- 1 Here’s How to Make Your Dream of Starting a Small Business in Australia Come True
- 2 Know the nature and structure of your business
- 3 Register your small business
- 4 Decide on the funding
- 5 Be clear about taxes
- 6 Set up your operations
Here’s How to Make Your Dream of Starting a Small Business in Australia Come True
Follow These Tips to Start a Small Business in Australia
Looking for ways to start a small business venture in Australia? Here are quick steps to help you do so.
Many Australians dream of breaking free from their 9 to 5 job and start something of their own. You may be one of them too.
There are about 2,065,523 small businesses in the country already.
That’s a great idea, especially if you want to make money out of something you are extremely passionate about.
If you are looking for guidance on how to start a small business in Australia, then you have come to the right place.
Below are a few useful ways in which you can go about with the process:
Know the nature and structure of your business
First and foremost, you need to know the type of small business you wish to start. It can be a franchise, an online store, or an independent contracting business.
Each type will have different legal regulations governing it.
You also need to decide on its structure, whether it’s a sole proprietorship, company, limited liability partnership, or trust and then register it.
You might also consider purchasing public liability insurance, which is one of the most important investments for small business owners.
This is what protects you against legal claims that may suddenly come about in case a customer, vendor or a member of the public is injured or sustain property damage as a result of your business activities.
To know more about public liability insurance, click here.
Register your small business
Next, you need to start with the registration process for your small business.
The Australian law prohibits anyone from starting a business unless the business owner has an Australian Business Number (ABN).
It’s an 11-digit number given to a new business that acts as its identity in the eyes of the government.
Once you get this number, you can register your small business’s name, file taxes and claim exemptions, work with vendors, and take advantage of energy grants.
If you are starting your business in the online space, you need to create your web properties, such as a business website, social media accounts, and other pages.
You need to register your domain name after registering your company name with the government.
This will make you approachable to your target audience and build your credibility in the market.
Decide on the funding
Now the tricky business begins. You need money to start your business.
Most people decide to bootstrap their venture, but it’s alright if you don’t have that sort of money with you.
You can look for venture capitalists or external investors who would be willing to fund your venture.
For that, you need to have a solid business plan in place. It should clearly state what your business is all about and how you plan to grow it.
Unless your investors trust your business plan, acquiring funding will be challenging.
However, many government grants help enthusiastic start-ups to flourish in the market.
For that also, you need to take your business idea to the market and prove your acumen.
If you are lucky, you can get funding for your sales and marketing activities, import and export activities, hiring people, and buying equipment.
Be clear about taxes
Registered small businesses in Australia have to pay taxes if their income and profits exceed a particular limit in a year.
It’s extremely crucial for you to know and register with the right taxes in the country to avoid legal implications.
The taxes that you are required to pay will depend on the nature of your business.
However, irrespective of the type of business, there are some mandatory taxes that you will have to pay.
Some of these include the following:
Goods and service tax (GST) if the business’s turnover is AUD 75,000 or more.
Pay as You Go (PAYG) withholding tax if you are paying salaries and wages by withholding a sum from your employees.
Fringe Benefits Tax (FBT), if you offer certain perks to your employees.
Set up your operations
Finally, after you are doing with your registration and taxation work, you are all set to put your operations in place.
But for that, you need to set up departments to manage different functions in your small business.
This will depend on the nature of your business.
For example, if you are in the business of providing customer support, then you have to hire a dedicated department for that to do a skilled and professional job.
Get in touch with a recruitment agency or check out online job sites to get in touch with qualified employees.
You will need a marketing team to promote your business and get you more clients.
At the same time, you need to establish strong vendor networks to keep your operations running smoothly.
The above are some of the ways in which you can start a small business in Australia.
Do keep them in mind to lay a strong foundation for your venture.
Go Daddy, Published on March 12, 2019, Author: Claudia Bouma, How to start a business in Australia
Hubspot, Last updated February 10, 2020, Author: Anthony Hayde, How to Start a Business in Australia
Australian Government Business Page, Guide to starting a business