Statistics obtained from the Australian Bureau of Statistics (ABS) indicate that some 300,000 small businesses are established in the country every year; however, only 50% remain operational for the fourth year. The whole idea of starting a business can be exciting as you prepare to turn your dreams into reality. You obviously need to choose the business name, identify the skills you needed to start the business, specify your goals and objectives and look at the benefits and disadvantages of starting the business. According to News Australia, the main benefits of starting a business include:
• Opportunity to enjoy freedom and flexibility
• Get learning experience
• Experience a sense of accomplishment in being able to create and manage a business
Being your own boss comes with lots of freedom and flexibility since you will be able to choose your work hours and adapt to business practices that fit your management style. Some of the experiences you are going to garner when you start your own business include the opportunity to serve your customers, apportion funds and negotiating with business partners such as suppliers and creditors among others. The steps required to start a business in Australia are fairly straightforward. According to the Department of Industry, Innovation, and Science, here are the key steps:
1. Choose the structure of your business
The decision on what business structure to adopt should be informed by your needs. The four types of business structures recognized under the law are namely; sole trader, trust, partnership, and company. You can always change your business structure depending on the emerging business dynamics. A sole trader is a business run by an individual while a partnership is operated by a number of entities or people. A sole trader generally demands fewer tax and legal formalities, which makes it an ideal option for freelancers. As for a partnership arrangement, the management and income are often shared among the partners.
A company can be described as a form of business that is legally separate from the shareholders. This business structure is generally more complex and expensive to set up and manage. However, companies enjoy asset protection among other benefits. The trust, on the other hand, is an entity that holds income or property in the interest of its beneficiaries. It is important to note that the structure of business you choose has a bearing on the modalities of registration, taxation, licensing and insurance.
2. Submit your Australian Business Number (ABN) Application
This unique number identifies the business to other business and more importantly to the government. Application for an ABN is free and can be made online at the Australia Business Register website. The requested information includes personal details, business information, associate information and reasons for making the application and business activities.
3. Perform name search
Before your business name is formally registered, you must first determine if it is available by performing an online search with ASIC, the Australian Securities & Investments Commission.
4. Registering your business name
The business registration application is available at the Australian Securities & Investments Commission website. It takes between 15 to 20 minutes to submit a complete the application. Applicants pay $34 AUD to secure the business name for one year or $79 AUD for a 3-year safeguard.
Other import steps
Once your business is registered, you need to create a business plan, build a support team, invest in the right technology and market the business. Creating a business plan will give you a roadmap on how to get to your goals and objectives. Some of the issues you need to address are the targeted customers, budget, value proposition and competition. According to the Small Business Development Corporation website, a trusted and reliable support team that is crucial in any business venture includes accountants, legal minds, and industry professionals.
Since you are going to deal with sales and inventory aspects, it is important to invest in the right business technology to ensure your business runs smoothly. You can think about payment system, inventory management system and data reporting and analytics tool. During marketing, you need to do some research regarding the target market and competition in order to come up with the best advertising and marketing tools and strategies to use.
The Simonetta family, whose roots can be traced to southern Italy, is one of the most prominent entrepreneurial families in Australia. The Simonetta family has been doing business in Australia since 1956. Three brothers, Mario, Tony and Joe Simonetta established Simfresh Pty Ltd in 1990 to undertake the wholesale distribution of groceries and other farm products. The firm runs one of Australia’s largest wine grapes and citrus parking entities, serving both domestic and a growing export market.