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Set Your New Business Up for Long-Term Success

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Started a business? Awesome. Now it's time to set your Business up for Long-Term Success. Learn How.

Once your business is in full swing, word is getting out about your services, you're gaining customers and starting to generate revenue, your work is not done! To safeguard your venture and pave the way for sustained success, you need to cover off all the bases. This guide will get you started.

Financial Management

Establish a Business Bank Account
 

Many new business owners are uncertrain whether they require a dedicated business bank account. Your accountant, bookkeeper or legal advisor can advise you on your situation.

Different business structures have their own record keeping requirements:
  • If you’re operating as a partnership, company or trust, you must have a separate bank account for tax purposes.
  • If you’re operating as a sole trader, you don’t have to open a separate business bank account but it’s sensible to do so – especially when working out which transactions are personal and business.
Read more about organising your finances at business.gov.au.
 
Cashflow Management 
 

Effective cash flow management is absolutely crucial for any business’s survival and growth.

If you can set up a sound financial management plan from the get-go you will be in great shape to meet your financial obligations, understand your financial position at any point of time, make better financial decisions, and budget for future investment or expansion.

Consider engaging a bookkeeper to help you budget and keep track of cashflow. Newcastle bookkeeping experts Balanced Beans suggest establishing and building up a fund for unexpected expenses. This will get you through any tough times – think of it as a safey net if times get tough.

These resources have good information on managing your business cashflow:

Pricing 
 
Pricing is a fundamental element of business. Explore what you need to consider when you price your products and services, including the types of pricing strategies, legislation obligations, what your price should include, and where to conduct research.
 
Before calculating your price, work out how much it costs to produce or deliver your product or service and don’t forget to include your overheads, Goods and Services Tax (GST) and other relevant taxes in your costing.
 

There’s a lot to consider – if you set your prices too high, your customers may find your products too expensive. However, if you set your prices too low, you could affect your profits. Business.gov.au has this page to get you started.

There are a number of pricing strategies you can use when setting your price based on costs, competition, perceived value and product. You should also be cognisant of any regulations you must comply with – refer to the ACCC for more information on this topic.

Hire a Bookkeeper

Maintaining bookkeeping is a fundamental requirement for all Australian businesses in terms of compliance with the Australian Taxation Office (ATO) regulations, particularly concerning income tax, and other financial reporting obligations such as business activity statements, payroll, payroll tax, and superannuation.

While some business owners opt to undertake their own bookkeeping there are compelling advantages to enlisting the services of a professional bookkeeper such as Balanced Beans. Head to the Australian Institute of Certified Bookkeepers to find a bookkeeper that suits your needs. 

Bookkeepers offer vital support in cash flow management, regulatory compliance, and risk mitigation. Delegating these responsibilities to a qualified professional not only reduces the likelihood of errors but also frees up your time for core business activities such as operations, sales, and marketing.

Bookkeeping experts can provide valuable insights into your business’s financial health. With their help, you can make informed decisions and set strategic goals.

Protect Your Business

Safeguarding the longevity and sustainability of your business is paramount. Consider implementing the following key strategies to protect your venture:

  • Business Insurance: Acquiring comprehensive business insurance is a crucial step to protect against potential risks. This coverage extends to safeguarding your assets, employees and liabilities. Various types of business insurance such as general liability, property, professional liability, directors & officers insurance are available to address specific needs. Talk to a licensed insurance broker or financial advisor about the insurances you will need.
  • Workplace Health & Safety (WHS): WHS encompasses risk management for everyone in the workplace, including employees, customers, visitors, and suppliers. Implementation of safe practices and safety equipment is crucial, as neglecting action may lead to legal consequences such as prosecution, fines and the potential loss of skilled staff. Additionally, workers’ compensation laws mandate businesses maintain Workcover insurance coverage for employees – this provides financial support for work-related injuries or illnesses, covering wages, medical expenses and rehabilitation.
  • Prepare for Emergencies: An Emergency Management Plan will prepare your business for continuity if disaster strikes from natural, human-caused, or technological emergencies. It should addresss potential risks, vulnerabilities and emergencies and outline clear protocols for accessing financial records, paying bills, invoicing customers and maintaining sufficient resources. By proactively addressing challenges, businesses can mitigate disruptions and ensure essential operations continue. Access a plan template from Business.gov.au.
  • Intellectual Property (IP): IP comprises your exclusive creations and knowledge. Whether it’s a new product, service, process or idea, it belongs to you and should be safeguarded. Registered rights like trademarks, designs, patents or plant breeder’s rights require formal application and examination before you can claim ownership. IP protections like copyright don’t require registration. Find out more here.
  • Cyber Security: There are simple measures you can take to safeguard your business from cyber threats: firewalls, antivirus software, regular software updates, educating employees on recognising phishing attempts and potential threats, restricting access to sensitive data, multi-factor authentication and regular backups. Prioritising cybersecurity lowers the risk of cyberattacks, protects confidential data and maintains customer confidence. The following tools and websites have helpful information:

Is your Business Set Up for Long-Term Success?

Running a business can be daunting but also hugely rewarding. By educating yourself using the information, tools and resources listed above, you will be in better shape to set your business up for success.

Talk to Balanced Beans about how we can help and support you.

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