Prepare, plan and research. As an aspiring entrepreneur, it is essential a business plan is developed that outlines your business’s vision, goals, product or service, market research and strategies that will ultimately help you achieve your business goals. The plan demonstrates a clear overview of what you wish to achieve and will enable you to keep track of your progress. It’s important to decide on a business structure and choosing a name that is not only available, but unique. Location of the business is also significant, taking into consideration needs such as storage, equipment and proximity to your target market. Creating a business website would also be beneficial in increasing social awareness and access to consumers. Starting a business would require a lot of research, analysis and marketing to allow it to grow and become successful.
An important decision when starting a business is deciding on a business structure. There are several different business structures you can choose, and each will impact key areas such as the tax you pay, asset protection and the cost of set up. The four most common business structures in Australia are sole traders, companies, partnerships and trusts.
2020 was a hard year for many companies as COVID-19 forced them to drastically adapt the way that they conducted business or suspend operations completely. Many companies have been so affected by the pandemic that they have become insolvent – they are no longer able to keep up with the debts they need to pay. If your company was one of the unlucky majority who have been struggling to survive the pandemic, there are still several options to get your company back to trading at full capacity.
A company is considered insolvent when it is unable to pay its debts as and when they fall due and payable. Insolvency generally signals the end of a company’s life. By the point of insolvency, it is often too late, but if you keep a close eye on some early warning signs you might be able to prevent your company from going under.
The previous blog post talked about the powers directors hold to affect the company and in the words of Benjamin Parker in Spiderman, “with great power comes great responsibility.” Although directors have extensive powers, these powers are so that directors can adequately fulfill the host of duties and responsibilities required of them as directors. Failing to satisfy these duties can lead to significant personal liabilities and so it is important to be fully aware of what you as a company director are required to do and not do.