- Does your previous plan correspond to the needs of your new business?
- What are the common business structures in Australia?
- Which point is essential in expanding your business?
Nearly all entrepreneurs dream of expanding their business, but the question is— how? Unfortunately, growing a business isn’t easy, it takes time, a lot of effort and it involves careful planning.
If you’re running a start-up and think your business is ready to become a company, employ more staff, or launch new products, below are tips that can help you grow your business.
Make sure your business plan is updated
Launching and sustaining a start-up is difficult, however, growing a sole trader business into a company, for example, is a whole different story.
Your previous business plan may have helped you to get to where you are now, but if you have a growing business, now is the time to update it.
A solid business plan is vital as it contains your strategies, your business’ identity, as well as the essential numbers (e.g. cashflow, forecasts, budget). This document is generally needed if you’re looking to secure a loan or find investors for your business. More importantly, a business plan will help you identify your long-term business goals.
Get the right business structure
As your business grows, your needs also change. This means that it’s the perfect time review your business structure.
There are four common business structures in Australia: sole trader, company, partnership, and trust. There are different obligations for every trading structure and you’ll have to weigh up the pros and cons of each before you identify which one suits your current needs.
It is crucial that you seek advice from an accountant, a business adviser, or a lawyer to determine which type of business structure is the best for you. They can also assist you by doing the legwork when you change your structure, such as re-registering for GST, PAYG and obtaining ABN, etc.
Tip: There is a new rule that provides tax relief for small businesses should they move from one structure to another for commercial reasons. Contact your accountant to know more about this.
Work on improving the different aspects of your business
Look at how you can refine key areas in your business. Review your existing policies and procedures and see whether these still apply to how you currently operate.
Are you ready to venture online? Do you have the tools and the technical know-how to build and maintain an online presence?
How are your finances? Can your current cash flow keep up with the growth of your business? Or do you need new strategies to increase your profits? Seeking the assistance of an advisor will aid you in identifying the steps you need to take to increase your business’ revenue.
Get funding for your business
Whether it’s expanding your premises or purchasing new equipment, funding is essential to growing your business; but where do you access lenders to finance your business?
This is where using a mortgage or finance broker becomes convenient. A broker will work with you to determine your ability to borrow and provide you access to a wider range of lenders that guarantees that you get the right funding for your needs.
Plan for an Exit
Entrepreneurs should look beyond what their eyes can see. This means that you should know where your business is going in the coming years. Your goal should be to future-proof your business so that when the time comes and you are ready to hand it to a successor, the transition will be smooth. An exit strategy is also essential to ensure you can get the sale price you deserve, should you decide to sell your company.
Diligent planning with the right support will ensure that your dream of scaling up your business will come into reality.