Question:
I’m thinking of starting a business from my home but I don’t want to spend a large amount of money on the business until I know whether there is a market for it or not. What are the basics I should do when starting a business?

Answer:
Regardless of whether you intend to operate from home or not, or the amount of money you want to spend, there are number of factors which have to be considered when starting a business.

For instance, have you contacted your local council to see whether they have any rules or regulations which may prohibit certain businesses from operating in your area? You may also need a permit to operate your business.

You will also need to register for an ABN otherwise whatever income you receive, 48.5% will be withheld for the tax office. The simplest way to register for an ABN would be initially as a sole trader. You will also have to decide whether to register for the GST or not, depending on the type of business you intend to run as there could be tax implications.

Registering doesn’t cost anything but time, but I would suggest that before you spend any funds on your “potential” business, you research your idea thoroughly and create a business plan. A good accountant should be able to help you with this.

Filed under: Starting a Business
This page was added on 12 December 2001, last updated on 24 October 2006.