According to the Australian Bureau of Statistics, there were 2,662,998 active businesses in Australia in June 2024. In the 2023/24 financial year, 362,893 businesses across the nation closed. But in the same period, 436,018 new ones opened.
Australian businesses span a range of industries, including construction, healthcare, retail, professional services, transport, manufacturing, arts, real estate and agriculture.
In this article, we share insights into how to start a business, plus tips and advice on how to do it successfully.
Checklist: How to start a business
Thinking of starting a business? This checklist will help you on your way.
- Start with an idea: Have a business idea you just can’t shake? That’s just the beginning. You need to develop your idea into a carefully considered concept. If you’re selling products, where will you source them from? If you're creating a product yourself, how much time will it take to make? If you're providing a service, do you have the skills to pull it off? Spend time developing, testing and mulling over your idea. If you’re still excited, move on to the next step. If you lose interest in your idea, don’t be disheartened. Head back to the drawing board and start exploring other ideas.
- Do your research: No matter how good your idea is, it won’t work as a business if there’s no market for it or if similar businesses already saturate the market. Explore market gaps and consider the customers who are or aren’t being serviced. Run a focus group, conduct surveys through social media and check out the competition. Deep dive into market conditions and your competition to fully understand if there’s a place for your business.
- Choose a business name: A name differentiates you from competitors and tells customers what you do. It should be unique, inoffensive (and not misunderstood by those who speak another language), easy to spell, pronounce, remember and type into Google. Also, do your research and be aware of other business names that are similar or trademarked.
- Create a business plan: A business plan gives potential investors or lenders the information they need about your business. It also helps you answer important questions, identify roadblocks and validate your idea. It includes your mission statement, business structure, market analysis, service offering, financial plan and marketing strategy.
- Source products: If you’re selling products, making them yourself or having them manufactured, thoroughly research suppliers and start building those relationships. Get to grips with supply chains, shipping and transport logistics. Talk to other businesses about where they get their supplies.
- Do the paperwork: Familiarise yourself with the legal requirements for starting a business in Australia. Decide on a business structure – sole trader, partnership, micro business, SME or company. Take time to understand your legal obligations, as well as the permits, trademarks, registrations and licences you need. Are you trading with overseas suppliers, manufacturers or customers? Get your head around other countries’ rules too. Apply for insurance and source sound legal advice.
- Develop a brand: A business brand offers a consistent message about your business, so it’s worth engaging a brand consultant to develop your logo, signage and marketing collateral. Great branding creates cohesive messaging and supports business goals.
- Get your finances in order: There are plenty of funding options for businesses – savings, credit cards, bank loans, investors or crowdfunding. So you’ll need to work out which one is the best option for you. You’ll also need a bank account, a bookkeeper and perhaps a financial advisor. Become comfortable with budgets and profit and loss statements.
- Find the right tools: Invest in a website and email hosting service, accounting software, point-of-sale system and customer relationship management software.
- Market your business: To tell people about your business, invest in a tailored and ongoing marketing plan, including traditional media, content and social media strategy.
- Business location: Unless you’re completely online or run your business from home, you’ll need to set up shop. Consider your business needs before signing a lease. Is the site you’re looking at known for your product or services? Will customers be able to find you? Is there sufficient parking and other amenities? Put yourself in your customers’ shoes.
- Get help: Join local business groups, build good relationships with suppliers and other businesses, take advantage of workshops and network with others.
How much does it cost to start a business?
There are many costs you’ll need to factor in when starting your business and it’s important to understand and keep track of expenses as soon as you start planning. Your business plan will help inform your budget. Planning ahead and seeking sound financial advice can increase your chances of success. Here are some common business costs to keep in mind:
- stock if you’re selling products, raw materials if you’re making products yourself and production costs if you’re having products manufactured for you
- supplies (such as stationery) and equipment (such as furniture and computers)
- insurances such as building, public liability, vehicle, workers’ compensation and business asset
- accounting and legal fees
- administration charges for business and domain name registration, permits and licences
- rental costs plus power, phone and internet connection fees if you’re leasing a space
- security systems for storage areas or your workshop/office
- website design and domain hosting
- marketing and advertising
- design fees for branding and logos plus printing, stationery and signage
- training programs and courses
- membership fees for professional bodies or groups
- wages and contractor fees to help establish your business
You’ll probably outsource most of the tasks associated with setting up a business. One of the advantages of starting a business is that you get to be your own boss. If you’re creative and willing to have a go, save costs by setting up and developing your own website and branding, writing your own content and creating social media posts yourself. Learn what you can do yourself and what you need to outsource.
It’s also a good idea to set aside a budget to cover emergency and running costs while establishing your business, as you may not be making enough money to cover costs in those early months.
Tips on starting a business
Michael Nuciforo is the co-founder and CEO of the all-in-one financial management business Thriday. Michael launched Thriday when he identified a gap in the financial admin market and felt ready to start his own business. “I felt that the regret of not pursuing something scary like starting my own business would be far more significant than the potential regret if the business failed.”
Michael learned a lot along the way. His tips?
- Invest time in validating your idea and researching the market. “Trust the process and don’t rush the decision.”
- Once you make a decision, go for it. “Have honest conversations with family and friends about your new work pattern. Your business becomes all-encompassing, so make it clear what your new lifestyle will likely look like.”
- Lean on others. “Surround yourself with experts in your field and people you trust to provide good advice.”
- Build a network and ask for help. “There is mutual respect and appreciation among business owners. Building a network of like-minded business owners makes the experience less daunting. I was surprised by how much time people were willing to spend to help me out. Put yourself out there and ask for help.”
- Be realistic. “There’s no overnight success. Even extremely successful businesses had to work to get there.”
A postgraduate course for business success
Got a great business idea but need the confidence to make it happen? The skills gained by studying a postgraduate program in entrepreneurship provide graduates with the practical expertise they need to succeed as business leaders, CEOs and entrepreneurs.
Here are a few postgraduate courses you can explore in Australia.
The Graduate Certificate in Entrepreneurship and Innovation is designed for graduates of all disciplines and also for experienced professionals who did not undertake an undergraduate degree.
Candidates are typically already working in business or have started their own business venture, but have not been exposed to formal learning in entrepreneurship nor the various methods through which to enhance innovation.
Units are specifically designed to confer practical, real-world, skill-sets relevant to small business management, the management of technology and innovation, and the practice of entrepreneurship.
Being a successful innovator or entrepreneur takes more than just big ideas. This graduate certificate gives you the tools to turn your ideas into business opportunities, whether you’re developing a new start-up, are already a manager interested in innovation or transitioning out of full-time work into self-employment.
The Graduate Diploma in Entrepreneurship provides a unique pathway for graduates with aspirations to build, launch and grow their ideas. It is a practical and immersive learning journey where you can refine your entrepreneurial skills, gain hands-on experience, and transform your innovative ideas into impactful solutions.
Through the term-based structure, you'll have the opportunity to delve deeply into various aspects of entrepreneurship, fostering comprehensive growth and development throughout the one year program.
In the Master of Innovation and Entrepreneurship, you will learn how to cultivate an entrepreneurial mindset, experiment with design thinking, and learn to use tools and techniques to convert your ideas into reality.
Throughout your degree, you will be equipped with knowledge in innovative leadership, financial skills, how to navigate the complexities of innovation and entrepreneurship, business innovation planning, as well as creating and marketing new products.
The Master of Innovation and Entrepreneurship will allow you to explore the potential exploitation of your own business idea. You will learn to evaluate opportunities from a range of perspectives, including financial, technical and legal, as well as gain a thorough understanding of the processes associated with the development and marketing of a new product in today’s complex environment.
In the Master of Entrepreneurship you will learn how to develop new businesses, products, services, or processes, creating value and generating new revenue growth through entrepreneurial thought and action. Students will learn about the latest concepts, frameworks, tools and techniques to identify and successfully implement new business opportunities. During the course of the year, there will be many opportunities to interact with and learn from (corporate) entrepreneurs and put obtained knowledge, tools and skills into practice.
The course has been redesigned to allow students to choose an area of interest, whether that is entrepreneurship or intrapreneurship. In the intrapreneurship specialisation, students will learn the why, when and how organisations can engage in corporate entrepreneurship, equipping them to support organisations to grow and become more innovative by embracing an entrepreneurial mindset.
Where to from here?
Have a great business idea? Sourcing useful information about how to start a business, developing a sound business plan and having solid financial footing will help start your business on the right track.
Another practical way to develop an entrepreneurial mindset is by pursuing postgraduate studies in entrepreneurship. The qualification can help you gain more confidence and skills to translate your business idea into reality. Check out various postgraduate programs in entrepreneurship available in Australia.