Looking to start a new business? Be Aware
Every Indian coming to Australia and looking forward for a lifestyle, dreams of owning a business, driving a BMW, being well known within the community and having a lavish home. Why should one not? After all, we leave behind so much to make ourselves and our coming generations have a great and enviable life. A few of us have already barged into this elite club but there are many of us still on the fence, waiting for just the right opportunity or the time to do and try something. This group of people I call the “waiters”. These “waiters” are the ones who are either not in the right stage of life or are still waiting for something else to happen before they take the leap over the fence and start their own business. In my opinion the “waiters” are doing the right thing. It is preferable we play the slower game rather than starting a business and not being aware of the consequences. However, careful planning, implementing the right strategies and doing the right thing is the correct approach to take.
Being an accountant I can tell you countless stories of people trying to get rich quick which never happens, and also countless stories of people working smart, streamlining, strategizing, planning and implementing the strategies and the plans and ultimately achieving results and rewards they never dreamt of achieving on the day they decided to try something new and different. It is YOU who decides, who works hard, who plans and sacrifices and who gets rewarded eventually. The questions that may come to your mind now could be anything from where to start? What to do? What could be a strategy? What is smart work? Is this really possible?
Like I mention in every article of mine, it is again needless to say that I disclaim my writings from any legal claim whatsoever by the use and publishing of this article. All suggestions, examples and advices given in this article are general in nature and there are countless and numerous factors that can affect your personal circumstances that are not considered in this article. Hence a qualified, legal and financial advice is a must given your personal circumstances.
Back to the topic, I wish to tell you that the government (ATO, Business Victoria and others) hold many free seminars and briefings for aspirants of new businesses. I would highly recommend attending these seminars because understanding your obligations as a business owner and knowing what you are really getting into will surely go a long way in mustering the right approach before starting a business. It may well be a five to six months’ research before starting or contemplating to start a business.
Choosing the correct business is the most important. If you know the inn’s and out’s of the trade and you hold an experience of at least two-three years in the Industry doing exactly the same thing you are proposing to do in your business, then nothing better than that. Knowing your centres of influence and having a solid marketing plan is a must have. People tend to believe that franchises are good in the sense they do not require you to have years of experience. All they require you to have is Vitamin M (Money). While this may be true it is not exactly as it seems out to be. Reputed franchisors are selective in who they assign a franchise and also in who they think is fit to run the franchise too, because their brand name is at stake. Not only this but I have seen instances where an individual has purchased a franchise, the franchise is financially rewarding and stable but the business format does not suit the new owner and hence is looking to sell. This tells me money or return on your investment is not the compelling factor in deciding what kind of business to start, there are other factors that come to the fore only when you get into the business.
While choosing the correct business is the most important of all, the second most important decision you will come across is the structure that holds the business. This could be a sole trader, a partnership, a company or a trust or even a mix of the above structures. Depending on your short term goals and longer term objectives you should choose a structure. The structure you choose will determine the effect of taxes and administration of the business. Choosing the structure is very important because if you get this wrong upfront there will be limitations about things you can and cannot do, given your circumstances. An accountant should be able to guide you in your decision making regarding a structure.
Other aspects to consider before you make a decision would include Financing and Cash Flow issues; Tax liabilities and Compliance; Staffing and Employment costs; Legal aspects (signing contracts, franchisee agreements and entering into lease agreements and others); Insurances; Business Strategy (Short term and long term); Accounting and Reporting systems; Licences, Registrations and Permits, Documentation, Pricing & costing of products and services; Exit strategy and Business Succession planning. For want of space, I need to end this article here but I will provide more explanation of the other factors in my forthcoming article. Kindly provide your honest feedback to firstname.lastname@example.org as it will motivate me in bringing more thought provoking writings to you.
Opinions, conclusions, assumptions, facts, figures & other information in this Artcle that do not relate to the official business of A One Accountants shall be understood as neither given nor endorsed by it. The opinions expressed in this article are not to be considered of any kind of advise and is general in nature. The writer excludes himself of any liability that may arise due to the use of any information contained and publishing of this article. The authors views should be considered based on his own understanding and his personal research and the outcomes as mentioned in this article may or may not fall relevant and correct over time. Readers & users of this article should conduct their own research of the market and get qualified advice regarding their personal circumstances. A Full copy of the disclaimer can be accessed by sending an email to email@example.com.