Our Business Team provides services to business including incorporate, structuring, compliance and managing business.
Steps to set up a Business
When you set up a new business, you need to consider the structure of the business, how to choose a business name and how to manage the business, the following are the suggested steps to set up a business
- Choose a business structure suitable to you
- Choose a business name suitable to your business
- Apply for an ABN and TFN
- Apply for trade mark
- Apply for domain name
Choosing a suitable business structure is important. Following are some general business structure
- Sole Trader
- Private Company
- Non-Profit Organisation
Choosing a business name is essential to a successful business. It is an image of your business, the first impression to your new customer. A right business name is fundamental to marketing of your business. A business may protect its business name by registering a trade mark.
Buying a Business
If you are looking at buying an existing business, it is prudent to obtain a valuation to understand what you are buying for, for example, whether you are paying a reasonable price for the value of the current worth (taking into account with the current turnover, assets and liabilities) of the business or you would not overpay the goodwill of the business and what is the future prospects of the business. There are other factors you should consider, such as
- What is your future market plan ?
- What future income you expect after taking over the business?
- Are you required to borrow money to buy this business?
- Are you prepared to continue to employ the existing staff of the business?
- Are you required to restrict the business owner from competing with your business after settlement?
- Do you have the required qualification or skills to operate the business?
- What happen with the list of customers after settlement?
- Whether the trade mark or business telephone number or website or any other social media sites will be transferred to you at settlement?
- Do you wish the business owner to assist you after settlement?
The location and terms of the business premises is important to the business’s success and revenue. Do you plan to buy the business premises or continue to lease it? What are the terms of the lease?
Before you enter into a contract to buy the business, you should consider to seek legal and financial advice. You should request a copy of the current lease agreement and at least the latest BAS if not the full financial statements and tax return from the business owner and discuss them with your financial adviser.
After you sign a contract, you should immediate seek advice from your lawyer to ascertain whether you should obtain necessary license or permit to continue to run the business on the premises. Different type of lease will require different considerations, such as if you are running a business at a shopping centre instead of an office or warehouse.
You should ensure necessary insurances are taken out, such as public liability insurance, fire insurance, trade in stock and equipment insurance, income disturbances protection, workercover, data protection, etc.
Disclaimer: The information on this website are the general information provided by the author on the published date and are not legal advice. Viewer should not rely on these information and must seek independent legal advice.