There's a lot to think about when starting a business. From writing a business plan to understanding the red tape, we've got tips and resources to make sure you have the necessities covered.
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How to start your business
Write your business plan
This is the most important tool in your toolkit, so its worth investing some time in.
Step 1
Download a template
You don't need to start from scratch. Download our template (word) to get started.
Step 2
Have a planning day
Spend some time clarifying what you want to achieve from your business to make sure your plan can take you into the future.
Step 3
Think like an investor
Make sure your plan shows investors that you have a viable business solution.
Choose your business type
There are four structures to choose from.
Sole trader
As the only owner, you'll have control over the decisions and profits of your business
- Benefit from the simplest and least expensive set up process
- Business profits are treated as personal income, from which you'll deduct your own super contribution
- Only pay tax on profits using your own tax file number
- Find out more about being a sole trader.
Partnership
The partners share responsibility for decisions, payments and profits
- With two or more people involved, you might have access to a larger pool of funds to start your business
- The partnership doesn't pay income tax on the income it earns - each partner pays income tax on their share of the profits
- Each partner is individually responsible for making their own super contributions
- Find out more about setting up a partnership.
Company
A company is a legal entity run for the benefit of its shareholders by an appointed Director
- Setting up and operating a company has higher costs and more reporting requirements, but means less personal responsibility for your business debts and more flexibility with your profits
- Companies pay their own income tax (using their company TFN), but PAYG instalments are credited against the total income tax its liable to pay
- You still pay tax on the wages, director's fees or divedends earned from the company as part of your individual tax return
- Find out more about setting up a company.
Trust
An agreement where a trustee commits to hold your business as an asset
- The trustee can be a person or company and is responsible for managing the trust's tax liabilities and obligations. The profits of the trust are distributed amongst the beneficiaries.
- Most trusts do not pay income tax and aren't liable to pay PAYG instalments (but the beneficiaries or trustees might be)
- A formal deed is required to outline how the trust will operate
- Find out more about setting up a trust.
Red tape checklist
Make sure you cover the formalities.
Setting up
- Register your business name with ASIC
- Apply for an Australian Business Number (ABN) and if you're starting a company, an Australian Company Number (ACN)
- Check if you need a licence or permit to operate your business
- Register your website name.
Tax and super
- Set up a Business Tax File Number (TFN) if you're not a sole trader
- Find out if you need to register for GST
- Register for Pay As You Go (PAYG) if you're employing people
- Set aside your super contributions and find out if you have to pay super for your employees.
Legal stuff
- Find out the level of insurance you should get
- Set up any necessary contracts (such as a partnership agreement or a trust deed)
- Open a business account to keep your business and personal finances separate.
Getting your business off the ground
Here's a few things to think about. For more handy tips and resources, check our business tools.
Consider your current income
Do you plan to keep your current job for a bit longer? It could help out with initial costs.
Discover your borrowing power
If you have enough equity in your home or an established business, you might be able to borrow some money.
Start from home
It'll save money on renting another space, plus you might be able to claim tax deductions on your housing expenses.
Brainstorm your options
Government grants, capital investors and crowd funding are possible ways to get yourself started.
Thinking about a side hustle?
If you don't want to quit your day job just yet and you're looking to start something up on the side, we're here for you. We've got the account and tools to help you get set up, plus some guides and tips to help you reach your goals.
How can we help?
Speak with someone from the team today
Business Banking Specialists
Here’s how to get in touch
The information contained in this article is of a general nature and is not intended to be nor should it be considered as professional advice. You should not act on the basis of anything contained in this article without first obtaining specific professional advice. Also to the extent permitted by law, Bankwest, a division of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL / Australian credit licence 234945, its related bodies corporate, employees and contractors accept no liability or responsibility to any persons for any loss which may be incurred or suffered as a result of acting on or refraining from acting as a result of anything contained in this article.