Saelese Haynes

Dear AFETT,

I spent several years working as an executive assistant for companies in the full gamut from micro to large businesses. The company that I work for currently is experiencing some severe legal challenges and I have been privy to discussions that it may be closing its doors. I have made the decision to "take in front" and I plan to open my own business to provide administrative services.

However, having worked in various businesses, and having the experience of occupying different roles, I am truly fearful of starting when I think of all of the things that I will have to do as a team of one (just me). Plus, this situation where my current employer is going under because of legal problems is weighing heavily on my mind.

How can I prioritise the most important requirements to operate a business legally and soundly so that I can have a good chance at entrepreneurial success?

Captain Catherine.

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Dear Captain Catherine,

Embarking on the journey of starting your own business can be both exhilarating and daunting. I can see how the transition from being an employee to an entrepreneur might be intimidating for you, especially as you are facing the fallout from issues that have gone wrong on your work ship. You’ve stated that you are preparing for all eventualities by taking the wheel to chart your own destination. Starting your own venture is extremely brave and I love that for you!

Managing a start-up can be challenging, but with the implementation of the right strategies you can increase your chances of success. It is difficult to capture a full discussion of all risks and challenges in this format, however, if I were to summarise the top ten things to review when starting up a new business, they would be:

Business formation and structure

After completing market research and having an evidence-based business plan, the next step is to register or incorporate your business entity.

You'll need to select an appropriate business structure, such as a sole proprietorship, partnership, or limited liability company, with various options even within these categories.

Consulting a professional for advice may be wise. In my experience, many people locally choose either a sole proprietorship or a limited liability company.

The choice of structure is critical, as each has its unique legal requirements and fiscal implications. For example, registering as a sole proprietorship while continuing employment may affect your tax position. It is important to select the structure that aligns best with your business plan and business model.

Compliance and governance

Many businesses need licences to operate legally, with requirements varying by industry.

The level of compliance and governance obligations also depends on your business structure.

Sole proprietorships have fewer regulatory demands, while companies face mor