If it is your intention to set up a business or you have just recently done so then there are lots of things that you need to do to make sure that your business is still here 5 to 10 years from now. Many new businesses run into problems within the first 2 to 3 years and many have to close their doors for reasons like not being able to come up with rent and rates and their business is just not attracting enough customers. If you want your business to be a serious entity then you need to structure it properly so that it will stand the test of time and still be operating even when it’s time for you to retire.
Nobody expects you to know the ins and outs of business structures and the facts and figures that are involved with it so you can turn to business structure accountants in Melbourne to take all the responsibility off your shoulders and put it onto theirs. They will be able to point you in the right direction when it comes to your whole business structure and they will be able to make sure that you are accountable as you grow. The following are just some of the top tips when it comes to properly structuring your business in Melbourne.
- Avoid being a sole proprietor – Many new business owners in Australia feel comfortable being a sole trader but there are many downsides to remaining like this. Your business accountant will probably almost tell you immediately to move away from such an entity and set up a proper company. If you continue to operate as a sole trader then if you run into any financial difficulties, your personal assets like your home and car will be at risk. When customers see you remaining as a sole trader then they will think that you’re not in it for the long haul and you don’t actually want to be a proper business.
- Be careful when choosing a name – The name that you choose for your business can affect you in so many different ways and while you may feel it is appropriate to put your name on the front of the shop, this isn’t a good idea. Believe it or not, financial institutions can base their criteria for lending new money for expansion on the name of your business. It is the one thing that will drive customers through your doors so think about it for a while and make sure that you choose wisely. It also makes sense that you establish yourself as a legal entity so that you can protect your intellectual property like your phone number and website address for example.
If you follow these two pieces of advice then there’s no reason that you shouldn’t have exciting times ahead of you. It’s important to get the strongest start possible so that your business can remain competitive and still be operational many decades from now.