Starting or buying a business demands considerable research, risk, passion, courage and planning. The harsh reality is that enthusiasm, money, hard work, talent or a great idea is not enough to guarantee success in business.
To succeed you need to make the right opening moves and need the right structuring and accounting advice.
Besides structuring, you need to address a range of issues including tax registrations, insurances, software, finance etc. If you are starting or buying a business, the evaluation and establishment phases can be periods of great anxiety due to a combination of excitement, uncertainty and financial risk.
A study by The Australian Bureau of Statistics suggest that more than 40% of new businesses won’t be around in 3 years’ time. The failure rate remains high but incredibly we still find many people starting or buying a business don’t seek or receive the right financial and legal advice.
Over the years we have mentored a large number of clients through the business start-up phase. We have earned a reputation as a business start-up specialist and developed a number of practical tools and checklists and templates to help you fast track your business success.
If you think buying a franchise reduces the risks, consider the results of a franchise study conducted few years back:
• Only 81% of franchisees are profitable
• 58% of franchisees generate a profit of less than $50,000 per annum
• 3% of franchisees generate a loss of more than $50,000
These statistics are not meant to be a deterrent. They simply support the importance of planning and professional advice. Make no mistake, the small business journey can be challenging but it can also be very rewarding and there are a number of issues to consider in the start-up phase including:
• Business and Tax Structure – taking into account asset protection, tax minimization, discount capital gains tax concessions and the likelihood of admitting new partners or investors in the future
• Site selection and the Lease on Your Premises
• Tax registrations including ABN, GST, TFN, WorkCover
• Employer Obligations including Superannuation, PAYG and WorkCover
• Accounting Software Selection – match your business needs with your level of accounting skill
• Insurances – the most appropriate types and adequate level of cover
• Finance – set-up costs including IT, equipment, vehicles and possibly the purchase of the business
This is really the tip of the iceberg and we strongly suggest to prepare a business plan including a cash flow budget so you know the venture is financially viable and you have a clear plan for the direction of the business.
Call us today to know how we can help you start or purchase your business.