STARTING YOUR

BUSINESS

Starting a business for the first time is exciting and daunting all at once. To help
you navigate your way to the start line, we’ve compiled a checklist with links to
support you through this process.

1. BEFORE STARTING UP YOUR BUSINESS

• Confirm you are up for the task • Financing your idea

• Research the size of your market º Contact an ANZ Small Business Specialist
• Identify your core competitors º Know what to bring to your ANZ Small
Business Specialist meeting
• Understand your customers
º Find an accountant
• Conduct a SWOT (strengths, weaknesses,
opportunities, and threats) analysis º Develop a pricing strategy
• Identify your setup costs º Set up your financial record keeping system
• Estimate net cash flow º Set up your banking:
• Identify your break-even position - An everyday business account
• Develop a business plan and set out your goals - A savings account
- A business overdraft
- A business credit card
º Apply for merchant facilities
º Apply for an Internet payment system
º Set up Internet banking

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Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522.
2. START-UP YOUR BUSINESS 3. MARKETING

• Choose a business structure • Develop a clear competitive advantage

• Choose a business name and register it • Establish some practical marketing tactics

• Apply for an Australian Business Number (ABN) • Create a logo

• Register for GST and PAYG • Register a website domain name

• Check local business licenses or permits • Build a website

• Join your local business support group • Set up a unique email address

• Join your business association • Establish a social media presence

• Apply for grants or subsidies

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BEFORE STARTING UP YOUR BUSINESS

Confirm you are up for the task Conduct a SWOT (strengths, weaknesses,
Feel confident you have the right characteristics and opportunities, and threats) analysis.
determination to start your business. Take our test to You’ll want to maximise your strengths, reduce your
find out whether you should go into business as the weaknesses, take advantage of your opportunities
closer the match, the more chance of succeeding. and avoid threats.

Research the size of your market Identify your set up costs

Before starting your business you’ll want to know It’s critical you determine how much cash you’ll
how large your target market might be, and accurate need to start. This is the amount you’ll need to fund
market research is the best way to find out. Learn yourself, borrow, or raise from others. Use our set up
how to compile your own market research for costs calculator to help with your estimate.
relevant sales and customer data.
Estimate net cash flow
Identify your core competitors A cash flow forecast helps you identify fluctuations of
Knowing who your main competitors are will sales and expenses each month. Download our cash
help assess what you are up against, and develop flow forecast template to try and predict when you
tactics to help customers choose your business. For may have too little or too much cash so you can take
example, if you plan on starting up a café, your main action early.
competitors would probably be other cafés and bars
in your area. Research your competitors to find out as Identify your break-even position
much as you can. It’s important to know how many items (or overall
sales) you’ll need to sell, to cover your costs and
Understand your customers make a profit each week. Utilise our break-even
Find out how, when, what, why and where your calculation template to find out
main customers buy. For example, if you opened
a fruit and veggie store, you’d expect most of your Develop a business plan and set out your goals.
customers to shop outside work hours. You’ll want to Writing down what you aim to achieve over your first
know everything about them and their purchasing few years in business will be critical to guide your
habits to increase the chance of selling to them. progress and set out a plan of action. Download our
business plan template to get started.

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BEFORE STARTING UP YOUR BUSINESS... CONT

Financing your idea º Find an accountant

Before going into business and leaving your current To help you set up your business and
job, it’s important to consider taking a future proof understand your tax obligations it’s a good idea
approach by ensuring you have enough personal to employ the services of an accountant early. If
savings to get by, until you begin making a profit. you don’t know a local accountant, ask for a
referral from a fellow small business owner.

º Contact an ANZ Small Business Specialist

Before going into business and leaving your - Managing your cash flow

current job, it’s important to consider taking a - Applying for a business loan
future proof approach by ensuring you have
- Consolidating your banking
enough personal savings to get by, until you
begin making a profit. - Streamlining your accounts

- Managing your cash flow º Develop a pricing strategy

- Applying for a business loan The way you price tells customers a lot about
the quality of your products or services, which
- Consolidating your banking
is why it’s important to have a pricing strategy in
- Streamlining your accounts place. For example, if you’re going to set up a
guided hiking business will you price exclusively
º What to bring to your ANZ for the luxury travel market or target
Small Business Specialist meeting backpackers in a lower price range?

- If you haven’t started your business yet,

º Set up your financial record keeping system
bring your business plan and cash flow
Keeping records is a necessary part of doing
forecast to use as discussion points
business so ensure you’re well organised to keep
- If you have started then the more track of your business’ finances. If managing
information you can provide about finances is not one of your strong points/
your business the better, such as strengths, consider bringing a bookkeeper
last financial statements on board even part time. Accounting software,
an invoicing system and cash flow tracking can

Every business will have difference circumstances help. Learn about the records you need to keep.

and therefore requirements. The best thing would

be to talk to someone early. Find out more about
how ANZ Small Business Specialists can help you
create the business you really want.

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º Set up your banking: º Apply for merchant facilities
You will need the right merchant services to
- An everyday business account help you accept credit and debit card payments
Once in business you need to keep your quickly. For example, if you’re beginning your
personal bank account separate from your own plumbing firm, you’ll ideally want to be
business banking, so you can track sales able to take card payments when you’re at job
and expenses accurately. Compare sites. Check out ANZ’s merchant services and
ANZ’s everyday business accounts and speak talk to an ANZ Small Business Specialist
with an ANZ Small Business Specialist for advice. for advice.

- A savings account º Apply for an Internet payment system

High interest savings accounts also have Business has been revolutionised with the
their place within the running of a small advent of 24/7 online payments. Depending
business for spare cash. Take a look at on your business, you may want to accept
ANZ’s business savings accounts and speak payments online as much as you can. It means
with an ANZ Small Business Specialist for advice. the cash hits your account faster. For example,
if you plan to sell coffee and coffee products
exclusively from your website, you’ll have to set
- A business overdraft
up an online payment system. See ANZ’s
It’s a smart idea to arrange for a business
Internet payment solutions and speak with an
overdraft to take care of any cash flow shortfalls,
ANZ Small Business Specialist for advice.
especially during your start up period, even
if you don’t end up using it. Consider an
ANZ Business Overdraft and talk to an º Set up Internet banking
ANZ Small Business Specialist for advice. You’ll be able to boost your productivity and
streamline your accounting process by making
use of Internet banking for business. Find out
- A business credit card
more about ANZ Internet Banking.
When starting up it may also be handy to have
a business credit card available should you
have financing issues. Have a look at
ANZ’s credit card options and speak with an
ANZ Small Business Specialist for advice.

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2. START-UP YOUR BUSINESS

Choose a business structure Join your local business support group

In Australia you have to choose between four main You can’t put a value on how extra support, services
business types – a sole trader, partnership, trust, or and experience can help guide your business in the
company. Find out which one will suit you best at right direction. For example your local Chamber of
business.gov.au. Commerce offers networking and contact with other
business owners.
Choose a business structure
This is often the hardest part! Use the IP Australia Join your business association
site to make sure your intended business name isn’t It’s helpful to get specific industry advice or support
already taken. Sometimes you can have a similar when starting up your business. For example, if you
name if it’s in a different industry, but check to be intend to open a butchery, get in touch with the
safe. Register your business name on the Australian Australian Meat Industry Council (AMIC). Use the
Securities and Investment Commission website. directory of government and business associations
Do this before you request an ABN as it’s one of the to find their contact details.
requirements.
Apply for grants and subsidies
Apply for an Australian Business Number (ABN) Your business may be entitled to certain grants or
An ABN is a unique number that goes everywhere subsidies to help get it up and running. For example,
your business goes, and helps you transact with if you’re planning to begin exporting goods to Asia,
Government and other businesses. Register on the find out if anyone can help you with finance. Take a
Australian Business Register (ABR) website. look at the grants and assistance listed on business.
gov.au. You can also search with the grant finder to
Register for GST and PAYG find what’s available in your industry.
If you’re anticipating sales turnover in excess of
$75,000 each year you’ll need to register for GST, and
if you intend to employ others you’ll need to register
for Pay As You Go (PAYG).

Check local business licenses or permits

It’s important to know what your business will need
to comply with before you start, such as health and
safety, standards, noise controls etc. For example,
if you’re going to start up a plastics manufacturing
business, you’ll need to be compliant with all the
relevant health and safety standards. Visit the
Australian Business Licence and Information Service
(ABLIS) for information and support.

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3. MARKETING

Develop a clear competitive advantage Build a website

It’s imperative that your business has a key point of In the 21st century, it’s difficult to compete in
difference from competitors, so customers can see business without a website. Find out how to drive
why you are better value for money. traffic to your website once it’s online. If you want to
have an online store, set up an online ordering and
Establish some practical marketing tactics payment system.
To acquire customers you’ll need to develop
marketing tactics that attract and retain customers, Set up a unique email address
especially in the start phase when you have no past Your email should be the same as your business
customers to rely on. For example, as a new self- domain name such as [email protected].
employed courier driver you might need to offer au so customers recognise your business as well as
some ‘2 for the price of 1’ deliveries to gain initial you. You can then set up email filters such as sales@
business. Download our marketing on a shoestring yourname.com.au, [email protected] to
action plan to gain some useful ideas. more effectively direct customer enquiries.

Create a logo Establish a social media presence

A well-designed logo is an essential component of a By building a strong presence on selected social
successful brand and marketing strategy. It’s a visual media platforms such as Facebook, LinkedIn and
representation of your company and represents how Twitter, you’ll create vital communication channels
your target audience relate to your company. For between your business and your customers. For
example, an adventure tourism company specialising example, if you plan on starting up an online
in skydiving may want some kind of skydiving image clothing store, setting up a business Pinterest
as part of their logo. account profiling all your designs could prove useful.

Register a website domain name

To create your website, you’ll need a domain name
which is your unique www name. For example, if you
plan to start up an IT support company, you might
check if addresses like www.it4u.com.au or www.
infotech.com.au are available. Often tech companies
are named by what is available as a domain name.
Learn more about domain names and how to
register them at business.gov.au.

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4. SET UP

Identify suitable premises Fit out your premises

Location is one of the keys to creating a successful Make sure your business has the right equipment,
business. Take time to find a great site for operating furniture and technology for you and your staff
your business, whether it’s retail, manufacturing to work efficiently. Certain industries have exact
or service based. Don’t forget home based requirements that you will need to carefully scope.
businesses for service industries are growing fast, For example, the new restaurant you plan to open
and you require split locations such as having your has limited internal space where customers can dine,
construction factory outside the CBD, with a sales dictating what type and size of furniture, kitchen fit
office in the city to be close to customers. out and health and safety requirements.

Arrange business insurances Equip your premises with office supplies

You’ll want to make sure your business is insured There will be office equipment and stationary
against fire, theft, key man, professional indemnity supplies needed to get your office in an operational
and public liability. For example protection against state. The more professional you look the better. For
the effects of drought and fire is essential for the example, if you’re intending to open a web design
agricultural sector. Take a look at how ANZ can help agency, your staff may be more productive working
your business manage its risks with the right business at adjustable standing desks.
insurance.
Create an asset register
Organise personal insurances An asset register lists all your assets and what you
Personal insurance should also be considered when paid for them, and will make things easier at the end
you start up your own business. It’s important to of the financial year as you account for depreciation.
have protection against your income, trauma, total Find out some other ways to help you ease your end
permanent disability (TPD) and life. Find out more of financial year pain.
about ANZ’s business insurance.

Arrange connection of relevant utilities

You will need the basics (such as electricity, gas,
phone, Internet and water) to operate so connecting
essential utilities is an absolute priority.

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BUYING A BUSINESS

Carry out due diligence Value the business

You’ll want to find out about the business’s vital Gather an idea of how much goodwill the business
statistics and how well it has been performing is worth after talking to all the relevant parties,
recently. Also go over the assets and intellectual such as customers, suppliers, staff and the owner. If
property. What percentage of their assets are owned the owner leaves, will the business continue on as
by the company and is the IP protected? usual, or will customers leave? Often the owner is so
involved in a business it’s difficult for their influence
Talk to current staff to pass to you. If so it’s worth less.
Find out who the key staff are and how content they
are in their jobs. Compare their qualification and Make an offer
training levels to others in the industry. After obtaining a professional, independent valuation
of the business, consider making an offer. Be
Interview customers and suppliers prepared to negotiate, and identify if the owner will
Talk with current customers to find out how loyal allow you to pay a portion of the sale price over time
they are and whether they also use the competition. (so the business is helping pay the owner back).
Ask suppliers about the business’s reputation and
learn whether they’re on good terms or not.

Examine the financial history

Look for consistent trends in sales, debt and stock
on hand. Identify areas that could be improved. Be
sure to inspect the owner’s financial forecasts for
the upcoming year. Is the business making a profit?
Do not listen to a verbal promise by the owner that
the business ‘was making more than the books
show’. Only make decisions on the latest financial
information (which should ideally be from up to date
accounting software).

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 BECOMING A FRANCHISEE

Meet and get to know the franchisor Talk to other franchisees

Consider what the franchisor will bring to the table Are you able to talk to other franchisees to establish
to help your franchise be successful. The main their opinions on the positives and negatives of
advantage is the speed you can start as everything starting up a branch of this particular franchise?
has been completed for you (product, service, brand,
price, location, invoicing systems, staff training, Find out about the marketing strategy
uninforms etc). Try to get an idea of how much marketing support
you’re likely to get if you do decide to become a
Check the track record franchisee. Determine how much you’ll have to
Be certain the business concept works before you contribute towards marketing costs to help establish
decide to buy into the franchise by seeing what its the new franchise branch.
track record is like in Australia. Are other franchisees
making money? Could you have spent the franchise
payment fee on starting the same idea yourself?

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is appropriate for you. ANZ recommends you read ANZ’s Financial Services Guide and terms and conditions or product disclosure statement
before acquiring any product.

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or professional advice. This material does not take into account your personal and financial needs and/or circumstances, and you should
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