Starting a Business? Read This First

Starting your own business is a big step. Whether you are leaving a job, picking up a bit of work on the side, or finally acting on an idea you’ve had for years, it’s equal parts exciting and a bit daunting. The good news is most of the key steps are pretty straightforward if you get them right early. The mistakes usually happen when people rush in without a plan. Here’s a simple guide to get you set up properly from day one.

1. Get Clear on What You’re Actually Doing

This sounds obvious, but it’s worth thinking through. What are you offering? Who are your customers? Are you working solo or planning to grow a team? Are you aiming for a side income or something bigger? Getting clarity here helps shape everything else, especially your pricing, structure and systems.

2. Choose the Right Business Structure

A lot of people start as a sole trader because it’s simple and cheap. That’s often fine early on, but it’s not always the best long-term option. You might consider a sole trader, a company, or a trust depending on your situation. This is one of the first points where it’s worth speaking to an accountant. Getting the structure right early can save you a lot of hassle and tax later on.

3. Register Everything Properly

At a minimum, you’ll usually need an ABN and possibly a business name if you’re not trading under your own name. You’ll also need to register for GST once your turnover gets above $75K. Depending on your industry, there may be licences or permits required. It’s worth ticking all this off properly so you don’t run into issues later.

4. Open a Separate Business Bank Account

One of the most common mistakes is mixing personal and business finances. It makes things messy and painful at tax time. Keep it simple. All income goes into the business account and all expenses come out of it. This alone will save you a lot of time and stress.

5. Set Up Accounting Software Early

This is a big one. Using something like Xero from the start will save you a heap of time. With the right setup, you can send invoices, track what you’re owed, see your cashflow, and keep everything organised for BAS and tax. Trying to pull this together at the end of the year is where things usually go wrong.

6. Get Your Pricing Right

A lot of new businesses undercharge, especially early on. Make sure you’re covering your costs, paying yourself properly, and leaving room for tax. It’s not just about what the market charges, it’s about what makes your business sustainable.

7. Understand Your Tax Basics

You don’t need to be a tax expert, but you do need to understand the basics. Set aside money for tax, because this catches people out every year. GST isn’t your money, you’re holding it for the ATO. As you grow, you may also have PAYG instalments to deal with. A bit of understanding here goes a long way.

8. Talk to an Accountant Early (Not When It’s Too Late)

A lot of people wait until tax time to get advice, but by then most of the decisions have already been made. A good accountant will help you set things up properly, keep your tax under control, and plan ahead. Even a quick chat early on can save you a lot of time, stress and money.

9. Keep It Simple

You don’t need everything perfect from day one. You don’t need a fancy website, complicated systems or a full business plan. What you do need is a clear offer, good communication, a way to get paid, and clean records. Focus on getting the basics right and build from there.

Final Thoughts

Starting a business isn’t complicated, but it does require a bit of planning. If you set things up properly, use good systems, and get advice early, you’ll put yourself in a strong position to grow without the usual stress. If you’re thinking about starting a business or have just made the jump, feel free to reach out. Happy to help you get things set up the right way from day one.

- Stuart