Starting a business comes with a tremendous amount of challenges. You have to be organised, you have to have the right people behind you, and you have to have the right product or service.
Because you need all of that to succeed, it makes sense why so many businesses fail. In Australia, 60% of businesses fail within three years of starting up.
If you want to start a business in this country, you may be wondering how to avoid becoming part of that statistic. What are the keys to having a successful business in Australia?
This is your guide.
Create a Business Proposal
The first thing that you should do when wanting to start a business in Australia is to come up with a good business proposal. This is especially important if you are trying to raise capital to initially fund your business.
On this business proposal, you need to properly explain where every dollar you want for funding is going to go. How much is going to marketing? What about product development? Employee salaries?
These are things that you need to think about when starting your business. It also gives your potential investors a better idea of what your vision is.
An example would be if investors are not quite sure on what your product or service is. A proposal can properly explain it to them and how you plan to attack that market for its industry. This can also help give people a better idea of if your business can succeed in the Australian market.
Deciding the Structure
The next thing that you are going to need to do is to decide what type of business structure you want to have. With this, you are going to need to think about what type of partners you are going to need now and what type of partners you are going to need in the future.
In Australia, there are four main types of business structures that you can have.
Sole Trader
This gives the owner the most control because, in this setup, you are the only person that has any financial stakes in your business. This means that when it comes to making decisions, you would not have to answer to anybody. However, the main negative with this is that you are responsible for all financial aspects of your business.
Partnership
Another option that you have for your business is to team up with a partner or multiple partners. With this type of arrangement, each partner would be taking on personal liability when it comes to finances.
However, the main cons are that it is easier to get out of the business and that the partners would have more control over business operations.
Company
If you do not want to put up personal financial risk like described above, you have the option of making your business a company. This would mean that many different voices would have a say in your business and you would have less control over it. However, the pro is that if your business is in debt, the banks and government cannot come after your personal assets.
Trust
Finally, you have the option of setting up a trust for your business. This is more expensive to set up but it does give you maximum protection when it comes to facing any losses.
Registering Your Business
Once you decide what type of structure you want your business to have, it will be time to register your business with the Australian government. Over 2.5 million businesses are active in the country, so it is safe to say that they have this procedure down.
When you do register your business, you are going to have to provide a name for said business. Once you complete this process, the Australian government will give you a business number. Make sure that you remember this number and store it in a safe place, because it will come into play for other business operations.
Preparing for Taxes
Another important part of setting up your business is determining what type of taxes you are going to have to pay. In Australia, you will receive a tax file number after you register your business with the government.
You will use this number to pay your taxes when the time comes. The question is, what type of taxes will you be expected to pay?
Well, if you have any employees, payroll taxes are going to be something that you will have to plan for. On top of this, you have to pay taxes on any net income that you receive as a business along with any capital gains that you have.
To do all of this, you will have to make sure that your business keeps proper documents when it comes to finances. That means that you are going to have to have the proper bookkeeping when it comes to income received as well as expenses your business has to determine your net income and employee payroll.
Start a Business in Australia
These are some of the biggest things you need to note if you want to start a business in Australia. Proper registration, structure, and tax preparation are all essential when it comes to keeping your business organised.
However, you also need to make sure that people know your business exists. That is where a marketing consultant in Sydney can help you.
Do you need help with your marketing? Message this SEO consultant in Sydney today to learn more about how to take your business to the next level.