Starting A Business Venture In 2020? Here Are 10 Tips For Sole Traders

Planning to start a new business in these unusual times especially in Australia? Like  Brisbane North, Strathpine and other parts of the country is a typical task in itself, but the satisfaction of working on your terms and proper research in the field can turn the venture into a huge success with relatively smarter investments. It can turn into reality by diverting your energy in grabbing the right opportunities at the right time.

We have 10 suggestions for sole traders that would definitely help them get a clearer understanding of the business and the technical complexities associated with starting with the venture.

1. Get The Strategic Information Correct

With each business, it is essential to know your responsibility of being aware with respect to the laws associated with your business from initiation through its transitions. One must use the complete set of skills to understand the industry, especially your competitors. 

Understand the market demands and try to monitor all positive and negative aspects with absolute clarity. This helps you strategise your plans, set your goals in the correct direction, and understand financial planning to accelerate your business.

2. Develop A Plan

A proper business plan acts as a map that gives proper guidance from the initial stage of startup to the level of growth. It is also better to hire a financial advisor which marks the crucial step of a successful business plan. It’s always advised to have a written plan to keep a track of all important aspects at all levels of business as in what business tools will be used, what market strategies have to be followed, measuring strengths and weakness of the competitors, designing and developing, understanding the management and operations plan and above all a proper financial planning. 

You should also keep updating your business plans as with evolving technologies the business plans keep on developing as the venture upgrades to the growth stage from the initial stage.

3. Understanding Your Targeted Audience

Invest good time analysing the demography of your prospects and clients. Getting information regarding who might need your product or service, framing marketing techniques, and a proper sales strategy to initiate the supply of the product plays a very important part in helping your startup reach new heights.

You won’t be able to make a profit without understanding the requirements of your customers so it’s very important to understand their needs. There are many parameters that help the business to grow, not limited to only income, gender, profession, and age, therefore you need to prioritise your customers always.

4. Get Your Tax File Number With Assistance From Wealth Management Planners

Although it’s a mandate that most people from Australia already get their tax file number ready but it is also important to know that you submit your tax returns under your Tax file number, to make sure that all the current taxation is accurate you need to have a tax file number handy and up to date. This will be beneficial to cater to the business structure’s legal needs.
Always take the help of the wealth management planners’ team to do the proper paperwork related to legal affairs.

5. Register For ABN And GST Through A Wealth Management Company

ABN is an Australian Business Number to make your business a Unique Identity that is required for tax purposes so that you can assert your business expenditure, state on the necessary invoices and other sales-related documents.

Though not an automatic step while setting your sole trader business but you might need it If your estimate of earning goes above  $75000. In a case wherein you are not sure of your expected income, you need not worry, you can get the GST registration anytime.

6 Rely On Proper Financial Advices

Set up your business and personal budget in advance, it will help you stabilise your income growth and keep your business and you afloat, It will also prepare you for the tough times. Your secured funds will help in acquiring wealth for growing the startup.

You can make a full-fledged plan to understand your financial planning well. Because in sole trading your funds and profits vary from month to month so set yourself right for both the boom and lean times.

7. Get Clarity On Your Tax Burden

A sole trader’s life always has to strike a perfect balance in the tax burden and tax savings so that he always has enough to earn profit and give salary to his employees. You can do that by keeping your earnings separate from your everyday expenses you can save a good amount for business expenses that are non-negotiable like PAYG, GST, and other contributing expenses. So it’s always best to have a saving plan that meets your needs and requirements.

8. Set A Proper Billing System

The biggest mistake that sole traders make currently is that they start with a simple invoice template or simply a spreadsheet. In today’s time, it is very important to set a proper billing system so that you can increase your productivity or how you can work on the billing process. A trackable invoice system is very easy to handle and something you can manage when you don’t want to lose track of your bills. Using a cloud-based integrated trackable invoicing helps you to keep a note of pending and overdue payments as well.

9. Understand Your Limits

As explained earlier, you do not have to pay the GST if your earnings are less than $75000 but in case if everything goes smoothly and in a year if you are able to double the earnings then you might have to register for GST and also have to fulfill the BAS  statement requirements. So it’s very important to keep a track of your income and maintain an equilibrium.

10. Get Complete Information From A Superannuation Consultant On Offsets And Tax Breaks

There are many incentive plans that might excite you but it is very crucial to develop a complete understanding so you don’t end up losing your hard-earned money. Therefore it is always a good idea to get complete information on Offsets and Tax breaks so that you can yield greater benefits in the long run with a superannuation consultant.

Before setting your foot completely in the startup, it is crucial to analyse the legal aspects of the business, understanding risk, arranging finances, and getting the right people on board. These will be the judging factors that will help a business rise. You may even take the help of some experienced financial advisors for this.

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