Before you set up your own business, there's also a whole lot of hard work and preparation to be done and key decisions you need to make before opening for business.
Starting it all yourself
If you're starting your business all by yourself, rather than buying an existing one or becoming part of a franchise, here are some things you'll need to consider before you get started:
- Register your business name (new window) or company name (new window)
- Apply for your Australian Business Number (ABN) (new window)
- Register for GST (new window) if you think your business will earn over $50,000 per financial year (if you think you'll earn less then it's up to you whether or not you register for GST)
- Apply for any necessary licences and permits through Victoria's Business Licence Information Service (BLIS) (new window)
- Trademark (new window) your business name or the unique name of any products or services you offer
- Patent (new window) your unique design with IP Australia
There are many other things to think about, including:
- The location of your business
- Whether you will rent a place to operate out of
- Hours of operation
- How much you'll charge for goods and services
- What kind of insurance you need - including WorkCover (new window)
- How and where you will market your services and/or products
- How you will keep track of your finances
Buying an existing business
Purchasing an existing business has advantages and disadvantages.
It requires intense analysis and scrutiny of the business' finances and its operation. Get an accountant to go over the books with you. Look for any irregularities and be sure to ask questions if you're not sure about something.
Make sure you know exactly what you're buying when you purchase the business. For example:
- Are the stock and fixtures (furniture, desks, shelves, lights, etc.) included?
- Will existing staff stay when you take over?
- What's the reputation of the business?
- How much profit does the business normally make?
- Can you expect an immediate income?
Business Victoria provides further information about buying an established business (new window).
Buying a franchise
A franchise is a business that is part of a larger organisations. Fast food restaurants, supermarkets and hardware stores are all examples of franchise businesses. There are lots of 'big name' stores all over the place, but each store is owned and managed by an individual businessperson.
The advantage of buying a franchise is that you'll run your own business, but you'll have the security and support of a larger organisation.
Business Victoria provides information and advice about buying a franchise (new window).
Income support
You may have to consider how you're going to pay for everyday living expenses as well as your business expenses while you're getting your business off the ground. You may have to follow a tight budget for a period of time.
Consider any or all of the following suggestions:
- If you're currently in full-time work, stay there until you can afford to either reduce your hours (if your boss will let you) or your business is doing well enough to enable you to resign
- Work part-time or casually in an area that's related to your business so you can gain further experience and get some new contacts
- Get some financial assistance or apply for a grant (new window) offered by the Victorian Government
The Federal Government's New Enterprise Initiative Scheme (new window) is a program that helps you to start and set up a viable business by providing training and ongoing financial help.
Links for setting up a business
Business Victoria
Covers starting a new business, buying an existing business or a franchise, and running a business.
My Future - Running a Small Business
Provides excellent information and inspiration to help you set up your own business.
Victorian Business Names Register
Apply for a business name or search for business names registered in Victoria.
Australian Business Register
Apply for an Australian Business Number (ABN) online, search for ABNs or download a form to be completed and sent by post.
Australian Taxation Office - Businesses
Advice on all things related to tax and your business.
IP Australia
Details your intellectual property rights and enables you to register and search for trademarks and patents.
Business Enterprise Centres (BECs) Victoria
BECs provides advice and support for business located in city and country areas throughout Victoria.
