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Small Business Start up – 7 items to consider when starting a business

Starting a business is sometimes a reaction to an idea. I have come across many individuals who have a viable idea, then ask around for information on starting a business. Friends and acquaintances want to give their 2 cents worth of knowledge, so they impart with advice such as “apparently you can…” or “I heard…” or most commonly “My accountant said…”

I met with a lady one day, who I found out did not research enough into running a business. She left the administration, managing and running of the business to other people. This was a very viable business, generating quite substantial cashflow over a number of years. The partners in the business who she trusted, left the operations to pursue their own interests. The lady came to me with a mountain of unlodged tax returns, BAS’s, compliance and cashflow issues that she was oblivious to for the past 7 years. This obviously amounted to a considerable dollar amount, and could have been prevented through some early planning and key items of knowledge.

Through my experience, here’s a list of 7 items to consider when starting a business:

  1. Decide on the business structure. Your medium to long term goals will drive the business structure you will set up. Things such as business risk, asset protection, tax minimisation, administration and cost of keeping the business structure will be important factors as well. These items should be discussed with your accountant in detail BEFORE setting up any type of structure, as getting this wrong could cost you more than setting it up. I have also written an article about the different business structures on this site. Be sure to check that out as well.
  2. Where will you source your work from, and have you researched your market? I have come across plenty of would-be entrepreneurs who have a great idea, but no sound marketing plan. Try and have some stable customers or contracts before you set out, and make sure you are ready to put in the hard yards in trying to get business.
  3. Learn the basics of bookkeeping and understand your tax obligations. Try and attend one of the government run courses, which can be found on the ATO site, or the small business site of your local government. The basics of keeping records is a start to learning financial management, and being on top of your finances. I’ve noticed that many people with cashflow problems in their business, usually aren’t on top of their finances. Learning the basics of bookkeeping will go a long way in the way you manage your business.
  4. Build your networks, and gather up a team of experts. These are people you go to for advice, mentoring and help. You may have a law expert, accountant, a mentor who has more experience than you in your industry, a network of complimentary services to yours, a broker, a graphic designer and a business coach. Try to pick people you get along most with and most importantly, can UNDERSTAND YOUR BUSINESS.
  5. Research, research, research. I can’t emphasize this enough. Research your product or service. Research your market. Research your sales plan. Research the area you service, the demopgraphics, your competition, the demand for your product or service. Research into the end to end sales process in great detail. Research into finances, insurance, suppliers, communication, advertising. This is just the start!
    Prepare a business plan. If you fail to plan, you plan to fail. Setting out your business objectives will provide you with clear goals, and steer you in the right direction when things aren’t quite so straight forward.

There are plenty of sites who offer free business plans. Here are a few links to some sites:

Funding. Consider the start up costs of the business, and where you will source the funds from. Don’t put all your eggs in one basket – ensure you have a back up plan in case the business doesn’t go according to plan.

Analyse your break even point, so you know how many sales you need to make to recover your costs.

About Ritchie Cruz

Ritchie has 20+ years experience in Public Practice, being trained as a Chartered Accountant in one of the largest 2nd Tier accounting firms in Australia. Experience also includes working in management positions in Medium to Large ASX Listed Companies. Recent experience includes working as a Group Financial Controller in medium size business going through the ASX listing process. Ritchie can offer big company management and reporting experience, to small & medium businesses.

Ritchie has a passion for small business start ups, helping clients grow from humble beginnings. See our small business start up page to see how your business can benefit.

Testimonials

  • Dr Krish Perananthan

    Cosmetic and Implant Dentistry

    Ritchie was recommended to me by my father and I have also continued to recommend him to my friends. He is reliable, efficient and has a…

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  • Napoleon Guines

    Director, Travel Company Operations

    Ritchie Cruz and Co are accommodating and have excellent service.

    Cruz & Co have impressed me the most is due to their efficient service.  They are…

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  • Regina Wang

    Business Tax – Beauty Salon 

    Ritchie has been managing my tax matters as a sole trader for 2 years+. Always very responsive to my questions and make effort to reply…

    Read full testimonial
  • Zac Fryer

    Director, Import and Distribution Company

    Ritchie Cruz provides and high level of accounting expertise and goes above and beyond in answering any queries we have.

    Read full testimonial
  • Jonathan Fambart

    Business Tax – Travel Industry

    Cruz & Co was introduced to me this year and it was the best decision for my sole trader and personal taxation affairs. Ritchie the…

    Read full testimonial
  • Jae Kwon Yoo

    Business Tax – Electrical Contractors

    Ritchie is awesome. He is very professional and responsive and he is always there to help you. He even replies during weekend. He needs some…

    Read full testimonial
  • Vanita Aloda

    Restaurant Owner

    Ritchie Cruz is my Accountant. We have a solid 10 year relationship.

    Ritchie as always provide me with honest and efficient service.

    Is a great communicator, always replies efficiently to…

    Read full testimonial
  • Daniel Robey

    I have and continue to recommend Cruz and Co to many businesses and individuals who are looking for a business advisor and accountant that goes over and above…

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  • Jonathan Yeoman

    Director, Technical Design Company

    This is a new business startup and Cruz&Co. have provided great help, guidance and reassurance from the beginning.

    Ritchie has provided us with excellent service and…

    Read full testimonial
  • Kellie Pincham

    Director
    Automotive Parts Retailing business

    Cruz & Co offer a great professional and friendly service. Ritchie gave me confidence running the business knowing that he was readily available for…

    Read full testimonial

© 2025 Cruz & Co.

  • Home
  • About
    • Meet the Team
    • Our Clients
    • Testimonials
  • Services
    • Tax Consultant and Compliance Services
    • Small Business and Sole Trader Accountant
    • Outsourced Accounting Solutions
    • Business Structure
    • Outsourced CFO
    • Working Visa Refunds
  • Resources
    • Tax Refund Process
    • Client Assistant Schedule forms
    • Downloadables
    • Helpful Links
    • Rental Property Cashflow calculator
    • SMSF Tax Refund Process
  • Contact Us
  • Blog