Whether you’re starting from scratch, buying an existing business or going into a franchise agreement, there are positives and negatives associated with each option.
Starting from scratch
Your new business must create a new demand in the market and your target market must be large enough for the business to become profitable. Existing businesses have existing customers and franchises have a proven formula that works.
- Starting a business checklist on the Victorian Government – Business Victoria website.
Buying an existing business
Buying an existing business means you’re buying the owner’s assets, stock and customer loyalty.
Financiers lend more readily to an existing business with a trading record. It can reduce the risk of failure however the departure of the owner may negatively affect the business. This means that the current takings cannot be guaranteed.
- Buying an existing business checklist on the Victorian Government – Business Victoria website.
Becoming a franchisee
Paying for the rights to run a business with an established name, marketing and operating procedures offers a new business owner guidance and assistance from the start.
However, it also means you need to follow the franchisor's system of running and marketing the business which may not suit everyone.
Home-based businesses are a large part of the Australian business community, with nearly one million people running a business from home. Working from home can offer flexibility and convenience and often be a great opportunity to start a new career.
If you're thinking of starting a home-based business or are currently running one, you can maximise your chance of success by ensuring that you understand the risks and government requirements that apply to you.
In Wyndham City, you can run a business from your home without a planning permit providing it meets the requirements specified in the Wyndham Planning Scheme. If the home occupation requirements cannot be met, a planning permit may be granted to vary some of these requirements. Alternatively, you may need to operate the business from a suitable commercial area.
Online or e-business
Anyone can start an online business. It's just like a traditional 'bricks-and-mortar' business, except your office or shop is online, so you have to decide how it will look and appeal to customers.
There are a lot of things to consider before making the decision to start or move an existing business online, particularly if you're not a computer or web guru, or haven't started a business before.
To pay your business taxes, claim deductions for business expenses, open accounts and trade legally, you need to choose the business structure that will be right for you.
The three most popular structures for new businesses are:
- Sole Trader: there is only one business owner
- Partnership: there is more than one business owner
- Proprietary Limited Company: a separate legal body with its own tax return
You may also want to consider the following two structures:
- Trust: the “trustee” manages property or income for the benefits of others who are known as “beneficiaries”
- Cooperative: all members participate equally, and the general aim is providing services for members rather than making profits.
For more information including the differences between the types of structures visit: