Thinking of starting a business? Congratulations. It is an exciting time but there’s a lot to consider.
The good news is our team of business advisors, accountants and wealth managers can be with you every step of the way.
Here’s four things to consider when setting up a business and how the team at Pitcher Partners Newcastle and Hunter can make each one easier to optimise your business.
1. Business planning strategy and regular reviews
A proper business strategy and plan is the foundation of a successful business. Think about why you are setting up the business and what success looks like for you. Is it a business to continue your craft or trade while being your own boss or do you want to grow it to sell or franchise? What is your exit strategy?
Our team looks at your operations from a variety of perspectives. We know the right questions to ask to guide you and to grow your business.
Regular reviews of your profit, cashflow and other performance indicators will keep you on track and determine options if you aren’t quite meeting your goals. We have access to benchmarking data for many industries and can produce dedicated management reports on your risks and opportunities.
2. Decide on your structure
Your business goals, personal circumstances and assets help determine the best structure for your business. Are you a sole trader or is it best for your business to be a company or partnership? Should you establish a trust? Each structure offers different benefits and drawbacks.
If there are multiple owners, you should engage a lawyer to help draft a shareholder’s agreement.
We can help you register your business and review agreements.
3. Look at your cashflow
With set up costs and then ongoing costs such as wages, stock and rent you need to keep a close eye on cashflow. You may need to consider an overdraft account.
We recommend that our clients to set up separate bank accounts for tax and GST to make sure you aren’t caught short when those payments are due.
4. Protect yourself and your business
Estate planning is an area of focus in every stage of your business.
As you start a business you need to update your Will and estate plan.
There are business and personal insurances to consider. Most businesses take out public or product liability insurance. You may also need professional indemnity insurance and to insure premises and contents against fire, theft and storm damage. If you employ people, you’ll need to pay workers compensation premiums too.
With most business owners not effectively having sick leave, insurance to protect you against total and permanent disability is worth considering. Life insurance can help your loved ones to carry on financially if you die.
Our business advisors work with our wealth advisors and superannuation team to help you to think about isolating and protecting your personal assets from your business assets. Do you have Super, and would a Self Managed Super Fund (SMSF) serve you best? Making sure you can still achieve your retirement goals if something were to happen to the business or you choose to leave it.
Got a question about starting up a business?
Pitcher Partners Newcastle and Hunter offers business start-ups clarity and assurance through business advice perfected by years of experience in a variety of industry sectors. With our help, you can be certain your new business structures meet your goals.
There are many business service providers out there but not all have the level of expertise our team boasts. We are proactive, easy to talk to and customise our advice. No matter the scale of your operations, we provide leading and accredited business advice.
We love questions. If you want to know more about Pitcher Partners Newcastle and Hunter’s business services, please contact us.
Peter Lawrence is a Partner at Pitcher Partners Newcastle and Hunter who specialises in business services across a range of industry sectors. He has a special interest in forecasting and structuring businesses.
