UNIT 2 AOS 1

• Considerations when starting our business:

  registering a business name

  registering a website domain

  trade practices legislation

  business tax compliance

  worksafe insurance
• registering a business name:

  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 Original Appropriate, professional and non-offensive Descriptive and functional
• A domain name is a website address or URL that effectively provides an online identity.
• Tips for an effective domain name:

  • Reflect the business name
  • Are three syllables or less e.g. ‘Yahoo’
  • Are easy to remember, pronounce, spell and type
  • Are alliterative e.g. ‘ireox’, ‘killhare’
  • Are also available for registration on social media channels
• registering a domain:

  While not compulsory, it is highly recommended that a business register a domain name.
• Established by the Australian Competition and Consumer Commission (ACCC), the ACL is compulsory, and:

  • Protects consumer rights.
  • Protects business rights and obligations.
  • Performs industry regulation and price monitoring.
  • Prevent illegal anti-competitive behaviour.
• Australian consumer law - 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.
• business tax compliance:

  The Australian Tax Office administers Australia’s tax system. Businesses must: Pay tax on income Collect income tax from the wages of employees Pay a payroll tax Collect goods and services tax (GST) from their sales Submit a Business Activity Statement (BAS) each year and remit tax due on income earned.
• customer guarantees - the customer is entitled to a refund or replacement if the product is faulty or does not meet the contractual requirements
• legal compliance - the process by which a business ensures that it observes and complies with the external statutory
•  business name - is a name or title under which a person, or other legal entity, trades (issued by ASIC).
• website domain - a website address or URL on the internet and enables a business to have an online identity (issued by auDA).
• Goods

  • Be of an acceptable quality
  • Be safe to use
  • Match sample or demonstration models
  • Have available repairs/spare parts
  • Be durable
• Services

  • Performed with due care and skill
  • Fit for purpose intended
  • Completed in a reasonable time
• misleading and deceptive conduct must not:

  • make false and misleading representations to customers about their products
  • suggest the product has an attribute it doesn't
  • state a product is made in a different country than it is
  • using similar logo, brand name or packaging
  • overly optimistic claims
  • false labels
  • offer gifts and prizes with no intention of supplying them
  • bait advertising (only a few in stock)
• Insurance - a contract in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.
• WorkSafe Victoria - the Victorian Government’s regulator in enforcing health and safety in all workplaces in the state which assess risks and hazards within businesses.
• WorkCover - 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.
• Public Liability - protects businesses against damages or injuries to another person or property.
• both WorkCover and public liability are compulsory insurances for a business and are expensive as insurance is never free.
• public liability is specific to all people who interact with the business whereas workcover is specific to employees of the business
• examples of external professionals:

  legal

  governments

  finance

  insurance

  sales and marketing

  IT and technology

  Recruitment
• legal services - Legal advice is available to businesses from multiple sources.
• legal advice can be sought out from:

  law firms

  lawyers

  government (Law institute of Victoria)
• financial professionals include

  accountant

  bookkeeper

  business activity statement agent

  bank manager

  ato
• Accountant – to prepare financial statements, monitor banking, follow up on overdue payments and provide advice
• Book keeper – is responsible for maintaining the day-to-day activities of a business
• Business activity statement (BAS) agent – many businesses find meeting ATO requirements difficult. A BAS agent will prepare and lodge the statement with the ATO.
• Bank managers – another valuable source of financial advice and assistance. They can assist with loan applications and managing business bank accounts. They can also give advice on the feasibility of a business expansion.
• The ATO – an excellent source of information regarding taxation matters, with their website providing free accessible information.
• Insurance advice can be sought out from agents and brokers
• agent:

  works for one insurance company

  will only try to sell their company;s services
• brokers:

  independent

  act as an agent for the person or business seeking insurance

  will negotiate with different companies for the benefit of their client
• sales and marketing advice can be sought out from:

  marketing and advertising consultants/ agencies

  graphic designers and printers
• Marketing consultants:

  • Conduct market research to determine customer demographics, needs and wants.
  • Strategise on advertising and sales campaigns to reach the highest number of customers.
  • Evaluate current campaigns to consolidate current brand, or make a change.
  • Create and book advertising across TV, print, social media, newspapers etc.
  • Search engine optimisation to ensure your business appears in internet searches.
• graphic designers and printers:

  Creation and production of branded material including: Logos Letterheads Pamphlets Business cards Advertisements Promotional items
• IT and technology advice can be engaged to provide these services to businesses when required: Selecting technology, software and hardware Setting up systems Training staff, and providing ongoing back-up Assistance with all technology-related areas of the business
• Recruitment advice:

  Many businesses also choose to engage employment agencies to handle their recruitment, particularly during the initial stages if a large pool of applicants exists.


  They can also provide advice to employers on creating roles to fill existing gaps in the business. This can have the benefit of allowing the business to focus time and resources on their existing workforce, but also to achieve their business objectives.
• Financial management - managing financial activities relating to the operation of a business