1. Running a business
Business Operations

2. Syllabus – Business operation
Meeting regulations
Local
State
Federal
Selling products
Maintaining records
Revenue statement
Balance sheet
Cash flow
Taxation records

3. Syllabus – Business operation continued
Risk management
Planning for the future
Aspects of key issues relating to running a business
Operating a business

4. Regulations
The operations of businesses are regulated by three levels of government.
Federal government
State government
Local government

5. Federal government
All businesses should have an Australian business number (ABN) or Australian company number (ACN)
ABN is available from the Australian Business Register (ABR)
ACN is available from the Australian Securities and Investments Commission (ASIC)
These numbers identify the business/company for tax purposes and dealing with government agencies.
When doing business with other businesses the ABN/CAN needs to be on all invoices.

6. Federal government continued
Taxes administered by the federal government:
Income tax
Goods and services tax (GST)
Fringe benefits tax
Sales tax
Customs and excise duty
Federal governments laws include:
The Workplace Relations Act 1996 (Cwlth)
Anti-discrimination legislation
Superannuation legislation
Occupational health and safety (OHS) legislation

7. State government Workcover
The regulatory authority in NSW to achieve safe workplaces by administering:
The Workers Compensation Act 1987 (NSW) – compulsory for employers to take out insurance to cover employees for work related injuries.
The Occupational Health and Safety (OHS) Act – describes how businesses should generally keep a safe and healthy workplace.

8. Workcover - Activity Access www.workcover.nsw.gov.au
Complete the following:
Write a paragraph outlining the role of WorkCover
List WorkCover’s objectives
List the Acts of Parliament that are administered by WorkCover.
Access the frequently asked questions section of the website. Outline the OHS responsibilities of businesses. List the types of workplace hazards businesses need to focus on.

9. State government continued
ASIC
Sole Traders and Partnerships need to register their business names unless they are operating under their surnames.
Companies register a business name if the name it operates under is different from its company name.
Companies need to submit annual returns including financial statements.

10. ASIC - Activity The Australian Securities and Investments Commission
Access the website
Write a report outlining the role and history of ASIC

11. State government continued
NSW Fair Trading Legislation
Aims to protect consumers from businesses behaving unjustly.
Laws govern warranties, misleading advertising, and safety standards.
Licences
Required by businesses like hair salons, real estate agents, builders, solicitors
Obtained from relevant licensing authority

12. NSW Office of Fair Trading - Activity
Access
Outline the role of the Office of Fair Trading as it relates to consumers, business and trader services, associations and cooperatives.

13. Local government Businesses need to comply with town planning laws:
Fire regulations
Regulations concerning building structures
Parking
Health
Local government inspectors visit business premises to ensure relevant laws and regulations are being complied with.

14. Local government continued
Zoning determines the use of property
No permission for commercial activity in an area zoned residential.
Issue licences
Cafes need a licence:
To have tables and chairs on a footpath
For billboards

15. Selling products
Marketing strategies are needed to sell goods and services produced.
Marketing objectives must be defined:
To sell more of the same product
To offer a new or improved product
To target a new range of customers
The four Ps of marketing:
Product
Price
Promotion
Place

16. Four P’s of Marketing Product – Price – What products to sell
What products look like or consist of
What packaging the product should be in
What extras are included or offered
with the product
Price –
Minimum price to be equal
to the cost of creating the product
Needs to be competitive
Higher quality products tend to be a higher price

17. Four P’s of Marketing continued
Promotion –
Advertising – consider where, when and to whom to advertise
Signs in a shop window
Television campaign
Newspaper and radio advertisements
Catalogues
Brochures
Billboards
Freebies like product samples
Public relations – involvement with charities and sponsoring local community groups
Attending trade shows

18. Promotion - Activity
Select a product popular with people of your age group:
How is the product promoted?
Consider:
Packaging
Imagery / personalities used in the advertising campaigns
Type of advertising used

19. Four P’s of Marketing Place – Starts at the business premises
Important considerations:
Parking
Visibility
Signage
Opening hours
Delivery options
Store layout
Lighting

20. Four P’s of Marketing - Activity
Select a product
Develop a marketing plan using the four Ps as a guide.
Product
Price
Promotion
Place

21. Maintaining records Revenue Statement (Profit and Loss Statement)
Revenue – expenses = profit or loss
Completed for a financial year for external reporting purposes including the Australian Taxation Office
Completed monthly to monitor how the business is performing
Balance Sheet
Lists all the assets (items owned), liabilities (items owed) and capital (money or assets contributed by owners) of the business
Assets = liabilities + capital
A financial snapshot of the business taken at any point in time

22. Maintaining records continued
Cash flow statement
Shows the movement of cash into and out of the business.
The business can see if there is enough cash to cover payments when they are due or whether more borrowing is required.
Shows cash coming in (receipts) and cash going out (payments). Total left is cash available at the end of the time period.

23. Develop a table to define each of the taxes listed.
Business activity statement to report GST
A revenue statement and balance sheet for income tax purposes
Wage records to deduct tax from employees’ pay
Fringe benefits tax
Customs duty (tax on goods bought from other countries)
Payroll tax
Land tax
Stamp duty
Council rates
Activity:
Develop a table to define each of the taxes listed.

24. Risk management – Planning for the future
Definition of risk management – the processes involved in identifying, controlling and minimising the impact of uncertain events.
Common events that cause disruption to businesses include:
Fire
Flood
Technological failures

25. Risk Management
Insurance is the most common method businesses use to protect themselves.
Legislation requires:
Workers compensation
Insurance for employees
Compulsory third party insurance for motor vehicles
Other recommendations:
Building insurance
Contents insurance
Comprehensive insurance for motor vehicles
Public liability insurance
Activity
Develop a table with two columns to summarise the 7 types of insurance important for businesses to minimise risks.

26. Looking to the future – Bankruptcy or Insolvency
Bankruptcy – Occurs when a business can no longer pay its creditors. It may be voluntary or be ordered by the court. Sometimes referred to as insolvency.
Occurs when the business can no longer pay its debts.
Once declared bankrupt by a court the business assets are sold.
Money received from asset sales allow payments to debtors.

27. Activity – Bankruptcy / insolvency
Develop a mind map summarising the strategies a small business could use to minimise the risks of insolvency and bankruptcy.

28. Looking to the future continued
Considerations to avoid bankruptcy:
Maintain good records
Careful expansion to avoid over extending
Budget for replacement of ageing equipment
Budget for changing appearance of the business as fashion changes (Consider products and shop layout)
Have good stock management so stock is available to meet demand but not too much and unable to be sold

29. Key aspects of running a business
Customers are the number one concern
Keep a close eye on competitors
Ensure cash flows
Look after employees
Keep costs down and sales moving
Manage risks where possible
Entrepreneur needs to be organised, efficient and continually planning ahead.
Comply with legislation
Continually consider new ways to improve such as technology
Activity
Make a collage in word art to summarise key aspects to consider when running a business.