Is Starting A Small Business A Your New Year's Resolution?


If you have been reading the news, a wave starting in the USA will soon hit our shores, the wave called The Great Resignation. Millions of people worldwide voluntarily call time out on their jobs, a hangover from the pandemic. Many are downsizing their careers for a fuller work-life balance or choosing to work for themselves instead. 

Are you riding the wave? Have you resolved to start a small business this year? Here are a few considerations to assist in your transition. 

Managing Cash Flow

There are start-up costs and operating expenses to consider when starting a new business. Before researching small business loans, grants and other financing options, map out the associated costs required. 

  • Start-up costs: Legal fees, insurances, permits, inventory, trademarking, property leases and more. 
  • Operating Expenses: Employee wages, rent, utilities, advertising, maintaining stock levels and more.

As you build up a stable client base, you may be working longer hours, taking on tasks outside your expertise, whilst receiving inconsistent revenue. Understanding the sums is a building block to a thriving business. 

A Business Identity

Designating an appropriate business entity for your small business is critical for tax and liability purposes. Your business entity can impact your personal liability, tax and control of your assets. 

The most common business entity structures are:

  • Sole trader – It is inexpensive to set up, simple to operate, but there are no legal distinctions between the business and yourself.
  • Company – This is more complex and expensive to set up. There is also a clear distinction between you and 
  • Partnership – Business dealings, income and losses are distributed between 2 or more people.
  • Trust – A trustee is legally responsible for the operations of the business.

 The little details

  • ABN: Registering for an Australian Business Number (ABN) will allow you to start creating invoices and accounts with suppliers
  • Business Name: Making your business name officially yours can be done by registering it with the Australian Securities and Investments Commission
  • Trademark & IP: If you would like to trademark your business name, then visiting the IP Australia website is required
  • Licences & Permits: You will need to gain licenses and permits to be approved to do a business activity or help you protect your business and your employees
  • Insurance: Often overlooked, insurance is vital to your small business. It is one of the best ways you can protect yourself from liability. 

Legal Assistance

It is your responsibility as a business owner to limit risk and keep up the smooth running of the business. All the legal intricacies in setting up and running a business that suits you today and supports you in its growth tomorrow are best done with a commercial lawyer's assistance. A commercial law firm will provide small business legal advice as well as creating sound contracts to benefit and protect you and more.  

TY Lawyers is a commercial law firm located at the heart of Chatswood. We have assisted many small business owners in turning their dreams into reality.



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