In the first instalment of this piece we looked at creating a budget to cover every aspect of running your business before you launch. This month we are going to discuss the other boxes you need to tick to set up your business professionally from day one. Many people do not put in the right amount of preparation before they start trading. This can lead to problems with cashflow, not having cash to pay the ATO and more importantly, not having profit to pay to yourself.
Before you start trading (even if you are going to be a sole-trader), I suggest that you do the following:
The ASIC Moneysmart website has some great information that can help people looking to start their own business: www.moneysmart.gov.au/life-events-and-you/self-employed-people
In the final instalment next month we’ll address cashflow and a couple of important things that so many start-up sole traders forget to do.
Andrew Zbik, Senior Financial Planner, Omniwealth