Step 1: Determine the amount of income you want from the business.
Using benchmarks determine the sales volume required to achieve the required net profit.
Assess is this achievable?
Step 3: Plan the Start up costs.
Step 4: Determine the sources of investment capital and funds.
Step 5: Choose the legal from of the business.
Step 7: Apply for your Australian Business Number and register for all relevant tax obligations. If you intend to employ staff, register as a group employer through the Australian Taxation Office (ATO). Set up a system to comply with the ATO requirements such as suitable filing and accounting systems, to maintain records for up to five years.
Step 8: Set up a business bank account (a certificate of Registration of a Business Name will be required for the bank account) and arrange with your bank to send monthly bank statements..
Step 9: Study sites will meet the business needs.
Step 10: Develop a sales and distribution plan.
Step 11: Consider customer and consumer behaviour patterns while preparing a layout plan for the operating space.
Step 12: Decide upon a workable Human resources policy.
Step 13: Examine how operations will be managed, and set goals while acting in a socially responsible manner.
Step 14: Establish adequate methods of control to ensure plans are implemented.
Step 15: Review the risks of operating the business, and determine how to handle them.
Step 16: Establish an adequate system of accounting records.
Step 17: Examine the laws and regulations affecting the business.
Start Up Information
The following questions are to be answered.
Always remember that 90% of all businesses disappear. So bankers tend to be very cautious.
Capital: Don't look for 100% financing; you must have some equity in the business.
Collateral: What assets are available as a secondary source of repayment (just in case)
Capacity: You must understand the company's ability to absorb and repay debt.
Conditions: What are the general economic conditions and in what ways will they affect your industry and your company.
|Asset Type||Financed By||Paid Off By|
|Fluctuating Current Assets||Short Term Debt||Cash Flow|
|Permanent Current Asset||Permanent Current Liabilities||Net Profits|