Australia has a thriving economy with new entrepreneurs ready to start and run their businesses. Many find starting a business both terrifying and exciting at the same time. Although the prospect can be daunting, you can benefit from the wisdom, success and mistakes of various entrepreneurs.
But before you start a business, make sure you do certain things like identifying a business idea, finding a business name and so on. In Australia, one of the most crucial parts of the process is to register a business. So, if you read further, you will learn how to start a business in Australia.
- Research and identify an idea for your business: The first and foremost thing to do before starting a business is to research a business idea and to identify it. For instance, you can peruse product reviews and research the common complaints about the popular products available in the market. If you can identify the gaps, then that is definitely a great business idea.
You can also look at the current trends to make the most out of your online business. Further, you can plan on expanding complementary goods after launching your signature product. You can brainstorm many ideas to get started on your business.
2. Choose a business structure: When you choose a business structure, it directly affects your level of control, regulatory obligations, and the amount of tax to pay. Additionally, it also impacts the level of personal liability and the health and safety requirements of the workplace. The four structures on which you can build a business are a company, partnership, trust and sole trader. If you register yourself as the sole trader of your business, it means that you are the sole owner of the business. Your responsibility includes running a business by considering all the legal aspects. Further, you are entitled to hire people to work for you.
A company is an entity or commercial business with a separate legal existence to its shareholders. As the name suggests, a partnership is when one or more entities or persons run the business together. A trust is an entity that is in possession of income, property and various assets for the benefit of the third party.
Before you register a business, it is recommended that you decide the structure of the business. You can change the structure of your business when it grows and evolves.
3. Apply for an Australian Business Number (ABN) and register your business name: To legally start a business in Australia, you must first own an Australian Business Number or ABN. But, what is an ABN? It is an 11-digit unique number that acts as a government identifier for your business in Australia. After receiving an ABN number, you are entitled to register the name for your business. You will also be able to claim taxes like Goods and Services Tax (GST) and avail of credit entities like energy grants.
Before creating assets like logo, website URL and other designs, you can decide on the name of your business. When you create a logo, you must make sure you patent it to protect it from any copyright infringement.
You can either register your ABN or business name separately or apply both at the same time. In case you plan on starting a company managed by directors, you must attain the Australian Company Number or ACN, which can be issued from the Australian Securities and Investments Commission (ASIC). The ASIC provides a unique code for monitoring activities within the structure of the Australian Corporations Law. So, you can find services by typing ‘register a business in Australia’ on your Google search engine page.
4. Identify your funding source: You must have a great business plan and have a sufficient amount of funds or cash flow. You must understand the growth resources available for the initial period of your business and look for investors and other sources of funding.