Starting a Business? Here Are 5 Key Considerations.
Embarking on the journey of opening a new business can be exciting and often daunting. Starting it requires meticulous planning and consideration of various factors, from how you should structure the business all the way through to the lease. Addressing the fundamentals from the get-go can mitigate future challenges and pave the way for a successful business venture. Equip yourself with the right information to make informed decisions that will propel your business towards growth and success. Here are five key points to consider when starting a business:
1. Business Structure
Decide the nature and type of your business as far as its structure is concerned. For example, will you operate as a sole trader or as a limited liability company – most common and advised for various reasons including tax obligations. Consider the consequences of each structure so you can make an informed choice that suits your business needs and goals. The nature and type of business structure will affect almost every other aspect of your business dealings.
2. Understanding Occupancy Rights
Every business requires a location, and that location will come with its own terms and conditions. It is crucial to carefully examine the lease terms of your chosen premises including the rent, lease duration, and make good obligations that apply at the end of the tenancy. Also, be wary of rent clauses based on turnover, which are particularly common with retail leases in shopping centres, where your rent may be affected by how much you earn.
3. Local Council Approvals
Check to ensure if your chosen business premise is allowed to operate your business type. If not, steps will need to be taken (with the landlord’s help) to lodge DA’s with Council authorising the type of business activity at the premises.
4. Condition of the Premises
Consider whether the current status of the premises is appropriate for your business needs or whether a refurbishment or alteration works are necessary. If so, you will need to speak to the landlord and come to an agreement about how those works are to be carried out and who is responsible for such costs.
5. Franchise Alternatives
If a similar business model exists, especially in the form of a franchise, explore the possibility of joining the network. It can offer advantages such as an established brand name and customer base, reducing the need for extensive marketing and building brand awareness.
Are you thinking of starting a business? To find out how One Law can help you, call 02 9119 2232 or contact us through our website Contact Us | One Law Group Parramatta.
