Striving towards a better quality of life requires constant innovation and adapting to technological changes. History is slowly evolving towards more modern techniques for the betterment of life. However, time isn’t the only investment necessary to make lives better. We also need social and financial capital.
As an industry, businesses play an integral part in society’s growth while serving as a strong threshold for a nation’s economy. To start a business means immersing yourself not only into opportunities but also in responsibilities. From huge multinational corporations, down to small-medium enterprises, businesses can be considered as the bloodline of progress and drivers of change.
If you’re planning to start a business in Australia, it’s normal to feel both excited and daunted by the enormous risks in finances and status. But if you have that million-dollar idea inside your head, you may want to jot it down now, gather your team, and turn your concepts into an income-generating system.
Image taken from Unsplash
Businesses are fundamental sectors in social science. As a business owner, you will have the opportunity and privilege to create more jobs for your fellow Australians. This will then help them live a good quality of life as long as you reward them with livable wages and the benefits that they deserve.
If you want to be a respectable entrepreneur who doesn’t only work for himself/herself but also for the employees and for the best of public interest, here’s a quick guide on how to start business in Australia:
Polishing Your Business Idea
Before you can start a business journey, your head is probably full of great plans and ideas for your business start up. With all these brilliant concepts colliding with each other, it’s easy to get stuck in a web of thoughts without any way out.
You can refine your business idea by brainstorming with your team or creating a mindmap to conceptualize your plans. To start business in Australia, you need to be aware of a couple of things during the brainstorming stage.
Make sure to add the following when polishing your business idea:
- Determine Your Business Structure
There are four types of business structure in Australia: Sole Trader, Partnership, Company and Trust. If you’re the sole owner of the business, then you need a Sole Trader structure. You’re entering a partnership if you’re starting a business with two or more people. If you’re planning to turn your business into a separate legal entity, then it’s a Company. Finally, a Trust possesses property or assets for the benefit of a third party.
- Choose Your Business Type
Image taken from Strikingly user website
After identifying the structure of your business, the next stage involves choosing your business type. To start a business, think about the industry you want to tap into, then determine through what platform can you do this. Your business type could be an independent contractor, a franchise, or an online business which is very popular nowadays.
- Outline Your Objectives
Knowing how to start a business demands identification of business goals. For example, if you're planning to start an online business by setting up an ecommerce website, one of our goals could be to increase site traffic or increase the conversion rate from 0 to 10% in the first month. Make sure that everyone involved has a say in defining the objectives.
- Come Up WIth a Brandable Business Name
To start a business, you need a good business name, and this is perhaps the most essential part of your business start up. You can even face legal consequences if you pick the wrong name for your business. Take the following guidelines when naming your business:
- Don’t pick a name that could restrict your business’ growth
- Conduct a trademark search to avoid getting a business name that has already been registered
- Use a business name that is easy to pronounce and easy to spell
- Avoid using inappropriate words in your business name
- Make sure everyone is happy with the name
- Create different business names and variations, then make your team, including yourself, select which one is the best
A good business name is a name that resonates with you and your customers. Thinking of a business name shouldn’t be an afterthought. It’s also vital to consider how your business name could be structured into a domain name when developing your business website.
Identifying Sources of Finances
The truth is, your million-dollar idea needs a couple of financial capital first before you can see it into fruition. Now that you know how to set up a business in Australia, you need to determine your sources of funds which you will need to cover pre-operational costs and begin service.
- Conduct a Break-Even Analysis
Performing a break-even analysis can help you find out how much money your business needs. You need to conduct this analysis to put a profitable price on your products and/or services and see if your business is generating profit.
The formula for a break-even analysis is:
Fixed Costs ÷ (Average Price - Variable Costs) = Break-Even Point
It’s vital to do this analysis to avoid spending money on unnecessary expenses, or losing money before you can even start a business.
- Keep Expenses in Mind
To start a business in Australia, you don’t need to spend an insane amount of money to launch it. One of the greatest mistakes you can make as a business owner is mindlessly spending money at the initial stage. Don’t make unnecessary purchases such as renting a luxurious commercial space when there are a lot more reasonable options.
- Consider Different Funding Options
You need a significant amount of capital to start a business. Your capital source can be many things like your savings. But if you suddenly realized that saving isn’t enough to start a business, then you need to consider other funding options.
Your first choice is to take out a business loan. Various banks and private lenders have different terms and requirements when it comes to business loans. Make sure to ask about their interest rate and determine if it’s variable or fixed.
The second funding source is business grants. Now, unlike business loans, you won't have to pay back the money you would get from grants. Business grants are often awarded to entrepreneurs that fit specific conditions. These grants are very competitive, so if you're planning to fund your business with grants, expect a very rigorous process.
The third source of funds is through Investors. Investors are individuals or groups that invest their money in your business. In turn, you'll give them a portion of your profit. In companies, investors could be stockholders or individuals who buy your company's stocks. Their profit from stocks is called a dividend.
Finally, you can get funds through crowdfunding. You can launch a crowdfunding campaign to help give your business a boost.
Applying for an Australian Business Number
After learning how to start your own business Australia, you need to apply this into practice when building your business. However, you can't legally start engaging in business if you do not have an ABN.
Image taken from Strikingly user website
The ABN is an 11-digit number issued by the Australian government to identify your business. After obtaining your ABN, you can register your business name, claim taxes, and have access to energy grants. Having an ABN serves as a go signal to start business in Australia.
Developing Your Own Website
Before finishing this guide on how to set up a business in Australia, you need to know how to combat competition either by outsmarting them or doing practices that they already do, but doing it better.
One of the best ways to introduce your business is by developing a website where customers could see more information about you and learn more about what you have to offer. Websites nowadays are necessary to start a business and it would be a mistake not to invest in one.
With the high risks and high amount of money and energy required to set up a business, you need a website builder that can integrate your business’s main operations with new web development trends.
If you just can't muster any more energy to develop your website, then let Strikingly do its magic for you. Strikingly is a website builder packed with strong features and tools that make website development fun and worthwhile. You don't even need to be a tech wiz to understand how Strikingly works.
Image taken from Strikingly product
To start a website in Australia, you need to transform your business by making it accessible even on the web, across multiple devices. With Strikingly, your business website is automatically made to fit most mobile devices' dimensions and operating systems.
Businesses open doors towards more opportunities in innovation, employment, and change. Coupled with the principles of responsible business ownership and management, starting a business in Australia is possible. If you still want to learn more about establishing your own business, please explore our blogs here on Strikingly or create your own account to see how the process and systems work for yourself.