Things You Should Know Before Starting a Business in Australia
There are times when you feel unproductive and underutilised in your job and wish to make a switch. After a few job changes, you are still dissatisfied and feel that you can do so much more if the reign was in your hands. Finally, reality dawns upon you, and you decide to take a leap in your career to launch your dream enterprise. Starting a business is both thrilling and intimidating. While the entrepreneur is ecstatic to realise his dreams, he is also a little anxious about the future. It is like archery; you might aim for the bull’s eye but don’t know where the wind will make the arrow land. Experience and skill make sure that you understand the flow of the breeze and meet your target. Similarly, starting a business requires the same qualities. In the enthusiasm of beginning a new chapter in their lives, entrepreneurs often tend to make mistakes. These can be easily averted with a little planning and preparation. So whether you are launching a start-up or purchasing a business for sale in Australia, you should be well-prepared to take the plunge.
Australia is a land of opportunities which has shown immense economic potential over the years. According to the Australian Bureau of Statistics, the number of actively trading businesses reached over 2.24 million in 2017 which was a 3.1% higher than the previous year. In addition, the rate of businesses being added to the economy increased to 15.1% in 2017 which was better than the 14.6% in 2016. Also, the rate of exit of businesses was reduced by 0.3% between 2016 and 2017. In fact, the country has had the most stable economy for twenty-six years now, with a graph of positive growth for nearly 104 quarters. It has managed to remain unaffected by the bursting of the dotcom bubble and the recent recession due to the mining boom. Painting a rosy picture for investors, the FocusEconomics Panellists estimate that the GDP will grow by 2.7% in both 2018 and 2019. This further strengthens the confidence of entrepreneurs who are looking to arrive with a bang in the nation’s bustling marketplace. So here is a list of things that you should know before starting a business in Australia.
Create a business plan
While foraying into the dynamic world of business, one must do proper market research. Prepare a business plan which should have the current figures of turnover if you are buying a franchise for sale in Australia or expected sales if starting a new endeavour. It should include details about the type and structure of the organisation, its assets, loans, resources, inventory, registration, etc. It should also talk about the future goals and plans.
Check the feasibility of the idea
A professional may want to convert his/her hobby into a business, such as a wine lover might want to own a vineyard. However, it is not easy to procure the farmland, to harvest a luscious yield, transform it into a flavourful alcoholic drink, and then get it distributed in the market to make profits. It needs a lot of hard work, investment and labour in addition to understanding and learning the process of wine making and selling. Working on a farm in the scorching heat, away from the fun and frolic of city life can make many lose their bearings. That is why it is essential to know whether you are cut out for the job or not, and would you be able to handle the pressure and workload it will bring along. You must have a clear vision and long-term goals before setting foot in the market.
Know the target audience
It is most critical to know who is buying your products. Whether they need these goods and services or not and how do they consume them. The buying behaviour also needs to be researched to reach the customer in the best possible way. This will help you to devise an appropriate strategy for marketing, branding and pricing. This rule is applicable to all kinds of businesses whether B2B or B2C. For example, if you wish to own a cafe and coffee shop in Sydney, you would have to know about the demographics of the residents and their interest in visiting coffee shops, the frequency of their visits, the flavours and kinds they prefer, and how much they are willing to pay for it.
Research about the competitors
Comprehend the offerings of the competition and how they are fulfilling the needs of the customers. Know what makes them popular among the buyers and what marketing strategy do they utilise. This would help you to understand if there is any gap in the demand and supply chain, and how you can be better equipped to fill that gap in the market. Stay ahead of the competition by creating a unique identity for your products and promising a better quality.
Know your strengths, weaknesses, opportunities and threats. Most often you would have to upgrade your business management and people management skills. Also, you will have to learn about the functioning of the industry and acquire technical expertise which would set your company apart. Work on the weaknesses and try to outperform the threats coming from the competition. Jump at the right opportunities to make the most out of the situation.
Follow the rules
After you have decided whether the business would be a sole proprietorship, partnership or a company, you need to register for the Australian Business Number which will create an identity of the organisation in the eyes of the government and the local community. This will be followed by registering for a unique business name and trademarks to differentiate your products from the competition. Next, apply for tax registrations and business registration and licences. Also, do not forget to insure your company.
Create a realistic budget
It is a given that you will have to put in some money before you start earning from a business. The amount may be less if you buy a franchise for sale in Brisbane as compared to a start-up. However, you should not overestimate or underestimate the cost and profits. You must be certain where, when and how much to spend as you cannot afford to waste money at this crucial juncture of the process. Do not try to cut costs where spending is inevitable, such as finding and buying a strategic location for the company. Discuss the financial matters with experts and then create a sensible and rational budget.
So avoid making a foundational mistake by keeping these things in mind when you are planning a career in entrepreneurship. These tips are valuable for even those who intend to buy a business for sale in Australia, as the field of play remains the same in both the cases.