This article will try to give you as good a launching pad as possible. It’s one thing to dream big, it’s entirely another to implement it.

There are a number of things you can do yourself, some things we recommend using an accountant for, and some your lawyer should take care of. Well try to break those down for you:

Things you can do yourself:

1. Take the time to do your homework. Check out the NZ Trade & Enterprise site at www.nzte.govt.nz for a really good guide to establishing a business. Ask people you know in business as many questions as you can think of. You might also want to consider getting a business mentor;
2. Once you decide to go ahead, we strongly recommend that you form a company to conduct the business. There are numerous tax benefits to doing so, it creates a distinct entity that conducts the business and has limited liability. The Companies Office will take you through a step by step process. Go to www.companies.govt.nz/cms. You should obtain an IRD number for the company as part of this process;
3. GST registration is compulsory where your gross sales ("supplies") exceed $60,000 per annum. Registration is a simple process and can be completed either as part of the company incorporation, or you can do this via the Inland Revenue website at www.ird.govt.nz;
4. File annual returns online at the Companies Office;
5. Arrange public liability insurance (to cover you if someone sues you);
6. Arrange appropriate back up systems and security for private information that will be supplied to you.

Other things to consider will depend largely on what you’re selling. If you’re providing services, think about how to market yourself, and who you’re marketing to. Is location an issue? What’s your point of difference?

If you’re selling products, where are you going to base yourself? Online? Locally? Again, you need to think about demographics. If you sell via your website, you will need to look into how payments are to be processed. Your bank should be able to help with that. If you’re setting up a shop, there are plenty of Point Of Sale options.

Where are you sourcing your products? If you’ve found an overseas supplier, ensure you charge an extra 12.5% on all products you sell in New Zealand to cover GST. If products are sold to overseas buyers, then GST may be "zero-rated" ie. GST is 0%, provided certain requirements are met.

Things an accountant can do for you:

1. File tax returns (GST, provisional and annual);


2. Prepare annual accounts;


3. Advise you on fringe benefits, depreciation and appropriate deductions (eg. a proportion of your mortgage interest and other housing costs if working from home).

Things your lawyer can do for you:

1. Prepare a company constitution (rules of the company);


2. Advise you on any supplier contracts. If at all possible, obtain exclusive supply agreements;


3. Prepare terms of trade. This is particularly important to cover warranties and any credit given. If most of your trading is online, then it'll be payment up front, but most businesses operate by extending credit at some point;


4. Advise you on risk management and asset protection;


5. Advise you on any financing you may require;


6. Obtain trademark protection for your brand name or logo, as well as advise you on any intellectual property issues that may arise;


7. Prepare employment agreements and give you employment advice. This may not be relevant immediately, but bear it in mind for the future.

All business involves risk. However you can minimise that risk if you’re prepared to listen to the advice that successful business owners give you and the advice from your lawyer and accountant.

If you think we can help in any way, we’d love to hear from you.