How to start small business with small capital

how to manage small business effectively and starting small business guide
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Dr.KiaraSimpson,United States,Researcher
Published Date:05-07-2017
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Small Business Guide. Information and tips to get you started.Introduction St.George has helped thousands of people start and run their own business. We have the products and services you need to help you manage your money, and get ahead. This guide is designed to answer the questions you may have about planning and n fi ance, to enable your venture to be a success. 3Plan for success Having a plan is vital to your business success. If you know your goal, how you plan to get there, and roughly what it will cost, then you’re in good shape for reaching your target. A good business plan is more than a starting point, it’s a roadmap, and you should refer to it frequently throughout the life of your business. You should also update your plan from time to time to provide your next steps. A plan can give your business a direction and a pathway. You could consider including: A n overview of the business, A n assessment of your competitors, and its objectives with their strengths and weaknesses H ow you intend to make your business T he legal status and key different from the competition personnel involved A summary of your products A thorough marketing plan and/or services H ow and where the business will operate I nformation about your target market A n itemised n fi ancial plan including and estimated customer g fi ures how much money you’ll need, and when Making a start Your business will need a legally sound name. You can choose practically any available name, or buy a ‘shelf’ company. But in choosing your business name, think about the kind of marketing statement and r fi st impression you want to make. 4Your business name is its identity, and people will draw their r fi st impressions from the name you choose. Do you want to sound highly professional, or highly irreverent? Fun or trustworthy? Friendly or premium? Don’t just settle for the r fi st name you think of, take time to consider various ideas, and then analyse the impression they make. Along with registering your business name, you will need to choose the right business structure. To n fi d out more details, a variety of options, and how to register see: stgeorge.com.au/business under the ‘Starting a business’ tab. 5 For guides and templates on how to build a business plan, go to stgeorge.com.au/business and see ‘Starting a business.’Watch your money Being prot fi able is naturally an important part of business success, but it’s just as vital to manage your cash o fl w so that you have access to funds when you need them – to pay billers, suppliers and your staff. Without the right tools and n fi ancial planning, having a prot fi able year can mean nothing in the face of your monthly bills. St.George can help you benet fi with: Dial-Up EFTPOS – perfect for x fi ed base, Integrated point of sale solutions – face-to-face business link EFTPOS to your cash register Mobile EFTPOS – accept payments Multi-drop and single-leased line – when you work away from phone lines ideal for high transaction volumes As a St.George Business customer, you’ll receive free online legal and tax advice. For more information, see: stgeorge.com.au/business under the ‘Home’ tab. fi 6 For guides and templates on nancial management, go to stgeorge.com.au/ business-money- managementSome of the keys to n fi ancial management are: A ccounting software that automates critical reports, helps you keep an overview of your position and simplie fi s tax reporting K eeping on top of your accounting and book keeping tasks – don’t wait until the end of the n fi ancial year (or even the end of the quarter) Early invoicing is vital. Be clear about your terms, and follow up outstanding invoices early P lanning and predicting your cash o fl w means you’ll maintain a workable budget with regularly updated projections. This will allow you to meet your taxation and other n fi ancial obligations Managing big clients carefully. If your business is especially vulnerable to one or two big clients, their failure to pay could ruin your business. In this case, you may like to consider Debtor Insurance for extra protection K eeping a savings account for security as a n fi ancial buffer, and to set aside future GST payments C runch your numbers to understand what is prot fi able and what isn’t. Time, wages, materials, utilities and other elements should be added into your costs of supply Have back-up n fi ance. There are a number of bank services that can help with faster payments, better cash o fl w, and spare cash if you need it. They include: Merchant services Flexible home • • (EFTPOS, credit cards, or business equity loans ® BPAY and more) Competitive at-call deposit • Business credit cards • accounts and term deposits, for surplus cash Business overdrafts • G et paid on the spot – EFTPOS is a great payment tool for your small business – especially if you go out to your customers – because it makes it easy for them to pay you 7Borrow to grow Most new businesses need extra money for major set-up expenses like premises, equipment, initial stock, and motor vehicles. At some point during the life of your business, you may also need a loan to manage your running costs and your cash o fl w. Additionally, you may n fi d you’re presented with a great new opportunity for which you need to fund equipment, stock, or materials, and staff before you can start turning extra prot fi . Business n fi ance is very e fl xible, and there are a wide range of solutions available to suit most circumstances and needs, including: Debt n fi ance (borrowing money), which may involve using property or other assets as security E quity partners or venture capital investors G rants or other assistance from Government or industry bodies H ire purchase or leasing arrangements for plant, equipment and vehicles To n fi d out more about these products, ask at any branch or call Business Direct on 133 800 24 hours a day, 7 days a week. 8Sales and Marketing Sales and Marketing are essential to your business. You have to know how to market your business and generate sales, otherwise you’ll simply stagnate and get left behind. Find a way to make your business different from its competitors so you stand out. Consider: Why should potential customers choose you? • What makes your business unique? How will you tell people about it? Does your marketing plan set out when, where and how you’ll attract new • customers? You can also plan activities to generate repeat sales and new leads from past customers, to improve retention, sales and prot fi ability A solid marketing strategy will cover low cost advertising. • Making sales, building loyalty and reaching new customers It is important to work out how much you can afford to spend in order to generate new sales, so that your marketing activity is prot fi able. 9 For marketing advice, see stgeorge.com.au/business and see ‘Tools and resources tab.’Managing People At St.George we understand that your two most important assets are your people and your ability to lead them. And because we want you to succeed, we’ll help you develop the skills you need to be an effective manager and mentor. To help you manage your team more effectively, go to stgeorge.com.au/business for tips on: R unning team meetings Effective delegation 7 easy steps to recruitment N ew employees checklist Writing employment terms and conditions 10 For more information, see stgeorge.com.au/business and see ‘Tools and resources tab.’Resources Information on demand Business Planning • Australian Venture Capital Association www.avcal.com.au • New South Wales Department of State and Regional Development www.smallbiz.nsw.gov.au Financial management • CPA Australia www.cpaaustralia.com.au • Institute of Chartered Accountants www.icaa.org.au e-business opportunities • An Australian guide to doing business online www.e-businessguide.gov.au • Australian Electronic Business Network (AUSeNET) www.ecommerceadvantage.com.au Managing people • Commonwealth Department of Employment and Workplace www.deewr.gov.au • Australian Council of Trade Unions www.actu.asn.au Useful Guides • The Legal Issues Guide for Small Business (A free internet-based guide published by the Commonwealth Department of Industry, Tourism and Resources.) sblegal.industry.gov.au • Risk Management Guide For Small Business (A guide published by the NSW Government Department of State and Regional Development.) www.smallbiz.gov.nsw.au/smallbusiness • There are also Business Licence Information Services based in each State capital, where you can check which sort of permit, licence or registration your business may need. www.bli.net.au General • The Commonwealth Department of Industry, Tourism and Resources www.industry.gov.au • Business Entry Point (A Commonwealth Government service designed to help you set up and run your own business, with tools and information covering small business essentials and more.) www.business.gov.au • Australian Taxation Ofc fi e (ATO) (Information about tax, employer obligations and other important information for small businesses, including a small business guide.) www.ato.gov.au • Australian Bureau of Statistics (ABS) (Extensive information and detailed reports on business types, outcomes, demographics and more that can greatly increase the quality of your business planning). www.abs.gov.au • Australian Securities Investments Commission (ASIC) www.asic.gov.au • Austrade (The Australian government trade commission, providing information and assistance for exporters and companies wanting to do business in Australia.) www.austrade.gov.au 11Talk to St.George Start your new business a step ahead of the competition with our tips, support and services. We’re here to help. To n fi d out more, just talk to us. Ask at any branch 133 800 stgeorge.com.au/small-business (24 hours a day, 7 days) We’ll help you get ahead B usiness Banking B usiness Loans Accounts E lectronic Payment Solutions Savings and Investment F inancial Planning and Accounts Superannuation This information is intended as general information only and is subject to change without notice. St.George Bank recommends that you seek independent legal, tax or n fi ancial advice where appropriate. The advice in this brochure is prepared without considering your objectives, n fi ancial situation or needs. Before acting on this advice, you should consider if it is appropriate for your needs. You should obtain a disclosure document and consider it before deciding whether to hold or acquire a product. A disclosure document is available at our branches or by phoning us on 133 800. Products are only available in Australia. All applications for credit are subject to St.George’s normal lending credit approval criteria. St.George Bank - A Division of Westpac Banking Corporation. ABN 33 007 457 141. AFSL 233714. ST20424 06/10