This is now my third year of trading and it has been a huge rollercoaster ride of a learning curve, but I am still here and actually starting to make some money!
For anyone thinking of wanting to start their own business, I would say it has been one of the most fulfilling things I have ever done and I am a vey proud of what I have achieved. And if anyone is interested I can offer the following insights.
Where to start?
Go see an accountant! - This relationship is pretty important, make sure you get on with your accountant, that they understand what you are hoping to achieve. They will advise how to set up your business (ie partnership, sole trader, limited company) I "interviewed" four accountants before I settled on the one I liked best. For dealing with the IRD and working for families, for us they have been invaluable.
Register your company - If the accountant does not think you are mad and you are ready to take the plunge go online and get your company registered here http://www.business.govt.nz/companies
Open a bank account - I hate my bank, do not make the mistake I did and open a business account with a bank, just because you are used to using them for your personal stuff! Interview banks, just like the accountant, find out what THEY can do for YOU. I have since opened another business and opened an account with another bank, there is a huge difference between the level of personal service you will receive as well as business banking tools.
Paperwork - Arrggh, I hate paperwork and it's really important to keep everything in good order. Put simply, you need to be able to show a paper trail for everything that happens in your business bank account. Obvious things include payments to you (your invoices) and payments to suppliers (their invoices). But I also have to manage GST, IRD, foreign exchange, duty, expenses, customs and excise....... The more simple you can make it, the "easier" it will be, especially for your accountant, when they do your yearly financial statement.
Do not dispair! - The first year was undoubtedly the hardest and there will be moments when you doubt what you have got yourself and your family into. You have to have faith and go the extra mile.
Customer service - NZ companies really suck at this, make sure you do not and you have won half the battle.
Good luck!