Starting a business in Australia can be an exciting and rewarding experience, but it can also be a challenging process with certain steps you must take to operate legally. Here are six essential steps to help you get started:
1. When it comes to starting a business, you can sometimes focus solely on the business idea without considering whether Self-Employment is right for you!
You may have a great idea but may not be ready to start a business due to your current circumstances. Consider the time you have available, your skills and qualifications, access to equipment and financial constraints. While you may be suited to start a business at some point the timing might not be right at the moment. Returning to study or working g full-time to increase your savings could mean you are in a much better position to start a business in a year’s time.
2. Research and validate your business idea:
Before you start investing time and money into your business, it’s important to research and validate your business idea. This includes market research, identifying your target audience, and understanding the competition. Ask yourself if there is a market for your product or service? Are people willing to part with their hard-earned money for what you are offering? There may be a license you require which is costly or will take some time to gain so you need to take this into account. Remember the more work you put in upfront the higher your chance of success!
3. Create a business plan:
A business plan is a roadmap that outlines your business goals, strategies, and expected outcomes. It’s a crucial tool for securing funding and attracting investors, and it will help you stay focused and on track as you grow your business. This will allow you to plan out important decisions like your business structure, whether you will register for GST and whether you will operate from home or look at a leased premises. A good business and financial plan will forecast your expected income for 12 – 24 months and help you calculate your breakeven so you know exactly how much you need to earn each month to cover your expenses.
4. Register your business:
You will need to register an ABN. This is a number unique to your business and identifies you to the Government and other entities. You may wish to register a business name to help differentiate your business from others. If your business name is different to your own name, you will need to register it. If your expected annual turnover will be over $75,000 ($150,000 for not-for-profit) or provide taxi or limousine travel you will need to register for GST. It is best to seek specialist advice from an accountant in regard to your specific situation.
5. Obtain necessary licenses and permits:
Depending on the type of business you’re starting, you may need to obtain various licenses and permits from government agencies. This could include a trade license, food handling license, or a liquor license. If you are going to run your business from home you may also require shire or landlord approval so it’s important to have these in place before you start to ensure there are no surprises down the track.
6. Seek professional advice:
Starting a business can be complex, so it’s important to seek professional advice from experts in accounting, legal, and tax matters. This will help you avoid common pitfalls and ensure that your business is set up for success.
By following these six steps, you’ll be well on your way to starting a successful business in Australia. Remember to stay focused, be patient, and stay committed to your goals, and you’ll be able to turn your business idea into a thriving enterprise.
At ABS Institute we have FREE programs which can help you at each stage of the process. If you aren’t sure if your idea is viable or if starting a business is right for you check out our Exploring Self-Employment Workshops. If you have a business idea but don’t have any business knowledge our small business training can help you develop a business plan and financials while completing a Certificate III in Entrepreneurship & New Business.
We can also provide 12 months of small business coaching where we pair you up with an experienced business coach who will meet with you bi-monthly to provide advice and help you stick to your goals. Wherever you are on the small business journey we can help, contact us to find out how we can help.
