Business planning

Business plans are crucial to a startup business as they ensure you have a roadmap and some guidance on your business journey. Getting the right person to write a business plan is crucial as they need to understand the fundamentals of your business, how you operate, and where you want to get to.

When writing a business plan, you essentially need to work backwards. Determine what your end goal is, then build the plan for achieving that end goal. Your goal could be one million dollars in profit, or to generate a personal income of $100,000 per year. Catching up quarterly with your business adviser ensures you remain on track with the business plan targets you set.

Business plans should include the following:

• Your mission statement and core values
• Financial projections
• SWOT analysis
• Staff structure now and as you grow
• Action plans
• Key drivers for your business

Creating a business plan will help you gain a better understanding of your business, the customer and market conditions.

You'll be able to track and measure business performance to ensure you’re on the right track. You can also improve the likelihood of gaining financing and attracting potential investors by having detailed marketing and financial plans in place. Your business plan can convey the overall health and direction of the business. 

This is one of the most common questions from young business owners. The first step from a business point of view is to make sure you have all the fundamentals of your business in place. This is crucial because if the fundamentals are not right your business will not be ready for expansion.

The fundamentals of a business include having your bookkeeping running smoothly, so you have accurate data to base your decisions on, having the right business structure to expand, and having the right people in your business to deal with the expansion.

You also need to consider how you are going to fund your expansion. Often a business will not be stockpiled with cash before an expansion so alternative financing options will be required. This may involve a financial institution such as a bank, crowdfunding or bringing in other investors to the business.

There are many reporting requirements when you hire a new employee, including:

• Lodging a tax file number declaration with the ATO
• Set up a payroll function as part of your bookkeeping
• Registering for PAYG with the ATO
• Setting up a superannuation clearing house to pay their superannuation

You also need to make sure you have a signed employement contract which specifically states their working conditions, job description, rates of pay including all penalty rates, and any other entitlements such as annual and sick leave.

Ensure that you are aware of the minimum legal pay rates and allowances based on the relevant employee awards. This can often be a complicated area which you will require some professional advice on.