You’ve just had a light bulb moment and in your head you’ve just invented the next version of the wheel; it’s bigger, better and more innovative than the current model, and you are determined to take it to market. You create your prototype and the industry seem to love it – it’s time to go into production.

But before you get ahead of yourself, it’s time to start planning your business. Having a fabulous product is only a small part of the equation; starting a business is a lot more in-depth than selling your items.

Business Structure

First you need to decide what type of business structure you want to follow; either sole trader – the usual choice if you are setting up on your own; a partnership – this structure is ideal if two or more people are running a business together, but do not want to from a company; a trust – a group that runs a business for the benefit of others; or a company – the business is run by a legally bound group separate from the shareholders. The decisions you make now will have tax and legal implications, as well as having an impact on which licences you need.

Registration

To start a business in Australia you need to register your company with the Australian Taxation Office via the Australian Business Register. This ensures the government is aware of your operation, and you then pay the necessary tax entitlement.

If your turnover is expected to be over $75,000 or you provide taxi travel, or claim fuel tax credits, registration for Goods and Services Tax (GST) is compulsory. You can register for an Australian Business Number (ABN), business name and tax registration at the same time. An ABN is not compulsory but makes certain areas of running your business easier later on.

You will also need a tax file number, which if you are a sole trader can be your individual number. A partnership, company or trust will need a separate TFN, and companies will need an Australian Company Number (ACN), given by the Australian Securities and Investments Commission.

Depending on how you run your business will dictate what registrations you need. If you employ staff, you will need to register for Pay as you go (PAYG) withholding, and certain circumstances will necessitate Payroll Tax, and Fringe Benefits Tax (FBT).

Running your Business

You also need to consider your business premises, or you may be thinking about operating from home. You also need to start thinking about all the aspects of your business, including marketing, production, selling, billing, staffing, record keeping, tax and superannuation. Put together a detailed business plan, outlining forecast cash flow, profits and loss, and how you expect your business to progress over the next three years.

Starting a business for the first time can be overwhelming, but there are plenty of experienced people only too happy to offer you their help. Financial advisors, accountants and government departments are all associations with expertise that you can turn to for advice.

Check out the lisintgs below to find a local company that can help you with your new business venture.