CHECKLIST FOR STARTING A BUSINESS

What are all the things you need to do to get your new business up and running? To make it easy for you we’ve prepared a checklist which covers the main things you will need to take care of.

The Key tasks are:

1. Prepare a Business Plan
2. Form Professional Relationships
3. Set up the Business.

1. Prepare a Business Plan

It may be useful to download and print the publication Planning For Success -a do it yourself kit for developing your own business plan either as a whole document (PDF 947KB) or by smaller chapter sections. (Further copies of this publication can be obtained in hard copy or on CD-ROM from New Zealand Trade & Enterprise 0800 888 555, or by emailing BIZ at info@BIZ.org.nz)

2. Form Professional Relationships

Select a lawyer
Talk to other business owners for recommendations. Look in the Yellow Pages www.yellowpages.co.nz, consult the law society website http://www.nz-lawsoc.org.nz/pubfindlaw.asp

Choose a legal entity (sole proprietorship, partnership, or company)
Talk to your lawyer and accountant about this – see the Inland Revenue website for information on business structures http://www.ird.govt.nz/business-info/starting/howoperating/

Use the online services at the New Zealand companies’ office for information on registering a company or company name http://www.companies.govt.nz/

Create your business (register your name, incorporate the business, etc)
Your lawyer or accountant can assist with this or you can use the online services at the New Zealand companies’ office to register a company or company name http://www.companies.govt.nz/

Select an accountant
Talk to other business owners for recommendations. Look in the Yellow Pages www.yellowpages.co.nz, consult the Institute of Chartered Accountants website for information on selecting an accountant http://www.icanz.co.nz/StaticContent/caselect/usingaca.cfm

Select a banker
Make sure that your banker is interested in your business and keep them informed of your plans and likely business needs.

Get financing
If you need financing then it is essential to have a well thought out and professionally presented business plan. Sources of finance can be your family, bank, a business partner or Venture Capitalist. See the vcapital website for information on seeking finance from a venture capitalist or business angel www.vcapital.co.nz and information on the Escalator service at www.escalator.co.nz

Establish a line of credit

Select an insurance agent
Talk to other business owners for recommendations, look in Yellow Pages www.yellowpages.co.nz, consult the Insurance Council web site for a list of members http://www.icnz.org.nz/about/members.htm

Obtain business insurance
Your business insurance should include your premises, stock, public liability and income protection. In addition there are a number of specialist products available depending on your business type. See the Insurance Council of New Zealand website for information about commercial insurance: http://www.icnz.org.nz/consumer/commercial/index.html

3. Set up the Business

Organise business cards and letterheads

Secure a lease over, or purchase, your premises
Always consult your lawyer before negotiating or signing any lease agreement.

Acquire all necessary furniture and equipment
If part of your equipment is a vehicle, then you will need to keep a log book so you know how much you are allowed to claim. For an example of a Vehicle Logbook visit: http://www.ird.govt.nz/incometaxbusiness/reducingtax/expenses/vehicleexp.html

Obtain all necessary licenses, permits and resource consents
Consult your local council and industry groups for information on compliance issues. Make sure also that you comply with any Health and Safety issues. For further information on this, download the fact sheet Taking All Practicable Steps which can be found at: http://www.workinfo.govt.nz/documents/uploads/allpracticablesteps.pdf

Register with Inland Revenue
You must obtain a tax number for your entity for the recording and payment of business taxes, PAYE for employees, GST and ACC levies. Your accountant can help with this. Check out the Inland Revenue website for information on requirements: http://www.ird.govt.nz/business-info/starting/irdnumber.html

To apply for an IRD number you need to fill out an application form. You cannot complete this online, but to save you ringing up IRD you can download the application form at: https://www.ird.govt.nz/library/publications/geninfo/ir595.pdf

If you want to register for GST, then you can do this online at: https://www.ird.govt.nz/cgi-bin/form.cgi?form=ir360

If you would like more information on your decision to register for GST, then you can view and print the document GST – do you need to register? at: https://www.ird.govt.nz/library/publications/business/ir365.pdf

Join a professional organisation (your local chamber of commerce, your industry association)
See http://www.nzchamber.co.nz/ for a list of all Chambers of Commerce in New Zealand. See http://www.businessnz.org.nz/ for employers and manufacturing associations (they have merged). There are others including retailers, tourism, agriculture, farmers etc. Most industries have their own association or support group.

Arrange suppliers
Make sure that your suppliers know you and understand what you intend to achieve with your business

Hire staff
Only hire staff when you start up if you have to and have discussed this with your accountant, lawyer and preferably an employment consultant.

If you do decide to employ staff, you must registeras an employer. This is so the IRD can send you the right information each month (such as the PAYE forms for your staff). You can register on line at: https://www.ird.govt.nz/cgi-bin/form.cgi?form=ir334

If you do hire staff, then you will also need an accident register to document anything that happens which could harm staff. The accident register does not have to be kept in any particular format and can bedocumented on your own forms or photocopies of OSH forms. For an example of an incident and injury report form visit: http://www.acc.co.nz/injury-prevention/safe-at-work/worksafe/action/incident-investigation/example-one.pdf

Set up accounting information system
Discuss this with your accountant. There are many suitable computerised options available but you can waste a lot of time and money buying the wrong package. At the very least you will require a cashbook to keep track of all your income and expenses. You can view an example at: http://www.ird.govt.nz/business-info/running/recordkeeping/cashbookillustration.html

You will also need a petty cashbook for small amounts of purchases (like milk for the coffee). For an example of a Petty Cashbook visit: http://www.ird.govt.nz/business-info/running/recordkeeping/pettycashbookillustration.html

Set a starting date
Go for it, and good luck!