Operating your own home-based business requires hard work, dedication, and intense focus. It is not easy running a business, whether small or a multimillion dollar company. But every successful enterprise has to start somewhere, right? If you want to start a small business from home, there are a few basic essentials you must never ignore to avoid snags and complications once your business is up and running.
One of the most common tips you will get from experts when planning to set up your own home-based business is to do a substantial market research. Determine whether or not you have a sustainable market for your product or the type of service you are providing. Figure out whether or not you will be able to establish your business in the current condition of the market. If there are too many players or competitors, setting up your business in that particular market may present more challenges.
If you are confident about your product or service, and believe it can stand toe-to-toe against more established competition, then you should consider studying your potential rivals in order to gain an advantage over them once you settle in with your business. Finally, you might also want to find out in advance how you are going to market your product or service to potential customers. Again, learn from what your competitors are doing. If you can’t develop a new marketing strategy, at least improve on an already existing marketing scheme.
Once you have done your research, established a feasible marketing strategy, and developed a good business plan, the next thing you need to think about is the legal matters like registering your business to make it legit. There are a lot of things you still need to consider before you can begin entertaining clients and buyers. Among them is registering a business name for your home-based company, registering a tax file number (TFN), and acquiring an Australian Business Number (ABN).
Getting an ABN is quite easy. Nowadays, registering a business name and applying for an ABN number is already a linked process to make it more convenient for small business owners. You may also apply for ABN online, if you prefer a quick and easy method of securing an Australian Business Number. It only takes less than 24 hours to obtain a valid ABN number online.
In addition to the business name, TFN, and ABN registration, you should also learn and understand your tax and legal responsibilities as a business owner. Having a good understanding about goods and services tax (GST), pay-as-you-go (PAYG) withholding tax, fringe tax benefits, and payroll tax – if you’re planning on hiring employees, will only help make your business more compliant to the rules and regulations associated with running a business in Australia.