3. Set Up The Basics



STAGE 3 - SET UP THE BASICS

Step 1 - Open bank account. Decide on business structure
It’s time to physically start setting things up. Open  a business bank account, finalise that loan from the bank (or other lending organisation), apply for a credit card if necessary, apply to the Company Registrars office for a company name and register online for a similar domain name once the company name has been approved (if you are going to operate as a company that is)

Then set up a meeting with your lawyers so you can update them on your plans. They can advise you as to the advantages etc of a company or partnership or sole trader or trading trust as your business structure. Keep in mind that you may be able to carry out some of the preliminary work rather than pay high legal fees. Your lawyer will generally tell you if you ask, what you can do yourself to save money.

What you should do:

  • Open a Business Bank Account more info..

  • Finalise Business Funding from Bank or other Lender more info..

  • Apply for Business Credit Cards (if applicable) more info..

  • Reserve Company Name (whether company to be used or not) more info..

  • When Coy Name reserved, register online a Domain Name similar to coy name if possible more info..

  • Make up a list of questions to ask a Lawyer. Leave nothing out and have meeting with a small business Lawyer ( ask about coy, partnership, structure, agreements, patent/trademarks, legal requirements, all questions you have etc) more info.. 

 

Step 2 - Form company or partnership. Protect I.P and develop your business plan.
If you are running your business under a company then form the company now (before the name reservation runs out)

If running your venture under a partnership, arrange for your lawyers to draft up the Partnership Agreement.

If you are running as a Sole Trader you won’t need to form anything or register anything. You can start when you like and do not have to account to any government body before you commence.

Make sure any Intellectual Property your business has created and owns is protected. This requires you to file a patent registration or file for a trademark registration as the case may be. Check if there are any Licences or permits or regulations that you need to comply with before you can start.

You will need to develop a basic Business Plan. Something that is simple and uncomplicated so you can understand it. This will be the roadmap for your business so it needs to make sense. This document of 5-20 pages should set out your business objectives as well as how those objectives are going to be achieved.

If you are borrowing money for the business, the lender (bank or other) will want to see your Business Plan before they grant your loan.

What you should do:

  • If using a Company – Register the Company more info..

  • If using a Partnership – Form Partnership Agreement more info..

  • Protect intellectual Property you have by filing for patent and trademarks more info..

  • Obtain any permits or licenses needed more info..

  • Develop your Business Plan more info..

  • Develop your Strategic Plan (if required) more info..


Step 3 - Set up financial and cash budgets
It’s time to set up your budgets if they have not already been attended to. These can get a little complex sometimes so obtain the help of your accountant or someone with accounting knowledge and experience. Make sure they are correct. There’s nothing worse than a business working with budgets that are based on unsound figures and assumptions. Be realistic - that means, no "blue sky" stuff.

What you should do:

 

When Ready, Go to STAGE 4Click here