There are many benefits to having your own business: independence, flexibility, satisfaction in nurturing your own idea and possibly building an asset that you can leave to your children.

But it's a lot of hard work. You'll need to put in long hours to get your business started. There is also financial risk. You'll be leaving behind a secure pay packet and company benefits such as superannuation and paid leave. Your personal assets might also be at risk. Before launching your own venture, ask yourself these key questions.

Ask yourself: if you have the discipline and motivation to keep going when times are tough; if you are good at problem-solving, particularly under pressure; if you have done thorough research into the state of the market, the type of customers you need to target and competitors; if you have sufficient funds to cover the start-up costs and the first couple of years when cash flow might not be steady?

It's the riskiest way to start a business, but it can also be the most rewarding. Legal requirements, pricing, marketing, stock and staff are just a few of the things you'll need to make decisions about.

Researching the market allows you to identify your customers, your competitors and your industry;

Choosing the right business structure can help put your business in an advantageous tax and legal position;

Take time to write your business plan and market plan, this is a crucial step in establishing a new business;

Estimate costs and Set up your finanical tracking tools;

Determine the location of your business;

Determine if you need a business name;

Find out what registrations you need;

Protect your business name and idea;

Get the right insurance.

Assessing the advantages and disadvantages of buying an existing business will help you to avoid a costly financial mistake. Ensure you have the right skills and research completed before committing yourself and your money to a 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, but a common problem is the departure of the owner may negatively affect the business and so the current takings cannot be guaranteed.

Potential issues that you also need to consider include:

- paying existing staff entitlements such as long service leave payments

- dealing with a bad image which is difficult to change

- the business being overpriced or not easily transferable

- inadequate or old premises, plant or equipment

- difficulties in getting the lease assigned with existing entitlements, with the landlord only prepared to offer a new lease

Research your industry. Get detailed professional valuations of all assets and liabilities of the business. Work out your finances.

Franchises are established ventures with a successful business model. This takes away some of the risk for the owner. A solid franchise has a proven track record, an established market and provides support for marketing and operational aspects of the business. You buy the rights to an existing one or pay to set up a new one. Franchises are costly investments. It also means you need to follow the franchisor's system of running and marketing the business, which may not suit everyone.

Explore what are the franchising opportunities that's available currently. Be wary of franchisors who make inflated franchise-income claims. The Australian Competition and Consumer Commission publishes a Franchisee Manual which offers a useful guide on what to look out for when considering buying a franchise. It gives in detail what is franchising, and what you need to look out for when doing your research and verifying the franchisor's claims. The Franchise Council of Australia also offers a good set of guidelines on what to look out for.

Buying a franchise requires a substantial franchise and set-up fees - determine how much you will need and work out if you need to raise funds.

Once you have decided on the particular franchisor that you will buy from, request for the franchisor's Disclosure Statement. It is a legal requirement under the ACCC Franchising Code of Conduct for all franchisors to provide specific information to potential franchisees to help them in the evaluation process. The Disclosure Statement will contain financial information, past and projected financial performance, market reputation and information on previous and current franchisees and any disclaimers.

Speak to current franchisees in the system and ask them questions such whether they're making a profit, any hidden and unexpected costs, have they recovered their investment, and the level of training and marketing support the franchisors provide.

Get legal and financial advice from franchise lawyers and accountants before you commit to the franchisor.

One of the key decisions you’ll make when starting a business is its structure. Your choice of structure will depend on the size and type of business, your personal circumstances and how much you plan to grow the business. You can change your business structure as your business grows or your circumstances change.

Your business structure can determine your:

- tax liabilities;

- responsibilities as a business owner;

- potential personal liability;

- asset protection;

- ongoing costs and the volume of required paperwork.

There are several business structures, the following four are the most widely used in Australia:

- Sole trader: an individual trading on their own.

- Partnership: a number of people or entities running a business together, but not as a company.

- Company: a legal entity separate from its owners.

- Trust: an entity that holds property or income for the benefit of others.

It is a good idea to discuss your proposed structure with us before starting your business.

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