Starting what’s known as a ‘side hustle’ can be a great way to test a business idea and boost your income without investing the same kind of time and money you might need to run a full-time business.

Some people start a side hustle while working another job. They might even grow their side hustle to the point where they can run it as a full-time business to replace their job.

Here are seven steps to follow if you would like to start a side hustle.

Selecting the right location and securing a good lease is critical to your business success.

The type of business premises you select will depend on:

• the products or services you intend to provide
• your customer demographics and location
• your financial circumstances

These tips will help you avoid costly mistakes.

More information

For more information on leasing business premises or contact one of our business advisers on 133 140.

Note: This information is not a substitute for legal advice.

As a small business operator, it’s important to know your rights when entering into a standard form contract, or providing such a contract to others.

What’s a standard form contract?

A standard form contract is generally one which has been prepared and entered a number of times by one party to a contract and where the other party has little or no opportunity to negotiate the terms– that is, it’s effectively offered on a ‘take it or leave it’ basis.

If a dispute arises, an agreement is assumed to be a standard form contract, unless the party that prepared it can prove that it’s not. Ultimately, only a court or tribunal can decide that a term is unfair.

Changes effective from 9 November 2023

Changes to the Australian Consumer Law, effective from 9 November 2023, prohibit businesses from proposing, using, or relying on unfair contract terms in their standard form contracts with consumers and small businesses.

Under the new laws, small businesses are covered by the unfair contract terms protections for any new or varied standard form contract from 9 November 2023 if they have 100 or fewer employees or have an annual turnover of less than $10 million.

What’s an unfair contract term?

Whether a term is unfair will depend on its wording and how it operates, considering the whole of the contract.

Terms that may be deemed ‘unfair’ include where only one party:

• can terminate, vary or renew the contract
• broadly excludes liability for delay and non-performance and places significant caps on one party’s liability (without limitations being placed on the other party’s liability)
• excludes, restricts or modifies a party’s rights under the consumer guarantees.

As an example, numerous small business owners complained that an advertising company’s contract contained an automatic rollover clause where the agreement renewed every year. This clause could be considered unfair if:

• It was not adequately disclosed.
• There was no notice given that the contract was about to renew.
• The customer would be charged excessive fees if they cancelled after the contract was automatically renewed.

For more information on unfair contract terms visit the ACCC website.

Retail lease contracts

Retail lease clauses that could be impacted by the amendment to unfair contract terms include:

• Rent reviews
• Length of lease
• Power of attorney provisions
• Damage abatement
• Guarantee and indemnity provisions
• Level of insurance cover
• Relocation provisions
• Make good obligations
• Terminations
• Fit out regimes

Which contracts are covered?

From 9 November 2023, the provisions apply to a standard form contract for the supply of goods or services, or the sale or grant of an interest in land, where at the time of the contract at least one party to the contract either:

• Employs less than 100 persons.
• Has an annual turnover of less than $10 million.

What should I do if I’m offered an unfair contract to sign?

It’s not a good idea to sign a standard form contract if you find the terms unfair. Instead, you could:

• Try to negotiate the unfair elements out of the contract or amend the term.
• Seek independent legal advice.
• Contact our free business advisory service.
• Contact the ACCC’s small business helpline on 1300 302 021.

Report an unfair business contract

If you believe you are experiencing an unfair contract term, or other unfair business practices such as non-payment or breach of contract, you can anonymously report the issue to the SBDC for investigation.

This information is designed to assist businesses that may be impacted by construction works being undertaken by a third party, including those of state and local government agencies.

Construction works near your business could bring a range of challenges such as:

• losing customers as people avoid the area
• limited access and loss of parking for your customers and staff
• disruptions to deliveries
• noise and dust
• power interruptions
• changes in public transport routes.

Take a proactive approach

Before work even starts there are steps you can take to help protect your business.

• Be aware of exactly what work is planned.
• Actively plan for the disruption and its potential impact on the local area and your business.
• Speak to one of our small business advisers who can offer you independent, practical advice to help during this challenging time.

Most construction projects fall into three key phases:

1. Planning/pre-construction
2. Construction
3. Post-construction

1. Planning/pre-construction – before work begins

Some steps to consider during this planning phase include:

Stay informed

Major construction work is usually planned years in advance. Look out for communications from your local government and major utility and infrastructure providers (eg. METRONET, Water Corporation, Main Roads) to stay informed.

Actions to take:

• Visit their websites and social media channels, sign up for stakeholder emails and read the flyers and bulletins delivered to you.
• Join local business Facebook groups.
• Staying up-to-date is particularly important if you don’t live near your business and may be less aware of local plans.

Have your say

Once you know work is planned, find out about community consultation opportunities. Consultation periods are the best time to provide feedback and to try to influence change. Express your concerns and suggestions early and respectfully. Note that plans can change, so it’s important to attend any further information sessions.

If you’re approached by a government works agency, or one of their contractors, participate in their surveys. They really want to know what you think and whether there are key times or events in your area (such as an annual street fair) which would be significantly affected by the planned work.

Form alliances

Contact other businesses likely to be affected by the project to form a support group and work together to keep customers coming to the area once work starts.

Communicate early and often

In this lead-up period think about communicating with your customers, suppliers and staff. Consider the main messages you will need to communicate at each stage – ‘yes we’re still open’ or ‘parking is available around the corner’.

If you want to learn more about marketing your business, you can check out some of our marketing resources or sign up for one of our marketing workshops.

Review your financial position

We recommend you work with your accountant to understand the likely impact of the proposed construction on your financial position. If sales drop during the construction period how will you manage your cash flow reduction?

You can also talk with your landlord and check your lease for options to renegotiate if possible. Check out our range of financial management information and tools.  

Actions to take:

• Review inventory, look at reducing stock during the construction phase.
• Explore opportunities to keep a tighter control on cash flow, such as invoicing earlier and/or paying suppliers later. 
• Check your lease for options to renegotiate if the market rent review date falls near or during the project.
• Ask suppliers to review your line of credit, or whether they would provide a special product promotion during the construction period.
• Check for opportunities to restructure any business loans. Securing a line of credit before it’s required can also be a good idea.
• Construction generates dust, so factor in additional time and costs for extra cleaning of the inside and outside of your business.
• The construction period may be a good time to undertake your own renovations, or for your staff to take annual leave or work part-time. If they leave, consider keeping the position vacant until business picks up.

Plan your operations

Depending on the nature of the construction project, can you consider operating at different times of the day or days of the week when your business is less likely to be affected by the works? Receiving supplies or making deliveries may need to be rescheduled.

Also, your gas, electricity, water and internet supply could be disrupted, so plan for scheduled and unscheduled outages.

Actions to take:

• Look for new revenue generating opportunities by introducing an online service, or working with businesses outside the construction zone to stock your products. Consider offering deliveries or a kerbside collection service – perhaps turn your restaurant into a catering service.
• ‘Flip’ your business by using the back entrance for better customer access – with plenty of signage. It may work even better if other businesses also face the other way.
• If customer parking will be affected, make arrangements with other businesses further down the street to share their space. Offer to return the favour once construction moves in their direction (it could also highlight your business to potential new customers).

Consider your staff

They will understandably be concerned about general disruption to the business, loss of parking or job security, so keep them advised at every stage.

2. Construction – once work is underway

This will be the most disruptive phase for you and your business and there are likely to be a variety of issues that could deter customers:

• dust, noise and vibrations
• restricted access as a result of closed roads or footpaths
• fewer parking spaces
• interruptions to public transport
• temporary fencing or construction vehicles preventing customers being able to see your business.

What to do during construction

Now that work is underway you can review the plans you made pre-construction and put them into action.

If you need to demonstrate a loss of business during the construction period, it is important to keep accurate financial records. Document costs, impact on profits and customer numbers.

Boost your communications

Continue to communication with:

• your customers
• construction project managers
• employees
• other local business
• suppliers

Regularly update your website, social media and any other communication tools (ie customer newsletter) to keep your stakeholders informed.

It’s important to take control of your communications. If you don’t provide information, people will turn to local TV or radio news, newspapers or online sources. Unfortunately negative headlines work, so stories about your area will focus on the catastrophic – ‘There’s no parking!’ ‘All businesses are closing!’

Actions to take:

• Regularly update your website, social media channels and voicemail to ensure your messaging and contact details are consistent across all platforms.
• Have plenty of signage. The head contractor is responsible for providing safety and main directional signage, however it’s also good to display your own posters.

Construction workers as customers

Stay in touch with the project or site manager to keep up with what’s happening and as a way to promote your business to their workers. They may be visiting your area for the first time and could be potential customers.

Actions to take:

• Offer specials for ‘hi-vis’ customers:
  • open early for tradie breakfasts
  • advertise value lunches and dinner takeaway deals
  • promote seasonal specials – last minute flowers for Valentine’s Day/Easter chocolate etc.
  • provide added-values, such as a free head massage with every haircut
  • be flexible, such as ‘Drop your car in for a service/new tyres (we open extra early) and collect it when work’s over’.
• Even if they don’t need your services immediately, encourage them later by offering great deals on car servicing for example.
• While construction workers aren’t the people to raise concerns with, it’s good to develop a friendly rapport (perhaps turning them into customers). Think about how you can appeal to this potential new customer base, whether that’s a special offer or competition to draw people into the area and encourage them to spend.

3. Post-construction

Hopefully your business has survived in reasonable shape. However customers may be slow to return to the area.

Actively reconnect and communicate with your customers to let them know the work is over. Update your website and social media and consider local advertising if possible.

While there is no single place to ‘register’ your business, there are a few things all new business owners must do before starting to trade.

Once you have read this guide, we recommend making use of the following free resources we offer to help you:

• Attend our Starting a Business workshop
• Contact our business advisory service for a one-to-one chat with one of our experienced advisers to gain greater insight into your particular business needs
• Contact us for access to business benchmarking and industry research

Do your research

Market research can help you assess the viability of your business idea. Although your concept may be well intended, it may not be commercially successful in terms of customer demand or cost.

It is important to consider market trends, how much you should be charging and what is happening in your chosen industry. Carrying out further research may improve your business idea or provide new options.

Contact us for free access to market resources, including IBISWorld - which provides insights and financial benchmarking across more than 500 industries in Australia. You can also discuss your findings with our experienced business advisers who can help you use this information to plan and develop your business.

Choose your business structure

Once you have established the viability of your business idea, you will need to decide on a structure that best suits the business and its particular circumstances.

Some things to consider include:

• any ongoing costs
• how the entity will be taxed regarding income, capital gains and land tax
• asset protection
• control and succession
• flexibility to adjust as circumstances change
• exit strategy

You should aim to minimise taxation, protect your assets, and retain control.

The four most common business structures in Australia are:

• sole trader
• partnership
• company
• trust

Read our business structures page for more information on each structure, including their pros and cons.

Conduct a business licence search

Your industry and geographical location will determine which licences, permits or registrations you need before you can start trading.

Use our free Business Licence Finder to receive a personalised report showing which licences, permits and registrations you need, details of the agency that administers the licences as well as the details of any fees payable.

Your report will include many of the general topics covered in this guide, however there are likely to be other mandatory regulations that are unique to your industry or location.

Obtain an Australian Business Number (ABN)

Obtaining an ABN is free and you can apply online using the Business Registration Service.

Businesses require an ABN when dealing with other businesses or the government. If you don’t register for an ABN, other businesses making payments to you will withhold tax at the top rate of 49 per cent.

Similarly, if a supplier does not provide you with their ABN, you will need to withhold 49 per cent from their payment, unless they provide you with a statement by a supplier form. 

You can operate multiple businesses under one ABN (ie. a sole trader can run a lawn mowing business and a bicycle shop with just the one ABN).

Register your business name

Your business name will create a first impression of your business, so it’s worth making an effort to get it right. Choose a name that reflects what your business is about, and will continue to be relevant as the business grows and evolves.

Business names are registered nationally with the Australian Securities and Investments Commission (ASIC).

If you’re trading under your own name, you don’t need to register a separate business name.

If you will be operating under a company business structure, your company name must be registered with ASIC. However, if you want to trade using a different name, then you will need to register this as a business name.

Read our business names page for more information.

Register your domain name

Your domain name is an important piece of online real estate for your business (eg yourbusinessname.com.au) – it’s a valuable part of your business identity and a marketing tool to help customers find your business.

Generally the best domain names:

• reflect the name of your business
• are short and easy to remember
• are available for registration on social media channels

Before registering, confirm that your chosen domain name:

• is not already registered as a business name or company (ASIC)
• is not registered or pending trademark (IP Australia)

To register your domain name, visit the auDA website and choose an authorised registrar to take you through the process.

Registrars are the retail channel for domain name registrations; they can also provide other online services. Prices, products and services will vary depending on which registrar you use.

Register for tax

To ensure you are complying with all regulations, it’s important to know which registrations apply to your business.

There is no cost to apply for any registrations with the Australian Taxation Office. However, your accountant or tax agent may charge a fee to assist you with registering.

You can register your business for tax purposes:

• online at the Business Registration Service where you can apply for an ABN, GST and PAYG in a single application; or
• through your accountant or tax agent

Read our tax requirements page for more information on the different tax requirements that may be applicable to your business.

Visit the ATO's online learning platform essentials to strengthen your small business for free short courses about starting and setting up your small business.

Protect your intellectual property

When starting a new business, registering a new business name or developing a new product, you should also consider protecting your original business idea – your intellectual property (IP).

For example: Registering a business name or domain name doesn’t automatically give you exclusive rights to that name. If you register a new business name with ASIC but don’t protect it, a competitor can register a similar:

• company name with ASIC
• trademark with IP Australia
• domain name with any registered retailer

There are a number of options for protecting your business. IP Australia has plenty of practical information. The four most common forms of IP protection are:

• copyright
• trademark
• patent
• design

Read our intellectual property page for more information on how to protect your IP.

Purchase insurance

The only compulsory insurance you need as a small business owner in Western Australia is workers’ compensation insurance - if you have employees.

It’s up to you to decide (based on your business type, activities, and industry) what other insurance you may need.

Keep in mind that many insurance companies will require you to have business registrations and licences in place before they will agree to provide insurance.

There are various types of insurance to protect your business, which can be divided into three main categories:

1. liability
2. employees
3. assets and revenue

Read our practical guide to business insurance for more information.

Start building your business skills

There is much more to starting a profitable and sustainable small business than just meeting the basic regulatory requirements. Knowledge is power when it comes to developing the skills to succeed in business and gain a competitive edge.

Our range of practical and low-cost small business workshops can provide you with the key information you need to build a successful, profitable and dynamic small business.

We suggest starting with our free Starting a Business workshop (held weekly) and then working your way through our range of foundation workshops which are designed for start-ups.

As you progress in your journey as a business owner, we encourage you to explore our wide range of workshops covering the following categories:

• business skills
• digital skills
• financial management
• interpersonal skills
• sales and marketing
• strategy and risk
• tendering and contracts

See our workshop schedule to explore the range of topics on offer.

Access free on-going support

The SBDC is here to help support you through the process of starting and running your business, including the following free resources.

• business information
• templates, tools and guides
• free business advisory service

For the latest updates and information, sign up for our e-newsletter and follow us on social media.

A partnership can be a satisfying, profitable and enduring business relationship.

It's important to agree on terms and conditions with potential partners first, to avoid future conflict and misunderstandings.

Partnership agreements

In Western Australia, partnerships are governed by the Partnership Act 1895.

A partnership can be a satisfying, profitable and enduring form of business relationship. However, not all are successful and can result in a breakdown of relationships, and loss of personal assets if debts are incurred.

Before starting a business, potential partners need to agree on the terms and conditions that will apply to their partnership, to avoid future conflict and misunderstandings.

A formal agreement is important because:

• Personal liability is unlimited for each partner in the business.
• You will be held liable for any shortfall if the business fails and a partner can’t afford to pay their share of any debts incurred.
• You are jointly responsible for any debts your partner incurs, with or without your knowledge.

Where there is no agreement in place, each partner is deemed to own equal shares of each asset as prescribed by the Partnership Act 1895.

A legally binding agreement is advisable for all partnerships. A lawyer will be able to assist in documenting this agreement and providing a copy to all partners.

Key considerations

Before meeting with a lawyer it is a good idea for potential partners to get together to discuss the following key considerations.

More information

Seek assistance from a lawyer to write your partnership agreement. You can obtain referrals to lawyers through the Law Society of WA.

A full detail of the Partnership Act 1895 is available from the State Law Publisher.

There are many reasons to end a business partnership, however it’s important that the process is managed correctly.

Subject to any agreement, a partnership may end or be dissolved for many reasons including:

• The resignation or retirement of a partner when the partnership was created for an indefinite time period.
• The completion of the fixed term of the partnership.
• The completion of the project for which the partnership was created.
• A partner dying or becoming bankrupt.

The process for ending a partnership will depend on whether there is a formal agreement that can be followed.

If there is no partnership agreement, the process will be guided by the Partnership Act 1895.

Resigning from a partnership

A partnership set up for an indefinite time period allows a partner to resign or retire at any time by giving written notice to the other partner(s). The resignation will trigger the partnership to be dissolved.

How to dissolve a partnership:

• Prepare a notice of resignation and provide a copy to all partners. See our sample letter below
• Publish the notice of dissolution in the Government Gazette and a local newspaper. This will alert other people to the dissolution and protect the resigning partner from creditors who do business with the other partners after the notice date.
• If the business name is to be retained by the remaining partner(s) use ASIC Connect to add or remove partners or change the name and address of a partner.
• If the partnership will cease trading and has a registered business name, use ASIC Connect to cancel the business name.
• If the remaining partner(s) are unwilling to dissolve the partnership and refuse to sign ASIC forms, the resigning partner can complete a statutory declaration signed by a Justice of the Peace. The declaration should outline the circumstances and reasons for submitting an incomplete form. ASIC will then investigate to confirm the situation.

Sample letter: notice of resignation of a partner

Notice of resignation of a partner

Partnership Act 1895

Notice of discontinuance of partnership

Take notice that as from [date] the partnership of John Citizen of [address] and Mary Citizen of [address] in the State of Western Australia who traded as [business name] was dissolved.

John Citizen has resigned from the partnership. Mary Citizen will continue to operate the business under the name of [business name] and shall be responsible for all the debts and liabilities thereof.

Dated: [current date]

_____________________ John Citizen

_____________________ Mary Citizen

Start to wind down your business activities

You should have the business independently valued. Your accountant can recommend a suitable business appraiser or valuer, or look for one online.

Make sure that all debts are paid and distribute the assets. Unless a partnership agreement states otherwise, all partners are entitled an equal share of the assets and profits of the business. Partners must also contribute equally towards any business losses.

You should advise other interested parties that the partnership is ending. These may include employees, customers, bank, landlord, debtors, suppliers, utility providers and insurance companies. Arrange to close any accounts and agreements that are in the partnership name.

Closing your business

You will still have certain obligations even after the business has closed.

You will need to ensure you complete your final tax return, cancel your GST registration (if applicable) and finalise superannuation payments, if you employed staff. It is important to discuss your obligations with your accountant or the Australian Taxation Office (ATO).

Ensure you meet your legal obligations in regards to keeping records related to your business activities, including records of sales and purchases, employee records, and payments to other businesses.

If your business has a lease, you’ll need to end the lease agreement. Depending on the conditions of your lease, you may still need to pay rent and other costs up until the end of the lease term. You may be able to negotiate an early termination with your landlord.

Another option may be to transfer the lease to a new tenant if this is allowed under your agreement. You should seek advice from your lawyer or one of our commercial tenancy business advisers if you are unsure about your options.

Insurance for your business is important to cover unexpected events such as loss or damage to your property, legal claims and workplace injuries.

Obtaining the right business insurance is an important part of establishing a reputable and sustainable business, and minimising risk. Without it you may be unable to trade or have large out-of-pocket expenses, which could result in having to close your business.

Your type of business and daily activities will determine the insurance cover needed. From a financial perspective it’s important to research the types of insurance required so these costs can be included in your overall budget.

Business insurance pathway

1. Define your business type and activities
2. Identify the risks
3. Research types of business insurance
4. Choose an insurance broker
5. Review your cover regularly

Define your business type and activities

It’s important to clearly define your type of business and daily activities as these will influence the types and level of insurance cover you need. An insurance policy that meets your business needs will protect against a range of unforeseen events, such as an office or factory fire, theft or storm damage.

The following provides an overview of some of the most common types of insurance by business type – use it as a guide in relation to your own business.

Information you need to supply

The more information you provide to insurance companies about your business activities the better. This will enable them to tailor a package to suit your specific needs, and could include:

• type of business
• where the business is located (will you be running the business from home or leasing a commercial premises?)
• estimated annual turnover
• number of people working in the business (including you)
• full contact details of the business, including ABN

Identifying risks

It’s important to identify areas of your business that would be heavily impacted if a ‘worst-case’ event occured. This will assist you in deciding which insurance policies are most relevant for your business.

When conducting a risk assessment, ask yourself:

• What risks could negatively impact my business?
• What is the likelihood of each risk?
• What are the consequences of each risk? Use the three steps below to help identify your business risks.

Step 1: Define the risk context

Identify where or under what circumstances risks could occur. For example, at a particular worksite, department, work section, retail shop branch, or after severe weather. (A restaurant owner would identify their kitchen as a place where risks could occur.)

Step 2: Risk identification

Identify particular risks in each area of your business by systematically working through each function, activity or stage of your operations and note what could happen at each point. Brainstorm with your employees to get a broader view of potential risks. (Within the kitchen, the restaurant owner sees employees burning themselves on the deep fryer as a potential risk.)

Step 3: Risk assessment

Once you’ve identified the risks that could apply to your business, use the risk assessment matrix below to assess the likelihood of each risk occurring against the most probable consequence if it does happen. (Because safety equipment is installed, the risk of an employee burning themselves on the deep fryer is unlikely, but the consequences would be serious if it did happen. This means it’s a medium risk.)

Completing a risk assessment will help you determine the best strategies to mitigate each risk and the type of insurance you are likely to need. For example, if you operate as a sole trader and become too unwell to run your business, what will you do? One option is to train employees or contractors to help in the business, or you could take out income protection insurance.

Assessing the risk in your business

Researching business insurance

In Western Australia it’s compulsory for small business owners to have workers’ compensation insurance and motor vehicle third party personal insurance, which is included in the cost of your motor vehicle licence.

Insurance can be divided into protection for three main categories: assets and revenue, liability, and personal and workers.

Choosing an insurance broker

Insurance cover can be arranged through an insurance company, an agent acting on behalf of an insurance company, or an insurance broker. Insurance brokers are required by law to act as your representatives and work in your interest, whereas insurance agents are acting in the interests of the insurance companies.

You can contact a broker through the National Insurance Brokers Association or the Insurance Brokers Network of Australia.

If you want to liaise directly with an insurance company, the Insurance Council of Australia provides insurance information and contact details of its members.

As with any purchasing decision, you are advised to shop around and compare prices, service and reputation.

• Check what is covered and what is excluded.
• What do you need to do so that the policy remains valid, for example, do you have to install locks on windows?
• Check online forms for discussions about the payout performance of particular insurance companies being reviewed.
• Consider the excess on the policy. An excess is set by insurance companies to reduce the number of minor claims. The larger the excess, the lower your premium will be.

Complaints resolution

If you have a dispute with your insurer, contact the Financial Ombudsman Service for assistance.

The Australian Prudential Regulation Authority can also be contacted regarding issues or disputes relating to insurance

Reviewing your insurance

It is your responsibility to let your insurer know if there are any changes relating to the circumstances or conditions of your business. If you do not disclose changes that have occurred since you originally took out the policy, payouts for any claims may be reduced, or the contract may be cancelled. Notify your insurer immediately of any variations.

Always obtain a cover note if there is a risk of trading without a policy being issued in time.

You should review your insurance cover:

• annually, before renewal
• when assets are acquired or disposed of
• when important changes occur in the business

The Magistrates Court of Western Australia deals with claims for debt and damages up to $75,000.

Minor case claims - debt or damages up to $10,000

General procedure claims - debt or damages up to $75,000

With a claim for $10,000 or less you can choose to make either a minor case claim or a general procedure claim.

If you decide to make a claim in the Magistrates Court, you will need to:

• complete the application form available from the Magistrate Court website
• lodge your completed form with the court
• pay the relevant fee.

If you are making a claim you will be referred to as the ‘claimant’. The person(s) you are making a claim against will be referred to as the ‘defendant’.

Before proceeding with a claim make sure you:

• know the amount you want to claim
• the date on which you provided the goods and/or services
• the reason why the defendant owes you money
• the correct name and address of the defendant.

Minor case claims

The process for minor case claims is as follows:

• Claimant lodges a claim with the Magistrates Court.
• A copy of the claim is served on the defendant. 
• The defendant has 14 days from the date of being served to decide whether to defend the claim. The claimant cannot proceed with the claim until this period has expired.
• The defendant may decide to admit to the claim and pay the debt, ignore the claim or defend the claim. If the claim is ignored you can make application to the court for judgement.
• If the claim is defended, the court registrar will list a pre-trial conference within 14 days of receiving notice from the defendant.

A pre-trial conference will bring together both parties and attempt to reach a settlement. If no settlement is reached, the case may be referred for another pre-trial conference or proceed to be heard before a magistrate.

Note: General procedure claims follow a similar process but can be more complicated if the claim is defended. The Magistrates Court website has more information about minor case and general procedure claims.

Legal representation

If you are making a minor case claim you cannot be represented by a lawyer unless all parties agree or the court grants special permission.

For general procedure claims you can be represented by a lawyer. If your claim is for $10,000 or less, and you elect not to have it dealt with as a minor case, you will have to pay all your legal costs even if you win, unless the court orders otherwise.

Debts exceeding $75,000

For claims of more than $75,000 you will need to apply to the:

• District Court for debt or damages up to$750,000
• Supreme Court for debt over $750,000.

More information

• Read the Magistrates Court fact sheets.
• If you want to seek legal advice, read our guide to choosing a lawyer.

An essential part of being a business owner is understanding how to best deal with problems.

Many issues can be handled using common sense, however small problems can sometimes escalate into disputes. Often the most costly part of resolving a dispute is the time spent dealing with it, instead of running your business. The steps below explain what to do if you are in dispute.

You may find yourself in conflict with a client, supplier, employee, tenant or landlord, or government agency. In each case how you manage the dispute may vary, however there are some key steps you can follow to handle the issue and maintain good business relationships.

Check your facts

• Consider exactly how the dispute arose.
• List the events leading to the dispute and highlight the key ones. Also include details of the issues you would like to be resolved.
• If you have a written contract read it carefully to clearly understand the rights and responsibilities of each party. The contract may include a clause relating to a particular dispute resolution process that needs to be followed. Verbal agreements with supporting paperwork, such as emails, specifications and quotes with details of materials and timeframes, can also show evidence of a contract.

Talk to the other party

Many disputes arise due to misunderstandings; a conversation with the other party may clarify the problem and lead to a resolution. While a minor issue could be handled with a phone conversation, more complex matters are often better dealt with at a face-to-face meeting.

Points to remember when dealing with the other party:

• Make sure the person you are communicating with has the authority to settle the dispute.
• Always remain calm, polite and professional in your spoken or written communications. Avoid abusive or emotional language, or laying blame.
• Plan what you are going to say. Set out your concerns as clearly as possible, making it evident that you are looking to resolve the situation quickly and in a professional manner.
• Try to understand the situation from the other party’s perspective.
• Make a list of possible solutions to the dispute for discussion with the other party – be realistic and prepared to negotiate.
• Consider how achieving a particular solution (or not achieving it) will impact on your business – particularly in terms of time, money and future working relationships.
• Listen carefully to what the other party has to say – you may find the difference between your position and theirs is not as significant as you initially thought.
• Look for a ‘win-win’ solution that restores your business relationship. Make a list of realistic solutions to discuss with the other party.
• After discussions with the other party make clear notes and record any outcomes that were agreed.

Formally write to the other party

If talking to the other party doesn’t work, the next stage is to communicate your concerns and the outcome you are seeking in a polite, professional letter. A letter serves two purposes; it provides the other party with an opportunity to resolve the dispute before further action is taken, and it provides evidence that you have attempted to resolve the dispute. This may be required if you need to use other means of resolution.

When sending the letter, attach copies of any relevant paperwork; such as a copy of your contract, emails, a list of specifications, quotes, invoices or other documents that outline your areas of concern. Make sure you keep a copy of all correspondence.

If you are still unable to resolve the dispute after talking and writing to the other party you may need assistance from a third party. Be cautious about resorting to litigation. Consider using an alternative method to resolve the dispute such as negotiation and mediation.

These services are usually cheaper and less stressful than going to court. If the dispute still remains unresolved, there are third parties who can help (see graphic on page two), including accessing our dispute resolution service.

Dispute resolution service

We understand the value of your time and the importance of your business relationships. The faster disputes are resolved, the sooner you can return to running your business.

Our dispute resolution service (DRS) helps small business owners resolve business-to-business or business-to-government disputes. DRS is a voluntary process whereby disputing parties attempt to resolve their issues with the assistance of an impartial third party. As part of this service, our case managers provide general advice and assistance to all parties in dispute, helping them understand their rights and responsibilities, clarifying issues and exploring options to resolve the matter.

DRS gives you an opportunity to resolve disputes in a timely and cost-effective manner without needing to engage in a formal legal process. Early effective use of DRS can also have a positive effect on maintaining ongoing business relationships.

Although the option of taking your dispute to court is always available, it should generally be viewed as a last resort.

Find out more about DRS