Bunbury Bookkeeping Service - Bunbury WA 

How to Start a Small Business in Western Australia in 2022 - Follow These Steps

Your life can be significantly impacted when running a business and so can those around you.  Firstly you need to learn how to start a business before you can run one. 
If you are thinking of starting a small business it can feel a bit unnerving if you have never done it before.  Rest assured, plenty of others before you have gone through the same thing, but you have an advantage and that is you can now learn from their successes and mistakes. 
These 7 foolproof steps on how to start a business – whether it is your first or fifth – will help you with everything from how to substantiate your new business idea to how work out your shipping game plan and then how to set it in motion. 

How to start a small business: 
1. How to come up with your ultimate business idea 
2. Choose a business name 
3. Get your finances in order 
4. Pick a business structure 
5. Licenses and Government Regulations 
6. Select your tools 
7. Plan your workload

Starting a New Business

Here are some of the things business owners say motivated them to start their own business: 

  • I wanted to be independent 
  • I wanted to have freedom and flexibility 
  • I wanted to have extra income 
  • I wanted to share my creative passion 
  • I saw an opportunity to fill a niche in the market 
  • I wanted to work from home 

Sound like you?

1. How to come up with your ultimate business idea 

Start your business with a great idea.  The idea can come from anywhere, at absolutely any time.  So make sure you have some waterproof paper in your shower because great ideas always pop into your head then. 
If life-changing ideas are not easy for you to come up with, especially ones that earn you millions of dollars, then try thinking about something that works into one of the categories below. 
Even though you may not be able to think of anything right now, there are so many places out there to start from.  Many people are striking it rich in many different small business markets. 

Top 5 Small Business Industries that our bookkeepers deal with: 
- Business Services 
- Food/Restaurant 
- Health/Beauty/Fitness 
- General Retail 
- Tradies 

If you are starting a new business a great way is to tap into the market before you start.   If you want to be in your business for a long time then you need to start investigating if your idea is just a fad which will fade out quickly.   Perhaps your idea is a trend and it will last a little longer than a fad.   Maybe it is a stable idea and is not subject to shocks and bumps and perhaps it may be in a growing market.  Does your product fall into a fad, trend, stable or growing market? 

2. Choose a business name 

Your business name will show up everywhere you do so make it simple and make it clear what you do, that is short and memorable and that echoes your mission statement. 
On the internet there a many name generators where you can start from. 

Here are a few tips to start: 
- Keep it short and simple. Customers simply will not remember a very long 6 word business name. 
- Dare to be different. Carry out some market research and if those in your industry have similar name do something different. 


Open New Business

3. Get your finances in order 

Your business goal is to make money.  No money, then it is just a hobby (still great to have a hobby).  A few reasons why businesses fail is due to no cash flow.
If you unsure what a cash flow is, get in touch with us at Bookkeepers Bunbury.
There are lots of businesses you can start with minimal start up costs.  Then there are other businesses that need money for stock, equipment or maybe physical space.  So you need to have a clear view of your projections such as when you will break even.
Products and inventory costs usually form a large part in the first year.  The next part of this is to understand the flow of your finances through your business and this is where we can help you to get your finances up to speed quickly so you can see where you are headed.  If your math does not work, your business will not work.  Bookkeeping needs to be primary, so talk to us as soon as you can – it will be cheap and cost effective and make sense.
Accurate records of your income and expenses will help you keep an eye on cash flow, a bookkeeper is some of the best money you will invest.
To manage your finances, open a business bank account and please do not use your private bank account, mixing the two will create headache for your bookkeeping later.  Also get your bookkeeper to automate some of the financial steps so you can do most of the work yourself and save some money. 

Start a New Business

4. Pick a business structure

There are four commonly used business structures in Australia:
- Sole Trader
- Partnership
- Company
- Trust
You are not locked into any structure.  You can change the structure as your business changes or grows.  You must understand each structure as what you choose may affect the tax you are liable to pay, asset protection and costs.
If you need help in this area get some legal advice, talk to your accountant or give us a call here at Bookkeepers Bunbury and we will give you a sheet outlining what each one represents and the pros and cons.
New Business Start Up

5. Licenses and Government Regulations

Now you understand how to start a business online, you should look into any licenses and government regulations you need to operate legally.  You don’t want to end up in legal trouble.

6. Select your tools

As a business owner you should not misjudge the value of good software that will cut down the time you spend on running your business.  Cut down on time by figuring out which stream of work eats up your time and make a list.
Software is perfect for streamlining and automating repetitive tasks.  Consider accounting software if one of your tasks that takes up a lot of your time is manual number crunching. Let software and bookkeeping professionals help you with the day-to-day stuff or at least ask them to set this up for you and then run with it.  Perhaps get your bookkeeping professional to check your file once a month or once a quarter so you know you are on track.
We will carry out a quick set up for your new business, just give us a call or email us at Bookkeepers Bunbury.

7. Plan your workload

Now you know how to open your small business and you are not going to build a team just yet, then you will be doing all of the work yourself which will mean that your time will be limited so you really need to plan your workload.
You probably already have some basic skills to help you with:
- Design decision such as your logo
- Colours that go into you brand
- Website design
If you are against DIY then there are lots of professional designers that are ready to help.
Understanding how to market your business online can require many skills.  Try to work out which marketing activities have the biggest impact for your new business, then work out the skill set needed, then execute them.
When it comes to Shipping you need to be smart.  Your clients place an order but how will you get the goods from Point 1 to Point 2?  Your strategy for shipping will cover pricing, packaging and locations.
If you are a new business startup and you are launching soon, give us a call, we can easily get you on track.   You need to link your e-commerce to your accounting software and save yourself some headaches.