5 Essentials to Starting A Small Business In Australia
Starting your own business can be a challenging yet exciting experience of your life. You find yourself exploring new ways of growing your revenue and entering into a new world. You get familiar with new terms like licensing, marketing, insurance and many more.
However, you need to be very smart if you want to start your own business in Australia. In this article, I will take you through the top five ways using which you can start a small business in Australia and then grow it with time. The strategies I am going to mention over here are for the beginners and those who haven’t had any business experience before. Australia is known as the land of opportunities but you need to be smart at the same time.
So, let’s begin with basic and very simple ways to learn smart strategies and intelligent ways of starting a business in Australia.
1. Choose your business idea
The first step towards starting a successful business in Australia is to decide the type of your business. Plan the entire idea for your business. It can include the following:
- You can start an online business whether alone or with a partner
- You can be a self-owner or contractor
- You can start a franchise
These are the basic types of businesses which can be started in Australia. If you have anything else in mind then you are welcome to bring it forward.
2. Pick up your business structure
Business structure is very important for any business whether its big or small. Your business structure defines the following things:
- The funds you will need to start it
- The revenue will generate
- The number of workers you will need
- The amount of tax you will pay
- The rules and regulations you will have to follow
If we specifically talk about Australia, then it has got four types of structures on which can act as a baseline of your business. These four structures are:
- Company/ organization
Self-owner means a business which is entirely yours. You will be responsible for anyone you hire. Moreover, you will be responsible for all the rules and regulations of your business.
A company or organization means a commercial business. Such a business always has some shareholders.
Corporation means a partnership. It means you aren’t alone in your business. Rather you have another entity who is running the business with you. However, partnership or corporation is way different from a company.
The last one is trust. It is any entity which benefits a third party.
So, these are four business structures in Australia. You need to choose it before you move ahead.
3. Apply for Australian Business number
After you are done deciding everything important for your business especially its structure, the next step is to register it.
You cannot start a business in Australia legally if you do not register by and get your business number. It is also known as ABN number. An ABN number consists of an 11-digit numeral which is distinct for each business. It is just like your passport number or ID which is issued by the government and acts as your identity. In this case, the identity of your business is your ABN number.
You cannot even register your business unless you have your ABN number.
After you are done getting your ABN number, now is the time to decide a name for your business, register it legally and get started.
4. Arrange to fund for the startup
The next and perhaps a critical step is to arrange to fund for your business. Small businesses especially need some funding source to begin. The good thing about Australia is that it has got various options for providing grants to start-ups. Moreover, there are also many funding support programs you can avail.
Check out Australian grant options on the internet such as “Grants Victoria”.
5. Register for the tolls and taxes
Unfortunately, there is a considerable amount of tax you need to pay if you to start your business in Australia. Therefore, don’t forget to register for taxes to prevent from any implications. The various kinds of taxes in Australia include “Fringe benefits tax”, “goods and services tax” and “pay as you go” tax. All of these three taxes differ with the type and structure of your business.
So, these were the important steps and the 5 critical ways you need to learn to start a small business in Australia. My best wishes are with you and your startup.