Starting a business can be full of hope and anticipation, but it can also be daunting due to all of the balls you may need to juggle before you can even think about getting started. Because requirements vary from state to state, in this NSW business guide, we’ve put together a list of the key procedures aspiring entrepreneurs should follow if they want to start a business in NSW.
Before you start a business in NSW, there are a few essential things you should know.
First and foremost, you must determine whether you are truly ready to start a business. While this may appear to be a simple solution, there are various aspects to consider before taking the jump.
Do you have the necessary qualifications? Do you have the time to devote to the company? Do you have access to the materials you’ll need to get started?
Then, without holding back, analyse your company concept and examine its potential and practicality. Here are some questions to consider at this point:
- Is there a genuine demand or need in the market for my product/service?
- What will it take to build my concept?
- Is my plan financially sound?
- How will I safeguard my concept?
- What are my rivals doing?
- What is my contingency plan?
These questions will not only help you determine whether your concept is viable, but they will also provide a solid framework on which to develop a complete business plan.
Before you establish a business in NSW, you’ll need to figure out if your activities are considered a business or a hobby, as the two categories have distinct tax, insurance, and legal duties. You can learn about the different types of legal entities that are available here.
Service NSW also has a useful business guidance online page that may assist you in navigating general or industry-specific company needs and requirements, including licences, permits, or certifications.
How to Start a Business in New South Wales
It’s time to get serious now that you’ve given yourself the green light. There are four crucial actions to take before starting your business in NSW.
- Develop a business strategy
Your vision and purpose, branding, market research, competitive advantage, financials, and legal and regulatory needs should all be included in your company plan. Consider using a business plan template to get started if you’re not sure where to begin.
2) Decide on a legal framework for your company
When launching a business in NSW, there are five different business structures to select from.
Sole Proprietorship: Because you are the sole manager of your company, this structure is the easiest and cheapest to start up. You can recruit staff even if you ‘trade’ on your own.
Limited company: The firm is a separate legal entity from you. You’ll need to register with the Australian Government Business Registration Service if you choose a company structure.
Partnership: A partnership is formed when two or more people work together to carry out commercial operations with the goal of generating money.
Trust: This structure entails a trustee (either a people or a firm) doing business on behalf of beneficiaries.
Co-operative: A cooperative is a democratic organisation whose members own and govern it.
Associations: Associations are made up of people who have come together for social, sports, communal, or charitable reasons. An association can opt to be incorporated, which makes it a separate legal body from its members, or unincorporated, which allows members to operate together informally.
3. Complete all required documents
There is a requirement for you to register for regulatory identification and documents if you want to start a business in NSW. This may include the following, depending on your structure:
Register for your Australian Business Number (ABN), which is a unique 11-digit identifier that identifies your company. While it is not required, obtaining an ABN allows you to claim GST credits, energy grant credits, and register a domain name.
A business TFN is required for corporations, trusts, partnerships, and other organisations such as associations and cooperatives, whereas a personal TFN is required for single traders.
A business name is the title or name by which a person, or another legal entity, conducts business.
GST is only due if your income is more than $75,000.
4. Get started
After you’ve registered your business in NSW, you may go on to lease a location, obtain licences and permits, and hire employees; and, if required, setting up a payment system.
Leasing a commercial space
For retail and commercial enterprises, finding a location to operate is critical. Consider obtaining assistance with leasing a commercial space.
Permits and licences
Your industry and area will determine which licences and permissions you’ll need to operate lawfully. Figure out the ones you’ll need before you start trading.
You must comply with Fair Work standards, as well as health and safety legislation and insurance policies.
Are you ready to take the plunge? Before you do so, don’t forget to check your insurance requirements. Depending on what time of business you operate and what risks you anticipate, you may need public liability insurance NSW. If your company is sued by a third party, public liability insurance can cover the costs of pay-outs and legal fees (third parties include members of the public, customers or clients, but not your staff). An accident in your workplace or connected to your company activities may be covered by public liability insurance.