Starting and growing

SBDC BLOG Tips for hiring your first employee Once you’ve developed your business plan, successfully launched your business and are starting to enjoy life as an entrepreneur, you may be thinking about the best ways to take your business to the next level. Whether you work from home or from other premises, one way to get more done in your business is to hire some extra hands to help. Hiring your first employee is a big step – and an exciting one. There’s more to hiring an employee than just finding the right person for the job, there are many factors, including payroll, legal requirements and tax, to consider. Here are some tips to help you get started. Work out what kind of skills your business needs If you need help with just one specific task, such as bookkeeping or an accountant to help you understand tax rates, paying for their advice as a contractor is probably the best way to go. However, if you need someone to help with the day-to-day running of your business and to look after clients or customers, you may need an employee. Take a look at exactly what you need help with in your business. Write a list of the tasks you would like someone to do and the kind of skills and experience they might need to successfully perform the role. You can also use this list to create a job advertisement and job description. Factor in the costs of employing someone Your prospective employee’s salary is a major consideration, but you may also need to consider: whether you need someone on a full-time, part-time, casual or other basis and the entitlements for each type of employment superannuation, payroll tax and other legal requirements recruitment costs such as advertising the role or using a recruitment firm training courses or materials added insurance, such as workers’ compensation uniforms, technology (such as a mobile phone or laptop) or other equipment. You should also consider non-financial costs – such as your time during the recruitment, training and ongoing management of the new role. These costs can all add up, but should be weighed against the benefits of having extra help. With an employee on board, you might have more capacity to follow up leads, expand your range of products or services or find even better, more efficient ways to serve your customers. Understand industrial relations In WA we have two industrial relations systems: state and national. You’ll need to know which applies to you – this depends on the type of business you have. In general, if you have an incorporated business (with ‘Pty Ltd’ or ‘Ltd’ in your business name), you’ll probably fall under the national industrial relations systems, while other business types follow the state industrial relations system.  Know your employer obligations Hiring someone in your business means becoming an employer, which comes with a new set of responsibilities beyond working for yourself. As an employer, you’ll need to know about the following employer obligations: equal opportunity laws pay and employment conditions tax and superannuation keeping employment records leave entitlements how to make sure you have a safe workplace workers’ compensation insurance injury management There’s a lot to know when bringing your first employee on board – and we’re here to help. The information on our blog is intended as general information only. To discuss your business and get your questions answered, get in touch with our free small business advisory service. Action To Take Visit the Fair Work website for more information on the process to follow when hiring employees. Starting and Growing Legal and Task People Share Facebook-f Instagram Youtube Linkedin Related Articles 1 July 2024 changes that may affect your business Learn more Are you using the right tax or BAS agent? Learn more Addressing your business practices in grant and tender applications Learn more

SBDC BLOG How to find the best contractors for your business Need the help of a contractor or service provider to help your business? Whether you work from home or run your business from an office or other premises, at some stage you’re likely to need the services of a contractor to help in areas you either don’t have experience in, or don’t have time to take care of. You might need a new web design, an SEO or digital marketing plan, new signage or even renovations completed at your premises. There’s a certain amount of business risk involved in hiring the services of any contractor or supplier. With a bit of careful risk assessment, you can find a contractor who will give you a positive experience and – best of all – great results for your business. Here are our tips to help you find the right contractors to work with in your business. Shop around for suppliers with a good reputation Not every supplier will have online reviews or social media pages but it’s always worth finding out what you can. Try not to sign up with the first supplier you see through Facebook or Gumtree advertising. Ask around within your own business or social network for recommendations of suppliers, then look for a portfolio of work or case study examples on their website. Generally, it’s a good idea to get at least three quotes from different suppliers so you can compare their pricing, expertise, experience and other factors, including: how familiar they are with your industry whether they have insurance coverage how they communicate their compliance with any relevant safety standards or industry practices in relation to the nature of their work their process for notifying you of problems or incidents while carrying out work on your behalf. Be clear about what you want to achieve Contract disputes often arise because the parties had different expectations as to what the final ‘product’ would look like. When you ask any supplier for a quote, you need to let them know what you want to achieve and make sure you get an agreement in writing as to what the final product or service that you are paying for will include. As an example, if you need a full-service e-commerce website with room to add a blog later, that’s important information for your potential supplier to factor into scoping and quoting your project. If you’re looking for new signage, it’s important to let your potential supplier know about sizing and the end result you have in mind, or ask them to visit your premises to make recommendations on what you might need. You also need to be clear about what you expect in terms of communication and timing for the project. Ask for a realistic deadline for them to deliver the work and check how easy it is to get in touch with your potential supplier at any stage of the process. Understand what is included for the price Once you have a quote, it’s really important to understand exactly what is included. The cheapest option is not always the best one. Whether you’re working with web developers, signage professionals, architects, copywriters or other suppliers, confirm if their quote includes changes once you’ve seen the first version of their work. It’s likely that you’ll need to allow for at least a round or two of changes – or even more. Some suppliers will include this in their quote while others might charge by the hour, so you’ll pay extra for ongoing changes. Beware if you’re asked to pay in full before work has started Many providers will ask for a deposit before they start working on your project. This is generally to protect themselves in case they spend hours working for you and then don’t get paid – and in most cases that’s understandable. For services which may be costly or require a longer length of time to complete, consider paying for the project in instalments and linking certain outcomes or ‘milestones’ to those payments. This ensures that you haven’t made full payments to a service provider who then doesn’t provide the services at all, within a reasonable time or to your satisfaction. Ensuring that outcomes are tied to a payment schedule provides you with some scope for negotiation if problems arise with the service provider in the future. Any supplier who demands full payment in advance before the project has started should set off your alarm bells. Too many business owners have been left out of pocket by suppliers who become impossible to contact or seem to disappear after they have received their full payment in advance. Follow your instincts Your business is important to you, so it’s worth working with providers who you feel have your best interests in mind. A good supplier will give you great service, be happy to answer your questions or get in touch at any point and generally make you feel comfortable working with them. You may also like to consider what advice is worth investing in for your business. More information To learn more about running your business, take a look at our upcoming workshops. If you have had an issue working with a supplier, you might like to explore our information on managing disputes or use our free business advisory service. If you are a contractor or supplier to other business, you may also like to understand the difference between a contractor and an employee and whether personal services income applies to you. Starting and Growing Legal and Task People Share Facebook-f Instagram Youtube Linkedin Related Articles 1 July 2024 changes that may affect your business Learn more Are you using the right tax or BAS agent? Learn more Addressing your business practices in grant and tender applications Learn more

SBDC BLOG Avoid this business name renewal mistake Your business name is a valuable asset, so when you receive a renewal notice your first thought is often to pay it straight away. While the notice letter or email may look official, you may not realise that it may have been sent by private organisations looking to make money from you. These unsolicited approaches are often made just before the legitimate renewal notice from the Australian Securities & Investment Commission (ASIC) is due to arrive. You also need to note that when responding to these third party notices, you aren’t renewing your business name directly with ASIC, but are instead paying the companies to renew and manage your business name for you. This puts you at risk of: paying more than you need to – you could end up paying $100s when the actual renewal fee is only $44 for one year or $102 for three years giving authority to these companies to manage your business name, which may see them change the business registration in ASIC Connect from your details to their own, taking away your ability to control and manage the renewal process How to check your renewal notice is genuine Business name registrations are managed by ASIC. Unless you have given authority to a third party to manage your registration for you (eg. your accountant), your business name renewal will come to you directly from ASIC. Three easy tips to check your renewal notice is from ASIC and not a third party: Your official business name renewal from ASIC will be emailed to you 30 days before it’s due to expire. ASIC will never send you a renewal notice by letter. Check the website and email addresses on the renewal notice letter or email. If they do not end in ‘.gov.au’ they are not an official government agency or connected with ASIC. Use the ASIC Business Name Register to check your registration renewal date. If the renewal arrives outside the usual 30 day notice period, the notice may not be genuine. It’s a good idea to make note in your calendar of when your renewal is due. If you receive anything you are not sure about, contact us for advice. What to do if you renewed with a third party by mistake Unfortunately you’re unlikely to have any of the extra money you’ve paid refunded back to you, but do contact ASIC to explain your situation and ask them to reassign the business name to your ASIC key. Keep up to date with the latest small business news Looking for the latest information to help you run a business in Western Australia? Sign up to our fortnightly e-news to get stories like this (and other important updates for small business owners) delivered straight to your inbox. Sign up for the SBDC e-news Starting and Growing Legal and Task Share Facebook-f Instagram Youtube Linkedin Related Articles 1 July 2024 changes that may affect your business Learn more Are you using the right tax or BAS agent? Learn more Addressing your business practices in grant and tender applications Learn more

SBDC BLOG Free market research and industry data All new businesses start with an idea. Conducting thorough research during the business start-up phase can help you discover if you’re on the right road to success. We know there are a number of costs associated with starting and running a business, so we encourage you to make use of the wide range of free information and resources available to help you assess if your business idea will work or help you create your business plan. These include: IBIS World market research and industry reports Conducting market research can be a time consuming and costly exercise. As a benefit to Western Australian business owners, the SBDC can provide you with free access to the industry-leading IBIS World reports. The research available via IBIS World includes industry trends, market research and statistics to help you make informed business decisions. To gain free access to IBIS World, or to find out more about the information available via this tool, just contact us via Live Chat. Australian benchmarking data We can provide you with access to benchmarking data and information via our free business advisory service. Contact us to talk with an adviser to discuss the research or data that can support your business idea or plan. Let us know the industry you’re interested in and that you’d like to find out more about the benchmarking data for that industry and our business adviser can walk you through the data in person, over the phone or via an online meeting. To access this service, call 133 140 or booking in a meeting with one of our experienced business advisers. Business Licence Finder Discover the licences and permits you’ll need to run your business by using our free online Business Licence Finder. Our licence finder can provide you with accurate and up to date information on all licences and permits required under local, state and national laws. If you get stuck, our Live Chat team can help guide you through the process of generating your free, customised, business licence report. ABS location based data The Australian Bureau of Statistics (ABS) provides key statistical information by geographical area that can also be useful to reference when creating your business plan. This data includes the estimated population, number of businesses, median total income and other key demographic data of the residents and businesses in the area. Visit the ABS website to get started. Contact us for the support you need The SBDC provides a wide range of free resources to help you start well in business, including our free business advisory service. To speak to a member of our advisory team, call us on 133 140, use the Live Chat option on our website or make an appointment  to speak with an adviser. Starting and Growing Marketing Share Facebook-f Instagram Youtube Linkedin Related Articles 1 July 2024 changes that may affect your business Learn more Are you using the right tax or BAS agent? Learn more Addressing your business practices in grant and tender applications Learn more

SBDC BLOG Overcoming challenges as a young entrepreneur in Western Australia Starting a business is a daunting task for anyone, but young business owners face unique challenges. In Western Australia, the entrepreneurial spirit is alive and well, with numerous opportunities for young people to innovate and create successful ventures. Here are some tips for young people considering starting their own business. Grow your reputation While young people have a reputation for being innovative and coming up with fresh new ideas, they often lack the extensive professional networks and established reputations that older counterparts typically have. This can make it more difficult to gain the confidence of potential clients, investors, and partners. To overcoming this challenge, focus on building a reputation for expertise and reliability by consistently delivering quality goods or services. Once you have established your business, you can also look out for award programs specifically targeting younger business owners, to give your business even more credentials. Access to funding One of the biggest challenges for young entrepreneurs is securing funding. Traditional lenders often view young people as high-risk due to their lack of credit history and business experience. This can make it difficult to obtain loans or attract investors. Before pursuing funding, you should understand what banks are looking for when deciding to give you a business loan or if you are thinking about borrowing from family to start up a business, take these points into consideration. You can also check GrantConnect, the Australian Government’s grants information system, for relevant grants you may be eligible for. Build a network Another significant challenge for the young is building a professional network. Experienced entrepreneurs often have established connections that can provide valuable advice, mentorship, and opportunities. Young business owners can join professional associations, such as local chambers of commerce or business associations, which offer networking opportunities, events, and resources. Regularly attending local business events, seminars, and workshops can help in meeting other entrepreneurs and potential mentors. You can also network online in groups such as the SBDC’s Facebook group I’m a small business owner in Western Australia. Finally, you can turn to the experienced business advisers at the SBDC for all kinds of business advice – it’s a free service available to all WA small business owners, and there are many ways to access advice including online appointments. Get online You might be much more comfortable with Tik Tok, Snapchat and other newer social media than older business owners, but there are other online platforms to consider for use in business. Utilising online platforms like LinkedIn to engage with industry groups, participate in discussions, and reach out to potential mentors can be advantageous – consider which platforms to put into your mix when starting to promote your business on social media. Don’t forget, a website is still a very valuable tool for businesses but can be a big investment so choose your website professional carefully or search our workshops for opportunities to learn to build your own website. Balancing business with personal life Balancing the demands of starting a business with personal life, including education, social activities, and family responsibilities, can lead to burnout and affect your overall wellbeing. As the person in control of your business, it’s important that you learn to manage your wellbeing and mental health. Developing strong time management skills ensures that sufficient time is allocated for both business and personal activities. Tools like calendars, to-do lists, and project management software can aid in this. Establishing clear boundaries between work and personal life, such as setting specific work hours and making time for hobbies and relaxation, is important. Leaning on friends, family, and professional support networks can also provide valuable support and understanding. Building your skills Starting a business at any age requires a commitment to lifelong learning to navigate the many changes to the operating environment, customer expectations, legislation and other things that can impact your business. The SBDC’s workshops cover a wide range of business topics, with practical, low cost sessions packed with key information and useful hints and tips to help you master topics from business skills and financial management to sales and marketing. By embracing learning opportunities, young entrepreneurs can keep developing their skills and confidence to increase their chances of success. Why should you start your business? According to the Australian Small Business and Family Enterprise Ombudsman, more than half of small business owners in Australia are aged over 50 an only 8 per cent are under 30 years of age. However, small business ownership has many benefits as well as challenges including ‘being your own boss’. If you are a young person considering going into business, or even starting a side hustle to see if entrepreneurship is for you, don’t forget that the support and resources available through SBDC can be invaluable in this journey, providing the guidance and assistance needed to turn your business ideas into reality. More information Check out all our services to help prospective and current small business owners Read our steps to starting a business Book into our free Starting a Business workshop Share Facebook-f Instagram Youtube Linkedin Related Articles 1 July 2024 changes that may affect your business Learn more Are you using the right tax or BAS agent? Learn more Addressing your business practices in grant and tender applications Learn more