The key to starting a business is to plan ahead and ensure that it’s right for you. By doing this, you minimise risk and provide certainty as to the pathway your business will take. To open up an independent grocer there are four main things you will need to think of: the initial preparation, how you will market the business, how you will source the produce and the legalities that come with owning a grocery store.
Preparation
Opening a business is a decision that will involve years of hard work. Ensure you have an adequate plan or roadmap for where you want it to go in the future. Then, focus on how you will fund your venture into the retail world. You can decide to use your savings if you wish, but most will opt for a loan from a financial institution. Next, explore locations that you may like to open up shop. You’ll likely be able to narrow it down to a specific suburb or region, though the availability of a specific street or premises will be subject to whether a lot is for sale or for lease. Have a read about commercial leases to learn more about the lease, applicable zoning laws and building permits. Consider also the registration of a commercial lease.
Get creative!
This step allows you to get creative with your business. To promote your business and drive sales, you may want to choose a memorable name, design a logo and market the business via various channels. See here for some tips on how to advertise.
Legalities
Business structure and registrations
To successfully open your independent grocer, there are several requirements that will need to be fulfilled. Firstly, there are those that all business need to complete. Firstly, decide carefully on a business structure; this will have implications on how your business is run later on. You will need to register a separate tax file number (TFN) for your business if it operates as a partnership or company. If you intend on operating as a sole trader, you may continue to use your individual TFN. While not required by law, applying for an Australian business number (ABN) is highly recommended. An ABN will identify your business to others and save on running costs and tax. Once you have completed those steps, you can register your chosen business name.
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Tax considerations
Keep in mind that a business will be required to register for goods and services tax (GST) where the annual turnover is $75,000 or more. Additionally, business that hire employees will need to register for pay as you go withholding (PAYG). This allows the Australian tax office (ATO) to withhold income tax from each employee’s wage.
Licences and permits
As per the Food Regulation 2010 in NSW, businesses that handle or process meat, seafood and shellfish are required to hold a NSW Food Authority Licence. If you do not intend to sell these products, then you may be able to simply notify the NSW Food Authority or the Local Council of your operations and gain the necessary approval that way. Each state or territory will have different regulations.
Organise a supplier and store equipment
Lastly, organise a supplier who will provide your business with fresh food and products which you can then on-sell to consumers.
Consider also what shop fixtures you will need and other equipment. That will include shelving, scales, appliances such as fridges and equipment that will help staff like point of sale machines (POS), ladders, trolleys and other such things. These can all cost considerable amounts so again, you should think about how you will fund these costs.
Conclusion
If you need help setting up your independent grocer, or any other business for that matter, then contact a business lawyer who can assist.
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