Starting A Business Checklist

Starting a business can be an exciting time, especially for those that are doing what they love.

But we understand for many first time business owners that it can get quite overwhelming with what seems like a never-ending lists of tasks to do before they even open.

This is where we come in!

If you’re ready to take that big step from talking about your brilliant business idea at the dinner table, to actually launching a company, it helps to know where to start and what boxes need to be ticked.

There are plenty of free resources out there that provide a guide of what needs to be done. As advisers who have walked countless clients through this process over the years, we wanted to put our spin on a business start up checklist, to help new business owners foresee some of the essential items that need to be ticked off to start your business venture and stay compliant.

While a checklist can be a great general guide to signpost what’s ahead, we definitely believe the best way to start on the right track when jumping into a business is to engage a business adviser who not only knows their stuff, but is passionate about making your goals come to fruition.

Come up with your business idea and/or your product or service.

Before you begin anything else, you need to come up with your unique business idea – what sets you apart from the rest.

Alongside this, you will decide if you’ll be offering a product or service as this can change what needs to be ticked off in your checklist.

You don’t start a business for the sake of having a business, there needs to be a demand for your product or service. So, if you’re still waiting for inspiration to strike, consider:

• Is there a gap in the market that you’ve noticed?
• What problems or roadblocks do you encounter that you have a solution for?
• Is there a service area that you’re really passionate about?
• What product would make your life easier that others would also benefit from?

Talk to an accountant and financial adviser.

You should always speak to your accountant and financial adviser before you start a business as they can assist you with the whole process, from planning a business to running it successfully into the future, and give you great business advice to inform your decisions.

Your accountant can help with strategic planning, business set up, banking and finance assessments, business valuations, debtor management, succession planning, bookkeeping, tax and superannuation matters, and so much more.

Your financial adviser can help you with investment advice, financial planning, superannuation, insurance and more.

Both your accountant and financial adviser act as business advisers and can help guide you through the important stages of starting a business. If you’d like to speak to an experienced accountant or financial adviser, contact our team today.

Conduct market research.

This is where you research your audience and competitors to gain a better understanding of your customers needs and wants, and what your competitors are already doing well and not so well.

You should also research suppliers you may need, potential business locations and industry trends.

When beginning, you can either conduct primary research yourself by creating surveys and focus groups, or getting direct feedback, or search for secondary information from sources such as the Australian Bureau of Statistics (ABS), social media, business groups, traditional and digital advertising, websites and blogs.

Learn more about conducting market research for a new business here.

Create a business plan.

A business plan is a documented overview of your business and its strategy including its goals, financial objectives and operations.

It is important to have a business plan so that you have a written outline of your business, its purpose and what you want to achieve with it. This gives you accountability to achieve your business objectives, provides direction and clarity to inform decision-making, and ensures all key people within the business are working towards a common goal, using consistent strategies and processes. 

Click here to learn more about creating a plan and access our Business Plan template.

Select an appropriate business name and legal structure.

You should choose a business name that will help market your product/service and stand out from competitors.

When choosing your business name, you should consider:

• What names are already taken? This can be checked on ASIC Connect, trademark listings and social media.
• What is marketable?
• What will appeal to your specific target audience?

You will also need to choose the legal structure of your business – sole trader, partnership, company, trust, corporation, etc. This dictates how you run your business and what your legal and tax obligations are.

Note: If you’re entering a partnership, you will need a shareholder agreement to set out the rules and responsibilities of all parties involved.

Your business adviser will be able to provide advice on what structure will suit you best to start with, based on your industry, your personal circumstances, any collaborators and investors, your growth goals, and tax opportunities. They’ll also be able to structure everything to protect your assets and financial security.

Get funding and organise start-up costs.

Identify your start-up costs that you’ll either fund yourself or borrow from others, and create a budget so you know where your money is coming from and what it will fund. This will help show an estimate of your costs and income.

Note: You should budget around $2,000 – $10,000 for set up costs.

Not everyone has money in their savings to start a business, so if you need a commercial loan to get startup capital, our Aintree Group Wealth team can help! Contact us today to discuss your commercial loan needs.

Apply for an ABN and TFN.

To run a business, you’ll need an Australian Business Number (ABN) and a Tax File Number (TFN). However, if you’re a sole trader, you can use your personal TFN.

Note: This will need to be obtained before you register your business or company name.

To apply for a business or company TFN, click here.

To apply for an ABN, click here.

In good news, your business adviser will be able to take care of this for you – we’ve done it a thousand times before and know exactly how the process works!

Register for GST (if needed).

You will need to register for Goods and Services Tax (GST) if:

• Your business has a GST turnover that exceeds $75,000 or more.
• You expect your business to have the above turnover after 1 year of operation.
• You’re a not-for-profit organisation with a turnover of $150,000 in a year.
• You’re a business claiming fuel tax credits.

Note: You only need to register for GST once, even if you are starting another business.

If you don’t register, you will need to regularly check if you enter any of the above requirements. You will need to register for GST within 21 days of your turnover passing the threshold.

Find out more about registering for GST here.

Register your business name and/or company through ASIC.

If you are starting a company or business, you will need to register them through the Australian Securities and Investments Commission (ASIC).

Registering a company will make it a separate legal entity and a separate registration is required for a company over a business name. To register a company, click here.

If you’re starting a business, you will need to register its name through ASIC. Click here to register your business name. And, if you have a business accountant, they can take care of the paperwork for you!

Important note: Registering a business name does NOT trademark the name for your own use. This has to be done separately (see step below).

Protect your Intellectual Property.

Your Intellectual Property (IP) is any creation of your own, such as a new product or service, your unique business idea, a logo or branding, even written content.

A common way of protecting your IP is by registering a trademark. Trademarking gives you inbuilt exclusive rights if you produce or come up with something new so that others cannot infringe or use a it in an identical manner.

It can affect your business value and, your brand and business name. For example, if you don’t protect your IP, someone else can trademark the same or a similar business name or logo and they will gain exclusive rights to use it, even though you had the business first. This means you could be infringing on them by using your name. Other scenarios can occur outside of your control such as the creation of a new suburb or place name, which cannot be trademarked.

For more on Intellectual Property and Trademarking, and to hear about Aintree Group’s experience, read our blog here.

You can also contact our Aintree Group Legal team for a free trademark consultation.

Get a Director ID if you are starting a company.

A Director Identification Number (ID) is a unique identification number that a Director will keep for life to identify them amongst others.

From 5 April 2022, all Company Directors will need a Director ID before they’re appointed. If you’re starting a company, you should apply for one as soon as possible.

To learn more about Director ID’s and how to apply for one, click here.

Make sure you have all the required registrations, licences, insurances and permits to run your business.

There are many registrations, licences, insurances and permits needed to run a business. What’s required will depend on your state, local council and industry.

Here’s a summary of what you’ll need…

Registrations

The most common registrations you’ll need are the following:

• Australian Business Number (ABN).
• Tax File Number (TFN).
• Pay As You Go (PAYG) Withholding.
• Fringe Benefits Tax (FBT), if you’ll be providing your employees with a benefit such as car park or work vehicle.

Each industry will also have their own required registrations to their local council, Act or association so keep this in mind.

Licences and Permits

Licences and permits allows Australian businesses to operate in specific areas, locations and industries, and show that you’ve met all the appropriate requirements to run your business.

The types of licences and permits you’ll need will heavily depend on the state you’re in, the type of business and what your business does.

Some of the most common licences and permits include:

• Trade licences.
• Qualifications and certifications (these show you’re qualified for the job!).
• Equipment licences (e.g. to operate heavy machinery).
• Building permits.
• High-risk work permit (e.g. for construction industries).
• Liquor licence.
• Driver’s licence.

You must also ensure that all your employees and suppliers have the essential licences to avoid harsh penalties and non-compliance.

Click here for more on licences and permits.

Insurances

Insurance can help protect your business, customers, employees and assets, but which ones are essential?

Essential insurance types that every business should consider are:

Public Liability insurance

Public liability insurance protects you if someone dies or gets injured as a result of your negligence.

Worker’s Compensation insurance

Worker’s Compensation Insurance is what will pay out the benefits in the event of a work-related incident, so it’s crucial to have it for everyone you provide remuneration to. Find out more here.

Sole traders need to insurance themselves separately. This insurance will not cover them as an employee. Contractors will also need to get their own insurance.

Third-Party Personal Injury insurance

Third-Party Personal Injury insurance covers you or the driver of your business vehicle for any injuries caused to another party in a car accident. This is needed if you have a vehicle.

Now, what other insurances should you be aware of?

• Professional Indemnity insurance can be used if you provide professional advice or a service to protect you financially.
• Building and contents insurance covers any damages to your business premises in the event of a natural disaster or break-in.
• Burglary insurance covers any losses relating to a theft or break-in.
• Product Liability insurance can be used if any of your products cause injury or damage to your customer or another business.
• Cyber insurance covers your business for any losses relating to cybercrime, such as a data breach.
• Income Protection insurance covers you financially if you’re too sick or injured to continue working.
• Management Liability insurance covers the business for any unethical or illegal acts performed by managers or directors.

(of course, there are many more types of insurance that we could name, but we’d be here all day!)

Find out more about what licences, permits and registrations you’ll need here.

If you’re unsure where to start, we suggest you contact your accountant, business adviser or lawyer for advice.

Open a business bank account.

When starting a business, you should always open a dedicated business bank account so that your business finances are separate to your private funds and expenses.

If you are getting a loan to help fund the launch of your business, you may already have a good business relationship with your bank or lender. We recommend talking to a Finance Broker to discuss which bank is offering the best rate on business loans or will suit your circumstances best.

Forecast cash flow and choose pricing strategies.

Getting your pricing and finances right is crucial to your business success as it can affect the sales and profit you gain, as well as if you can afford to keep the business running.

To do so, you should forecast your cashflow so you know where your money will come from and where it needs to go, and track how well your business is doing financially.

You will also need to choose your pricing strategies. These pricing strategies can be based on costs, competition, perceived value and/or product.

Learn more about pricing and how to choose your strategy here.

Ensure you’re meeting health and safety requirements.

All business owners need to implement Work Health and Safety measures to create a safe work environment for all involved.

This ensures businesses can minimise accidents, injuries or illness in their workplace, and therefore have more productive and satisfied employees.

Learn more about your Work Health and Safety requirements as a business owner here.

Protect your customer data.

If your new business requires you to hold onto your customer’s personal details and data, it’s important that you comply with Australia’s Privacy Act and security laws.

Having cyber security measures in place ensures that this data is protected and secure from potential data breaches and cyber criminals.

Here are some measures you can implement from the start of your business to minimise cyber threats:

• Implement two factor authentication on all your systems.
• Use cloud-based technology.
• Train your staff on cyber threats and how to spot them.
• Review your procedures to see what customer data is necessary for your operations – don’t collect more than you need to!

Change your Will with your lawyer.

When you start a business, it will become one of your biggest assets and therefore, it is important that it is included in your Will and Estate Plan.

Our team at Aintree Group Legal can help with all your Will and Estate Planning needs. Contact us today for assistance.

Create standard form contracts.

A standard form contract is a template agreement that a business uses repeatedly and are often presented on a ‘take it or leave it’ basis where the party has little scope to negotiate its terms. Phone or credit card, and loan contracts are obvious examples, as well as terms & conditions.

You can engage your lawyer to help with this.

Note: There are new laws concerning unfair terms in standard form contracts so it is important to draft these correctly from the beginning to avoid non-compliance with these rules.

Market your product or service, and build a customer base.

Marketing is a big part of starting a new business and many small businesses don’t utilise it well because they think it’ll be too expensive, or they think they don’t need it.

Some key ways to market your business include getting a logo, creating a website, creating an email address, getting on social media, having an online shop and advertising (whether that be traditional or digital).

When you create a website for your business, you will need to register a domain name (the internet address (URL) used to access your website). This ensures you appear more legitimate to your customers.

If you want to market your product or service, but are worried about the costs or level of difficulty, learn more about the most cost-effective marketing tools for small business.

Hire employees.

Many small businesses often start out with just the business owner(s) and often it’s not financially viable to have employees to begin with. But, if you decide you’d like to hire employees (even if it’s just one or two), you’ll need to be aware of your new requirements.

Hiring employees will drastically change how your business operates and there are many obligations and laws that employers need to adhere to such as the Fair Work Act, National Employment Standards, Right to Disconnect Laws and, tax and superannuation requirements.

Fair Work Act.

The Fair Work Act is the law that governs employment relationships in Australia. It sets all the minimum standards and regulations that all employers should be aware of, and all employment contracts cannot contain entitlements that go below these standards.

Within the Fair Work Act, the following are also covered.

National Employment Standards (NES).

The NES are the minimum employment standards that are mandatory for all employees. The standards include:

• Maximum weekly hours.
• Requests for flexible working arrangements.
• Casual employment.
• Parental leave and related entitlements.
• Annual leave.
• Personal/carer’s leave, compassionate leave and family and domestic violence leave.
• Community service leave.
• Long service leave.
• Public holidays.
• Superannuation contributions.
• Notice of termination and redundancy pay.
• Fair Work Information Statement (the FWIS) and Casual Employment Information Statement (the CEIS).

List sourced from Fair Work Australia’s website.

Right to Disconnect Laws.

The Right to Disconnect Laws give employees the right to refuse to monitor or respond to contact from their employers outside their normal working hours.

However, an employee will not be allowed to disconnect when it is unreasonable to do so such as a doctor on call.

All employers need to make sure they review their employment contracts and position descriptions to ensure they reflect these changes.

Tax and Superannuation Requirements.

As an employer, you have tax and superannuation requirements for your employees. These include:

• Withholding tax (PAYG withholding) from their wages and reporting it to the ATO via Single Touch Payroll (STP).
• Paying their superannuation guarantee quarterly.
• Paying FBT, if applicable (see Registrations section).

PAYG withholding.

Every time you pay your employee; you will have to withhold some of their money for tax purposes.

You will need to pay this amount and report it to the ATO through STP and your Business Activity Statement (BAS).

Single Touch Payroll.

As stated above, employers need to pay an employee’s PAYG withholding and report it to the ATO through a payroll system called Single Touch Payroll (STP).

You will also need to report your employee’s wages and salaries, and superannuation guarantee information through STP too.

Superannuation Guarantee

Superannuation Guarantee is an amount taken out of an employee’s salary or wage and put into their superannuation account for retirement purposes.

Employers need to calculate their employee’s superannuation guarantee and pay it at least four times a year. The four due dates are 28 October, 28 January, 28 April and 28 July.

If you miss the due date, you will need to submit an SGC statement by the deadline and pay an SGC fee that includes the unpaid or late SG amounts, nominal interest and an administrative fee.

Learn more about your tax and superannuation obligations here.

As an employer, you will also need to consider:

• Whether you have the time to train your employees.
• Whether you have the funds to pay them a fair wage (as well as super, admin and equipment costs).
• Drafting employment contracts.
• Employment types (will they be full-time, part-time, fixed term, apprentice or casual?); this will affect your tax and superannuation obligations listed above!
• Pay rates and conditions.
• The difference between a contractor and employee — this is very important!

If bringing on employees is not something your business needs or can afford, you can look at getting contractors in to assist with particular projects or outsource specific roles. However, you’ll need to be wary of the difference between them.

Not sure where to start? Check out Business Victoria’s Hiring Employees Checklist.

Keep records.

As a business owner, it is important that you understand your record-keeping requirements. Keeping your records on hand can help you meet your tax and superannuation obligations, and have the information ready if an Australian Taxation Office (ATO) audit was to occur.

For more on record-keeping for businesses, read our blog.

If you’d like a fillable template of our ‘Starting a business’ checklist, you can download it below!

If you’re ready to begin the process of starting a business, contact our team at Aintree Group.

We offer expert support and advice for all areas of your professional and personal life, under the one roof. Our integrated professional services of accounting, legal, wealth and business can transform the way you do business and set you up for success.

Disclaimer: This is general advice only. You should seek out proper professional advice when diving into a new business venture as there are significant financial, legal, tax and compliance implications. Our checklist is only a guide and shouldn’t be the ‘be all and end all’ of someone’s business preparations.