Are you thinking of starting a business but have no idea how to get started? Don’t worry, you’re not definitely alone! We’ve put together this checklist to get you clued up and confident for your new business venture.
HI, I ran a Business Angel network for two years and there are specific things that Business Angels look for in a potential investment. That you have proven demand and means that you are ahead of your competition for their attention. To give you advice about the next step from what you have written is a challenge, however my first questions are: - How have you proven the demand? How mnay have you sold? - How big is the potential market? Does it have international potential? - What problem are you solving for your customers? - Who are your competitors?
Many startups do not have good funding and human resources. The startup always relies on the perspective. Big company, for example, EduBirdie that always searches for innovations, but it also has a strong reputation and reliable financial foundation.
When it comes to dropshipping, you can try the big and famous ones. First there’s Oberlo, which is one of the biggest suppliers and ships to many countries including Australia.
The next, of course, is AliExpress, a little sister site of AliBaba. There is a difference between the two... expand
When it comes to dropshipping, you can try the big and famous ones. First there’s Oberlo, which is one of the biggest suppliers and ships to many countries including Australia.
The next, of course, is AliExpress, a little sister site of AliBaba. There is a difference between the two sites. AliExpress hosts retail products across categories such as beauty, clothing, homewares and toys. On the other hand, AliBaba has manufacturers, resellers and suppliers for many other categories aside from retail and they usually sell in bulk. With AliExpress, you can just buy one item and dropshipping is available. You get access to thousands of suppliers from China with both at reasonable prices, but be careful with selecting the right manufacturer.
Salehoo is another big name in the dropshipping business. They also ship to Australia and cover an extensive range of products in various categories.
Their pricing is usually an annual or monthly membership fee and that gives you access to their suppliers and services. The smaller niche ones that dropship products in 1 or 2 categories may work out to be cheaper with a pay as you go kind of deal.
The best part is, ecommerce website giants such as Shopify and BigCommerce integrate seamlessly with some dropshippers such as Oberlo and AliExpress, that can ship to your customers when an online sale happens so you don't have to arrange it manually. If you build a website with them, everything is easily connected so starting a business from scratch is much easier.
You can dropship on Ebay too, but you must comply with their rules. Basically, the responsibility of dropshipping the product to the customer is on you.
If you search a business name in ASIC and it's available then you can register it. If it's registered in NZ and not in AU then it's probably because they are not planning to operate in AU anytime soon.
So you’re thinking of starting a business? Fantastic!
We have hundreds of resources here on SavvySME to help you on your journey of entrepreneurship.
It’s one thing having a great business idea and another thing actually turning it into a living and breathing business.
With business structures to choose, tax laws to understand, capital to raise - we totally understand that the onset of starting a new business can feel very overwhelming.
But that feeling of overwhelm is doubled up with excitement - and we want to help you succeed!
We've put together this step by step guide that covers all of the key steps to start your own business and pave the way for long-term success.
Why do people start their own business?
Here are just some of the reasons why people start their own business:
Be your own boss
Turn a passion project into your main income stream
Set your own schedule
You’ve noticed a gap in the market
You have a niche product or service
How do I start a new business?
Here are the key things on the checklist for starting a business in Australia:
Choose your business structure
Choose a business type
Register your business
Register for the right taxes
Set up a business bank account
Write a business plan
Assess your finances and funding option
Get business insurance
Set up your operations
Don’t worry, we’ve broken down each step below.
What are the business structures in Australia?
Choosing the right business structure is the first key step. It’s important to know the differences between each type, as it can have a direct impact on things such as:
Your tax obligations and exposure
Regulatory requirements
The level of control you have
The level of personal liability you will have
Workplace health and safety requirements
There are four business structures in Australia:
Sole trader: A sole trader is legally responsible for all facets of their business. It is the simplest and easiest business to set up. You are not a separate entity from your business.
Partnership: When two or more individuals co-own a business and share income. A partnership business is not a separate entity from its owners.
Company:A company is a separate legal entity and you are not legally liable for the company’s debts and other liabilities.
Trust:When an individual (trustee) carries out business on behalf of the trust’s members (beneficiaries).
The steps to register your business depend on the business structure, so it’s important to get it right.
It’s possible to change your business structure later down the line (as many businesses do as they grow and expand) but there are legalities and costs involved in doing so.
What business structure do I need?
Here are some factors to consider to help you choose the right type of business structure:
Once you have chosen your business structure, you will have a clearer idea of the type of business you will need.
Different types of businesses and industries have different regulatory and compliance requirements, so the key is to do your research and seek out professional advice if you’re unsure of anything.
There are loads of business types, but common options for small business startups include:
Online business:Set up an e-commerce store or set up a website to compliment/promote your bricks and mortar business.
Independent contractor:Set up as a self-employed contractor to provide your services to clients.
Franchise:Purchase the rights to operate our business under an existing business name and idea.
How do I register my business?
Business registration in Australia involves three things:
Applying for an Australian business number (ABN)
Registering an Australian company number (ACN) if you have chosen a company business structure
Every business in Australia is legally required to have an Australian business number (ABN). This is a unique 11-digit number issued by the Australian government and is used to identify your business.
It’s important to note that it is illegal to operate without an ABN.
You do not need to register a business name as you can legally trade under your given name, e.g. “John Smith”.
If you do decide to register a business name, it’s best to do so before you create any branding assets such aslogos orweb design.
It’s much more efficient to register your business number and business name at the same time, but you can also do this separately.
If you operate as a sole trader, you can manage your business taxes with your personal tax file number (TFN). You file your business tax alongside your personal income tax return.
Companies, partnerships and trusts must have a separate TFN and lodge a separate tax return.
Other tax obligations you may need to register for include:
Pay as you go (PAYG) withholding:You may be responsible for collectingtax withholding amountsfrom your employees salary to help them meet end-of-year tax liabilities.
Fringe benefits tax (FBT):Fringe benefits tax is a tax you pay on certain benefits that you pay your employees, e.g. providing a company car and gym memberships.
Payroll tax:If the wages you pay exceed the tax-free threshold you need to register forpayroll tax (this varies by state).
A business bank account helps you keep track of, organise and manage your business finances.
Sole traders do not need a business bank account, but you should definitely consider opening one as it makes things much easier.
Companies, partnerships and trusts are legally required to have a business bank account for tax purposes.
Setting up abusiness bank account is straightforward and has many benefits including:
Greater control of your business finances
Separate your personal and business income for better financial management
Track inventory, sales and cash flow for simpler financial reporting and tax assessments
Monitor profitability
The next step is writing a business plan.
Why is a business plan important?
As a startup, having arobust business plan that defines your objectives and outlines how you will achieve them is crucial - especially for getting startup finance.
Mapping out the direction of your business and devising relevant strategies will give you a sense of control and help you manage the ups and down of starting a business with more confidence.
How do I write a business plan?
Writing a business plan is no small feat, so consider getting advice and assistance from a business consultant or your accountant.
A typical business plan format typically covers the following elements:
Executive summary
Business description
Market analysis
Business description
Description of product or service offering
Marketing and sales strategy
Funding requirements
Financial forecasts
What funding options do I have when starting a business?
Getting the capital is often the biggest concern (and roadblock) when it comes to starting a business.
Having a lump sum of cash to turn your business idea into reality is a but distant dream for many entrepreneurs, but fortunately you have a number of funding options to help you including:
Government grants:There arefederal and state grantsavailable for new businesses that meet the criteria
Business finance loans:Get aloan from a bank or non-traditional lender
Investor funding and capital:Explore the funding options offered by investors that are eager to back profitable startups and businesses
How much does it cost to start a business?
It’s very difficult to give example figures of startup costs as every business is unique and has different requirements.
However, here are some of the expenses involved with starting a business to help you factor into your budgeting process:
Consulting fees
Business registration
Insurance
Legal fees
Premises costs and utility connections
Web design and development
Advertising
Marketing
Staffing and employment
Stock and inventory
Equipment
You can use thisstartup costing template provided by the Australian government to estimate your expenses.
Do I need business insurance?
Taking out the relevant business insurance helps you minimise your risk exposure and potential expenses in the result of an incident or claim.
The type ofbusiness insuranceyou need depends on various factors such as:
Your industry
The nature of your business activities
The equipment and machinery you use
The number of employees you have
The type of services you provide to clients
How do I set up business operations?
Business operations is an umbrella term for essentially everything that will allow your business to run. This includes (but is not limited to):
Financial operations
Software and technology
Hiring employees
Operations management
Sales and marketing
Customer/client management
Managing stock and supplies
How do I find clients and customers?
Once you’re up and running, the first priority is getting customers on your doorstep or website.
Many entrepreneurs get started by building an online presence (whether your primary business operations are online or offline) because that’s usually the first place people go at the start of the customer journey.
If you're comfortable investing some capital into your business, it's a good idea to get a web designer and developer to build you a great website. You can direct people to your site using onlineadvertising,SEO, sales andmarketing techniques, and traditional advertising.
If you haven't already, conductingmarket research is the best way to find out which customer acquisition strategies will be most effective for your business.
Here at SavvySME, we have a vast range of resources to help you get your new business up and running.
From investor funding and product development to devising your business structure and compliance, we have all resources and experts you can reach out to on all things business
If you’re feeling overwhelmed by it all (as many people rightfully do) a great first step is reaching out to a business consultant.
Find out more about the services offered by business consultants and how they can help you pick up the initial momentum to start your business
When you take the time to find the right consultant who aligns with your business and work ethic, the value you can gain is immense. But you need to play your part, too. A business consultant can help you by showing you different paths, but it’s up to you to walk down it.
Who should hire a business consultant?
You should hire a business consultant if you have a longstanding problem without a viable solution. This can be in any business area from finance to sales and marketing. Business consultants are usually hired on a project basis until the issue is fixed or improvements are made.
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