opportunity, can you really stand behind these products/services and know that they truly are excellent?

What about the personalities of the people involved in this business or industry? These include partners, customers, vendors, suppliers and employees. Are these people that you trust? Are these the kind of people that you will enjoy spending much of your waking hours with? How do you feel being around these people?

Can you live with this decision? Is this the best decision you can make, even if the business doesn't work out? What do you stand to learn from the experience?