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7 Steps For Starting And Growing A Successful Business—- Unique Tips From Your Tax Accountant

Business Startup Melbourne

Posted On 25/04/2016

Starting your own business is exhilarating and demanding at the same time. Starting a business takes a lot of planning, from making financial decisions to competing for all the required legal activities to register and run your business. From writing a business plan to financing it, all require you time and effort. The successful businesses you see around yourself today did not achieve success overnight, they are the result of several years of hard work that has resulted in a prosperous business. In simple words, startups require a fair amount of planning and marketing within an entrepreneur’s limited resources, whether it’s their skills, time or money.

As an entrepreneur, you must put your best effort in planning, launching, and execution of your business. The success of your business will depend on of how hard you worked and how flawlessly you executed your business plan. When it comes to marketing your business, there are many aspects that you must focus on, in order to achieve your desired business goal, from branding your business to hiring the right employees and long-term planning to ensure your business runs smoothly. Following are the 7 most important steps that can boost your startup and help it grow into a successful business.

  1. Branding

Branding is not just about having an attractive business name, it is a lot more than that. It is a complete package that involves your business logo, business card, letterhead, font styling, every minute detail has a huge impact on your clients and customers, which is why it is extremely important to focus on branding of your business. Branding is considered the first impression you make on your target audience.

Branding is not just important for multinational companies but it is equally important for small businesses as well. Branding gives a brand identity to your business. It helps your customers to connect with your brand which leads to better brand differentiation and higher sales. Branding provides you an ideal platform where you can mark your own identity.

  1. Choosing the Right Business Structure

When it comes to starting your own business, you have to give your business idea a lot of thought. There are several types of business structures that you can work on depending upon who you are partnering with. Following are 4 most common business structures that are followed around the world:

  • Sole Trader,
  • Partnership,
  • Company,
  • Trust

With the sole proprietorship, the owner has full control over his / her business and can make independent decisions. This structure is the easiest and cost effective entity that individuals can start immediately with a good amount of funds. The owner is entitled to all the profits as well as taxable losses. There is a good amount of privacy and flexibility in sole trading. As far as it’s demerits are concerned, there is an unlimited liability on the entrepreneur, and there is a dearth of funds as well since he alone is the fundraiser for the business.

Partnership comprises of two or more people that initiate and operate a business to earn profit. In this business structure, both partners invest and are entitled to profits and losses in accordance with their equity agreement. It requires a fairly minimal cost to set up a partnership business. It has shared responsibility and obligations, with proper privacy, control, and flexibility in running the business. But on the other hand, a partnership has unlimited liability, in which liability that is caused by one partner may make all the other partners to be liable. There is the possibility of transfer or termination due to disagreements in the future and the partnership may be dissolved.

Company is a legal association of people that come together to be operating and finance a business. Fundraising is fairly easy with all the members contributing to fund the business. With consistent funding, it is easier to expand the business in the near future. Company benefits from limited liability that is afforded to shareholders. It has unlimited life. On the contrary, a company may take a huge cost for setting up, then there are various ongoing costs for which availability of liquid assets is extremely important.

  1. Choose The Right Marketing Mix

When it comes to marketing your business, it is extremely important to figure out the ways to market and promote your business. There are several ways to do that, but with limited resources and budget, you must pick choose only those mediums that are most effective, affordable and have a higher rate of turnover. You can advertise your business via sales letters, yellow pages or newspapers, PR or take a more modern approach and promote your business online through email marketing, social media, which is faster and much cheaper than the traditional advertising methods.

  1. Hire The Right Employees

The success of your business majorly depends on who you hire to run it. Business owners should focus on hiring individuals who are smart, proactive and go-getters in their field. If you do not have enough space in your office, you can also outsource the workload to virtual assistant or bookkeepers to save time. Outsourcing tasks can help you focus on your business and expansion plans.

  1. Target Audience

Before starting your business, you must know who your target audience is, what it needs and how much they can spend to acquire our goods or services. As an entrepreneur, you must focus on attracting prospective customers and address their needs rather than focusing all your time and effort on creating your product.

  1. Client Is King

Finding clients and reaching out to your target audience is the most important part of your business. Once you find the right clients, you must maintain focus on building a relationship of trust and loyalty, which will enable you to build potential customers. Knowing Your Client (KYC) is a concept which is vital to your marketing mix. If you do not know what they need, you will not be able to sell your product to them. In order to sell your product, it has to appeal to the customer.

  1. Finance Is The Lifeblood Of Your Business

As an entrepreneur, you must keep a close check on your cash flow, you can hire a bookkeeper to sort out all your business expenses and help run a day to day business activities. Making a monthly profit and loss statement of your business will help you in assessing the progress of your business. Make sure you fulfil all tax obligations and lodge your BAS to avoid late payment penalty.

Before you go on and set up your own business, you must follow these 7 important steps that will not only help you in laying a solid foundation for your business but it will help you in the execution of your business plan a smooth functioning in the long term. Always remember success comes from  incessant hard work and persistence.

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