Starting a business involves a multitude of procedures and planning, from organising its future location and employees to delving into finer details such as its legal structure. A business’s future success depends on its inception. Doing business in Australia comes with unique challenges and advantages that must be taken into account prior to any deals being closed.
Below, we have summarised 7 tips all potential business owners should first consider before finalising their business plans.
The way in which you structure your business is the foundation for its prosperity. It is important to determine what vehicle you will utilise to run your business considering your position now and where you want your business to be in the future. Sole trader, partnership, joint venture, a company or a trust? What is right for you and your business?
It is important that your agreements be in writing as a security for yourself and any other parties involved in the business. The right agreement will stipulate roles, responsibilities and protections of all parties involved in the business and depending on the vehicle that you utilise, you can structure your business to minimise tax and create sufficient asset protection for your future business transactions.
Having good employees is crucial in developing a fruitful business. It is just as important to ensure that these employees are retained correctly with appropriate job descriptions and employment agreements so everyone knows what their roles, duties and responsibilities are.
Where Will You Operate From
It is essential that the premises which you choose to lease is appropriate and can accommodate for your business and its future needs. It is important that you are aware of all the terms and conditions both monetary and non-monetary and ensure that there is no nasty hidden bite backs.
Cash flow is the cause of most small business failures today. Having the appropriate terms and conditions which apply to the sale of items or services. Your terms and conditions will give you the appropriate method to facilitate any debt recovery, privacy issues, warranties to any goods and services and return and refund policies.
Protecting your intellectual property is extremely important. This includes your business name, logo, ideas and your systems that you have in place which usually is the goodwill of your company. Without having the appropriate protections, agreements and ownership of intellectual property any other business or person could be representing itself as your business and you may have no action against it without the proper documentation in place.
What kind of funds will you need to start the business and to continue to operate it until you earn any revenue? Will you use utilise director’s loans, borrow money from the bank or from a third party and what assets will you use to secure your finance?
Lawyers and Financial Advisers
Having good professional advisers is extremely important in the initial start up of your business. It enables you to have the confidence that you are structuring your business in an effective and efficient manner to meet both your short term and long term goals. With Atkinson Vinden we will assist you through the whole business cycle to ensure that your business is always protected.
Please contact Janelle Boutros or our Commercial Law Team for any further queries.