What to consider when starting your small business

Before you get started, you need to understand a few sobering things about small business. In a recent survey of Australian small businesses, as many as 26% of respondents identified failure to seek professional advice as the key reason their business failed. Of those surveyed, 61% of small business owners said their business failed because of an inability to manage costs, 50% attributed failure to inexperienced management, and 50% said poorly designed business models or no business plan. 49% of those also surveyed said insufficient capital, 37% said poor or insufficient marketing, and 35% said insufficient time managing the books.

The most startling takeaway from this survey is that almost all of these problems could have avoided with the right professional advice, support and planning from an organisation such as Bizally.

What is the first step in starting a new small business?

Many practical considerations arise even before you open your doors, bank account or make your first sale. One of the most important decisions is the type of structure you will operate under including a sole trader, partnership, trust or company. Having assisted so many clients in the start-up phase, we can advise you on the pros and cons of each structure, the tax implications and the compliance requirements.

At Bizally, we firmly believe in ‘starting with the end in mind’, which means we consider your future taxation position and any Capital Gains Tax concessions right from the outset. Asset protection and risk management also need to be factored into the start-up equation in the event your business fails. There are a number of contingencies to consider which is why insurances need to be discussed as well as software selection and finance options.

Have you done a cash flow projection for your new small business?

From a financial perspective, have you properly understood what the short and long-term cash flow projections look like and how much money you need to start your business and keep it running each month?

We provide all of our start-up clients with a detailed checklist of start-up expenses, so you don’t miss anything, and we can help you identify your ‘break even’ sales point.

‘How can Bizally help me succeed in my new small business?’

We have had extensive experience working with start-up businesses, across a broad range of industries, and you can benefit from our experience. Starting a business can be like a game of chess. To succeed you need to make the right opening moves and meeting with us could be a winning move. We are committed to helping you convert your idea into a successful and saleable business, avoiding the common mistakes that lead to the failure of the majority of Australian small businesses within the first two years of operation.

Contact us today to discuss your new business venture.

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