Data Loading...
How to Start a Business in Sydney - The Complete Step-by-Step Guide Flipbook PDF
How to Start a Business in Sydney - The Complete Step-by-Step Guide
117 Views
95 Downloads
FLIP PDF 1.71MB
HOW TO START A BUSINESS IN SYDNEY? A COMPLETE STEPBY-STEP GUIDE PREPARED BY RILEY MARK
Abstract Before you start a business in NSW, it's important to take the time to understand the steps involved in opening a new business. Use this guide as a checklist of tasks you may need to complete.
I. Introduction Talk to any entrepreneur or small business owner and you'll quickly learn that starting a business requires a lot of work. An idea doesn't become a business without effort. Some budding entrepreneurs understand the effort necessary to create a business, but they might not be familiar with the many steps required to launch a business venture. If you're willing to put in the effort to build a business, you're going to want to know the steps needed to reach your goals. Tasks like naming the business and creating a logo are obvious, but what about the lessheralded, equally important steps? Whether it's determining your business structure or crafting a detailed marketing strategy, the workload can quickly pile up. Rather than spinning your wheels and guessing at where to start, follow all the points to transform your business from a lightbulb above your head to a real entity. About Location: Sydney is now home to a raft of start-up accelerators and incubators, which have resulted in a rapid expansion in microbusinesses in the city. If you’re looking for a push in the right direction then the likes of Startmate, Founder Institute, Ignition Labs and Pushstart have a proven track record of doing exactly that.
Jonathan Barouch is CEO and founder of Local Measure, a social media tool based in Sydney. We sat down with him to get a better understanding of what life in the cty is like for startups. What are the best aspects of doing business in Sydney? Of course I am biased, but undoubtedly the best aspect of doing business in Sydney is that you get to be in Sydney. This is a wonderful city to visit, and an even better city to live in. From a lifestyle perspective – and again I have a conflict of interest because this is my home town – Sydney is difficult to beat. Pure air, pristine beaches, clean streets, good food, and a smart, hard-working and multicultural population to enjoy these things with. From a business perspective, Sydney has a global outlook and enjoys the high standard of supporting infrastructure that one would expect from a world city. From its financial services to transport and logistics, to telecommunications and IT, you can get things done in Sydney. Australia produces some great talent and creative and innovative people – and in the tech sector these people gravitate to Sydney. The Australian lifestyle also attracts smart people from around the world. Sydney also conveniently overlaps with both the US West Coast and most Asian capital cities' working day – making it a particularly handy location for an Asian hub. Culturally, Sydney is still young and there is a very real sense that anything is possible. It is easy to get excited about business in Sydney , which makes doing business here exciting. What are the downsides to doing business in Sydney? Local Measure is a global-facing business. We are building customers in different markets around the world and have just set up a local presence in Singapore and in the US, in Miami. While I would argue that I would still need to get on a plane to see customers around the world no matter where we were based, it is true that the plane ride is a little further to and from Sydney! There are some frustrations. In the tech sector we sometimes wonder at the obsession with the Australian resources sector by governments and investors (we are the birthplace of some of the word’s largest mining companies). The local tech scene and start-up community is incredibly vibrant and happy to compete with other industries for attention. How would you describe the business culture in Sydney? Australians generally are warm and engaging and while it is impossible to generalise, this extends to the business sector. But these positive attributes are only possible thanks to the social basics that are in place in Australia – that is, an educated population, strong institutions and respect for the rule of law. Sydney people are great to do business with. They know how to separate business from personal life. But at the same time, it is like any sophisticated market. You get into business
with the people you respect and admire. Your partners expect you to work hard, and you expect the same of them. What are the costs of doing business in Sydney? Sydney is not the cheapest place in the world to live or to do business. But it’s not wildly off the chart either. Even compared Sydney office rents can be slightly eye-popping in the CBD hotspots. It’s not the cheapest place to buy a coffee either, but to be fair the coffee scene in Sydney is superb. You can find many tech entrepreneurs huddled around screens at trendy cafes like Surry Hill’s Single Origin Roasters (Sydney’s answer to SF’s Blue Bottle). Australians enjoy a great standard of living and this is reflected in salaries and prices. Skilled people can be expensive – but the upside of that is that the talent is excellent.
The frustration in relation to employing people in the tech sector has more to do with finding the right skills, rather than how much they cost (even though they are expensive). Telecommunications and datacentre costs might have been a big issue 20 years ago, but we’re well past that now. But it’s like anywhere. Once you know the place, you find the best ways to do things that fit the budget and fit the purpose. What tips would you give to an entrepreneur thinking of starting up in Sydney? My advice to any entrepreneur starting out tends to be the same regardless of where they are – that is, to invest in building your network. That doesn’t mean going out and shaking hands. It means getting out and understanding the people and businesses around you. It means pitching your business over and over again, and honing those pitching skills. Tell
people who you are and what your company does succinctly. And then listen carefully as they tell you about their company. Building a business network is a skill like any other and it has to be learned. I know with any start-up the hours can be brutal. But in my experience it always pays off to get out of your office and get in front of people. Networking events and coffee catch-ups are a lucky dip. You never know who you’re going to meet, or where that meeting might take you, unless you make the effort, invest the time and get out of the office. Sometimes it is the last thing you will feel like doing after a long day. But it is worth it. And fortunately, in Sydney on your bike ride home you will pass by the world’s most beautiful harbour and beaches. About Taren Point (2229) is a suburb of Sydney, Sutherland, New South Wales. It is about 18 kms from NSW's capital city of Sydney. Taren Point is in the federal electorate of Cook. In the 2011 census the population of Taren Point was 1,681 and is comprised of approximately 54.4% females and 45.6% males. The median/average age of the population of Taren Point is 58 years of age. 73.2% of people living in the suburb of Taren Point were born in Australia. The other top responses for country of birth were 4.6% England, 2.2% Greece, 1.4% China , 1.2% Egypt, 1.2% Italy, 0.9% New Zealand, 0.8% Former Yugoslav Republic of Macedonia , 0.6% Germany, 0.5% Lebanon, 0.5% Scotland, 0.4% Cyprus, 0.4% Indonesia, 0.4% Canada, 0.4% Hong Kong . 74.5% of people living in Taren Point speak English only. The other top languages spoken are 8.4% Greek, 4.3% Language spoken at home not stated, 1.8% Arabic, 1.7% Italian, 1.7% Cantonese, 1.4% Mandarin, 1.0% Other, 0.8% Macedonian, 0.8% German. The religious makeup of Taren Point is 30.7% Anglican, 22.7% Catholic, 14.2% Eastern Orthodox, 10.0% No religion, 7.5% Religious affiliation not stated, 3.3% Uniting Church, 2.9% Presbyterian and Reformed, 1.7% Baptist, 1.3% Buddhism, 1.0% Christian, nfd. 56.9% of people are married, 18.9% have never married and 6.6% are divorced and 2.6% are separated. There are 224 widowed people living in Taren Point. 60.0% of the people living in Taren Point over the age of 15 and who identify as being in the labour force are employed full time, 30.4% are working on a part time basis. Taren Point has an unemployment rate of 4.6%. The main occupations of people living in Taren Point are 22.5% Professionals, 18.6% Clerical & administrative workers, 18.0% Managers, 11.2% Technicians & trades workers, 10.9% Sales workers, 8.8% Community & personal service workers, 4.5% Labourers, 4.1% Machinery operators & drivers, 1.5% Occupation inadequately described/ Not stated. The main industries people from Taren Point work in are 11.8% Retail trade, 11.2% Health care and social assistance, 10.5% Transport, postal and warehousing, 8.4% Construction, 6.8%
Manufacturing, 6.8% Professional, scientific and technical services, 6.5% Education and training, 6.2% Public administration and safety, 5.5% Financial and insurance services. 59.9% of homes are fully owned, and 22.5% are in the process of being purchased by home loan mortgage. 10.0% of homes are rented. The median individual income is $576 per week and the median household income is $1246 per week. The median rent in Taren Point is $480 per week and the median mortgage repayment is $2255 per month. (Source: https://localstats.com.au/demographics/nsw/sydney/sutherland/taren-point)
II. Things to consider before starting a small business WHEN you are thinking of starting your own small business it is hard not to get carried away by all the excitement. But for every entrepreneur that makes it look easy, there is another who fails, in fact almost half of all new businesses in Australia close within three years, according to the Australian Bureau of Statistics.
So what are the things that you should consider before taking the plunge to give you the best chance of success? Andrew Griffiths, author of the best-selling book The Big Book of Small Business, gives you his top 10 tips:
1. Be clear about your “why?” Embarking on the road to being a business owner is one that needs to be considered in detail before setting out. Being a business owner is not for everyone, it is challenging, there is a lack of certainty, it can be very hard financially and it will take a lot of work. It is NEVER a walk in the woods. That said, the upside is wonderful, incredible satisfaction, control for your own destiny, the ability to earn more than you would as an employee and the freedom to run the business the way you want to run it. All of that said, you need to be clear about why you want to start your own business, going in it with your eyes very wide open. 2. Know who your customers are It is important to know who is going to buy what you are selling. Who is your niche market? Describe your ideal customer? The clearer you are about who you are going to be selling to the clearer you can be about your branding, your location, your marketing, your pricing — everything. Be as specific as you can about your customers and learn as much as you can about them. 3. Check out the competition (and work out how you are going to be different) Take time to visit any competitors, or similar styles of business. See what they do well, see what they could do better. This gives you the opportunity to figure out how your business offering is going to be different (and ideally better) than your competitors. To start a business without checking out the competition is madness. 4. Do your homework on the rules and regulations that might affect you There are always going to be rules and regulations that need to be considered when starting a business. They vary dramatically from region to region, state to state. Check out the Australian Government site — www.business.gov.au and state business support departments. Be warned, not towing the line because you were not aware of a particular law is no defence, especially around things like employment, workplace safety and taxation. 5. Get some help to develop a realistic set up budget When starting a business it is easy to get caught up in the excitement of the moment. This often translates to over estimating income and under estimating the costs associated with starting a business. I work on a tough formula — double how much everything costs, double how long it will take to set up and halve how much income you think you will make — if it still stacks up, you should be fine. Having someone who understands budgets and small business, perhaps an accountant, to help you determine a budget is a very good idea. It should also be noted that getting finance once you start your new business will be tough and generally credit card based, so getting your funding in place while still gainfully employed is a good idea.
6. Make sure you are going to be charging enough One of the biggest mistakes that new businesses make is not charging enough. They look at being the cheapest as their marketing strategy to attract new customers. The problem is that it is very hard to put your prices up once you develop a reputation for being cheap. It is far better to sell on quality not price. Do your sums, ensure that your prices will enable you to make a good profit. 7. Work out how you are going to get customers Sadly too many businesses invest a fortune in their new business, set everything up, fit out the premises, build the website, stock it and staff it — and then open the doors, expecting hordes of customers to come barging in. This never happens. You need to have a very good plan (developed well ahead of time) that clearly identifies how you will attract customers. This is considered a Marketing Plan and smart businesses invest in this before they spend a cent on anything else. 8. Get your advisers in places Source your advisers early and get them involved in the set up of the business. Ensure you have a great accountant (ask other business owners for referrals), a great lawyer (especially if you are leasing a premises), a great marketing adviser to help develop your Marketing Plan ahead of time and possibly a few other advisers like a graphic designer, website developer, IT consultant etc. It does depend on the type of business you are planning to open. Invest in getting the right advice before you start your business and your chances of success will be dramatically increased. 9. Make sure you have your insurance in place Just as there are statutory rules and regulations that need to be adhered to, your insurance needs to be firmly in place before you open your doors. If it isn’t, you run a very real risk of being sued. As a minimum you will need Public Liability insurance — which protects you from people being injured on your premises. This is pretty simply to organise from anyone who offers business insurance, but there are other, more specialised types of insurance covering businesses for everything from fire and theft to income protection for the business owner. Find a great insurance broker, specifically one that deals with businesses and get advice. Once again, talk to other business owners for their opinions on what is needed and what is not. 10. Look for a mentor Having someone who you can talk to and ask for business advice in the form of a mentor is very advantageous to help avoid making all of the common start up mistakes. A mentor is normally someone older, who has “been there and done that”, who is able to give their time
freely, and who has been successful. Having a good mentor to offer advice in the early set up stages of a business would be very wise.
III. How to Write the Perfect Business Plan? Once you have your idea in place, you need to ask yourself a few important questions: What is the purpose of your business? Who are you selling to? What are your end goals? How will you finance your startup costs? These questions can be answered in a well-written business plan.
A lot of mistakes are made by new businesses rushing into things without pondering these aspects of the business. You need to find your target customer base. Who is going to buy your product or service? If you can't find evidence that there's a demand for your idea, then what would be the point? Conduct market research. Conducting thorough market research on your field and demographics of potential clientele is an important part of crafting a business plan. This involves conducting surveys, holding focus groups, and researching SEO and public data. Market research helps you understand your target customer – their needs, preferences and behavior – as well as your industry and competitors. The Small Business Administration (SBA) recommends gathering demographic information to better understand opportunities and limitations within your market. The best small businesses have products or services that are differentiated from the competition. This has a significant impact on your competitive landscape and allows you to
convey unique value to potential customers. A guide to conducting market research can be found on our sister site, business.com. Consider an exit strategy. It's also a good idea to consider an exit strategy as you compile your business plan. Generating some idea of how you'll eventually exit the business forces you to look to the future. "Too often, new entrepreneurs are so excited about their business and so sure everyone everywhere will be a customer that they give very little, if any, time to show the plan on leaving the business," said Josh Tolley CEO of both Tribal Holdings and Kavana. "When you board an airplane, what is the first thing they show you? How to get off of it. When you go to a movie, what do they point out before the feature begins to play? Where the exits are. Your first week of kindergarten, they line up all the kids and teach them fire drills to exit the building. Too many times I have witnessed business leaders that don't have three or four pre-determined exit routes. This has led to lower company value and even destroyed family relationships." A business plan helps you figure out where your company is going, how it will overcome any potential difficulties and what you need to sustain it. Check out our full guide to writing a business plan, and when you're ready to put pen to paper, these free templates can help.
IV. Steps to starting a small business Starting a small business can be an exciting journey, but it's easy to get overwhelmed if you fail to plan correctly. You need to be quick to learn from your mistakes, ready to innovate and lots more. Read on to find out everything you need to know about starting a new business venture. 1. Do your research Make sure you undertake lots of research on your target market. When it comes to starting a small business, you cannot plan ahead enough. For a small business to succeed, it must solve a customer problem or offer something that the market wants. Being honest with yourself about how feasible and profitable your business idea is going to be is key to your success. Having a thorough look at the competitors that operate in your space can be a good starting point for your research. 2. Make a business plan A comprehensive business plan can guide your business from its first phase as a startup, through to getting off the ground and eventual business growth, including the actions that
you need to take to ensure continued success. A business plan sets you up for success. The business plan doesn't need to be too detailed or long-winded. However, if you want to get financial support from an investor or a bank, a full business plan is a must. The government has a range of resources to help with the process of business planning. 3. Register your business's name Once you've worked out the type of business structure you will use – such as sole proprietorship, partnership or a limited company – you'll need to choose a suitable name for your company and get your business registered with the appropriate authorities. You should check whether your business's name is currently being used or is already trademarked. It's crucial that you register your domain name too. After this, you should complete the legal formalities required to start your business. 4. Set up your business as an entity If you plan to start a company in Australia, you need to register it with the Australian Securities and Investments Commission (ASIC) and get an Australian Company Number (ACN). Small business owners will need to apply for an Australian Business Number (ABN) for tax purposes, registering for GST, plus other types of business registrations such as PAYG, work cover, FBT, superannuation and Payroll Taxes – whatever applies to your individual business circumstances. 5. Open a business bank account Once you've got adequate finances in place, you should open a business bank account that offers everything you need. It's always a good idea to keep business and personal expenses separate from one another. In fact, it's a legal requirement if you intend to register as a partnership, company or trust in Australia. Finder has information on a wide range of business bank accounts that can help you pay for day-to-day business expenses, invoices and staff wages and also to receive payments from clients and customers.
6. Raise funding for your business Developing your business idea into a market-ready product or service is going to be expensive and typically happens at a time when the business has no revenue. If you're looking to raise capital, there are a number of ways to do so that can help you meet your financial goals. There are various other business financing options available to you in terms of banks, venture capitalists, crowdfunding, small business lenders and others. Our guide to loans for startups explores the main finance options that are available to new companies. 7. Get business insurance Business insurance can protect you against losses from a range of unexpected events over the course of your business operations. Start by asking yourself: what are my business assets and what cover do I need for them? The right business insurance can include cover for if you're sued, cover for damages to your commercial property and more. The main types of business insurance include:
Public liability insurance. This can protect you financially if your business activities lead to the injury or death of a member of the public, or you damage their property. Public liability insurance typically covers your legal costs and any compensation that you might need to pay.
Workers compensation insurance. This cover is legally required for Australian employers. It is bought by business owners to protect themselves and their workers, and it pays benefits in the event of a workplace or work-related accident, injury or illness. If you fail to have this type of insurance in place, you could face very heavy fines. Our guide has more information on how workers compensation works.
Professional indemnity cover. This type of insurance is designed to cover the potential costs of unforeseen mistakes for both self-employed workers and businesses across many different industries. For instance, it can cover you if a client makes a complaint that you've given them the wrong advice and they take legal action against you. You may be asked to have professional indemnity cover by other companies you work with.
There may be other kinds of business insurance to think about, such as business interruption cover. Plus, if you intend to use one or more cars for work, you will need to get motor insurance. It's always a good idea to shop around for cover given how competitive the insurance industry is. If you run an online business, you should also be thinking about getting the right cover in place to mitigate the risks you could face. This can include stock that needs protection or cover for your employees.
V. The Best Small Business Opportunities for 2020 Here are our picks for the best small business ideas based on current trends in business and demographics, in no particular order. Fulfillment by Amazon Sales The Fulfillment by Amazon (FBA) program allows sellers of products to market their wares through Amazon, the largest online retail platform in the world. Amazon takes most of the headaches out of running an online retail business. In exchange for fulfillment and monthly storage fees, it handles storage, packing, shipping, returns, and customer service queries.
Sellers are responsible for shipping their products to an Amazon fulfillment center and for creating their product listings on their Amazon store. Once listings are live and sales are made, the seller begins receiving their portion of the proceeds on a weekly basis. If you wish to start a product sales business, the Amazon FBA program is an ideal way to get into the online retail marketplace. Skilled Trades It's unfortunate that nowadays many neglect considering skilled trades as a career choice, in part due to the erroneous belief that trades are poorly paid. In fact, skilled tradespeople are generally well paid and enjoy satisfying careers. In manufacturing alone, it's estimated that almost 53% of job openings left by boomers will go unfulfilled by 2028. These shortages will reach across many trades, and create a huge demand for talented workers in trades, such as:
Welding
Carpentry and general construction
Plumbing, pipefitting, and steamfitting
Electrical and electronic control systems
Heating, ventilation, air conditioning, and refrigeration (HVAC)
Machinists and metalworkers
Masonry
Steelworking
The nature of skilled trades makes them ideally suited for self-employment:
Many have fairly high salaries and strong demand for experienced tradespeople in most locations.
Most trades can be operated as home-based businesses as the work is performed at the customer job site.
Compared to many businesses, startup capital costs are relatively low for most skilled trades, and most cannot be automated to any degree, ensuring future job security.
Demand exists everywhere. Many experienced tradespeople take advantage of opportunities in remote or overseas locations to command much higher levels of compensation.
Why not take advantage of the demand and consider one of the skilled trades as your next business opportunity? Software Engineering and Development Software engineers and developers create, test, and maintain software on a variety of platforms, from mainframes to mobile devices. According to the Bureau of Labor Statistics, the demand for software developers is expected to increase by 21% through 2028, and the median pay in 2018 was $105,590 per year. The nature of the software development industry makes it ideal for contract employment. Many software engineers start out as salaried employees and eventually become selfemployed contractors. Cloud computing and ease of remote access make software development an ideal home-based business. Other high-demand, well-paid opportunities in the information technology sector include:
Systems analysts
Hardware and software technicians
Network engineers
Security specialists
Meal Kit Sales and Delivery Meal kit services are becoming increasingly popular with busy people who don't have the time to shop and prepare healthy meals and wish to lower their environmental footprint by reducing food waste. The meal kit industry is expected to reach $11.6 billion in sales by 2022. Customers select recipes online, and meal kits with pre-chopped and measured ingredients, along with instructions for cooking and final preparation, are delivered to their homes on the chosen date. Listed information such as calorie counts allows consumers to adhere to dietary requirements.
Meal kit suppliers often avoid large wholesalers and source ingredients from local farms, creating business opportunities for small to mid-size growers, ranchers, and seafood suppliers. Opportunities may also be available for delivery-service providers to collect ingredients from producers and deliver the end product to customers' homes. Virtual and Augmented Reality
Virtual reality (VR) and augmented reality (AR) represent a huge leap forward in immersing the user in a realistic sensory experience. Hardware and software vendors are working furiously to bring new VR products to the marketplace, and the industry is growing rapidly— the global market is expected to expand by 34.5% from 2019 to 2025. The potential uses of virtual reality for business or pleasure are practically limitless. For example:
3D movies: Movies are already being developed in 360-degree VR.
Real estate marketing: Imagine searching for a new home and being able to take an online VR walkthrough of an advertised house from the comfort of your desk chair.
Gaming: VR is revolutionizing the gaming industry, with new VR titles being released on an almost-weekly basis.
Team-building exercises: Shake up team building events with a group VR experience.
Social media VR interaction: Friends will be able to interact in a virtual online space.
Training: VR can inject a much higher degree of realism into training scenarios. Businesses such as UPS are launching new delivery driver training programs using VR.
Meditation: VR is ideal for customized meditation
VR "escape rooms" and lounges (where groups of people get together to play VR games or go on VR adventures or solve group puzzles) are experiencing phenomenal growth. If you are tech savvy and interested in the technology, virtual reality could be the business opportunity for you. Self-Storage Units Or Industrial Business The self-storage industry continues to be a booming business across Sydney, fueled by a more transient workforce, downsizing homeowners, the general trend for people to accumulate more and more possessions, and reality shows such as "Storage Wars." In some locales, demand has exceeded supply by as high as 300%. Modern self-storage requires a climate-controlled environment, lighting, and security. Initial capital costs for land and building construction are high but can be easily financed from rental income, assuming there is a steady demand for storage space in your area. Trachte Building Systems has free web-based calculators for determining the profitability of self-storage based on demand, estimated capital expenses, operating expenses, and rental income.
For example: Manufacturing And Industrial Business For Sale in Taren Point Sydney NSW
Description: * Highly profitable business with an established client base. * Monday to Friday Business. * Commenced trading over 20 years ago. * Leader in the local market and services all industry segments. * Strong focus on Education, Government and Commercial sectors including Real Estate
r
* Experienced and loyal work force. * Expansive site with large showroom and state of the art production facilities * Strong turnover & profits—walk in and take over this very successful business! * Owner looking to retire from the workforce Want to know more about this business? Visit here for further details: https://www.business2sell.com.au/businesses-details/bb-manufacturing--days-per-week-outstanding-business-276972.php
Gourmet Coffee Think an independent coffee shop serving espressos, lattes, and cappuccinos can't compete with Starbucks? Think again. A new coffeehouse recently opened in my little town and it has been packed with customers from day one. The owner attributes his success to:
Being in a convenient location for vehicle, cycling, and foot traffic
Offering a pleasant atmosphere, including an outdoor patio
Serving high-quality beverages made from small-batch specialty coffees, served by properly trained baristas
The market for gourmet, high-end specialty coffee continues to grow, making plenty of room for independent shops. The percentage of adults drinking specialty coffee daily rose from 14% to 41% between 2001 and 2017, according to the National Coffee Association. Perhaps you can find a niche in this market. Gain the Necessary Education, Skills, and Training There are no shortcuts to starting your own business. You'll have to acquire any necessary academic credentials and the skills and training to take advantage of some of these opportunities. Working as an employee or apprentice in your chosen field for a while can give you the training and business skills and experience necessary to start your own business. It can also help you make a name for yourself and develop a list of clients and customers ready to patronize your new business.
VI. Common Mistakes to Avoid When Starting a Small Business Mistake #1: Starting a business without an entity In most states, securing a business license or registration is required to operate a business, but this process is different from incorporating or organizing a company. Unless you register for limited liability corporation, or LCC, protection, the partners in the business can be held liable for anything bad that happens with relation to the business. Imagine that Tom and Jerry, two longtime friends, have been speaking about their love of cheese. To secure the right type of cheese and due to scheduling conflicts, Tom and Jerry decide to start buying cheese from the farmers and distributing it to grocery stores. That means that if someone gets food poisoning from the cheese Tom and Jerry sell, that sick person could sue for damages and come after Tom and Jerry’s personal assets, which they might think have nothing to do with their business. LLCs are, in almost all states, the most common form of registered entity due to their low cost and ease of operation. Mistake #2: Inadequate capitalization Also known as “money,” capital is what partners, shareholders or business members contribute in exchange for ownership in the business. Some businesses are capital intensive — as in a dental practice — while others are capital efficient — as in a copy editing company — but in every business, lack of money is the number one cause of failure. Mistake #3: Planning only for success
Every entrepreneur dreams big dreams — and thank goodness — but sometimes things go awry. In order to be successful, a new business needs to remain flexible in its processes and develop easy-to-understand contingency plans in case the idea isn’t as big of a hit as expected. A line of credit from your bank, for example, need never be used but can be critical when you hit a bump in the road. Mistake #4: Understanding the industry, but not the market Most entrepreneurs know their industry intimately and have expertise in their product or services. But critical to their success or failure is a simple question: Will others pay for the product or service? This product market fit can sometimes be tested in a small way; somehow you need to test to make sure you’re building a Ford Model T and not an Edsel.
Mistake #5: Doing it all yourself Having an accountant, banker and attorney with whom you’re on a first-name basis ensures you will build a strong foundation for your business and won’t make mistakes that will cost you more to fix down the line. Mistake #6: Working with friends instead of business partners In our example, Tom and Jerry are good friends, but they need to treat the business seriously. Jerry has a day job, so Tom needs to ask some hard questions: Is Jerry going to keep his day job? Does he expect an equal share of equity? More on that below. To be successful, business partners cannot be afraid of hurt feelings. Mistake #7: 50/50 partnerships
Two people starting a business naturally want to be fair to one another. But who makes a decision if the partners disagree? There are ways to address this in the legal documents, but it typically makes things easier if partners agree that one is the 51 percent partner. Mistake #8: Ignoring intellectual property Intellectual property, or IP, describes almost all the intangibles in your business, including trademarks, copyrights, trade secrets, et cetera. If you don’t pay attention to your IP, others can copy your business. If you don’t pay attention to the IP of others, they can sue you for infringing on their protected property. Mistake #9: Counting your eggs before they hatch Let’s say that in year three, Tom and Jerry are making good money and selling a lot of cheese. They now have dedicated employees, a recognizable brand, and good relationships with farmers and grocery stores. But, somehow, they didn’t realize they needed to comply with food labeling regulations. As a result, they may face legal action or penalties from the Food and Drug Administration, paying fines and destroying inventory or issuing recalls (this would be a good time to have an LLC). Mistake #10: Falling in love with the idea Successful businesses are run by people who understand that things don’t always go according to plan. Being able to change your approach, in small and large ways — a move sometimes called a pivot — allows the product or service to find its market and, eventually, success.
VII.
Conclusion
There are so many things to take into consideration when starting a new business in Taren Point so that you can easily start your journey in this business industry. Whether you’re launching your very first business or expanding into Australia, we wish you the very best of luck.
References: The world's best start-up hubs: Sydney, Australia| virgin. Retrieved 27 May, 2020, from https://www.virgin.com/entrepreneur/worlds-best-start-hubs-sydney-australia
How to Start a Business: A Step-by-Step Guide| businessnewsdaily. Retrieved 27 May, 2020, from https://www.businessnewsdaily.com/4686-how-to-start-a-business.html Ten things to consider before starting a small business| news.com.au. Retrieved 27 May, 2020, from https://www.news.com.au/finance/small-business/ten-things-to-consider-before-starting-asmall-business/news-story/83725e9566fb56cfb9bbf0dacc2a80ec Steps to starting a small business| finder. Retrieved 27 May, 2020, from https://www.finder.com.au/starting-a-small-business The Best Small Business Opportunities for 2020| thebalancesmb. Retrieved 27 May, 2020, from https://www.thebalancesmb.com/best-small-businesses-opportunities-4111809 Start or grow a business in NSW| service.nsw.gov.au. Retrieved 27 May, 2020, from https://www.service.nsw.gov.au/guide/start-or-grow-business-nsw Common Mistakes to Avoid When Starting a Small Business | businesstown. Retrieved 27 May, 2020, from https://businesstown.com/10-common-mistakes-to-avoid-when-starting-a-small-business/