Are you a creative and want to start a business but not sure where to start? Taking that hobby and creating a viable business starts with an idea.

Maybe you paint or create gnomes for the garden and you are so passionate about it that you would like to share that passion with the world. People have told you that your creations are awesome and have encouraged you to start a business. But you don’t know if it’s a good idea or not or how to proceed. Below you’ll find a list of some of the things you need to do to start a business

Starting a Business

 

1. An idea

Start with your idea, is it viable? Passion and persistence will go a long way but unless it is something that people want, or your creation fills a need then they are unlikely to buy.

2. A Plan

You need to have a business plan outlining what problems you solve and the solution. To get you started I have designed a one page business plan

3. Hobby vs Business

If you are not sure if what you are intending to do is classified as a hobby or business read this article which will help you understand your obligations.

4. Type of Business

Are you going to be a sole trader, company or partnership?

Sole traders are people who start in business or contracting on their own, without registering as a company. Many small business owners, contractors and self-employed people begin as sole traders. It’s the cheapest and easiest option and may appeal to you if you want to make a living by following your passion, or to work as a contractor.
For a comprehensive breakdown of each category see business.govt.nz

5. Business name

Choose a business name something that is easy to read, easily remembered and not ambiguous when typing into social media and other places. Its not a good look if someone is trying to read your business name and it says something else.

You can see if the name your keen on has been used by other businesses via one check

6. Open bank accounts

Research the various offerings for accounts with the different banks, if you are still not sure pop into my Facebook group to ask the opinions of other business owners. Ideally two accounts is beneficial one for income and expenses and the other for tax obligations.

7. Accountant or Bookkeeper

Engaging an accountant or bookkeeper can be helpful working out what structure you need and tax obligations. Guest accountant Nikki from Trio  suggests that talking to an accountant before you start your business, will ensure you:

• have the right business structure for your personal situation (eg. Sole trader vs company) – there are tax implications for each option and everyone has a different set of circumstances. It is way better to spend the money up front to get this right than try and unwind it at a later date.
• are aware of your tax obligations – including registering for GST and claiming business expenses
• have the right accounting software – Xero is awesome, but expensive if you buy it direct. Accountants and bookkeepers have access to a cut down version of Xero which is significantly cheaper and ideal for most new businesses
• know how much of your sales to put aside for tax

An accountant can also help you assess the viability of your business idea.

8. Social Media

Open social media accounts – think about which platform you feel more comfortable using i.e Facebook vs Instagram

Of course you can do more than one but remember to not overwhelm yourself in the beginning.

9. Email List

Set up a list for sending your audience newsletters, Mailerlite or Mailchimp are two free platforms which I cover in my email course. You can find out more here.

Checklist

For a handy reference I have created a checklist with all the items listed above, so when you request the one page business plan you’ll also get the checklist.

I hope that makes starting your business easier and remember my Facebook group is a great place to ask further questions.

Inspiring Business Story

For an inspiring business story watch my interview with Elle Roberts who started her first business when she was a solo mum.

 

Please note some of the information provided in this blog is applicable to NZ Businesses Only