starting a business in 5-10 years

[car10002]

hi everyone

was wondering if you were to start a part time electrical test and tag business in south australia and also offer plug and socket change on cords and small appliance repairs that have a flexible cord and plug in the next 5-10 years what permits and licenses (particularly for running and registering a business) would you need to run a business.

did the test and tag training years ago in 2005 and yet to do the course on plug and socket change and also the cord replacement course and more training on basic electrical safety to fix small appliances (as tafe sa said thats all you need if appliance has a flexible cord and plug)

obviously youd need a abn which already have and a tax file number (may still have tax file number cant remember) and some permits and business licenses for running and registering a business.

how hard is it running a business and what costs are there.

when working out your costs for running a part time business how do you set up accounts to put payments in when youre paid and be able to work out whats left after covering costs and put that into your own account so you know that whats in the business account is for business costs and whats been taken out for your income and put into your own account is your money and not business.



also could you sell secondhand goods at a market for example once a month or every couple months or at different swap meets and markets and have garage sales and how often could you do it before its a business and if it became a business what would you need to be able to do that

just thinking for the next 5 years

thanks

[car10002]

also when looking for home or personal loans when it says that certain centrelink incomes are included if you have part time work obviously unless you have a letter to say you can not work at all does self employment count as part time work

[slowsnake]

If you are familiar with TAFE then you should be able to enquire there about a business or accounting course, surely they will have something along the lines you want!
And you may be eligible for a business loan but on a pension that's hard, but a bank lender likes to see a business plan laid out, that includes how you are going to service the loan, what type of saver you are, they either consider people viable or liable.

But good luck with it!


Cheers King Billy

[Peter B - CV8]

Not trying to shoot down your idea - but what sort of charge are you looking at for your service ??? For some small electrical items (toasters, kettles etc), it might be higher than the replacement cost of the appliance... Hope it works out for you as I'm a firm believer in trying to fix things myself (rather than replace).

[shedcoupe]

You'll need to register for GST if you're earning over $75k per year (and you will have to to make a decent income ...).
If so, you'll have to pay BAS payments every 3 months to the ATO.

Run a business bank account from which you withdraw 'wages' or have a separate account that you transfer such money into. One account is easier.

It's easier to pay an accountant to do your BAS stuff and annual tax return, and they don't cost much for that and the cost is a tax deduction.

Total income from sales of goods and services minus the costs of providing those goods and services (including the tax you have to pay on earnings) = income. Easy.

Don't fall into the trap of seeing money in the business account as money that can be spent for personal expenses.
It isn't your money until you've paid all your bills, and remember to leave some in the account to pay future bills when customers don't pay you in time or never pay at all.

And if you're providing a service that involves keeping lethal energy under control (ie. electricity) you'll need to a) have liability insurance because even if you have no assets that can be claimed in a lawsuit, your customers need to be compensated if you screw up and b) do good work because you're competent and self-disciplined and c-z) have liability insurance because .....

[car10002]

When applying for home loans you know how they accept some centrelink incomes if you got part time work unless you have a letter from centrelink does self employment count or do you have to work for someone else when they say part time work

[car10002]

When applying for home loans you know how they accept some centrelink incomes if you got part time work unless you have a letter from centrelink does self employment count or do you have to work for someone else when they say part time work

[Crazy Dazz]

If you're not good with it yourself, you'll need a bookkeeper. It's not rocket science, and there are plenty of course available. Probably find that various government "help departments" run free or cheap courses.
Pretty sure the ATO makes available its own basic bookkeeping system and offers "training". Do dome Googling.
But that said, it's something you either get the hang of, or you don't.
It's also important that you don't over think it. No Point paying a bookkeeper $1,000, to save you $950 in tax.

Testing and Tagging is definitely big business, but you need to have a very professional presentation, and you'll need to work really hard to get your clients as you will have a lot of competitors.

I don't really know the "markets" or car-boot scene. Most around here seem to have died in the ****, but surely with this emerging "recycle" culture you could make a few bucks selling recycled gear? Maybe get friendly with your local tip shop and/or scrounge verge collections. I wouldn't bother trying to make a "business" out of it though. If you have to charge GST and pay tax, its not going to be worth it.

The only market you should consider for "re-plugging" would be those who have bought (or brought) new (or near new) appliances from Asia, and are annoyed by having to use adaptors.
Not being racist, but I have a few friends who are really fussy about their appliances, and will buy uber-expensive ones from their home country, rather than shop at Harvey's.

[zilo]

Some basic advice I can give you is...

You are registered for GST, that is good, claim everything and get 10% back from govt even if you dont write a single invoice....that is perfectly legal as long as you do eventually charge someone for something sometime.

Setup a Trust and Pty Ltd entity or someone will sue you for everything you own, cause you are probably doing the lame sole trader crap that someone advised you to do?

Make it a discretionary trust so you can income split with your wife kids or dog.

That should get you started....oh...avoid expecting accountants to give you advice for the future...they only work in the past and if they knew all the answers they wouldnt be accountants.

Just open an excel spreadsheet...do your own BAS...any idiot can add up and divide by 11 .....


.

[T3rminator]

Originally Posted by zilo

Some basic advice I can give you is...



You are registered for GST, that is good, claim everything and get 10% back from govt even if you dont write a single invoice....that is perfectly legal as long as you do eventually charge someone for something sometime.

......

.

Just don't do a Trump Organisation. Big problems there.

[zilo]

Originally Posted by T3rminator

Just don't do a Trump Organisation. Big problems there.

What did Trump do wrong?

[T3rminator]

Originally Posted by zilo

What did Trump do wrong?

Nothing. Trump Organisation does not necessarily = Trump in person. His CFO might be trouble though.

Moral of the story, important to understand the difference between tax minimisation and avoidance.

[zilo]

Originally Posted by T3rminator

Nothing. Trump Organisation does not necessarily = Trump in person. His CFO might be trouble though.

Moral of the story, important to understand the difference between tax minimisation and avoidance.

Yep...amazing how many people think it is a crime to not pay any more tax than necessary.