Talking Cents

Tips for starting a business by small business accountants

With so many different businesses opening up in Australia every day, a very small number of businesses actually remain active for over a year. With such a high risk to reward ratio, it is important that you know how to successfully start a business. Here at M.A.S Partners, the leading small business accountants in Sydney Zetland, we work with hundreds of clients to help them run their business and understand the process of how one should properly start it. As such, we have provided some tips for you to get started.

Do market research

Anyone can come up with a business plan, but before you jump the gun on starting a business, you must properly research the market. Understand exactly who your customer is; who the competitors are; and what are the competitors doing to be successful. You must come up with an idea that will differentiate yourself from the rest. Differentiation can come in many forms, such as the product, the marketing, the price, and even the customer service.

Write a business plan

A business plan describes exactly what your product or service is, whilst identifying who the customers are and explains why they require your product or service. By doing so, you are establishing how your business will make money from your idea. When writing a business plan, you must explain your business idea, and be able to convince investors to put money behind the business idea. The business plan should include an executive summary, company overview, products or services, market analysis, risk assessment, marketing and sales plan, milestones, progress reporting, team, budget and financing details.

Create a budget

A budget predicts exactly how much money will come and go from your business over the year. Budgeting and forecasting will help prevent you from overspending, and helps you see if you can afford to start a business. Additionally, it will establish whether or not you will need to borrow money, help you find your break-even point, help you decide on the pricing of your products or services, and if you can afford to hire staff.

Pricing strategy

Once you have created your budget, you will be able to decide on your pricing strategy. You need to get more money out of a sale than you put into it. As simple as it sounds, without proper budgeting and reporting, it can be fairly difficult.

Hire small business accountants

Without the appropriate expertise, it can be difficult to get your business up and running. Small business accountants will help you with budgeting by providing accurate reports and help with a pricing strategy. Our small business accountants at M.A.S Partners are here to help you focus on developing your business and will provide expert advice to do so. For more information on our small business accountant services, click here.