Things You Should Know Before Starting a Business in Sydney
Are you planning to set up business in Sydney? If yes, then you must know the tricks to convert a start-up venture into a successful business. Running a business is not an easy task in the world’s most expensive and livable city. Thus, work smart to make your mark in Sydney’s business arena.
Implement these smart work ideas and become a trend setter in the market.
Ten tricks to setup business in Sydney
- Organise yourself/ Market Research
Don’t get in a hurry. Sydney is a multicultural city. Thus it serves to a wide range of people. Take time to think about what you want to sell. Carry out the through analyse of market trends these days? Go out in the market to understand the customers demand. Market research helps to establish a business in the pre-dominant sector.
- Identify your consumers
The road to a successful business goes by satisfying the customers. Before starting a new venture, you must understand customers demand. Introduce promotional offers and discounts to attract customers. Design a customer review form and get it filled by each and every customer who steps-in your shop. You must build a relationship with the end users, as a happy customer turns into a local user.
- Draw a business plan
Plan your business. An organised work mechanism is always beneficial rather than arriving at a conclusion spontaneously. We advise you to mark a new phase of your business venture. The business plan includes expansion of business and marketing plans.
Expansion of business can be regarding opening a new branch or adding a new variety of merchandise to the store. Assess the market value of your business before putting the next step forward.
Marketing Plan is necessary to promote your trade. Marketing method has changed with times, especially after the inception of social media. Hire technology freak people as a part of your social media team and promote your business on the digital platform. Also, you can publicise the newly launched venture through various community radio channels aired in the Sydney city.
- Decide your price list
Well, this is a tricky part. Sydney is home to thousands of foreign nationals and thus setting a price that can be affordable by every society is a tough task. In fact, at times you may have to cut down on profit to sustain continuity of the business. Getting worried about how to sail through this job? Well, follow these simple rules and enjoy the tag of being a successful entrepreneur.
- Check what your competitors are costing?
Keep a watch on price your rivals are asking for. Never, price your product too much or too much low in comparison to your competitors. This can cause huge loss to your newly setup business.
- Check your inventory before hanging up the price list.
Before deciding the final price list, cross check the price at which you have bought the products. Calculate the profit margin before compelling price to the customer.
- Don’t think too much about earning profit.
Profit making is the second step when you decide to setup business. You must emphasis on making customers rather than earning profit. The satisfied customers open a gateway to profit.
- Be flexible with demand and supply of your products.
Yes, you read it right. Don’t stick one fixed price. Rather think, view and then utter the best selling price of your product. Give yourself a minute think how much profit you will earn by selling at a particular price. Analyse customer requirements and inventory you have in stock before placing the final selling price.
- Predefine your business structure
Prepare work style before launching the business venture. We suggest you to keep the business policies predetermined. So, that it won’t affect the business later. There are four types of business proprietorship.
This format makes an individual a sole owner of a business. An individual person is responsible to run and manage the trade. The person himself/herself has to bear business loss, debt recovery, financial crunch and profit. The owner is not eligible to have a business partner but can hire employees to make assist him/her. This format is the simplest way to startup your business in the Sydney region.
Salient features of being a sole trader.
- This is the most convenient way of handling business in Sydney.
- The owner can use his personal bank account for business transactions.
- Trader can submit lodge tax returns through his personal Tax Filling Number (TFN).
- The owner acquires all right, assets and liabilities of the business.
- The business owner is not entitled as an employee in the company. But, he/she is eligible for amount that is termed as profit. However, this amount is not considered as wages in the tax system.
Trustee holds the company’s assets for the benefit of the others. This type of structure is used adapted by non-government organisations [NGOs]. The trustee manage all the monetary issues including payment of tax, filing tax return on time and paying off the billings and liabilities. Trust is not a legal entity rather it is held as a provision to define tax by a company or a person.
Salient features of trust
- Preparation of the trust deed to showcases the work system.
- The trustee is required to perform an administrative task on yearly basis.
- Trustee of the company can be a person or a company.
- Tax registering process varies for trust and trustee while taking their citizenship into consideration.
A company has a wide horizon for working. It includes hierarchy at different levels, such as top-level management, middle-level management, and lower-level management. The formation of a company is a legal and separate entity. The company is eligible to incur money. Also, they have to make timely payments a case can be filed against them in the court of law for cheating.
- Salient features of being a company.
- It can be defined as a separate entity
- The limited company structure can incur fixed liability.
- Multi heads of the operation makes working difficult.
- It is compulsory to be registered under GST [Goods Services Tax] for the companies having turnover of more than $75,000.
- Yearly tax return must be filed in the office of ATO [Australian Tax Office].
Partnership business involves two or more people working for the same company. The partners must prepare partnership deed before launching the business. Business can be started under the following partnership rules in Australia.
- ACT – Partnership Act 1963
- NSW – Partnership Act 1892
- NT – Partnership Act 1997
- QLD – Partnership Act 1891
- SA – Partnership Act 1891
- TAS – Partnership Act 1891
- VIC – Partnership Act 1958
- WA – Partnership Act 1895
Salient features of being a partnership company
- The company holds a separate Tax Filling Number [TFN].
- Companies operating in Australia are recommended to avail an Australian Business Number [ABN]. This optional, but is good to have one.
- All the partners are liable to pay off debts incurred by the business.
- All partners’ shares sum amount of profit and loss according to the deed.
- Partnership Company must file their tax return with Australian Tax office [ATO] yearly.
- File tax returns timely.
Filing tax return in timely manner is beneficial for running business in Australia. The companies have different tax payment structure depending on their purpose. Three things important for paying tax are:-
- Goods & Services Tax [GST].
- Australian Business Number
- Pay As You Go system
- Get your business registered
Business name is the identification of your business. Thus, it is necessary to hold copyright/registration right of the company. The company name can be a person’s name or any combination of words you wish to have. For example:-
Smith Brothers or Abacus Company.
- Apply for license
Couple of business requires license for sale. Sydney, the capital of New South Wales [NSW] hold office for providing licenses, permits, registrations and certificates for different types of trades.
- Insurance Cover for business.
Choose insurance that covers your business at maximum. Check premium amount payable, cash benefits, maturity period and the amount you get in case of mishap must be checked with the insurance agent before buying insurance.
- Manage your finance
Finance is the biggest requirement for any business. You must keep a backup plan ready to deal with any financial crunch.