9 Essentials To Have For Every Start-Up Business In Australia

There’s no two ways about it: starting a new business in Australia can be tough work. 

From rounding up all the necessary paperwork to finalising your business’s structure, a lot of planning is involved in launching a start-up down under. When we say that you need a lot of things, we mean it.

Regardless, it can be very fulfilling to see all your hard work come to fruition. And, if you’ve made it far enough to register a business, then you at least owe it to yourself to see it through to the very end.

If you are stumped or need a refresher on all the things you need to get a start-up business up and running, we got you. This article will showcase nine key essentials to help you increase your chances of successfully opening a start-up business in Australia. 

Let’s dive right into things.

1. Business Plan

The very first thing you need before setting up a start-up business is a business plan. 

This plan generally includes your business’s mission statement, vision statement, marketing strategy, funding sources, business model structure, and other crucial information relevant to your business. 

Do note that there’s no right or wrong way to format a business plan. You’re free to include as much or as little information in it as you want.

A business plan not only serves as a roadmap to consult when you need to steer your business in a certain direction, but it also helps you create business milestones that can structure how you operate.

Furthermore, a well-crafted business plan can attract funding and partnership opportunities. 

By allowing relevant stakeholders to review your business plan, you can potentially secure finances to help you grow your business at a faster rate than you otherwise would.

So before anything else, be sure to develop a business plan.

2. Legal Structure

The next thing you should secure for your business start-up is your legal structure.

As simple as it is, your legal structure dictates a lot of variables for your business. For one, this decision impacts the tax obligations of your company. It also influences your degree of liability and whether your personal assets are protected from lawsuits or not.

There are several types of legal structures you can choose from in Australia. The common ones include sole trader structures, partnerships, companies, and limited liability companies, each offering different benefits and limitations.

As a sole trader, you have complete operational control but also bear all legal liabilities. It’s the easiest structure to apply for. Partnerships, on the other hand, allow shared responsibilities and resources among different interested stakeholders.

Companies offer potential tax benefits but tend to have more regulatory requirements due to their rigid operational structure. Lastly, limited liability companies provide tax advantages and asset protection.

It’s crucial to establish the right legal structure for your startup to lay a solid foundation for its eventual growth. Be sure to consult with a legal and financial advisor to ensure you’re picking the right one for your needs.

3. Business Name Registration

Another essential for your Australian startup is a registered business name. 

A business name doesn’t only give you a label your customers and clients can call and remember you by, but it also legally protects you from impersonators in the future.

Australian business owners must register their business name through the Australian Securities and Investments Commission (ASIC). Once your name is approved and added to their database, your startup will then have an exclusive right to operate under your chosen name.

Having a registered business name helps for a tonne of other reasons as well. For one, having a registered business name is a requirement if you plan to set up business bank accounts and obtain licenses in the future.

On top of that, you also want a business name for you to make marketing materials out of. It’s a critical component for creating your brand, so be sure to choose a good one from the onset.

4. ABN (Australian Business Number)

An Australian Business Number (ABN) is a must for any prospective Australian start-up. This unique 11-digit identifier is issued by the Australian Business Register (ABR) and gives you an identity for both legal and community-based transactions.

Specifically, you can create invoices and develop an identity with government agencies around Australia with an ABN. This number is easy to apply for online. Being a compulsory requirement for business, it comes with the added benefit of being free to get.

As for the ABN perks, you can register for Goods and Services Tax (GST), claim credits for GST on business purchases, and avoid Pay As You Go (PAYG) tax on payments you receive. 

If you don’t have an ABN, you can end up getting penalised with the highest withholding tax rate currently imposed. As such, be sure to secure one alongside all the other mandatory requirements when setting up your business.

5. Business Licenses and Permits

Depending on the nature of your startup, you must acquire the necessary permits to operate within your territory. This includes health permits, zoning permits, licenses, and so on.

These permits are necessary for you to legally operate in your area. Failing to secure mandatory licenses can result in fines, legal issues, and the potential shutdown of your business.

For instance, if you plan to launch a restaurant startup, you’ll need to get a food business license, a liquor license (if you serve alcohol), and an outdoor dining permit. 

Before you launch your startup, be sure to consult an expert in your respective field and a lawyer to ensure that you’re operating within legal bounds.

6. Business Bank Account

While the convenience of using your personal bank account to hold your business finances is definitely there, it’s much better to open a dedicated business bank account instead.

A business bank account helps you keep personal and business finances separate, simplifying accounting and tax reporting. If you have a finance department, this separation will save them a lot of headaches when reporting time comes.

Furthermore, owning a business bank account also grants you access to exclusive perks such as low fees, online banking, and business credit options. It also makes your business look more professional overall, which can help when you’re requesting loans or seeking partnerships.

7. Operational Software

Investing in the right technology is key to bolstering your start-up’s processes and improving its efficiency. It can also help you achieve the things that your startup intends to do in the first place.

There are some categories of software that are deemed essential for every startup. Accounting software, for one, helps make tracking and recording transactions easier. 

Customer relationship management (CRM) systems, project management platforms, and communication tools all also help improve communications internally and externally.

Some solutions also help uplift more specific aspects of your startup. For instance, if you have a customer service line, you can buy a 1300 number with Telcoworks and take advantage of its communication and data-gathering possibilities. 

You can also consider website building and email automation software to help you create and curate a digital presence.

Knowing the best operational software for your startup is something that differs from business to business. But one thing’s for certain; having at least one can make you and your team vastly more productive.

8. Financing and Insurance

Capital is essential for any business to scale and flourish. That said, not every entrepreneur has access to a decent amount of funds. They’ll have to look for means of financing to pursue their mission to grow their company.

There are many different financing methods that startup owners can consider. The most common ones are personal and business loans. However, alternative funding options exist, like crowdfunding, getting grants, and getting chattel mortgage schemes.

Be sure to browse around and seek viable financing options, given your circumstances. 

On top of that, be sure to have adequate insurance to protect you and your company in worst-case scenarios. This can be the difference between you getting away financially scot-free or being burdened with thousands of dollars in damages.

9. Product or Service to Sell

Lastly, and perhaps most importantly, your startup needs to have an offering to give to the world. This offering should ideally address a need or problem in the market, providing value to your target audience.

Knowing your product or service is essential before you open your business to the public. If you’re having trouble narrowing down your options, conduct thorough market research to understand customer demands, preferences, and competition. Will your offering stand out from the competition? Is it something your target audience would actually buy?

From there, develop a clear strategy for pricing, production, and distribution. Make room for it to potentially scale and turn in profits. Your product or service can be anything—as long as it solves a problem, it can help be the cornerstone of your business’s success.