Be your own boss

New Zealand is one of the easiest countries in which to set up a business. But adviser Toss Grumley says they are just as easily shut down, too. ‘‘The sad reality is most businesses fail.’’

Here is a quick breakdown of what you need to know.

1. Start with a viable idea

What are your motivations? If you don’t know your business inside out then get someone on board who does, Grumley says.

Then, research what kind of business structure you have. Common ones are sole trader, partnership and company.

2. Know your customers

Grumley says struggling firms are often not in touch with their customers. Check Statistics New Zealand data and talk to people to understand what gaps in the market you can fill.

3. Name your business

If you have a name in mind check if it’s already in use at business.govt.nz/onecheck.

Grumley says a name is also necessary to start marketing. ‘‘People can’t buy a secret.’’

Then, sort out your New Zealand business number, which links you to information such as a trading name and email.

4. Secure your name

Investing in trademarks and registering for a domain name protects your business name.

If you set your business up as a company, you need to reserve its name with the Companies Office and register it there.

Then, register for GST if you earn more than $60,000 a year.

5. It’s a numbers game

Grumley says the key step is to check your financial model. ‘‘A lot of people don’t have enough margin and they haven’t used price as a lever.’’ This step ensures you are profitable.

Stuff is the media partner for Small Business Month, supported by CAANZ.