Contributing 80% of Australia's economic output, small, medium, and large businesses are indeed an integral part of the country.
On the community level, businesses provide employment opportunities and important products and services. It's little wonder, then, that more and more people are beginning to entertain the idea of running a business as a part-time activity or a full-time job.
If you have been seriously considering going into business, you probably already know that it will take some planning, hard work and foresight. If your dream is to run a successful business in Australia, here are four things to get in order.
1. Get Formal Training
Business savvy and creativity can go a long way in helping you build and run a successful business. However, do not underestimate the value of formal training. If you are venturing into a business you have little background in, taking a course in that field can help you understand the in's and out's better. But formal education is not just necessary for that.
Taking a business management, bookkeeping, administration, leadership, or other such courses can impart you with invaluable skills that will be important when running an enterprise. Before you write the idea off on account of it being expensive, evaluate some government-funded options.
2. Research Your Business Idea Thoroughly
There are over 2.4 million businesses operating in Australia. For your idea to be successful, you have to think about several things. These include what differentiates your products from those already in the market. This differentiator is what will make customers consider moving from a competitor to do business with you. Think about who your competition is, and learn as much about them as you can. Similarly, do some market research into who your client would be and how you can best solve their problem.
3. Iron Out Funding Issues
If you are like most businesses, capital and cash flow will be a significant cause of worry. The best business plan in the world will not help you pay utilities before your business gets on its feet. This highlights the importance of knowing what resources are available and how long they can carry your business before you need to inject more cash into it. If you plan to finance your business by yourself, protect your personal finances as well. The rule of thumb is to set aside six months worth of living expenses then use the rest for business. Ensure to have enough for your business for three to six months as well. This should include all utilities, business premises, and wages, if any. The last thing you want is to begin a business then run into serious cash flow issues a few months later.
4. Identify a Software Stack
Modern businesses have the benefit of technology, and you should evaluate how and which technologies you can leverage for your business.
These become even more important and make your life much easier as you begin to scale. Different companies require different software tools, but some are common across most business types. Some of these include CRM software to hold all customer information centrally and bookkeeping or accounting software to keep a firm handle on your business finances. Businesses today are also increasingly using an analytics tool to measure growth.
While this list is not exhaustive, ensuring these aspects of a new business are in place guarantees that the fundamentals are well taken care of.
When you sort these out, you can then think about marketing, staffing, compliance and so on, while on a solid footing.