Opening your own business is not an easy action. There are many things which must be considered: budget, business planning, team size, tax laws and more. In this article, we explore several of these aspects.
Write a Business Plan
You have an idea for your business. The next step is to fully develop it, and the best way to achieve this is through writing a business plan. A business plan will put your idea into concrete terms and help you identify which changes may need to be made.
When writing your business plan, consider the following aspects:
- What are your short-term and long-term goals?
- What are you trying to sell?
- Who is your target customer base? How can you reach them?
- How much time will you have to devote towards opening your own business?
A business plan should fully explore your idea and turn into something legible and possible.
Understand Your Capacity
When writing your business plan, take note of your own capacity. How much knowledge and time do you have on hands? You can’t do everything and be a business owner at the same time. This should be reflected in your business plan.
Know Your Budget
Business economics can be difficult, and it is easy to be swept under the costs of opening your own business. Before involving other people and starting a team, develop your budget. This way, you will understand how much you are able to spend on your business.
When developing your budget, consider the following questions:
- Will this business be your main source of income? If so, how much will you need to make to live?
- Where do you need to allocate money? Consider marketing, team management and website design.
- Will you have many overhead costs, such as rent?
These are just a few to get you started.
Know Your Laws
Commercial law differs from country to country. In Australia, commercial law also differs from state to state. When opening your own business, it is crucial that you be aware of the laws regulating your business actions.
Doing everything on your own – marketing, legal awareness and business growth – will quickly tire you out. It is recommended that you enlist the help of those who are specialists in their fields: accountants, business lawyers and media consultants.
Our Top Tip
The best step you can take before opening your own business is to consider studying a business course. A business qualification will give you the range of skills and knowledge you will need to successfully open your own business. If you don’t have a formal business qualification or experience it may be best to start at a lower level such as Certificate I in Business, Certificate II in Business, Certificate III in Business or Certificate IV in Business. If you do have a formal business qualification or experience then you may want to commence study from an advanced level such as Diploma or Advanced Diploma.