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.
Good question! Starting a cleaning business often has a lower barrier to entry in terms of costs as there are fewer startup costs involved than other types of businesses. It also offers great flexibility and potential to start small and build the business from the ground up. From our research, the initial ... expand
Good question! Starting a cleaning business often has a lower barrier to entry in terms of costs as there are fewer startup costs involved than other types of businesses. It also offers great flexibility and potential to start small and build the business from the ground up. From our research, the initial startup investment starts from $2,000 but could reach $6,000+ depending on where the business is located, the type of equipment you need, whether you’ll be operating alone or hiring staff straight away, etc. This cost factors in things like business registration, licenses and permits, insurance, equipment, website, marketing, etc.
Another option is to start a franchise cleaning business. Starting a franchise is usually a more expensive option than starting from scratch as you gain the established brand and infrastructure that is already in place. That said, the bigger investment may offer more stability and a quicker return on investment than setting up your own business. It’s a good idea to do some research on franchise opportunities and weigh up the pros and cons of franchising vs starting from scratch.
Good question! Registering for GST, PAYG and other taxes at the same time as registering your ABN can help you speed up the process of setting up your business. You can also apply for your TFN at the same time. You don’t need a business registration service to do this (although all types of business registrations are usually offered as part of these services), you can do it yourself when completing your ABN application.
1. Growing sales further. Our sales are up 150% year-on-year, but higher would be better.
2. Warehousing. Since recently, we've been using a fulfilment warehouse (Brisbane Logistics). It works pretty well except that their Toll delivery charges aren't cheap compared to FastWay. However, the rent charges only seem economical for our best selling products, not the slower moving products.
So the less-popular products are still stored at home, while the popular products are warehoused. So we're only half-way to being a properly warehoused business.
I came into SavvySME after it was initially started by @Phil Khor and @Phil Joel . Why I joined and why we continue to build SavvySME.. is because as >@Rosemary Parker-Hatfield mentioned regarding Blue Gas.. there is simply a match in the needs of the market and what SavvySME offers.
I came into SavvySME after it was initially started by @Phil Khor and @Phil Joel . Why I joined and why we continue to build SavvySME.. is because as @Rosemary Parker-Hatfield mentioned regarding Blue Gas.. there is simply a match in the needs of the market and what SavvySME offers.
Starting, running and growing a small business is an incredibly tough journey. It's a massive learning curve for all. Moreso than in large corporations. They have many divisions with employed experts in every field whom can tap into and trust to manage that part of the business for them.
In your own business, you have yourself and may be a couple others if you're lucky to do it all! You're the technician, the marketer, the accountant, the lawyer, the systems manager, the x, y, z all in one! And you have do all of that on a tiny budget.
SavvySME brings together Australia's community of business owners in every field so that we can help one another to learn, grow and make the best decisions in our businesses.
And the biggest WHY for me, are the people. The people in small businesses aren't just numbers. They're dads, mums, sisters, brothers, daughters, sons. We're all helping one another create a better tomorrow for our families.
Didn't mean to turn it into a soppy media pitch..!
Good question! Businesses in Australia need to apply for the relevant business licenses and permits to operate in their state legally. The requirements for business licenses and permits are state-specific. In terms of cost, there isn’t a clear-cut answer as there are different factors ... expand
Good question! Businesses in Australia need to apply for the relevant business licenses and permits to operate in their state legally. The requirements for business licenses and permits are state-specific. In terms of cost, there isn’t a clear-cut answer as there are different factors at play including the type of industry you operate in, your business activities and where your business is located. To find out what business licenses/permits you need and how much they will cost, head over to the Australian Business License and Information Service (ABLIS) website: https://ablis.business.gov.au. You should find out what licenses you need and apply for them ahead of time to ensure you’re ready to set up and open your doors.
This is such a difficult question. When you put everything you have into a venture I feel it is important to relate to the name. Eventually, the business takes on its own identity and becomes more than it was when you named it...
I think if you take a variety of names and remove the context it makes it clear that it probably does not matter in the long run to the business itself. It is the businesses operations that define itself not the name.
As Kristy mentioned business (entity) structure and bookkeeping / accounting are super important, however, I think there are some other key aspects to consider. What type of business are you "really" trying to start?Meaning, are you trying to just make some money or are you launching in an area of expertise ... expand
As Kristy mentioned business (entity) structure and bookkeeping / accounting are super important, however, I think there are some other key aspects to consider.
What type of business are you "really" trying to start?
Meaning, are you trying to just make some money or are you launching in an area of expertise or passion? It will make a difference.
Have you validated that there is a market for your business product / service?
Make sure you are launching something that people want before spinning up a business (I've wasted time and money getting a business legal that never panned out). Validate before you become a legal business if possible.
Are you taking this leap alone or are you building a team?
This impacts everything from legal structure to necessary office size. You need to plan for resources and benefits accordingly.
Do you have all the necessary skills to get your business off the ground?
If not, you need to determine if hiring employees or using external consultants makes the most sense for your needs.
Do you have a mentor or advisor?
Get serious about getting your business in gear. An advisor or mentor can give you valuable insight and help keep you on the right course. Leverage their experience and wisdom.
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 as logos or web 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 collecting tax withholding amounts from 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 for payroll 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 a business 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 a robust 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 are federal and state grants available for new businesses that meet the criteria
Business finance loans: Get a loan 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 this startup 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.
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 online advertising, SEO, sales and marketing techniques, and traditional advertising.
If you haven't already, conducting market 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
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.
Are business consultants worth the money?
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.
