How To Start A Business In Australia
There are many reasons for wanting to learn how to start a business in Australia. Whether you already live in the land “Down Under,” or are considering a major investment there, these basic business startup tips will help you along the way.
- Research your concept. Before delving into the legalities of starting a business in Australia, you should first do an appropriate amount of research to determine your concept’s likelihood of success. Will your business plan provide an adequate financial return? You may want to consider developing spreadsheets for calculations and budgets. It’s also important to find out what type of license and/or permit you will need for your type of business.
- Know your finances and funding. Once your business plan is complete and you’ve covered every angle, you’ll need to determine the best financial arrangement. What sources can provide you with funding? Are you able to borrow enough sufficient funds to keep your new business afloat? Whether your money is coming from investors or loans, be sure to spend wisely and only on materials that are essential for your business.
- Choose a structure. Just like there are different types of businesses, there are also different types of business structures. These include Sole Trader (you are liable for debts); Partnerships (partners are liable for debts); Proprietor Ltd Company (provides protection from personal liability, but is more costly to maintain); Trusts (useful in business planning and minimal set up costs).
- Location, location, location. This is by far one of the most important things to consider when starting your business in Australia (or anywhere, for that matter). You could have the best business model on the block, but if you’re located in a less than ideal area, you’ll most certainly be losing money. That said, it may make more financial sense to spend a little more on your lease if the building is in a better area. Some things to consider are foot traffic, visibility and parking.
- Register your business name. Unless you are using your name for your business, it must be registered. For Example, you can legally use "John Smith" without having to register, but if you want to use "John Smith's Burger Joint," you must register the name.
- Pay your taxes. The mere thought of filing taxes can be a daunting task for even the most savvy business owner. It can be time consuming, and if you’re not familiar with all of the federal and state taxation laws, it’s easy to overlook things. Do yourself a favor and hire an accredited CPA. You can also purchase a money-tracking software program like Quickbooks or Quicken to record your daily business gains and expenses.
- Hire a lawyer. You’ve got a CPA to mind your money matters, and it’s equally important to have a lawyer to cover any legal aspects of your business. Sure, it’ll cost you, but it will also save you a world of time and effort in trying to do everything yourself and will likely save you money in the long run.
Posted on: Sep. 12, 2010