Taking the leap and starting your own business is an exciting moment for any budding entrepreneur. Working for yourself, choosing your own clients and setting your own work hours are just some of the benefits that you can look forward to as a new business owner. However, before you can start reaping the rewards of running your own business, you need to get yourself up and running first.
Starting a business takes a lot of hard work and dedication, and it’s important that you set yourself up for success from the outset. Hiring the right staff, selecting the right location, choosing the right target audience for your business and using the best tools available will help your business to thrive. More and more businesses are utilising cloud-based software packages, such as specially designed accounting software for small business, to help minimise costs and to maximise business efficiencies right away. With more time and capital at your disposal, you can focus on getting your business off the ground and start building credibility with your target audience.
Continue reading to find out what you need to start your very own small business in New Zealand.
Choose A Business Structure
Most businesses in New Zealand will fall under one of three business structures; sole trader, partnership or limited liability. Before you can set up your business, you will need to decide which structure will apply to your business.
- Sole traders operate their business alone and can hire employees, control, manage, and own the business and are entitled to all the profits. They are also personally liable for all taxes and debts associated with the business.
- Partnerships are common with professionals and those working in the agricultural industry. This is an effective way of sharing business operation costs and the partnership itself does not pay tax. Instead, profits are divided between partners and each individual pays tax on their share of the profits.
- Finally, Limited liability is used to establish a company, which is a formal legal entity of its own, completely separate from the owners and shareholders. The limited liability company structure is the most successful business structure in New Zealand as it helps to build confidence in your business by governing business relationships and allowing for more transparency.
To start a successful business, it’s crucial that you take the time to understand your target market. Without a clear picture of who your customers are and how your competitors are performing, it will be difficult to market your business effectively. Conduct thorough market research before starting your business so you are prepared for what lays ahead.
Abide By Local Authority Regulations
Depending on the type of business you will be operating, you need different types of business premises. Before you set up your premises, it’s important that you consult with your local authority to ensure you are operating within their rules and regulations. Each territory authority has unique regulations so it’s important that you do your due diligence.
Finalize Your Business Name
Choosing a business name can be tricky. You want to choose something that is catchy, easy to remember, on-brand and that will be effective across different mediums. Take some time to consider your options and before to check that your name is not already protected before you start creating logos and other branding materials for your new business.
Get Started With Building Your Business
Once you have decided on your business structure, you have done your market research and you have a business name chosen, it’s time to start setting up your business. For most entrepreneurs, this is the most exciting part of any new enterprise as this is the moment where your vision begins to become a reality. Take your time and carefully consider every decision you make as you get your business up and running as this will ensure you make the right calls and set yourself up for a successful future.