legal requirements and financial considerations

• External professionals


  Highly skilled individuals that provide expertise in a particular area of operation, that businesses turn to for assistance and for tasks to be completed more efficiently and to a higher standard
• Accountants


  Professional who manages, updates, analyses and reports a business's financial information. They create financial reports, ensure legal compliance and create budgeted reports
• Financial adviser


  Professional who provides expert advice to individuals and businesses in relation to monetary matters, personal finances, and potential investments. They must manage the business owner's personal finances, analyse the feasibility of a business's financial goals and recommend other possible investment opportunities, and analyse and assist in the management of current business expenses
• ICT specialist (information and communications technology)

  Professional who develops and maintains the technological systems that are used by businesses to store and retrieve data. They are required to set up and maintain a website and customer database, ensure legal compliance related to data management and provide training to employees regarding privacy issues and establish security policies
• Legal adviser


  A professional who provides expert advice to businesses regarding their legal responsibilities, specifically working for a business. They are required to provide advice relating to the drafting of contracts, ensure compliance with all relevant laws and regulations, protect a business's trademarks and patents, and provide in-house counsel for conflicts that arise between stakeholders, such as employees and management
• Marketing advisers


  A professional who provides expert advice to businesses in relation to promoting and selling their products. They develop appropriate advertising strategies, provide branding and design assistance, develop digital and social media marketing strategies and develop effective public relations strategies
• Owner must be aware of and uphold all legal requirements and regulations that are relevant to the business's operation
• Registering a business name


  Title that a business operates under and what customers use to identify the business. Owners should apply for a trademark
• Registering a website domain

  A website address that identifies a business's online site. Register through auDA
• Trade practices legislation


  The law that governs how a business interacts with customers and competitors. Commit to guarantees and warranties, do not collude, do not falsely advertise goods or services
• Business tax compliance


  The extent to which an individual or business meets tax obligations
• Types of business tax

  • Income tax (tax individuals and businesses must pay which is calculated from income)
  • Pay-as-you-go (paying tax at regular intervals)
  • Tax returns (documents that are filled out by individuals and businesses to calculate how much of their income will be taxed)
• Work safe insurance


  Compulsory insurance that assists employers to meet their obligation of financially compensating and supporting employees who become injured or ill because of work
• WorkSafe Victoria


  Independent government body that governs how businesses maintain workplace health and safety
• WorkCover insurance


  Financial protection provided to businesses when employees become injured or ill in the workplace
• Financial performance


  How well a business is able to manage its expenses and revenue over a period of time, determined by businesses profits and losses
• Bank account


  Arrangement made with a bank where a business or individual can deposit or withdraw money. Enables business to manage and track all money coming in and out of the business. ATO requires there to be a separate business account from personal accounts. When creating a bank account, owners can decide which bank to store business funds based of rates and fees for loans
• Financial control systems


  Processes and procedures used to direct and monitor business finances. Help to oversee transactions and financial positions. Help avoid large financial losses and financial mismanagement. Avoid fraud and low cash flow
• Record-keeping strategies


  Methods used to keep track of financial transactions of a business over a period of time. Enables business to accurately keep track of financial transactions. Enables business to prove financial transactions that need to be reported when lodging tax returns to ATO. Enables a business to conduct valid audits. Enables a business to form accurate business reports
• Supplier characteristics


  • Price
  • Quality
  • Reliability
  • Location
  • Socially responsible
• Policies


  Written statements that outline the expected performance and behaviour of employees. Rules and expectations. Help to inform and guide employees to make decisions that meet the expectations, behaviour, and legal requirements of the business. Without policies employees may behave inappropriately
• Relevant legislation for policies

  • Equal opportunity act – workplace bullying, harassment, and discrimination
  • Privacy and data protection act – personal customer information and its misuse when being collected by public organisations
  • Occupational health and safety act – safety and health conditions in the workplace
  • Competition and consumer act – customer rights when engaging with a business to prevent misleading or deceptive conduct
• Procedures


  Series of actions that employees must follow in order to abide by the businesses policies. Provides employees a step-by-step guide on how to act in specific situations or events
• Examples of procedures


  • Chief warden
  • Customer service policy – dealing with customer complaints
  • Social media policy – dealing with incorrect social media usage
  • Dress code – dealing with employees dressed inappropriately
  • Absence and time off policy – dealing with unscheduled employee absences or time off
• Customer data base


  Collection of information about existing and potential customers. Businesses collect and track data, on purchases and buying habits. May purchase information that other companies have collected. Use information to identify, examine and predict what goods and services customers desire
• Advantages of customer databases

  • Enable businesses to predict desires of potential customers and increase satisfying goods and services
  • Allows to maintain relationships with existing customers
  • Employees can be trained and equipped with new knowledge
  • Quickly identify existing customers
  • Identify and target potential customers by providing special offers on goods and services they desire, which will increase profit
• Disadvantages of customer databases

  • Lead to private information being hacked or leaked
  • Frustrated employees being disrupted by training programs
  • Time consuming to gather and record information
  • Time consuming to train staff
  • Costly to purchase information from other businesses
  • Installing software and technology can be expensive
  • Expensive to train staff
• Contacts with overseas suppliers

  Individuals or businesses that sell raw materials or resources in a country overseas
• Free trade


  Buying and selling goods or services internationally with minimal government restrictions or rules
• Contacts with overseas retailers


  Individuals or businesses that sell goods and services directly to customers overseas. Has increased as a result of globalisation. Compete with domestic and international retailers, and having contacts allows them to buy and sell overseas