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identify the different legal requirements when starting/establishing a new business

registering a business name, registering a website domain, trade practices legislation, business tax compliance, WorkSafe insurance

explain the importance of registering the business name, a website domain, trade practices legislation, business tax compliance, and work safe insurance

evaluate the impact that legal requirements have on a business

what are some considerations when starting a business?

privacy, anti-discrimination, employment laws, occupational health and safety, local government by-laws, equal opportunity, licences, permits, and approvals

What organisation do you contact to register your business name?

ASIC to ensure that your chosen business name isn't already registered, and IP Australia that it isn't registered as a trademark

Under what circumstance are you not required to register a business name?

if you're using your own name to run the business

What advice is provided in the video about registering a business name?

get an ABN (Australian Business Number) and an Auskey through Australian Business Register, check that you have the licenses you need to trade on Australian Business Licenses, and check that your preferred website domain name is available.

Why is it still important to trademark the business name?

registering a name with ASIC doesn't mean you own it

The Business Names Act 1962 requires registration of the names of all businesses in Victoria that conduct business under a business name.

An effective business name should be:

Memorable, Easy to pronounce and spell, Appropriate, professional and non-offensive, Descriptive and functional, and Original

picture of additional compulsory registrations

what is a domain name?

website address/URL that effectively provides an online identity

what is required for a .com.au address?

ABN or ACN registration

what addresses to tech companies and non for profits use?

.net.au and .org.au

What is the Australian Consumer Law, and what does it do?

an act established by the Australian Competition and Consumer Commission (ACCC) in 2011. it is compulsory and: protects consumer rights, protects business rights and obligations, performs industry regulation and price monitoring, prevents illegal anti-competitive behaviour, and works to ensure that both business owners and consumers are aware of their responsibilities and rights so that all parties are well informed and able to stimulate effective competition

What are consumer guarantees?

When a product fails to meet the following criteria, a consumer has the right to a refund, repair or replacement:

Consumer guarantees for goods?

be of an acceptable quality, be safe to use, match sample or demonstration models, have available repairs/spare parts, be durable.

Consumer guarantees for services?

performed with due care and skill, fit for purpose intended, completed in a reasonable time

Businesses must not make false and misleading representations to customers about their products such as:

A 'half-truth' in advertising, suggesting that a product has an attribute that it actually doesn't, lying about the country the product is made in, using a logo, business name, or packaging that is similar to a well-known brand, overly optimistic claims about a product, false or misleading labels or misleading statements about the characteristics of a product, offering gifts and prizes with no intention of supplying them, bait advertising, which is advertising an item when there are only a few available

Who administers Australia's tax system?

The Australian Tax Office

According to business tax compliance, businesses must:...?

pay tax on income, collect income tax from wages of employees, pay a payroll tax, collect goods and services tax (GST) from their sales, and submit a Business Activity Statement (BAS) each year and remit tax due on income earned

What is insurance?

a contract in which an individual or entity receives financial protection or reimbursement against losses from an insurance company

What is worksafe insurance?

business pays premium to insurance company, in turn insurance company guarantees to financially compensate for accidental losses

WorkSafe Victoria and what do they do

is the Victorian Government's regulator in the enforcement of health and safety in all workplaces in the state. They assess risks and hazards within businesses, and may close businesses until recommended changes are made

WorkCover

is a compulsory insurance scheme that provides employers with insurance cover for the cost of benefits if workers are injured or become ill because of their work

What is the other form of compulsory insurance for most businesses?

Public Liability, which protects businesses against damages or injuries to another person or property

tips for effective domain name

reflect the business name, are 3 or less syllables, easy to remember, pronounce, spell, and type, alliterative e.g. firefox, skillshare, available for registration on social media channels

what are legal requirements

laws that a business must adhere to/ follow when establishing a business

Examples of external professionals

legal, governments, finance, insurance, sales and marketing, IT and technology, recruitment

What do legal services do?

legal advice is available to businesses from multiple sources: Independent counsel can be sought from specific law firms or Lawyers/Solicitors known through other networks. State and Federal Government. Law Institute of Victoria offers a referral service to match a business's specific needs with a lawyer with expertise in the area

What do state and federal government websites do?

federal: offers advice for new businesses and provides legal and business resources for many industries including: accommodation and food service industry, agriculture industry, forestry industry, professional, scientific and technical services industry, tourism industry. state: provides Victorian businesses with advice how to establish themselves, right through to transforming based on outside factors

Financial professionals?

accountant, bookkeeper, business activity statement (BAS) agent, Bank manager, ATO

What does accountant do?

prepares financial statements, follows up on payments

What does bookkeeper do?

maintains day to day financial activities

What does Business activity agent(BAS) agent do?

prepares and lodges statements with Australian Tax Office (ATO)

What does Bank manager do?

loans, bank accounts, feasibility studies

What does ATO do?

provides information on taxation matters

What does insurance do?

agents work for one insurance company and will only try to sell their company's services. brokers are independent and act as an agent from the person or business seeking insurance, and will negotiate with different companies for benefit of their client

What does Marketing and Advertising consultants/agencies do?

conduct market research to determine customer demographics, needs, and wants. strategize on advertising and sales campaigns to reach the highest number of customers. evaluate current campaigns to consolidate current brand, or make a change. create a book advertising across TV, print, social media, newspapers etc. Search engine optimisation to ensure your business appears in internet searches.

What do Graphic designers and printers do?

logos and business cards, ads

What do IT and technology do?

selecting technology, software and hardware. setting up systems. training staff, and providing ongoing back-up. assistance with all technology-related areas of the business

What can recruitment help with?

usually businesses choose to engage employment agencies to handle their recruitment, particularly during the initial stages if a large pool of applicants exists. They can provide advice to employers on creating roles to fill existing gaps in the business. allows the business to focus time and resources on their existing workforce but also to achieve their business objectives

what is financial management?

managing financial activities relating to the operation of a business

what are financial management strategies?

establishing a back account for a business, financial control systems, and record keeping

Why is it important to establish bank accounts?

to keep business finances apart from personal finances as a separate entity, where transactions of a business and its owners are kept separate, keeping personal and business income and expenditure separate. It can also help make monitoring of the financial progress of a business more accurate and also make preparation for ATO (Australian Tax Office) requirements to be simpler and more accurate.

What are financial control systems?

processes and procedures put in place to manage financial transactions?

Why are financial control systems implemented by businesses?

in order to safeguard it's assets, ensure financial information is accurate and reliable, and to ensure compliance with all financial and operational requirements

Record keeping

maintaining accurate records of all matters related to business activities

Why is record keeping necessary?

to compile reports accessible by owners and other interested stakeholders such as the ATO or ACCC.

Examples of record keeping

receipts, eftpos records, credit card transactions, cheques

What do all transactions need for record keeping

key details such as the date, type of transaction, monetary value, and names of those

what is a supplier?

any provider of the direct inputs required for a business's production process

what makes a good supplier?

quality, timeliness, competitiveness, innovation and finance

quality supplier

quality inputs a business can access will directly impact the quality of the products it is able to provide for sale in a market. Higher quality products will in turn have high customer satisfaction, reduce defects and returns and improve the level of sales and efficiency

timely supplier

suppliers that deliver reliably and on time enable businesses to create products both reliable and in a timely manner. Unreliable suppliers may mean that businesses are forced to slow or stop production. This will cause customers to leave bad reviews and less customers will come because the reputation has gone down, reducing profits

competitive supplier

businesses with reliable suppliers of high quality inputs at competitive prices can offer high qualtiy products for competitive prices

innovative supplier

suppliers are often major contributors to product development and innovative ideas. Businesses are able to take advantage of these relationships if they have established relationships with them.

finance supplier

postpone debt

How can businesses maintain positive supplier relationships?

a business may establish and maintain a mutually beneficious relationship with a reliable supplier of quality inputs using the following strategies: settling bills on time, allowing adequate lead time for orders, and maintaining transparent open and frequent communication

benefits settling bills on time

become valued customer, this will often extend to preferential treatment over other clients

benefit of allowing adequate lead times for orders

a supplier that is given ample warning is more likely to deliver on time and produce high quality products

benefits of maintaining transparent, open, and frequent communication

regular contact with suppliers and maintenance of positive relationships with suppliers often leads to preferential treatment. News of new products or promotions may reach the business first over competitors as a result.

factors to consider when selecting suppliers

Price, reliability, social responsibility, and quality

why consider price when considering a supplier?

lower input costs allow businesses to produce at a lower cost, thereby increasing competitiveness

why consider quality when considering a supplier?

quality inputs enables higher quality in a finished product, also enhancing competitiveness

why consider social responsibility when considering a supplier?

green energy reduces carbon emissions and minimises energy use. sustainable technology will be more energy efficient, saving energy use. For example, full electric vehicles will save fuel costs, reduce co2 emissions, and improve the business's image. purchase of the most sustainable options. choosing local suppliers to lower import costs and carbon emissions. choosing suppliers based on corporate social responsibility or principles

What are the pros of socially responsible suppliers?

improve reputation: improve customer relations and positive message sent to the media, shareholders, and the local community about the commitment of the business to social responsibility, reduced costs due to energy efficiencies, and positive publicity associated with an ethical procurement policy will often result in improved business competitiveness levels

What are the cons of socially responsible suppliers?

increased costs involved in sourcing ethical and socially responsible suppliers, and potential for reductions in quality of products

policy

a written statement of the process, procedures, rules, and regulations that should be followed in a given situation

Why are policies needed for a business?

they ensure consistency and stability in day-to-day operatiosn, comply with legal regulations, and maintain a financial record keeping and managing their finances

code of conduct policy

establishes the rules that employees are expected to follow and includes: Confidentiality, Reporting misconduct, Employee behaviour, Dress code, Attendance and absence, and Company values

recruitment policy

outlines the process of hiring new employees with the aim to promote fair and consistent approaches and may cover: selection processes, how to apply, internal and external hiring preferences, equal opportunity and anti-discrimination

discrimination

treating someone unfavourably because of a personal characteristic protected by law

what law protects people from discrimination and harassment?

Victoria's Equal Opportunity Act 2010

examples of areas covered by the equal opportunity act

Recruitment process (e.g. ads or interviews being inaccessible because of a disability), Unfair terms of employment (e.g. because of race or religion), Denied access to training (e.g. because of age), Refused/limited access to opportunities for promotion or other employment benefits (e.g. because of parental status), Unfairly dismisses, retrenched or demoted (e.g. pregnant)

Occupational health and safety policy

covers a business's legal obligation to help employees and may include: employee safety training, first aid information, safe handling of materials and substances, maintenance of equipment, mental health information, emergency procedures, accident training

Health and safety policy

According to the Victorian department of health and human services, all food business owners are legally responsible under the Food Act 1984 to ensure that the food sold to customers is safe to eat. therefore businesses have to develop polices around the areas of: staff training, food storing, correct heating and cooling of food, food handling

Occupational health and safety

all businesses have to comply with health and safety laws under the occupational health and safety act of 2004. elements of a health and safety system: ongoing work site inspections, accidident and incident investigation, worker training, hazard identification assessment

Procurement policy

supports good spending to ensure value for money, quality goods and reliable customer service from suppliers. Without planning, businesses may find operating expenses much higher than expected, which will impact the final price which customers may deem as unacceptable

Typical features of procurement policy

Budget limits, determining who has purchasing authority, processes for the ordering system

Financial management policy

financial management policy including bank accounts, which should reflect a business's values and include: When and how new accounts are opened, insurance, new suppliers and how to choose them

Customer service policy

a business must have a customer service policy in order to prevent making false or misleading representations about products sold. Business therefore need to have policies regarding guarantees and warantees.

Guarantee

written or verbal statement about the quality of the product

Warrantee

legal obligations to repair, refund, or replace the product.

What does false and misleading advertising mean?

it refers to inaccurate representations about the purpose or function of a product or service. This leads to increased return and refunds

Emergency management procedures policy

legal requirement that all businesses have a policy to deal with emergency management and evacuations. Businesses must consider how it may cope with events and unforeseen emergencies by developing a policy

IT planning and considerations

system is easy to navigate and user friendly, maintenance is proactive rather than reactive, cyber security procedures and remedies are put in place, information is stored in a digital environment that is able to be accessed when required, hardware and software requirements of the business are audited

Customer databases

the collection of information gathered from each customer. databases may include contact information, as well as details about past purchases or future needs. The government has laws which protect people's privacy and ensure that databases cannot be used without their consent. Many businesses have had to retrain staff for the management of customer data

Establishing contacts with overseas suppliers and retailers

Australian businesses try to establish markets overseas by: developing an online presence, selling products in foreign markets, and developing supply chains in other countries

The Australian government supports businesses that want to expand overseas through:

Austrade, Australian Suppliers Directory, Free trade agreements

What is Developing supply chains in other countries?

sourcing materials, products, or manufacturing services from suppliers located in other countries

Advantages of developing supply chains in other countries

lower production or input costs (e.g. cheaper labour or raw materials), access to specialised goods are materials that are not locally available, scalability (overseas suppliers may handle larger volumes more easily), diversification of supply chain lowers reliance on one source

Disadvantages of developing supply chains in other countries

longer delivery times and potential shipping delays, communication issues (time zones, language barriers, cultural differences), reduced control over product quality and ethical standards, exposure to global risks (pandemics, natural disasters, political unrest)

What is the def of selling products in foreign markets?

a business sells it's goods or services to customers in other countries

Advantages of selling products in foreign markets?

larger customer base increases revenue opportunities, brand growth and recognition of an international scale, diversification of market risk - downturns in one economy may not affect others, economies of scale by increasing production for global demand

Disadvantages of selling products in foreign markets

costly and complex situations (e.g. tariffs, import laws, taxes), marketing challenges (different customs, preferences, and language), higher logistical and distributional costs, intellectual property risks in markets with weaker protections

What is the def of developing an online presence?

creating and maintaining digital platforms that allow international customers to learn about the business, interact with it, and buy products or services

Advantages of developing an online presence

24/7 access to customers increases potential sales, lower overhead costs than physical storefronts, wider geographic reach both locally and globally, improved marketing opportunities, such as SEO, email campaigns, and analytics