How to Set up Your Own Business

NDP Factsheet How to set up your own business

Take advantage of new opportunities under the National Disability Insurance Scheme (NDIS) by setting up your own business. The NDIS offers a new way of providing individualised support for people with a disability, their families and carers by giving them more choice over the providers they work with. This means that as a worker in the disability sector, you could consider setting up a small business or working in a private practice. But what are the necessary steps you need to take before considering this change? We’ve some useful tips and information which might help. Step 1: Consider your business structure

A provider is the term used to describe an individual, company or organisation that delivers a support or a product to a participant in the NDIS. When starting out as a provider, one of the first things to consider is your business structure. This means thinking about whether you want to be a self-employed contractor or service provider, which will in turn, affect how you pay your taxes and take-home income (such as whether you operate as a sole trader or company). It’s also important to remember you’ll have certain responsibilities as a self-employed provider or private practice owner under the NDIS, so it’s worth learning about and planning for these ahead of time. Tip – Discuss your business structure options with an accountant before starting.

Step 2: Develop a business plan

Before registering your business, there are a number things you need to do to get ready for the NDIS. This includes:  Developing a business plan that outlines your vision, goals, services/products, financial projections and marketing strategies  Deciding how you will offer your services (sole trader, or company for example)

 Making a list of your relevant industry experience and update your resume  Applying for an ABN (Australian Business Number)  Deciding on your GST status (you will be able to choose if you register for this based on your predicted income)  Arranging appropriate insurances (including public liability and personal income protection, and professional indemnity insurance)  Ensuring you have up to date National Police Checks and Working with Children/Working with Vulnerable People Checks  Understanding your superannuation requirements  Understanding your taxation requirements based on your business structure  Deciding how you will record the work you provide  Deciding on price requirements, such as the prices and conditions you will negotiate with your clients and how you will issue invoices and manage income  Creating your key company policies, such as for privacy and complaints  Understanding what supports and equipment can be funded under the NDIS. Step 3: Register as a provider

The next step is registering as a provider with the National Disability Insurance Agency (NDIA). Registration can be completed on the NDIS website and allows you to access the provider portal and do business online. To register as a provider you will need to: • Decide your scope of delivery/practice • Decide where you will offer your services (which state and location) • Have bank details prepared for receiving payments • Have your resume ready • Have evidence of police & working with children screen • Have proof of identity • Show evidence of your public liability insurance • Have an ABN. Step 4: Understand your responsibilities

Once you become a registered provider, you’ll have certain responsibilities you will need to uphold. Doing these things on a regular basis will also help you continue to offer great customer service and stay on top of any major business requirements. For the ongoing running of your service it is recommended that you:  Have a service agreement template (these are then customised to each participant’s needs and plans)  Maintain competence in your area of experience by signing up for professional development and training keep your skills updated – for a curated list of free courses see NDP Learn at www.ndp.org.au/ndp-learn  Maintain ongoing financial records, as well as records of the work you have completed  Market your service to provide information regarding your benefits, services, how you will engage potential clients and current clients, and provide value for your fees  Develop systems to manage your safety and that of your clients.  If you have staff, please make sure you fulfil all employer obligations eg. superannuation, WH&S, and other applicable industrial relation matters. Quality Assurance & Safeguards

Until the implementation of a national quality management framework for NDIA registered providers, you still need to be mindful of existing state & territory based systems that will continue to ensure participants have access to high quality services that achieve their goals, which are free from abuse, neglect and exploitation.

For example: In NSW you may be required to undertake a self-assessment to demonstrate your capacity to comply with the NSW Disability Service Standards (DSS). NDIA will request that you provide evidence of this self-assessment for the purpose of registration. The NDIA may also specify as a condition of registration that you attain independent third party verification to confirm your performance against the NSW DSS within 12 months of your registration.

This factsheet has been prepared for National Disability Practitioners by Maida Learning. For more information on practical business education, resources and support see www.maidalearning.com.au

Stay tuned: Continuing this discussion, we will also deliver the pros and cons of setting up a small business under the NDIS. If you would like to contribute your experiences, let us know at [email protected] Disclaimer:

This factsheet is intended to provide general information only and should not be relied upon as legal advice. To discuss your personal circumstances, see a registered accountant or seek further advice from the NDIA.