You might have a fantastic business idea that you think can’t fail, but before you do anything, you first need to crunch the numbers to discover whether or not there is sufficient markup to make it viable. You need to work out exactly what the costs are to bring the product/service to the customer, then take a look at the market prices and see what kind of margin there is. The other important factor is demand; the product/service needs to be in sufficient demand; compare what you plan to offer with what is already in the marketplace and check that you can be competitive.
With affordable small business accounting in Sydney, your books will always be up to date; the accountant would set up a bookkeeping routine from the very outset, so you will never get behind. If your business data is on the cloud, the accountant can remotely access the data from any location.
Create a Business Plan
When you are sure that your project is feasible, the next step is to write a comprehensive business plan, which should be 15-30 pages in length and cover every aspect of the business.
A good business plan contains:
- Overview – Summary of the business.
- Startup & running costs – All inclusive.
- Sales & marketing – Show how you plan to reach your target audience.
- Organisation flowchart – Showing who does what.
- List of organisation assets – Including stock, inventory, vehicles, machinery & equipment.
- Forecast for 1-5 years – A realistic assessment of sales.
- Risk assessment – List the risks to the organization.
When you feel the business plan is complete, hand it to a business coach and see what they have to say. The chances are he or she will find a few issues that need to be worked on. This document will be your guide and it should help you in many ways. Here are a few tips when going abroad on business.
Registering the Business
Of course, you have to register the business and we recommend that you take legal advice, as there are numerous ways you can set up a company. You could be a sole trader, a partnership or even a limited company and there are taxation considerations; with the best advice from a lawyer, you can make an informed decision.
Without adequate funding, your business idea will remain firmly in the realm of imagination; you need to cost the startup, add 30% (for unexpected expenses) and put money aside in case sales are slow at the outset. Make sure you have the funds to launch the business and support it for the first few months until you get on your feet.
Set Achievable Targets
In order to perform, you need goals, and in your business plan, you should set financial goals with timelines, as this gives you clear and achievable targets. One thing you will need is dedication and determination, while you need to be able to deal with adversity.
Setting up a business needs careful planning and we hope that the information in this article goes some way towards helping you achieve your business goals.