More and more Australian people are turning to self-employment, when they can be their own boss and it has never been easier to set up a small business. We are living in a digital world and you can set up a small business without ever meeting a government official; everything can be done online and that eliminates a lot of travelling.
Start with a business plan
Regardless of your chosen industry, you should start by writing a comprehensive business plan; this document is your roadmap to sustainable success and a good business plan contains information about the following:
- Overview of the business – Introduce the concept and state the values and mission statement or your organisation. A commercial electrician, for example, might aim to provide affordable electrical services to local businesses, with a service that is second to none.
- Startup & running costs – An accurate account of the capital needed to launch the business, with monthly running costs.
Asset inventory – A complete list of all the organisation’s assets.
- Sales & marketing – A detailed plan that shows exactly how you plan to carve out a market share. A digital marketing plan would be included in this section. Click here for how to generate good business ideas.
- Organisation flowchart – A diagram that clearly shows all personnel and their job descriptions.
- Profit/loss Forecasts – Forecasts for at least the first 3 years (most plans have a 5-year forecast) that assess sales and revenue.
- Business development – A section that outlines the intended growth of the business, showing how expansion is achieved and funded.
There are numerous ways to register a business; it might be a partnership, a private limited company or simply a freelance professional. Talk to a commercial lawyer, a legal expert who can offer you the best advice about the best type of business to create. Click here for further information on registering a business in Australia.
Of course, you are going to need capital to launch the enterprise and after crunching the numbers, you should have a minimum amount that you need to proceed. Make sure you include all expenses when calculating the amount of capital needed for a successful launch. We don’t recommend setting up a business on a shoestring budget, as you can easily get into hot water. If a customer is slow to pay their invoice, this might stretch your cash flow; if money is limited, apply for a business startup loan from a leading Australian online lender and you can repay the loan over a couple of years.
You can minimise risk to the business by taking out appropriate insurance cover; a commercial insurance broker can tailor insurance to suit the organisation. The minimum insurance cover would be a general liability that covers you if you are sued by a 3rd party for any reason, plus you need insurance for stock, inventory, vehicles and your commercial premises.
Success is never a given when setting up a business, which is why you need to carry out a lot of research.