With the rising cost of living, more and more Australians are looking to generate additional income with a second job or ‘side hustle.’ The most common side hustles in Australia would include things like Airbnb, Uber driving, delivery services and the freelance gig economy.The pandemic has seen a lot of people resign from their jobs and revaluate their careers with many people launching a business from home.
The late Steve Jobs, Co-Founder, Chairman and CEO of Apple said, “Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do.” Sounds like a recipe for success but turning your hobby or passion into a profitable business is not as simple as it sounds.
Starting a business is a process and there are numerous issues to consider including your choice of business structure and accounting software. You need to create a brand that resonates with your target customer and map out a marketing plan. There are business registrations and licences to consider plus you’ll need to think about your equipment requirements, finance, and insurances. If you are looking to employ staff from the outset there are human resource issues including employment agreements, payroll software, workers compensation insurance plus superannuation guarantee obligations. The start-up phase can be a maze of compliance and planning issues.In some respects, starting a business is a bit like building a house and you need solid foundations starting with a business plan. Another cornerstone is the right tax structure for your circumstances that suits your industry and personal asset protection needs. Of course, sound advice, the right software and adequate and appropriate insurances are key foundation stones.
While it’s exciting when you have that light bulb moment, that flash of brilliance and idea for your new business, it’s easy to get carried away and rush the process. Impatience is a business killer and remember, turning your idea into a business necessitates research, risk, passion and planning. There are very few shortcuts and no amount of enthusiasm, money, hard work or talent can guarantee success in business.
If you’re thinking of quitting your job as an employee in favour of starting a business, make sure you have done your homework.
According to the Australian Bureau of Statistics, almost half of all new businesses in Australia close within three years. This serves as a warning for new entrepreneurs and make no mistake, the life of a new business owner can be a real roller coaster ride. The moment you transition from an employee to an entrepreneur your income is no longer guaranteed, and you also lose benefits like your employer contributing to your superannuation fund. You might need to sacrifice some holidays while your fixed outgoings like mortgage and car repayments remain unchanged.
As accountants and business advisors we can guide you through the process and assist you with the preparation of a business plan, revenue forecasts, cash flow projections, pricing, software selection, insurances, and your choice of business structure. We can also do some financial modelling based on different price points and costs.Our mission is to help you get your business off to a flying start and below is an 82-point checklist that will serve as an excellent starting point.
To help you with your start-up business we have put together the below checklist of tasks. Simply work your way through the list and tick off the tasks as you complete them. Click the link below: