Influences in establishing an SME (business planning)

Question 1

characteristics of a business name

Answer 1

• it is a legal requirement for a business to register its name
• a trading name is different from a business name
• a trading name must be registered with ASIC

Question 2

what is zoning

Answer 2

Refers to the regulations on where land can be used for particular purposes

Question 3

what is local government zoning

Answer 3

local government zoning influences businesses as they have the authority to restrict where certain businesses can locate

Question 4

what is land zoning

Answer 4

refers to specific areas and rules, each zone has its own specific regulations and rules eg noise restrictions, environmental requirements, size of the building and hours of operation

Question 5

health regulations

Answer 5

Are regulations that the local government has imposed in regards to health

• fall under the Public Health Act (NSW)
• different industries have to meet with the requirements and standards in order to receive a license to operate
• there is a website wich features a name and shame list allowing for consumers to view which businesses have breached safety laws

Question 6

Taxation

Answer 6

• many different federal and state taxes apply to each business
• PAYG (income tax imposed on employees taken from salary)
• FBT (tax paid by the employer at a rate of 47% of the value of the benefit provided)
• GST (10% of certain products)
• company tax (paid on the earnings of a company, profits)
• capital gains tax (calculated on the profit made on the state of assets acquired)

Question 7

human resources

Answer 7

refers to a business employees

Main sources of employees for a business:

• temporary casual services
• schools, uni and TAFE
• internal searches
• word of mouth
• private employment agencies
• private employment recruit agencies
• Australian job search
• advertisement in media

Question 8

skills

Answer 8

skilled employees are highly productive and result in creating wealth for the business

• A business owner should always remember that the overriding objective of recruiting is to attract a pool of qualified aplicants

Question 9

costs (non wage)

Answer 9

Refers to the cost of an employee

• businesses will only employ someone if the return is greater than the cost
• the total cost of the employee is not solely the wage of the salary paid eg cars
• other employee expenses are referred to as on costs accounting for 30 - 40% of the remuneration package

Question 10

costs (wage)

Answer 10

• the total cost of an employee consists of a wage element and an non wage element. The basic cost (wage) is known as the modern award
• the annual salary is taxable and the employer is required to make sure the appropriate tax is passed

Question 11

superannuation

Answer 11

a retirement fund which ensures that all Australians could accumulate savings for retirement

Question 12

Annual leave loading

Answer 12

• A leave loading is genrally the amount of 17.5% on top of the employees salary for a prescribed period of leave
• the amount is calculated on the four weeks annual leave which each full time employee is entitled to
• this allows for the average family to go on holiday whilst also being able to keep up with ongoing costs