Setting Up a Small Business – What You Need to Know
— The current level of digital technology really empowers the entrepreneur.
More and more Australians are choosing to work for themselves rather than making someone else rich and who could blame them? The current level of digital technology really empowers the entrepreneur and if you have a brilliant business idea that you would like to turn into reality, we present important information to help you create a winning business.
Supply & demand
The first thing to establish is whether or not your product/service is in demand and this is a critical aspect; it is not a good idea to go ahead if the demand is not there and you must always remember there are other companies already in that industry. In the event your research shows the demand is high, then you can go to the next stage in the process, which is costing. If, for example, you are planning on bringing an Uninterruptible Power System (UPS) to the market, you need to research the competition to determine if you can match their prices and products.
Crunch the numbers
If you are planning to sell a product, find out how much it will cost you to get the product to the customer, which will tell you what sort of margin there is. If that looks good, the next thing to do is write a comprehensive business plan.
Business plan
This is where you really have to be on point; a comprehensive business plan covers the following:
- Business overview
- Organisation flow chart
- Marketing plan
- Set up costs
- Running costs
- Logistics
- 5-year forecast
When you think your plan is complete, ask a business coach to take a critical look and if there are issues, they will find them. It is important to have a fast and reliable Internet connection, which this article highlights.
Business registration
Such is the level of digital technology today, you can register the business with the Australian government online, then you will receive your ABN. The federal government offers support to new businesses and you may qualify, so do check.
Set up an accounting system
You need to record all transactions from the outset, so set up a few simple spreadsheets, or enlist the help of a local bookkeeper, do not make the mistake of getting behind with your accounts. We recommend that you set up a cloud data storage network and your bookkeeper can access the data they need to keep the books up to date.
Minimise risk to the business
Make sure that you take out public liability cover and other policies to protect the business, which minimises risk. Talk to a business guru about this and they can advise you accordingly. The first year is the most important for any business, if you can get through that, you have a good chance of long-term success.
Digital marketing
You will need an aggressive online marketing plan to reach your target audience; make sure you set aside a budget for ongoing SEO and that should see your business thrive.
We hope this short blog helps you to turn your business idea into reality.
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