When it comes to doing business globally, few countries match up with the ease of doing business that Australia provides. The country down south delivers significant support from the government side, along with a blossoming economic backdrop.
As much as these factors should sweeten your prospects of running a profitable business here, there are still important things you should have on your to-do list before launching any type of business in Australia.
This guide offers essential information you might need before you start your business in Australia, covering legal obligations and financing considerations, which should all contribute to your choices and decisions for starting and setting up shop.
In addition to that, this guide also outlines handy tips on creating a solid business plan which is a key element to launching any business on the right foot.
Whether you're new or experienced in all things entrepreneurship, read on to understand the Australian business terrain, and see how to get that needed headstart as you begin your entrepreneurial journey.
1. Ideate and validate
Developing your own product
The process of launching and selling one's products can be challenging and requires significant investment of time, effort, and resources. Not to mention the mindset you need to succeed as an entrepreneur.
After all, a successful business idea involves researching an established market need, designing prototypes, and testing them rigorously while gathering feedback from potential customers during refinement stages. No easy feat for just anybody.
You also need to collaborate with different stakeholders, whether those are suppliers, manufacturers, or distributors. Legal measures and regulations must also be followed to protect intellectual property rights during production and distribution.
Finally, effectively launching the product could mean building up unique marketing strategies tailored for your target audience. The entire process demands intense drive towards Innovation coupled with steadfast commitment towards hard work.
Curation or resale products
Advancements in search engines and social media have made it easier for individuals to start their own online reselling businesses with minimal effort. You can easily curate or resell products by conducting thorough research and selecting items from a variety of sources, such as thrift stores, garage sales, or online marketplaces like Alibaba.
You can then take these carefully-selected products and sell them for a profit on popular platforms such as Etsy, eBay, or Amazon. This business model has the potential to generate profits by meeting market demand and efficiently managing operational costs.
Beginning a curation or reselling venture involves the initial step of identifying a suitable niche.
The process includes exploring different options, which can include vintage clothing and accessories, handcrafted home decor, and personalized gifts. By tapping into a specialized niche, you'll stand out from the crowd and attract a tribe of like-minded enthusiasts who are hungry for your one-of-a-kind offerings.
Once you have identified your niche, the next steps include sourcing reliable suppliers for your merchandise.
To do this, try to explore diverse channels, like paying visits to your local thrift stores or flea markets and garage sales where you can stumble upon one-of-a-kind items.
Alternatively—and probably ideally—you have the option to procure goods wholesale directly from suppliers or manufacturers. Collaborating with fellow artisans or small business owners who provide complementary products should also be on your radar.
Success in the reselling industry requires careful consideration of various factors beyond simply listing items for sale online. When sourcing items for resale, it's important consider various factors in order maximize their value.
These factors include:
Cost of Shipping
When sourcing items for resale, consider the cost of shipping. While some products may have a lower purchase price, shipping costs can quickly eat into your profit margins. Because of that, you might be better off sourcing products that can be shipped inexpensively or have free shipping options.
Quality control is important for resale items. Always check if the products you buy are real to avoid fakes. Set yourself up for success by partnering with top-notch suppliers and scrutinizing labels for genuine trademark logos. And be sure to check products for defects or damage before selling.
Research and understand market demand before sourcing products for resale. Find popular items with a steady demand. By implementing this strategy, you'll be on the fast track to skyrocketing sales and earning those sweet, sweet profits.
Work with reliable suppliers when sourcing items for resale. Find reliable suppliers with good products and on-time delivery, and a positive reputation in the industry. Minimizing the risk of delays or complications is important to ensure timely receipt of ordered products and prevent any negative impact on sales.
Ultimately, the goal of sourcing items for resale is to generate profits.
And with this goal in mind, you need to put in the time to calculate potential profit margins before finalizing any decisions. Consider the purchase price, shipping expenses, and additional costs such as taxes or fees. This way, you can make sure all your efforts turn into profits from every sale.
Small business owners often find themselves faced with the choice of either developing their own product from scratch or engage in the reselling of products as a business model.
Choosing to create a product requires dedicating additional resources, time, and energy to designing a solution that addresses a specific requirement or challenge. This approach requires a lot of money but gives you control over branding, pricing, and quality.
On the other hand, reselling entails a lower initial investment since the product already exists. However, it does come with certain limitations, such as reduced control over the product itself and narrower profit margins.
Choosing between these two options requires a thorough analysis of the market, competition, and available resources.
2. Research your audience
Finding a target audience
Finding a target audience means figuring out the people who would like and benefit from a product or service. Research demographic information, such as age, gender, economic background, and more, to find common traits among your potential customers.
By understanding the needs and preferences of your target audience, you can then create relevant marketing strategies to connect with them and ultimately convert them into paying customers.
Conducting market research
Conducting market research is an essential step in the process of launching a business, as it can have a significant impact on its potential success. By collecting and analyzing data about your prospective customers, competitors, and industry trends, you can make informed decisions and create effective strategies.
Here are some recommended steps to follow when conducting market research before initiating a business:
1. Conduct Surveys
Surveys serve as an excellent means of data collection. Use free tools such as Google Forms or SurveyMonkey to create online surveys. Pose questions about the needs, preferences, and behaviors of your target customers. Incorporate a mix of open-ended and closed-ended questions to gather both qualitative and quantitative data.
2. Monitor Industry Trends
Stay on top of industry trends to identify opportunities and challenges. Subscribe to industry publications, blogs, and participate in relevant social media groups. This allows you to stay informed about emerging developments, technologies, and changes in consumer behavior.
3. Conduct Focus Groups
Conducting focus groups enables you to gather qualitative insights from a small group of individuals who represent your target market. Arrange moderated discussions where you can pose open-ended questions and receive feedback on your product or service, marketing materials, and messaging.
4. Use Data Analytics
Leverage data analytics tools to gain valuable market insights. Services such as Google Analytics, Moz, and SEMrush enable you to track website traffic, search engine rankings, and customer behavior. This data can be used to refine marketing strategies and address customer needs effectively.
Analyzing the competition
Understanding who your competitors are before starting a business can give you an insight of how the current market potential are.
By gaining insights into your competitors, you can identify potential challenges and opportunities, ultimately making your business more successful.
Here are some valuable tips for effectively analyzing the competition:
1. Identify Your Competitors
Start by identifying other businesses that offer similar products or services, target a similar audience, and operate in the same geographic area as you. Create a list of your main competitors and assess their strengths and weaknesses through a swot analysis.
2. Analyze Their Website Information and Social Media Presence
Explore your competitors' websites and social media platforms to gather valuable information about their offerings, pricing, marketing strategies, and customer engagement. Pay attention to their design, messaging, and content. Additionally, examine their blogs, customer reviews, and social media interactions to gain insights into their customer interactions.
3. Examine Pricing Strategy
Pricing plays a very pivotal role in a business success. Evaluate your competitors' pricing strategies, including any discounts, offers, or loyalty programs they employ. This analysis would help you understand not only the price points set by your competitors & the market in general, but also the factors driving their pricing decisions.
4. Assess Their Marketing Strategies
Gain an understanding of your competitors' marketing strategies by identifying effective tactics and potential challenges to you. By examining the type of advertising, promotions, and social media campaigns you could understand the type of marketing strategies that resonate well within the market.
Take note of their messaging and unique value propositions used in their marketing efforts. This analysis will assist you in differentiating your business from your competitors' strategies.
3. Calculate your startup costs
Writing a business plan
A business plan is like a blueprint for your business. It's a document that lays out your goals, strategies, and financial projections.
Your business plan should include a roadmap that keeps you focused and on budget. When you plan out your ideas and strategies, it gives you a clearer picture of where you are heading to, what sort of resources you'll need, and how your business will thrive in the market that you operate in.
When creating your business plan, it's also important to build out a financial forecast. Understanding some of the cost you might need to project might help you better in planning your financial resources. Here are some of the costs you might need to consider:
1. One-time costs
These are the initial expenses you need to incur before starting your business. They may include:
- Market research
- Business registration and legal fees
- Leasehold improvements or construction costs for your physical location
- Purchase of equipment, machinery, or vehicles
- Initial inventory or raw materials
- Website development and design
- Branding and marketing materials
2. Recurring Costs
These are the ongoing expenses you need to budget for on a regular basis. They may include:
- Rent or lease payments for your business premises
- Utilities, such as electricity, water, and internet
- Employee salaries and benefits
- Insurance premiums (e.g., general liability, property, workers' compensation)
- Marketing and advertising expenses
- Software subscriptions or licenses
- Maintenance and repairs for equipment or facilities
- Inventory replenishment
- Professional services (e.g., accounting, legal, consulting)
3. Administrative Costs
These are the expenses associated with running the administrative side of your business. They may include:
- Office supplies and stationery
- Accounting and bookkeeping software
- Legal and professional fees
- Business insurance
- Permits and licenses
- Business banking fees
4. Marketing and Sales Costs
These are the expenses related to promoting and selling your products or services. They may include:
- Advertising and promotional campaigns
- Website hosting and maintenance
- Social media marketing
- Sales team salaries or commissions
- Trade show or event participation fees
- Marketing materials and collateral
5. Contingency Funds
When you fail to plan, you plan to fail. It's always wise to allocate a portion of your startup costs as a contingency fund to account for any unexpected expenses, fluctuations or changes in the market.
This buffer can then help you navigate unforeseen challenges without jeopardizing your business operations.
Case in point: remember when the COVID-19 pandemic first hit. Many businesses were caught off guard and were suddenly strapped for cash when they couldn't afford to operate in the same way as before.
Today, those same businesses might even now be trying to keep post-COVID sales high since consumer habits have changed drastically over the last few years.
Remember that startup costs can vary significantly depending on your industry, location, business model, and scale of operations.
Conduct thorough research, seek advice from industry experts, and create a detailed budget to ensure you have a realistic estimate of your startup costs.
4. Registering your business
One critical aspect is registering your business with the appropriate government agencies. Here's a guide to help you register your business in Australia.
Choose Your Business Structure
The first step in registering your business in Australia is choosing the appropriate business structure. The structure you choose will depend on the size of your business, the industry, and the applicable laws and regulations.
The most common business structures in Australia are sole trader, partnership, company, and trust.
Each structure has its own benefits and risks, so it's important to do your research and choose the one that's right for your business' arrangements.
Here are the business structure that is being offered in Australia:
- Sole Trader. Simplest and most common business structure where an individual operates as the sole owner of the business. The sole trader is personally liable for all business obligations.
- Partnership: A business structure with two or more individuals (partners) who share the profits, losses, and responsibilities of the business. There are general partnerships, limited partnerships, and incorporated limited partnerships.
- Company: A separate legal entity from its owners (shareholders) that provides limited liability protection. Companies must have at least one shareholder and can be classified as proprietary (Pty Ltd) or public (Ltd).
- Cooperative: A legally incorporated entity designed to serve the interests of its members. Co-operatives can be profit-sharing or non-profit organisations and provide goods and services to their members.
- Trust: A legal arrangement where a trustee holds property or assets for the benefit of beneficiaries. Trusts offer asset protection, estate planning, and taxation benefits. Common types include discretionary trusts, unit trusts, and family trusts.
- Joint Venture: A commercial agreement between two or more entities for a specific project or purpose. Participants share profits, losses, and costs associated with the venture, which operates as a separate entity.
Register Your Business Name
After selecting your business structure, the next step is to register your business name with the Australian Securities and Investments Commission (ASIC).
This registration ensures that your business name is unique and it grants you the right to use it exclusively in Australia.
You'll need to provide information about your business structure, your expected revenue, and your intended activities to complete the registration process.
You might like:
Apply for an Australian Business Number (ABN)
The Australian Business Number (ABN) is a unique 11-digit number that serves as an identifier for your business in dealings with the government and other organizations.
Having an ABN is necessary for various purposes, such as registering for Goods and Services Tax (GST), claim tax credits, or apply for an Australian domain name.
You can apply for an ABN online through the Australian Business Register here.
Register for Goods and Services Tax (GST)
If your business has an annual turnover of over $75,000, it is compulsory for you to register for the Goods and Services Tax (GST) with the Australian Taxation Office (ATO).
The Goods and Services Tax is a 10% tax that is applied to most goods and services sold and consumed within Australia.
To register for GST, you will need an Australian Business Number (ABN) and other relevant business information, such as your expected turnover and details about your business activity.
Obtain Necessary Licenses and Permits
Depending on the nature of your business, you may need specific licenses and permits to operate legally in Australia. Here are a few examples:
- Food Business License: If you intend to open a food business, you will need to obtain a food business license from your local council. This license ensures that your business meets the necessary hygiene and safety standards for handling and serving food.
- Hazardous Materials Permit: If your business involves handling hazardous materials, such as chemicals or dangerous substances, you may need to obtain permits from the appropriate authorities. These permits are designed to regulate the safe storage, transportation, and disposal of hazardous materials to protect public safety and the environment.
- Vegetation Control Permits: If your business involves activities such as vegetation clearing or control, particularly in environmentally sensitive areas, you may need specific permits from the relevant authorities. These permits ensure that your business operates in accordance with regulations aimed at preserving natural habitats and protecting biodiversity.
5. Build your business
Now that you've taken the first steps of registering your business and locking in a supplier or figuring out the nitty-gritty of manufacturing. You're now ready to unleash your business in Australia.
However, depending on the nature of your business, there is still a couple of things you'll need to prepare.
Think assembling your team, spreading the word about your products or services, setting up shop online with highly converting website, and even hunting down potential investors or partners.
Starting a business down under can feel like diving into the unknown, but with the right guidance and support, you'll conquer it like a pro. So, check out the tips below to see what else you'll need to consider.
Bringing your brand to life
Developing a strong brand identity can distinguish your business from competitors and create a lasting impression on potential customers.
In order to accomplish this, integrating your company's values into your marketing and communication approaches becomes paramount. Additionally, leveraging social media, advertising, and an impactful online presence will further solidify your brand's prominence.
Designing and building an e-commerce website
Designing and building an e-commerce website is a key step for businesses looking to sell products online.
Your website needs to be user-friendly, secure, and easy to navigate. Start by considering the important parts of your website, like organized categories, payment options, loyalty programs, and shipping flexibility.
If you are in the market for one right now, consider using Cococart. Cococart is an all-in-one solution for small business owners looking to take their business online. It includes a suite of powerful features like bookings, ordering platform, marketing tools like email, customer loyalty programs, and analytics.
Pricing per month start only at $5.
Exploring marketing channels
Marketing is essential for any business growth and exploring different marketing channels can help your business to effectively reach and engage your target audience in Australia.
Through digital marketing, you now able to cast a wider net of influence over a larger geographical area or even limiting it.
Some examples of marketing channel is social media. Social media channels like Instagram can be a powerful tool to connect with potential customers and grow your small business online.
Other marketing channels such as email marketing, search engine optimization (SEO), and pay-per-click advertising (PPC) can also help you reach new customers and increase sales.
You might like:
Customer service for marketing
Customer service serves as a pivotal component within any business's marketing strategy. A well-crafted customer service strategy not only fosters robust relationships with customers but also ensures their encounter is positive and gratifying.
This, in turn, can pave the way for more sales, unwavering buyer loyalty, and elevated customer satisfaction, all of which are indispensable for triumphing any business.
Managing your finances
It’s important to have a good understanding of the financial aspects of running a business, such as budgeting, cash flow management, and taxation requirements.
To make sure your business runs smoothly and remains profitable, it’s important to create accurate financial records and stay up-to-date with current regulations.
Consider using accounting software designed for small businesses, such as Xero, to streamline accounting tasks and save time.
Accounting Softwares like Xero can help streamline your accounting processes
By following the tips outlined above you can ensure your business is set up for success.
By researching potential suppliers, developing a strong brand identity, designing and building an e commerce website, exploring different marketing channels, creating an effective customer service strategy, managing your finances correctly you will prepare your business for a sustained growth.
When should you start a business?
There is no better time to start a business in Australia. Entrepreneurs thinking of making it big down under needs to know how to manage risks well with a proper plan in place. Use this guide to help you understand exactly what you need to get started, from the very basics down to the legal requirements of getting yourself set up.
And when you're ready, launch your business with a beautiful, simple-to-use e-commerce platform like Cococart, designed to help any business take orders online, launch marketing campaigns, and increase customer loyalty without steep learning curves.