Starting a Business

You have had an “Aha” moment and are convinced that starting a business is what is right for you – the enthusiasm and passion to put yourself into the market as a business owner is great, but before you dive into business there are a few things to consider.

Business Structure

One of the first steps in starting a business is choosing the right business structure. Common options include sole trader, partnership and limited liability company. Each structure has its advantages and disadvantages, so it's essential to consider your business's and your specific needs before making a decision.

Legal Requirements and Compliance

The process for registering a business is relatively straightforward, and depending on your choice of structure can be as simple as coming up with a unique name. If setting up a company you will also need to choose directors and shareholders, and it is important to understand the obligations of each. There are also requirements for GST registration, income tax deadlines, employment obligations, and health and safety. Be sure to also understand your role in the business, as each structure may have specific requirements of the individuals involved.

Business Plan

A well-structured business plan is crucial for guiding your business's growth, and often a requirement of any lending. It should outline your business goals, target market, marketing strategy, financial projections, and more. Even the best laid plans need to change, but it is important to have a clear starting point.

Funding and Support

Funding and Support is critical for any business, this can either be in the forms of grants / incentives / training, offered by institutions such as NZTE, Business Accelerators, or Callaghan Innovation or longer-term funding of working capital and or capital expenditure. It is important to have a clear understanding of what funding is available, when it might be needed, and how (if required) it will be repaid – this might be essential not just for the survival of your business but to allow for the growth you have planned.

The above is by no means exhaustive but cover common pieces of the puzzle that need to be considered and discussed with advisors before starting your journey in business. At each step answers will sometimes create further questions, but the important decision is taking the time to work through these and involve professionals early to ensure you receive the best guidance.

Over the coming weeks Direct Advisory will dive deeper into the above points utilising their own recent experience in setting up their firm – so keep an eye on our Facebook, Linkedin and Website for updates.

‍