How to set up a new business

Get Ready Phase

The Get Ready Phase is the second of 3 Phases in our guide to set up a new business. This Phase covers Steps 5-8, including Structure, Getting the Basics Right, Making it Official and Finances.

How to set up a new business

Get Ready Phase

The Get Ready Phase is the second of 3 Phases in our guide to set up a new business. This Phase covers Steps 5-8, including Structure, Getting the Basics Right, Making it Official and Finances.

Are you ready to start your new business?

Our guide to start a new business includes three videos, each covering 4 steps. As you’ve just seen in video #2, there are quite a few things to tick off the list in order to set yourself up for success. This is where we recommend you start:

1. Structure

  • Decide which Structure your business will operate under. In Australia, the four commonly used Structures are Sole Trader, Partnership, Company and Trust.
  • Keep in mind that the Structure you choose will impact whether you’re employed by the business or not, and how you access profits from the business.
  • Each Structure also has its own set of Tax rules, so it’s important to choose the right structure from the start. If you’re unsure, now is a great time to engage your Accountant for some advice.

2. Getting the Basics Right

  • Decide on a Business Name (and ensure it doesn’t already exist)
  • Location – decide where you’ll operate from, and which areas you’ll service? Will they be the same, or are you looking at a much bigger operation? If you’re producing products, consider things like access to materials and postage costs. If you’re a service provider, you’ll want to locate yourself where there is demand for your service.
  • Engage a Graphic Designer to work on your logo. You might like them to also develop your collateral at this stage – business cards, letterheads, invoice templates, point of sale material.

3. Making it Official

  • It’s now time to set up your Structure (if you’ve chosen a Company or Trust) – your Accountant can help with this!
  • Apply for an Australian Business Number (ABN)
  • Register your business name
  • Register for GST, PAYGW etc (if required)
  • Apply for any licences or permits required
  • If you’ve decided to Trademark your brand or idea, it’s now a good time to organise this

4. Finances

  • Open a bank account for your business
  • Research and implement an Accounting System to help manage your finances – for example, invoicing and employee wages. We personally like Xero and have chosen this for our own business too.

If you’re not confident managing your finances (eg. cash flow, budgets, invoicing, payments), this is a great time to engage your Accountant to guide you through each stage of the business lifecycle.

 

Which stage are you at?

 

Accounting for ecommerce businesses

1. PRELIMINARY PHASE

The Preliminary Phase covers Steps 1-4, including Idea & Research, Planning, Forecasting and Pricing.

 

creative industries accountant

2. GET READY PHASE

The Get Ready Phase covers Steps 5-8, including Structure, getting The Basics right, Making it Official and Finances.

creative industries accountant

3. OPERATIONAL PHASE

The Operational Phase covers Steps 9-12, including Legal & Risk, Insurance & WHS, Tax Obligations and Operations.

“We would highly recommend Cameo and Lemonade Beach to any SMB using Xero. Our experience has been very positive. We have transitioned through many key points in business that required Cameo‚Äôs assistance which has given us the confidence in taking extra risks to reap the rewards and grow our business.”

JASON TEBBEY, TFL STUDIO