How to Start Small Business in Australia 8-Step Checklist

From the sole proprietorship nature to the flexibility and time-knit culture, there are plenty of reasons entrepreneurs and business owners love owning a small business. Small businesses eventually come with numerous potential rewards; most significantly, you become your own boss. You have complete freedom to hone in on what’s exactly you want to do while your focus remains relatively narrow.

However, if you are on your way towards starting a small business, remember taking the first step is half the battle. Striking out into the unknown and discovering opportunities can be a long one. But most people who dream of starting their own small business often get intimidated by the process, as it may seem complicated.

Yet, it is not a hard game as well if planned strategically.

So, where do you begin?

All you need is a solid plan to start your own small business

In the growing gig economy, there are around 400 million small business enterprises worldwide. Looking at the scenario of Australia, the number of small business enterprises stands at 2.3 million and out of those, 69% are located in greater capital cities and 30% in regional areas.

So the number says it all!

As a small business owner, the first thing you need to do is to hone your business plan. You must do your homework and strategically think when drafting your business plan, covering everything from financial planning to starting a business website to marketing opportunities. Because once you have an execution plan ready for the get-go, you can begin by breaking your big idea down into small steps.

So without further ado, let’s get towards some steps you will need to take to get your business off the ground.

8 time-tested steps on starting a small business in Australia

The following steps will guide you through the early stages of starting your new small business.

1. Go all in on your idea

If you are interested in starting a small business, you probably aren’t sure what product or service you might sell. So, you need to identify and evaluate the viability of your potential business ideas. You can do it in three stages.

Consider your existing skills

Assess your business skills. What do you enjoy doing? What sort of marketable skills do you have? What do you do in your day job? Is there any business where you can use your skills and hobbies? Ask yourself these sorts of questions to examine your skills.

Research the market

Figure out whether there are any particular products or services that seem to be popping up everywhere and how much of a demand there is for your products or services. Perform market research to get ideas on the current scenario, the level of existing competition and the demographic information on your targeted customers as well.

Validate your business idea

After narrowing down on a business idea, validate it to figure out whether there’s a need for your product in your target market and whether your targeted customers are ready to pay for your products or services. Suppose you can test your products with real users and take their feedback or research search volume or perform an online survey with your focus group.

2. Establish a business plan

Once you have your idea in place, develop a business plan explaining your goals and how you hope to achieve them. It will help you in clarifying your strategy and identifying potential roadblocks.

As an example, if you are writing a business plan, you can consider including the following sectors.

• An executive summary highlighting the business concept, goals and visions
• An introductory description mentioning your business structure, model, industry, objectives and more
• An analysis of your business’s position in the market
• A management and organisation section detailing the legal structure as well as the role and responsibilities of employees you plan to have
• A list of your products and services
• A marketing and financial plan

3. Figure out your finances

Start-up costs are one of the main obstacles for business owners. In a survey conducted by The Zebra, over one-third of small business respondents identified lack of capital as the number one reason why the business had to close.

That is why it is necessary to know upfront how much money you require to put into the business or how much money you need to charge to meet your operating costs. Also, you need to determine how you will cover those costs and whether you have the means to fund your business.

If you require loans or grants, you need to consider your funding options prior. In Australia, there are multiple grants, funding and support programs from the access government you can apply for. Or you can bring on an investor or contact a reliable crowdfunding campaign to raise money.

You can conduct a break-even analysis as well by determining profitability, pricing your product and service and analysing the data like what volumes of goods and services you have to sell to be profitable. Even you can choose community banks for your needs.

A totally clear view of your investment, income and expenses will eventually help you spend wisely and create a stable financial future.

4. Get licenses and register with the government

If you are planning to start a small business in Australia, you may need to comply with tax obligations, and this may require you to register for

• Australian business number (ABN) Goods and services tax (GST)
• Tax file number (TFN)
• Pay as you go (PAYG) withholding

There are other optional registrations, including business name, trade mark or website domain.

Also, in order to legally operate your business, you must acquire a variety of business licenses, permits and insurance because your business is subject to the local laws and regulations specific to your industry.

So depending on the type of your industry and your location, you need to check your city and state and research what licenses and permits apply to your business. For example, industries like healthcare may require professional licenses, whereas businesses in the agricultural sector may need a federal license.

5. Build your team

If you have a plan for hiring, make sure you have a good and trustworthy team to ensure success. Hire the right people for the right roles. Create a hiring plan considering what skills will be required for your business and what will be their responsibility. Checking background and references is another key.

Go for a diverse, equitable and inclusive team who will bring various strengths m work styles, perspectives and purposes. You also need to make sure that you are investing in your team and providing enough tools, resources and support necessary for them to perform their task.

6. Build up your brand and advertise

Spend enough time finding your business name and designing your business logo so that people can easily find and remember your brand. You can market your business in your community in multiple ways.

For example, you can reach out to your local news sources (local blogs, newspapers or online publications) and publish a featured write-up. Or you can increase your presence in your community by attending local networking events and sharing your ideas and inspirations with others. You can even try on running email marketing campaigns, google ads or implementing SEO.

Then you can plan a well-executed social media marketing strategy to advertise your business. Because to compete with larger companies for attention and to reach more highly specific audiences, nothing works better than social media marketing. Facebook, Instagram, Twitter, Tiktok, Pinterest, and YouTube, you have many platforms available to spread the word about your new business.

7. Use the website to your advantage

As most customers use the internet and turn to Google to search for products and services, you need to create a robust online presence. And this makes having a website crucial to drive small business in today’s digital world.

No wonder around 71% of small businesses have their own website. Otherwise, in today’s digital age, without a website, you will miss out on opportunities. Having a website will maximise your business credibility and allow you to promote your product. It is one best investments that will expand your physical position.

However, just by having a website, you cannot hope for the best.

A study shows around 73.1% of web designers believe that a non-responsive design is a top reason why visitors leave a website, whereas 88.5% put the blame on slow loading.

So, you need to consider elements like page speed, good navigation, website responsiveness, content quality, and webpage design when building a professional business website. Otherwise, if your navigation structure is not clear or your contents are hard to track, it will cost conversions on your website.

However, if you find it overwhelming, you can even pick any software and website management system that will reduce the heavy lifting involved in building a good website and setting up your online store just as you want.

8. Launch your business

By now, you have everything in position to set the ball rolling. You have a full-proof plan, you have your finances ready, you got your licenses and an entire team, and you put your marketing programs on point. It’s high time to take your business live. And once your business is up and running, listen to your clients, keep researching the market and updating your plan, track your financial statements, seek additional funding and update your offerings.

So, it’s a wrap! Starting a small business may be a lengthy endeavour, but if you have the drive for it, if you do your homework and think strategically, the journey will definitely be worth taking. Follow the mentioned step-to-step guide to put your small business on the path to success.

After all, what could be finer than conducting your own business, right?

Enjoy your journey!