Creating a Business
Essay Preview: Creating a Business
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INTRODUCTION
Setting up a sole trade business may seem easy but really it isnt. Mystrie is interested in starting a sole trader business. She is planning to open a small gardening business from her home. In order to start her new business Mystrie needs to understand the many factors that she needs to do. Mystrie needs to come up with the general information such as potential names, logo, business name etc. There are also things that she needs to consider like; how to register a logo, how to register a business name, how to register a domain name, information on operating a business from home, how to get an Australian Business Number, how to register with the ATO (Australian Taxation Office), registering for the GST (Goods & Services Tax), Workers Compensation, what insurance to apply for, industrial awards as well as what to do in terms of superannuation. The following report is to help Mystrie start this sole trader business right so that she doesnt find herself in a situation.
CHARACTERISTICS OF A SOLE TRADER
If you are going to be starting a sole trader business you will need to know what the characteristics are:
A sole trader is the only one who owns the business
A sole trader has unlimited liability (personal assets can be taken to pay for debts)
A sole trader is a separate accounting entity
A sole trader makes all the decisions
A sole trader gets all the profits (after tax) as well as bears all the losses
A sole trader provides all capital
A sole trader is not a separate legal entity
POTENTIAL NAMES
Mystries Garden House
Garden House of Mystrie
Mystries Home of Plants
Mystries Garden Consulting
Preferred name for her business is Mystries Garden House. It is easy to remember and it explains what she deals with.
LOGOS
Business logos are the identity of a business. This identity needs to be registered to avoid other business using that logo and confusing customers. Logo Registration in Australia is often quite difficult therefore you may find that in some instances a trademark you wish to register has already been registered yet there are always options. To register your trademark you need to:
File a trademark application, done online at www.ipaustralia.gov.au
An examiner at IP Australia goes through the application to make sure it does not conflict with another business trademark
If the application is approved, then it will be published for three months, in which time people may oppose the registration
If there is no opposition, then registration is granted. The registration lasts for 10 years and after that can be extended for additional periods of 10 years at a time
Registering a trademark isnt expensive. Trademarks can be a very useful marketing instruments. It is best to register a trademark and own it so that nobody else can take the business to court for having a trademark too similar to theirs. If it is not registered then it can be taken from another business.
BUSINESS NAME
In Western Australia, the first consideration for business owners is registering their business name. If an owner wants to trader under their own name they dont have to register the business. But if you dont operate under your own name then you must register the business by law with the Department of Consumer and Employment Protection. Before you register make sure that there isnt another business call the same thing. You could do this by going through the National Names Index, which is maintained by the Australian Securities and Investment Commissions. The business name can only be registered if the following conditions are met:
Must be original
Cannot be offensive
Must not be deceptive
A good business name for Mystries business could be Mystries Garden House.
DOMAIN NAME
A recommended domain name that Mystrie could use could be:
WWW.MYSTRIESGARDENHOUSE.COM.AU
A domain name is an address on the internet for a website. To register a domain name in Australia you would need to contact .au Domain Administration Ltd. This can be done by accessing their website at www.auda.org.au. To register a domain name you need:
Think of a few good domain names that youd like to use. It wont do to think of only one because it might already be taken.
You will need either a credit card or a PayPal account to pay for the domain. This is a requirement of most if not all registrars. It will allow you to claim and get the domain name immediately on application. This is not an option
If you already have a web host, obtain from them the names of their primary and secondary name servers.
If you do not have a web host, you can always allow the registrar to you to park your domain name at a temporary website specially set up for you. This way you can quickly secure your domain name before its too late and still take your time to set up the other aspects of your site.
OPERATING A BUSINESS FROM HOME
If a person wishes to conduct a business from their home then usually a home occupation permit and approval is required. The local council will need to be contracted to see if there are any restrictions placed on the business.
A home based business in a residential zone must meet the following requirements:
The person conducting the home-based business must use the dwelling as their principal place of residence.
No more than one person who does not live in the dwelling may work in the home-based business.
The gross floor area used in conducting the home-based business, including the storage of any materials or goods, must not