Starting a business is the first step in a long journey.
Given that 60% number of Australian businesses fail in the first 3 years, it is critical you get the first steps right.
Often when people want to start a business it is because they have exceptional skills at a particular trade or service, and think would be better off offering those skills in their own business.
Or they might have an entrepreneurial idea, and are preparing to shake up a market.
Whatever the reason for starting a business, usually people are excited to get started, and want to get the ball rolling.
But it’s important to not trip up in those early stages and to carefully make the right decisions setting up your business to start off with.
If you want to start a business in Australia, there are 4 steps to getting it right.
1. Do market research
You need to understand the market you are getting into as best you can.
No matter the industry, you will have competitors.
Depending on the industry you are entering, the way you research will be different.
For example, if you are starting a café, your market research would include looking up other cafes in the area and what type of clientele they are serving.
However, if you are starting a business in an industry where your competitors aren’t just the local businesses in a suburb but every other similar type of business in the city, your research would be different.
It is also helpful to do market research on staff costs in your industry so you can start to put together what your expenses will be.
However you do your research, just make sure you do it. Before you invest money into your business, make sure you understand what you are getting into.
2. Write your business plan
Your business plan is the first full picture of your business you will create.
There are many templates for business plans available. The critical thing is that you write it out
A business plan cannot just exist in your head – it needs to be written out.
The business plan should include: company description, market & company analysis, breakdown of products and services, marketing plan, location, business name, sales strategy, cashflow and funding just to name a few.
Get in contact with us if you would like assistance with your business plan.
3. Get advice on the best business/legal structure
Legally speaking a ‘business’ isn’t just a business.
The business could be operating through Partnership, Company, Discretionary Trust, Unit Trust or a Hybrid Trust.
A business could also operate as a sole trader, ie trading as your own name, but that involves a high level of risk for the business owner so we recommend against it. The last thing you want to do is have to sell your house because you started a business.
If you’d like to read more about how Trusts work, check out this article. We help many business owners figure out which legal structure is right for them.
4. Get started!
Once you have done your market research, written out your business plan, and set up your business legal structure, it’s time to get to work.
Even if your business is successful, it will still be full of ups and downs.
Navigating through the ups and downs of running a business is hard work. So as soon as you have ticked the boxes above, get started working!
If you would like assistance with any of the above, please get in contact with us for a no obligations chat.I’m interested in business help