People with the skills to establish and manage a business in a competitive environment are very welcome in Australia. Women under 30 are responsible for the fastest growth in small businesses and operations based at home – utilising computer technology. If you are self-employed it is essential to develop and maintain links with other businesses/people by joining local groups – see Direct Contact, page 140 for suggestions.

IMPORTANT INFORMATION

The following list will give you an idea of the areas that you need to research when starting a small business:

• You need to be certain that you have the health, personal qualities and experience required to own and operate a business.
• Many businesses in Australia require a licence or permit to operate. This term refers to any form of government regulation, registration, permit or approval that applies to a small business. The Business Licence and Information Centre (BLIS) creates listings of local state and federal licences relevant to your business. These may include registering the business name, choosing the structure, running a home-based business, employing staff, registering for taxation purposes, playing music in the workplace and erecting signs. BLIS website is http://www.licence.sbdc.com.au/content/businessdefault.html or http://www.licence.sbdc.com.au/content/businessindex.html Go to the licence enquiry section, select your business activity, add your business details and a list of all the areas of your business that require licensing and the relevant licences for every area – local, State and Federal – will be displayed. Or for free specific business licensing, registration and information contact Smartlicence: website http://bli.net.au/DIR0121/BLIhome.nsf/States/ and add QLD NSW, WA, NT, VIC or TAS depending on which State you need information on.
• You may also need to check with the industry association relevant to your business for the Codes of Practice – guidelines which specify business practices and standards.
• Next you need to research and reassure yourself that your business concept is commercially viable. A written business plan is essential at this stage with spreadsheets (available from Small Business Development Corporation (SBDC) see page 153) of the projected cash flow analysis, break-even calculations and forward budgets. The Commonwealth Government bookstore, banks and the SBDC have available various publications which will assist you.
• After completing the above, finances need to be planned and arranged. Some new businesses are able to borrow funds, which means that capital can be reserved. Be very careful at this stage and make sure you have good advice. The old adage ‘A fool and his money are easily parted’ is as applicable in Australia as anywhere else in the world.
• Your accountant or professional business adviser will advise you which of the following company structures are most appropriate for your business.
  – Sole Trader – easy to start up a small business and the owner is liable for debts.
  – Partnership – a Partnership Agreement is recommended and the partners are liable for the debts.
  – Proprietor Ltd Company (incorporated), Discretionary or Unit Trust or a combination of any of the above.
  The decision will reflect the type of business, projected profitability, the financial status and relationships of those involved in the new venture. A common procedure is to purchase a Shelf Company for approximately A$1,100 (see Shelf Company Services in the Yellow Pages of the telephone directory).
• Your adviser will ensure your business structure meets legal requirements, that your assets are protected, your tax (including Capital Gains taxes) minimised and that your business has the flexibility for new partners or investors to become involved if required.
• Location and premises are vital for most businesses. Remember that parking, visibility, and plenty of floor space and passing traffic are essential for success. Familiarise yourself with the surrounding competition and businesses.
• Enlist professional advice for entering into the lease agreement and to ensure that your business can operate long term.
• Check with the local council for any by-laws, health department requirements and new roads/developments that may affect your business.
• Check with your accountant or the Australian Tax Office to ascertain the taxes you need to pay: personal, company, Capital Gains (on the sale of property), fringe benefits, (perks of the job, e.g. car) sales, rental, business and stamp and artist’s royalties. Books need to be maintained daily and records kept for five years. For confidential tax advice contact the SBDC at the website on page 153.
• Register your business name. To search for business and company names, go to www.abr.gov.au or www.asic.gov.au
• Contact an insurance broker or a recommended agent for life and general insurance policies for partners and management. Worker’s compensation insurance is compulsory for all employees, including management and directors. National Insurance Brokers Association www.niba.com.au
• Carefully select your staff and provide each person with a written job description. The Department of Productivity and Labour Relations and Department of Occupational Health, Safety and Welfare will advise on hours, holidays, leave, superannuation and safety. If purchasing a business, check ongoing training commitments, long-service leave and any other liabilities. www.labourdept.gov.LK.lab_aust
• Check as to whether you require computers or printed business documentation such as invoices, statements, receipts and payslips. Initially you may be able to use available business stationery or secretarial services.
• Decide whether your business requires vehicles. If so, what sort? Will they be leased or owned by the company? Check the taxation status, i.e. fringe benefit tax.
• Security of your premises and of cash or stock is paramount.
• Plan your marketing and advertising using data from your business plan. (Business cards, brochures, referrals, media, trade shows, vehicles, sales people and telemarketing, and direct mail are all commonly used advertising.)
• Decide what credit, terms of credit and debt services you will provide.
• Consider the communication and business technology you will use. (Photocopiers, two way radio, mobile phones, after-hours answer services and computers.)
• To operate a successful small business, you may require formal training to manage the accounting, marketing, staff selection, supervisory skills and inventory control. The Small Business Development Corporation, SBDC, runs ‘How To Start A Business’ workshops. For essential information on starting a business and relevant market intelligence, the Australian Taxation Office has publications available which can be downloaded from the website (www.ato.gov.au).
• Credit Code details and assistance for everyone providing or using credit, e.g. retailers and consumers, are available on the web site: www.creditcode.gov.au Also available is a free copy of the national Uniform Consumer Credit Code.
• austrade.gov.au provides information and support for potential exporters, and also information for those looking to source goods, services and investments in Australia. Also available is student, tertiary study and career information.

Other useful websites

For further assistance, the email address of the SBDC is info@sbdc.com.au/ or go to website: www.sbdc.com.au.

The website for the Business Licence Information Service is www.bli.net.au/ or phone your nearest Business Enterprise Centre.

http://www.licence.sbdc.com.au/content/linksdefault.html is a website that gives access to the following areas: small business in Western Australia, licensing and other regulatory requirements, business and domain names, taxation information, information on employing staff, selling to government and importing and exporting.

For business and domain names, the Australian Securities and Investments Commission (ASIC) website contains a national index of corporate and business names. It also has information on the rights and responsibilities of small business owners and is responsible for company registration matters. You can lodge an application online for a domain name if you are setting up a website. All tax related issues are also available on this address www.asic.gov.au

www.austrade.gov.au provides information and support for potential exporters and also information for those looking to source goods, services and investments in Australia. Student, study and career information is also available.