If you’ve got a special skill or talent, or the ability to help people (in any shape or form), then now is as good a time as any to think about starting your own business!
During times of economic hardship, many businesses aren’t in a position to keep or hire staff, but taking on casual or temporary contractors can be very appealing.
Although working for yourself may not offer the security you might feel from being employed by someone else, it can give you the freedom to choose your hours, take on jobs for a range of clients, and do what you love.
And, surprisingly enough, creating your own business isn’t as scary or challenging as it may sound.
Work out your Why
The first thing you need to do before you can set yourself up, is to decide what you want to do with your business. Whether you’d like to run your own farm, take on construction work, become a copywriter, or heal people for a living, you need to work out your purpose. What are you really good at? Will you work by yourself (as a sole trader)? Or are you planning on hiring staff, or working alongside a partner? These questions will help inform the rest of your decisions in setting your business up.
Find your Tax File Number
If you plan on working as a sole trader (by yourself, or taking on contract work), then you can use your personal Tax File Number. But, for any other business type, you’ll need a business Tax File Number, which you can apply for on the Australian Business Register site.
Register for an ABN
To be considered a business in Australia, you need an ABN (Australian Business Number). Creating an ABN is much simpler than it sounds, but you do need to have a good understanding of your industry and the type of work you’ll be doing. The business.gov.au site explains everything you need to know in order to register for an ABN. It’s free, and relatively quick to register for.
Register your business name
One of the most important things to consider when setting up your own business, is whether you’ll carry out business using your own name, or if you’ll create a business name. You can register a business name at the same time as registering for an ABN, making the process quick and easy. There is a small fee for registering a business name.
Goods and Services Tax
If you’ll be selling goods or services as part of your business, you may also need to register for GST.
Income Tax and Super
When working for yourself, you need to ensure that you pay your own income tax and Super. The ATO has a range of tools and calculators to help you work out how much of your income you’ll need to set aside for your tax and super obligations.
Starting Your Own Business
If starting your own business has been on your mind, now you know where to begin! Here at YPRL, we have a range of resources to help you get started on your self-employment journey.