Starting a New business (Where to from here?)
So we discussed in no great detail the fundamentals of starting a new business, which incorporated the idea, the feasibility of the idea, and a plan to implement that idea, and I promised I would cover in a bit more detail, the “Business Plan”. So what is a Business Plan? and why do we need it?
Your Business Plan helps to crystallise your idea, vision, structure, marketing strategy, finance and overall implementation plan. A clear and well thought out plan, allows you to take your idea from inception through to completion and beyond, and acts as a roadmap, giving clear direction whilst making sure you stay on the right path.
So let’s de-construct a few of the individual elements that make up this roadmap..
Vision: Your vision is not just the idea itself, but how you see this idea transpiring in reality. If clearly stated, it provides the direction and purpose.
Product or Service Offering: A detailed definition of the Product or Service offering, outlining some of the following:
Make sure you thoroughly explain the nature of the product or service, its uses, and its value proposition.
Marketing Strategy: Working out how to promote the product or service, what advertising platforms to use, where and when to promote?, and the tactics to sell this product or service, all this should be articulated in detail, it’s a plan within a plan.
Business Structure: From a tax perspective, you need to work out which of the below mentioned business structures, best suites your business, now and in the future.
Sole trader: an individual operating as the sole person legally responsible for all aspects of the business. Like other structures, as a sole trader you can employ people to help you run your business.
Company: a legal entity separate from its shareholders.
Partnership: an association of people or entities running a business together but not as a company.
Trust: an entity that holds property or income for the benefit of others.
Finances: You will need to identify all the costs associated as well as the potential income from this new venture. Typical costs such as buying or leasing a premises, equipment for producing or delivering a product or service, staff salaries, utilities (electricity, water), insurance, compliance requirements etc.. I would strongly suggest you engage your accountant to help you with this, as they can provide you with the right tools such as a Cash Flow to help you track the flow of money in and out of the business and to help you forecast.
Implementation plan: is the process of defining how to execute the objectives outlined in the sections of your Business Plan. It determines how you will implement each aspect, from funding and personnel to organization and deliverables.
As some of the elements vary from country to country and in the case of Australia, state to state, it would be best to contact your local government for requirements and compliance or engage a business consultant to help you through this process.
Considering starting a New Business? Or need assistance with your existing one? The OS team is here to help… Call us on 0418820595 or Email us at firstname.lastname@example.org