Starting a business can be exciting and frightening at the same time. No matter the type of business you choose to open, the entire process will go smoother if you know what resources you need ahead of time.
Different types of companies will have various needs. If you're considering opening a business that relies on vehicles, for example, you'll need commercial insurance. If you're going to open a food service business, you'll need access to an adequate kitchen. If you hire employees, you'll need to know the laws regarding hiring and providing workers' compensation.
Here are a few details any aspiring PNG entrepreneur should keep in mind, regardless of the type of business they'll open:
Choose the business type carefully
Demand is essential for any successful company. Seek out a need in the community in which you wish to set up your business, then find a way to meet it.
Tourism is one of the best industries to become a part of in PNG, according to the Papua New Guinea Tourism Promotion Authority. A few opportunities in this regard include:
- Taxi services: Transportation around PNG can be difficult. Taxis can help tourists find their way around.
- Food and drink: Every tourist needs a meal; restaurants and other food services are usually welcome.
- Hospitality: Lodging is critical, though lacking in certain parts of PNG. If you go this route, ensure there's adequate transportation for visitors to access your location.
If you choose to stay out of the tourism industry, consider the needs of PNG residents. They'll also benefit from taxi services and food establishments, though other businesses may also be popular with the local community.
Alternatively, PNG's natural resources create ample investment opportunities, according to the Investment Promotion Authority (IPA). From mining and petroleum to agriculture and fishing, the natural resources available throughout the country can serve as a basis for a successful business venture.
Obtain the necessary resources and documents
Once you've determined what type of business you're going to open, begin preparing by obtaining the resources and equipment you'll need. This may include vehicles, a storefront, inventory, a commercial kitchen or more.
You'll also need to complete some paperwork, including registering and certifying your business with the IPA and getting a tax ID number from the Internal Revenue Commission. These are necessary to operate legally in PNG, and to contribute tax revenues to the country.
Purchase the appropriate insurance policies
All companies need commercial insurance – the question is, which policies are right for yours?
This all depends on the type of business you'll open. Here are a few common types of commercial insurance policies and who needs them:
- Commercial PMV insurance: Any company that uses vehicles should have this to protect against incidents that happen when a car is being used for business. This applies even if the only vehicles used are employees' privately owned cars.
- Workers' compensation: All businesses with employees should have this to cover expenses related to an injury or illness sustained through work.
- Infrastructure protection: All companies should have this to help cover the repair or replacement of business property.
- Public liability: All businesses should have this to cover expenses in case a person gets injured on the commercial property or due to the company's products or advertising.
There may be additional types of insurance that your needs. The best way to ensure you're adequately covered is by speaking with your insurance agent. To learn more, reach out to the professionals at Trans Pacific Assurance Limited.
