Income Resource Club > Business > Checklist for Business Start-Ups
Checklist for Business Start-Ups
For a lot people the concept of going into business is tempting because it gives the impression of offering direction and control over their lives. Sometimes the reality can be the opposite. So organize and prepare yourself and your idea/concept before jeopardising your capital, by gaining as much information as possible before making the plunge. At Income Resource Club there are over 230 printed interviews, books, audio interviews, video interviews, across all facets of Business to assist you.
Checklist:
Organise yourself: Most business owners doing well are hardworking, self-motivated, resolute and in good health. If you are thinking of going into business, you need to be conscious of your skills and abilities and what inspires and motivates you. Draw up a list of your personal strengths and weaknesses and consider their influence on your business.
Evaluate your idea: Has your idea been done before? Was it a success? Is it going to be a commercially successful idea? Do you have the skills to make it successful?
Do you have the money (or access to it) to go into business at this time?
Licences or permits: You need to find out if you require any licences and/or permits to operate the proposed business. You may need a permit from your local council if you plan to operate a home based business.
Market research: Create a profile of your potential customers by answering the fundamental questions of Who? What? Where? When? and for How much? You then need to identify the segment of the market (niche) that will be your target market. Identify your competitive advantage by identifying the strengths and weaknesses of your competitors.
Intellectual property: Search the trade mark databases before you register a business name, company name or domain name to avoid potentially costly errors. A trade mark is a word, phrase, letter, number, logo, picture, sound, smell, shape, aspect of packaging or a combination of any of these. Copyright is not registered as it automatically vests in the creator.
Business Planning: A business plan is vital if you need to seek finance, make an impression on a potential partner or investor. It will also help with setting goals and staying on course. A business plan summarises the business idea and the financial, marketing, and operational strategies to achieve success.
For further information on Business Planning, please visit:
Location and leasing: The location of a business can be central to its success, and an poor lease can lead to business failure. Do not accept or sign any offers to lease before receiving ALL relevant documentation including a disclosure statement, tenant guide, expenses budget and a form of the lease.
Financial management: High-quality financial management is crucial to the ongoing success of your business. This includes costing and pricing accurately, knowing your breakeven point, preparing sales projections and cashflow forecasts, and keeping bookkeeping and other records up-to-date.
Funding and finance: In most cases there are no government grants to start or buy a business. When you have determined your start-up costs and estimated income and operating costs for at least the first 12 months, consider how any loss or shortfall will be funded. Potential sources of funding include savings, friends, partners, or a bank or other financier. Lenders will generally require a business plan, including cashflow forecasts and sufficient collateral as security.
For further information on Funding and Finance, please visit:
Employing Staff: Legal obligations for employers not only include complying with awards and minimum conditions of employment but a range of other matters such as equal employment opportunity and occupational safety and health.
For further information on Employing Staff, please visit:
Business structures: Most small businesses operate as either a sole trader, partnership, proprietary company or a trust. It is suggested that you seek professional advice from your accountant on your choice of business structure.
Working capital: Working capital is money on hand to cover the day-to-day operations of the business. The management of working capital involves managing the levels of both current assets and current liabilities and their impact on the cash available for day-to-day operations. Business expansion generally increases the need for working capital.
Insurances and superannuation: Business owners should insure their life, their income, and their commercial risk. Workers' compensation insurance cover and superannuation guarantee contributions are compulsory for employees and some contractors.
Registering a business name: If you operate as a sole trader or a partnership you can operate under your own name(s), but if you use any other name you need to register it as a business name.
Taxation: If you operate a business you are entitled to an Australian business number (ABN). If your turnover exceeds $75,000 per annum you are required to register for goods and services tax (GST) with the Australian Taxation Office (ATO). Below this turnover, registration is optional.
Marketing and promotion: Marketing is more than just selling; it involves every facet of the product or service from foundation, design, pricing, distribution, selling and promotion through to after sales service and measurement of customer satisfaction. Market research will shape the mainstay of your marketing strategies. Promotions can include advertising, radio spots, sponsorships, brochures, signage, business cards, referrals, direct mail, and guest speaking.
For further information on Marketing Strategies, please visit:
Technology: It is important to keep up to date with new developments. Monitor the level and performance of your fax machine, telephone system, photocopier, answering machine, pagers, mobile phones, two-way radio, teleconferencing facilities, cash registers, security systems, computers, software applications and your broadband or modem internet access.
If you would like to download the Audio interview with Entrepreneur and Business Guru Richard Branson plus 4 other gifts valued at over $147, click here.
To gain access to more ebooks, book summaries, audio and video interviews on trading, try our $1 membership test drive offer.