Essential Checklist for Starting Your Own Business: Key Considerations for Success

By Jaye Mankelow

Starting a small business requires careful planning across a range of critical considerations, from tax compliance and legal protections to managing employees and building strong supplier relationships. 

Our checklist offers a guide to the key elements that will help new business owners set a solid foundation for growth, resilience, and long-term success.

Choosing the Right Business Structure

Your business structure affects your tax obligations, personal liability, and growth flexibility. Common options include sole proprietorship, partnership, company, or trust.

• Key Points: Consider how much personal liability protection you need, your tax situation, and your long-term goals.
• Tools and Support: An accountant or business advisor can help you select the right structure and manage the necessary registrations, including obtaining an Australian Business Number (ABN) or incorporating your company.

Understanding Your Tax Obligations

Complying with tax requirements is critical for all businesses, and your obligations will vary based on your structure and industry. Beyond income tax, additional considerations like FBT and GST play a role in your ongoing compliance.

Key Points:

• • Income Tax: All businesses must pay income tax on profits, with specific obligations depending on the business structure.
  • Goods and Services Tax (GST): Required if annual turnover exceeds $75,000.
  • Fringe Benefits Tax (FBT): Relevant if your business provides benefits, like company cars, to employees.
  • Payroll Tax: state based taxes for large employers 
• Tools and Support: Using accounting software like Xero helps track income, expenses, and tax liabilities. Set up separate accounts to cover these obligations for easier management.

Securing the Right Insurances

Insurance is essential to protecting your business and personal assets from unforeseen events. Different types of insurance are suited to various business risks, ensuring you’re protected in all areas.

Key Policies:

• • Public Liability Insurance: Protects against claims of injury or damage caused by business activities.
  • Professional Indemnity Insurance: Covers claims related to professional services or advice.
  • Workers’ Compensation Insurance: Legally required to cover work-related injuries and illnesses for employees.
  • Business Interruption Insurance: Protects against financial losses during disruptions caused by events outside of your control.

Tools and Support: An insurance specialist can help assess your specific needs and advise on appropriate coverages tailored to your industry.

Setting Up Legal Protections

Legal protections safeguard your business from disputes, intellectual property infringement, and compliance issues. Taking proactive steps in these areas strengthens your legal footing.

Key Points:

• • Register Trademarks: Protect your business name, logo, and unique IP to prevent others from using it.
  • Draft Standard Contracts: Use professional agreements for clients, suppliers, and employees that clearly define terms and help avoid disputes.
  • Documenting Personal Guarantees: When providing a personal guarantee, document terms carefully and outline limitations. A legal review can ensure you understand the implications and minimise exposure.

Tools and Support: Work with a solicitor to draft contracts, manage IP protections, and ensure regulatory compliance across all agreements.

Establishing and Managing Supplier Relationship

Reliable suppliers are crucial to ensuring a steady supply of goods and materials, maintaining cash flow, and fostering strong operations. Building solid relationships with suppliers early on and managing payment agreements effectively can improve operational efficiency and business stability.

Key Points:

• • Evaluate Supplier Reliability: Choose suppliers who consistently meet quality, quantity, and timing needs.
  • Document Supplier Agreements: Record agreements, including payment terms, discounts, and penalties for late deliveries. Consider using supplier management software for digital record-keeping.
  • Managing Personal Guarantees: If you provide a personal guarantee to suppliers, keep documentation secure and review terms with a solicitor. Limit the scope to avoid unnecessary risk.
  • Negotiating Payment Terms: Negotiate flexible payment terms with suppliers to maintain better cash flow. This might include extending payment cycles or gaining early-payment discounts.
  • Registering Security Interests with PPSR: Use the Personal Property Securities Register (PPSR) to record any security interests your business has over supplied goods or equipment. This can protect your business in case a customer or debtor faces financial difficulties, ensuring you retain rights over the secured property.

Tools and Support: Industry-specific software (like Simpro for construction and service-based businesses) can help track supplier orders, manage inventory levels, and monitor the performance of key suppliers.

Hiring Employees and Setting Up HR Policies

Hiring staff introduces a range of compliance obligations and considerations, from fair wages and employment contracts to health and safety requirements.

Key Points:

• • Understand Employment Contracts and Fair Work Requirements: Ensure compliance with the Fair Work Act, covering minimum wage, leave entitlements, and work hours.
  • Develop Workplace Policies: Outline policies on conduct, safety, and leave. Clear guidelines create expectations and improve workplace management.

Tools and Support: HR software can streamline payroll, employee records, and leave requests. An HR consultant can also help develop compliant employment contracts and workplace policies.

Implementing Financial Management Systems

Financial management is key to sustainability. Tracking budgets, forecasting, and handling expenses are all part of keeping your business in good financial health.

Key Points:

• • Open a Business Bank Account: Separating business and personal finances simplifies tax reporting and improves financial visibility.
  • Use Xero for Accounting: Xero’s features support invoicing, expense tracking, payroll, and tax compliance, consolidating all financial tasks in one place.

Tools and Support: Work with an accountant to set up an accounting system that supports cash flow management, compliance, and sound financial planning.

Developing a Risk Management Plan

A risk management plan helps identify potential risks and prepares you for effective responses. By identifying internal and external risks, your business is better equipped to navigate challenges with minimal disruption.

Key Points:

• • Identify Risks: Think about external risks like economic downturns and internal risks like data breaches or equipment failure.
  • Create Contingency Plans: Define steps for each risk, such as securing backup suppliers or setting aside emergency funds.

Tools and Support: Business advisors can help develop a tailored risk management plan to ensure resilience and adaptability as the business grows.

Securing Funding: Equity and Debt Options

Finding the right funding options is essential for starting and growing your business. The right mix of equity and debt financing can provide the capital needed while maintaining control and financial stability.

Key Points:

• • Personal Capital: Many small business owners start by investing their own savings or assets into the business, providing a debt-free foundation.
  • Business Loans and Lines of Credit: Loans or lines of credit can help manage cash flow and finance larger purchases, like equipment or property. Consider using a commercial broker to find the best terms.
  • Equipment Financing: Leasing or financing equipment can reduce upfront costs, allowing you to preserve working capital while acquiring necessary tools.
  • Equity Investment: Bringing in investors can provide capital without increasing debt, though it often means sharing ownership or control.

Tools and Support: Xero’s financial reporting features help you track loan repayments and assess your business’s readiness for financing, while brokers can assist in finding competitive loan rates.

Marketing and Building an Online Presence

Attracting customers and establishing credibility is essential. A well-planned marketing strategy and online presence help build your brand and reach your target audience effectively.

• Key Points:
  • Domain Registration and Website: Establish a professional website to act as the business’s online “storefront.”
  • Develop Marketing Strategies: Use social media, local advertising, and email marketing to connect with and retain customers.
• Tools and Support: Digital marketing platforms, such as Google My Business and Facebook Business, enhance visibility and customer engagement.

Starting a business involves much more than just launching a product or service. It requires thorough planning across legal compliance, tax obligations, risk management, and securing the right financing.

By following our checklist and engaging with advisors, whether for tax, HR, or insurance—small business owners can establish a solid foundation for growth and resilience. 

Aspira’s team is here to provide expertise and help you navigate these critical considerations, ensuring your business is set up for long-term success.

If you need guidance in any specific area or want to discuss your business plan, reach out to our team for tailored support.

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