Small businesses are thriving in Australia. In fact, 99.8% of all Australian Businesses are considered to be small and medium-sized enterprises (SMEs). Thus, If being a small business owner was always your dream, this is the right time to work on it!
However, starting a small business in a competitive market like Australia isn’t easy. It can be a challenging and confusing process, especially for first-time entrepreneurs. From taking care of the legal aspects to securing funds to planning the opening, there is so much to do.
So, to help you navigate the process in the right way, here’s our detailed 6-step guide to starting a small business in Australia. Read on!
Step 1: Do your research and pick a business type
Every successful business starts with conducting a comprehensive research. It helps you understand your target market and identify your target audience. Research also helps you analyse your competitors, their market plan, and how they conduct their business.
Ask yourself questions like:
- Who are my customers and what are their needs?
- How can my products or services solve my customers’ problems?
- Is my product or service financially viable? Is there ample demand for it?
- What are the strengths and weaknesses of my competitors?
Once you have found the answers to these questions, you should pick a business type.
Generally, there are three main types of small businesses that you can go for:
- You can become an independent contractor
- You can start an online business
- Or you can opt for a franchise
Step 2: Draft a detailed business plan
Your business plan is a written document that will act as your roadmap at all times. It will guide your decisions and ensure you are not flying blind. Generally, a small business plan contains business goals, strategies, financial projections, etc.
While drafting a business plan, make sure to include the following details:
- A brief overview or executive summary of your small business and its major goals
- A summary of your organisation
- Your business description including details about the products or services you offer
- An analysis of your target market
- Your main marketing and sales strategies
- Financial projections
Step 3: Get your small business registered
After deciding the type of small business you want to have and drafting a business plan, you have to register it with the Australian Government. For this, you can use the Australian Government’s business registration service. It has various resources and helpful tools that will make the registration process a breeze for you.
Once you have registered your small business in Australia, consider getting cheap business insurance. It will help you protect your business from financial losses due to unforeseen events like loss due to theft, legal liabilities, etc. To learn more about cheap business insurance for small businesses in Australia, click here.
Step 4: Set up your small business operations
After registering your business with the Australian Government, it’s time to set up your business operations. It includes setting up a separate business account, registering your domain name, building an attractive business website, choosing accounting software for managing your finances, etc.
Step 5: Secure the required funding
As a small business owner, you will require some funding to start and grow your business from the ground up. Here are some funding options that you can choose from:
- Bootstrapping: This includes investing your own savings and personal funds in your small business.
- Government grants and funding programs: The Australian Government offers several business grants and funding programs to small businesses. You can visit the government’s website to find out the best grants for your small business.
- Small business loans: You can also apply for traditional bank loans to acquire the required funds.
- Private investment: You can also get in touch with numerous angel investors who might be willing to support your business financially.
Step 6: Develop a marketing plan and finally launch your business
Once you have secured enough funding, the next step is to develop a marketing plan. This will help you advertise and sell your products or services to your target audience. If you don’t have any previous experience in marketing, you can hire employees or outsource this service.
Finally, once everything is sorted, it’s time to launch your small business! For this, you can host a small event and invite family and friends, potential customers, investors, etc.
Make sure to leverage social media, email, and other online channels to create some buzz about your new venture and attract more customers.
If you do it right, starting a small business in Australia can be incredibly exciting and rewarding. While it requires careful planning, a lot of hard work, and perseverance, it will be worth it in the long run.
With the help of these 6 steps, you can kickstart your small business in the best way and set yourself up for success.