10 Steps to Starting A Small Business

by Michael Shaper (Business Consultant)

Ignore these rules at your peril!

1. PLAN FROM DAY ONE
Spur-of-the-moment business decisions are likely to fail. Prepare a business plan and keep refining it.

2.SET GOALS
Will you treat the business as a day job, or do you want to sell it down the track? (If it is the latter, beware of names that won't survive a family sell-out).

3. BUY, START-UP OR FRANCHISE?
Consider your options and which type of business best suits your personality and risk assessment.

4. DO YOUR HOMEWORK
Find out if people really want your products and services. Consider focus groups and collect industry information about customers, pricing, trends and likely rivals.

5. GET REGISTERED
Contact the Office of Fair Trading or equivalent in your state, and ask your local council if any by-laws affect your business.

6. EMBRACE A LEGAL STRUCTURE
Choose from sole trader (with all rights and liabilities), a partnership (profits and responsibilities are shared), or a company (a more sophisticated structure that owns the business and takes responsibility).

7. ORGANISE INSURANCE
Some forms of cover are compulsary, such as workers' compensation if you employ people. Others are advisable, including equipment insurance and personal accident and sickness cover.

8. FIND AN OFFICE
If you are working from home, don't skimp on space, computers and decent office furniture and equipment. If renting, make sure you understand the lease properly before your sign.

9. BE ACCOUNTABLE
Budget for equipment and stock purchases, wages, insurance and leases. Open a suitable bank account and set up a book-keeping system for taxation and management purposes.

10. TARGET YOUR AUDIENCE
Work out which media best hits your audience, and what messages are likely to hit home.