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Learn How to Start a Business in Australia Flipbook PDF
Learn How to Start a Business in Australia
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LEARN HOW TO START A BUSINESS IN AUSTRALIA GERARD WILLIAMSON (UNIVERSITY OF SYDNEY )
Abstract Running a business in Australia can be challenging, especially if you’re a first time entrepreneur or business owner. You can greatly improve your chances of success by talking to those that have previously built successful businesses before and learn from their mistakes and successes.
1.0 Introduction Starting a business is not that much simple. It takes grit, determination and the understanding that success does not magically happen overnight. However, like all countries, Australia has their own rules and regulations that must be abided by in order to legally operate a business there. Knowing the necessary steps that you need to take can save you time and prevent your business from becoming mired in a sea of government red tape. Here are some amazing tips that will help you to start a business in Australia
2.0 Before You Start, Write a Business Plan
Tip #1 - Decide if you're ready to start your own business
your reasons for getting into business will the business satisfy your needs your level of skills your business goals the advantages and disadvantages of establishing your own business time requirements and commitments.
Tip #2 - Conduct market research into your business idea what product or service you will provide? is your idea feasible?
how will you protect your idea? is there a market for your product or service? what skills do you need? who are your competitors? what difference will you bring to the market? do you have the financial capacity to own a business?
Tip #3 - Choose your type of business and business structure sole trader - an individual trading on their own partnership - an association of people or entities running a business together, but not as a company company - a legal entity separate from its shareholders trust - an entity that holds property or income for the benefits of others.
Tip #4 - Write a business plan for your new business executive summary - a one-page overview written after your business plan is finalised introduction - explains the purpose and objectives of going into business marketing analysis - looks at the industry you are entering and how you fit in marketing plan - your marketing strategy operations plan - how you'll set up the business, i.e. structure, location, regulations management plan - how you'll manage your business financial plan - how you'll finance your business, costing and financial projections.
Tip #5 - Create a marketing plan for your new business
analysis of your current market your business objectives key strategies steps to achieving your objectives proposed budget timing.
3.0 How much will it cost to start a business? Your start-up costing sheet can be prepared well before you start your business and can give you a more realistic idea of what it will cost. Use the items below as a starting point to create your start-up costing sheet, listing all your current or expected start-up costs with each dollar amount. You will need to research each item to determine the cost for your particular business circumstances.
Once you have all of your items listed, total the amounts under your group headings. Conducting this activity as part of your business planning process will help give you an idea of how much it will cost to start your business. Not all start up costs listed below will be relevant to your business, as these costs will depend on your business structure and type. We've also included links to our business topic information to help you understand more about the possible costs listed.
Business start-up cost template
These are examples of different items that may incur a cost when starting your business. Do your research for each to determine the costs for your personal circumstances. Market research, including conducting primary research or gather research from secondary sources about your market, customers and competitors. Registrations, including registering for an ABN and Business name registration Licences and permits Domain names registration Intellectual Property (IP) rights protection, including Trade marks/designs/patents Vehicle registration Membership fees Accountant fees Solicitor fees Rental lease cost (Rent advance/deposit) Utility connections and bonds (Electricity, gas, water) Phone connection Internet connection Computer software Training Wages Stock/raw materials or inventory Insurance 1.0 Building and contents 2.0 Vehicle 3.0 Public liability 4.0 Professional indemnity 5.0 Product liability 6.0 Workers compensation Business assets Business revenue
Printing Stationery and office supplies Marketing and advertising Website set up Total start-up costs (add up all your start-up costs)
Equipment or capital costs
Business purchase price Franchise fees Start-up capital Plant & equipment Vehicles Computer equipment Computer software Phones Fax machine Security system Office equipment Furniture Shop fit-out Total equipment or capital costs (add up all your equipment or capital costs)
Whether you have already started or intending to start you'll need to fill in actual or estimated figures against each cost item. If using estimated costs, you'll need to label them clearly. When preparing a start-up costing sheet, ensure you also clearly state whether your figures are GST inclusive or exclusive.
3.0 Things to Know Before Starting a Business in Australia
Are you pondering about starting a business in Australia? Australia is a market that businesses have been flocking to from around the world for many years. That trend shows no sign of changing any time soon. The fact of the matter is that there has never been a better time to begin doing business in the land down under.
1. Understanding the legal requirements The vast majority of countries require companies operating within their borders to be registered. Australia is no different. If you are running a business in Australia, you will be regularly interacting from various agencies that represent federal, local and territory governments. Understanding the legal requirements is critical because it enables you to proper planning. Australian Consumer Law, our privacy laws and the Competition and Consumer Act should also be understood at a general level.
2. Business Visas If you are a citizen of a foreign country who want to live in Australia on a permanent basis to oversee the daily operations of your business, you would be advised to hire an immigration lawyer to help you with the transition process. There are some certain requirements and the amount of money invested involved in this. There are two types of business visa available to individuals who are interested in starting a business in Australia as a foreigner: the Business Innovation and Investment Visa and the Business Talent Visa. It is important to get the right migration advice from an immigration lawyer.
3. Employer requirements There are various requirements that employers need to be aware of when they do business in Australia. All wages must be paid based on the State of Federal award. Every business in the country must register with the
Australian Taxation Office. Accurate employment records must be kept. All businesses must pay superannuation contributions. All safety and health standards must be met. Lastly, all employment conditions and terms must be complied with.
4. Business name registration If the name of your business is not registered and on file with the territory or state government in which it is located, you will not be legally permitted to do business there. Registration is needed for businesses with a name that is different than the person in charge of it.
Registration is also necessary for all businesses that want their website to have ‘a .com.au’ domain name. Since many companies rely on a stream of income to be generated through online sales, it is imperative that businesses are registered to have a domain name associated with Australia. Obviously, you can not register a name for a company if it has already been registered. In order to avoid choosing a name that is already registered for use in Australia, contact the Australian Securities & Investments Commission and request to see the national business names index. This list has the names of all companies that are registered to do business in the country. There is no charge to look at the list.
5. Logo to be registered as a trademark (if needed) Do you need to protect your brand? What about patent or copyright protection? Trademark registration Australia grants you the right to take legal action against infringing parties. It can be a lengthy and complex process, and so it is advised that you consult a trademark professional for a proper understanding of intellectual property issues.
6. Applying for an ABN If you’re going to be registered to collect GST, then you’ll likely need an Australian Business Number (ABN). Register for an Australian Business Number (ABN) helps to confirm your business identity to others when ordering and invoicing. Some business directories online might even require your ABN to list your business on their website.
5.0 Tips on Launching a Start-up in Australia
Australia is a nation of entrepreneurs and while launching a start-up here is an exciting prospect, it’s by no means an easy feat. For those who have experienced it first hand, they know it takes time, perseverance and selfdiscipline to turn your business from a passion project into a thriving enterprise. Here are my five top tips on launching a start-up in Australia.
Write a business plan but be flexible Before sinking your time and money into launching a business that may not succeed, start things the “old-fashioned” way and write an in-depth business plan. Your plan should define any opportunities you’ve identified, clearly state your mission, describe your targets, establish measurable goals, and set deadlines for each milestone along the way. Remember that while it’s
important to have a plan, it’s equally vital to be flexible enough to pivot when needed.
Know your customer and market Finding customers is consistently one of the biggest challenges any small business will face when first starting out and throughout the duration of their operation. So before launching, think about who your customers and what your market will be, what makes them tick and how big the market opportunity is. You should always have a target audience in mind, and the goods or services you offer must solve some kind of problem for this group in order to take off.
Get out there and network Until you’ve established your business, you’ll need to create your own wordof-mouth. Be your own brand ambassador, touting the benefits of working with your business and showing why people should give you a chance. Never be afraid to ask for help – your networks, business contacts, friends and family can be your best resource. Seek a range of professional and general advice, for example find a good accountant and consider approaching established businesses for their advice – learning from the experience of others can be invaluable.
Create a solid digital strategy Owning your own business certainly comes with its challenges, however a digital strategy of how you will build your business’s online objectives will be one of the most important blueprints when it comes to growing an enterprise that is effective and profitable. It can be easily measured, which enhances your connection to your business objectives to help keep an eye on your successes and failures. Knowing your key channels, developing a content strategy and monitoring and measurement are just three of the main items you need for a successful digital strategy.
Embrace mobile Businesses that are at the forefront of digital success today have taken fairly straightforward ideas and revolutionised them with mobile technology, with the simple aim of easing the lives of consumers to deliver what they want quickly, no matter where they are. Start-ups should consider that successful businesses are not always built on brand new ideas, but also by bettering existing ones with new technology. The convenience of having the world at our fingertips is what we all want – from how we shop to what we eat to how we move around our cities. It’s a vital part of any modern business.
6.0 Cheapest Businesses To Start In Australia Starting a new venture is both supremely exciting and nerve-wracking for aspiring entrepreneurs. While they want to become their own boss and take charge of their financial destiny, they are still sceptical about the feasibility of the business idea. The risk involved can lead to the loss of savings of a lifetime and leave one disappointed and disoriented. Thus investing in a cheaper business opportunity proves to be a pragmatic solution for many new players in the commercial battlefield. A significant challenge of starting a business from scratch is that you need to spend a lot on the set-up, establishing a customer base, creating brand awareness and securing the cash-flow, etc. This is the reason why many people take the path of acquisitions which gives them access to an existing and thriving set-up. It is easier to leverage the reputation, loyal customers, and brand equity of an existing entity to realise your dream of entrepreneurship. Thus you must look for low-cost acquisitions among the businesses for sale in Australia that come with a proven track record of success. Let us help you in your search by providing a list of the top seven cheapest businesses in the country.
1. Takeaway Food Business
The revenue generated by the fast food and takeaway food services reached $20 billion in 2018-19 in the country. Although people love going to restaurants, the dearth of time has made them more open to takeaway food options which are now getting delivered at doorsteps of the customers with the help of food delivery apps like UberEats, Menulog and Deliveroo. This business structure is much cheaper than starting your own restaurant as you only need a kitchen to get started. With the supply and delivery network in place, you can start earning from the first day of trading. To look for such business opportunities in Australia, click on the link below.
2. Online Retail Business Australians have become the patrons of online shopping in the past few years. A recent study revealed that an estimated 9.4 million people made online purchases in an average period of a month. The most sought-after products are fashion, electronics, food, toys, etc. Thus purchasing an existing ecommerce site which has a user-friendly interface and popularity among the masses can assure good returns in the future. You can capitalise on the growing number of buyers and the convenience offered by online shopping to expand the business further. It is cheaper than any other business as it can be
operated from home and does not need many employees. You can look for the most lucrative online businesses for sale right here.
3. Bakery Business
There are very few Australians who do not love bread that melts in the mouth and fills your heart with joy. Cakes, pastries, pies, muffins, stuffed bread, fruit bread, flavoured bread – all are the top favourite of children as well as adults. They are the perfect side dishes for your pasta and the best ingredient of your peanut butter and jelly sandwiches. Naturally, bakeries are in high demand and that is why many people intend to open a bakery. If you want to give a miss to the whole set up and logistics process and start baking from day one, then you need an established bakery in a prime location which is generating excellent profits. So click on the link below to find your perfect match, and put on your baking gloves.
4. Hairdressing Business
If you love hairstyling or have learnt the art, then you can embark on your entrepreneurial venture by acquiring a hair salon. The industry has grown exponentially over the past few years and its revenue touched the figure of $ 7 billion in 2018-19. As more and more Australians are willing to spend money on looking good, the hairdressing and beauty services are growing from strength to strength. The purchase will not cost you much, as you won’t need any fancy equipment. As long as you have a studio and skilled employees, you can make a few quick bucks easily. If you too wish to become a part of this booming sector, then click on the link below.
5. Cleaning Business
You may have been shying away from cleaning your own house, but cleaning the houses, pools and offices of others can earn you a lot of dollars. Commercial cleaning services have become a $12 billion industry as urban professionals are finding it hard to keep their homes clean while juggling between kids and jobs. There are a plethora of cleaning services such as bond cleaning, house cleaning, office cleaning, carpet cleaning, garden maintenance, oven and BBQ cleaning, landscaping and others which are highly sought-after among households and corporate offices. If you have a flair for keeping things neat and tidy, then this low-risk and low investment business is the best bet for you. Take a look at the business opportunities in Australia right here.
6. Aged Care Business There has been a significant rise in the aged population in Australia. In fact, one in seven people is aged 65 or above. The increase in life expectancy, declining death rate and high-quality healthcare are contributing to this figure. As a result, there are many households with old couples or individuals living alone. These people need assistance in their daily routine and companionship which makes them feel safe and secure. An aged care business provides healthcare assistants to such people and has become a flourishing inhouse industry. If you intend to buy a well-recognised and trusted brand, then you can make thousands of dollars through this noble profession. If you think you can do this job with perfection, then click on the link below to get started.
7. Childcare Centre Business
The childcare industry has become a rewarding sector with the rise in working couples who need day-care facility for their young children. The industry size has grown to earn $13 billion in 2018-19. With relaxation in
government regulations, it has become easier to get registered as kindergarten providers in Australia. It is a turnkey business which can be operated with a few employees easily. If you love being near kids and have children of your own, then you will enjoy managing a childcare centre while taking care of your kids. To find the best opportunities in town, check out the link below. Conclusion Sail into the domain of entrepreneurship smoothly with the acquisition of a promising business for sale in Australia. These cost-effective business models can help you realise your potential as a businessperson without breaking the bank.
7.0 Business Mistakes to Avoid When Starting a Business If you want to start a business, read through the following list of business mistakes and go out of your way to avoid them. Any one of them could sabotage your new business venture and turn it into a failure rather than a success.
Business Mistakes 1) Not Doing a Business Plan If I had even just fifty cents for every time someone asked me “Is this a good business idea?” over the years, I’d be a wealthy woman. The problem is unless I write a business plan, I have no idea – and you won’t, either. That’s the main purpose of a business plan. There are other good reasons, too; see 5 Reasons for Writing a Business Plan to learn more. Yes, it’s time-consuming and demands a lot of research, but investing time now will save you so much time and money later.
2) Doing What You Love “Do what you love” is a piece of business advice that's been doled out ad nauseam. But for many people, it's a big business mistake. The reality is there are a whole lot of people out there who love things they’re not good at. Bet you can name several you to know off hand. The person who thinks she's a great cook — but isn't. The person who thinks he can fix pretty well anything — but can't. My official advice for starting a business? Don’t do what you love; do what you’re good at and what people will pay you (well) for. It’s not as catchy, but it’s a whole lot more profitable — and isn't making a profit the reason you're opening a business?
3) Not Doing Any Market Research I see increasing numbers of people starting businesses without bothering to do any of this – and then being heartbroken when their new business, which they’ve invested so much time and money in, collapses. Test your products and service first before you start a business. If you don’t, you have no idea if people are even going to want to buy them. You may think you make the tastiest pierogi in all the world. But will anyone else?
4) Ignoring the Competition Ignoring the competition is another potentially fatal business mistake. Simple question #1: If you’re selling your thingamabobs for $10.00 apiece and Vera down the street is selling her thingamabobs for $6.00 apiece, how many thingamabobs are you going to sell? And what if Vera’s thingamabobs look/smell/feel/taste better than yours? 6 Ways to Find Out What the Competition is up To will show you how to keep tabs on the competition that matters. Another aspect of competition you need to understand is market saturation. The pie is only so big, so to speak, for every product or service. So, for instance, if you want to open a dog grooming business, there may not be any
“room” left in your local area to do so because of the number of dog grooming businesses that already exist; the market is already "saturated" with this kind of business.
5) Not Taking Into Account Your Own Strengths and Weaknesses We all have them. Unfortunately, sometimes our strengths or weaknesses don’t fit well with the business model we want to use, leading to disastrous results. For example, if you’re not a friendly, outgoing type of person with good people skills, retail is not for you. It doesn’t matter how many years you’ve dreamed of opening that ice cream parlor or bookstore, it’s not for you. That doesn’t mean you can’t buy such business or start one yourself, but for it to succeed, you need to be aware that working behind the counter is not something you should be doing; you’ll need to hire staff right away.
6) Not Understanding What You’re Actually Selling Helena Rubinstein, the first self-made female millionaire, didn’t become rich selling face cream; she became rich selling beauty. ("There are no ugly women,” she used to say, “only lazy ones”.) If your new business is going to be successful, you need to know what you’re actually selling and craft your unique selling proposition accordingly.
7) Not Making Sure You Have Enough Money Ninety-five percent of businesses will not make money when they first open and a large proportion of new businesses will not make significant money for years. (The exception, the five percent that makes money when they first open, is for businesses that are actually just “carry-overs”, employees who become contractors, a fairly common practice in industries such as IT.)
Which means you (and your family) have to have enough money to live on while your new business is getting established, as well as enough money for the business to survive and grow. Not getting the money to do this lined up before you start your small business is a serious business mistake. Small business financing of some kind is the most obvious way to do this, either through a traditional lender or through a non-traditional alternative. Perhaps you can qualify for a startup grant. How to Get Your New Small Business to Make Money includes some other ways you can bring in bucks while starting up.
8) Not Investing in Marketing Following the common advice “Build it and they will come” is another serious business mistake. Come where? Why? Or even when? No one will know without some effective marketing. Far too many small businesses are reluctant to spend any money on marketing, let alone a significant amount. Free marketing can be excellent – but most free marketing strategies take a significant amount of time before they become effective. (Referrals and social media marketing are examples.) Create a marketing plan, set up some marketing campaigns, and keep doing it if you want your business to be successful. My best tip? Market your business before you open it. There’s no rule that says you have to wait until your physical or virtual doors are actually open.
9) Not Bothering With Any Online Marketing One way or another, your small business has to be online. You may or may not need a website (many individuals who provide services use other “homes” on the web, such as Facebook or LinkedIn pages or Etsy sites) but your business needs to be able to be found by and promoted to the ever increasing number of people who use the web to find the products and services they want.
If you’re not going to do anything else, establish some sort of home base for your business online and be sure that your small business is listed in various online directories. Actively marketing your small business online is even better and will give it a far better chance of reaching your customers. One possibility is to engage customers through social media. Learn How to Create a Social Media Plan.
10) Trying to Do Everything Yourself You can’t. It’s that simple and that aggravating. Running a small business, even if it’s a one-person business, involves so many different tasks that no one person can do them all well. Even if each of us was perfect and had all the skills to do an outstanding job at whatever we set our hands to, each of us is still constrained by time. Most days, you’ll be lucky if you even get done what you planned to get done when your day started. So sidestep the business mistake of trying to do it all and increase the chance of your new business succeeding by getting the help you need from the get-go. Learn how to delegate, hire and outsource to make the most of your skills and benefit from outside expertise. For example, do you really need to do your own accounting? Accountants have a lot more financial and tax knowledge than you have, more than likely, and can save you a bundle of time (and even money!) at tax-time. (Speaking of outside expertise, have you thought about creating an advisory board for your small business? It can give you a real management advantage.)
Who Doesn’t Want to Succeed? I’ve yet to meet a person who wants to start a business that’s going to fail. If starting a business is in your future, understand that starting a business is a process, not an event. If you take the time to do the thinking and the research and avoid the business mistakes discussed above, you’ll hugely increase the likelihood of your new business succeeding.
Conclusion A good idea doesn’t guarantee success – everyone has one. The value is in the execution of that idea and that’s where your focus needs to be. You’ll be surrounded by people who always ask of you, “But what will happen if you fail?” Instead, ask yourself “What if we succeed?” This is why it’s important to surround yourself with a great team who support each other. So plan your idea and execute it smartly to achieve a successful business.
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