World Executives Digest | Australia is an incredibly small business-friendly country. In fact, 97 percent of all of its enterprises have between 3 and 19 employees, making it one of the most important SMB havens in the world. The fact that the market is so friendly towards these small enterprises because there are so many business-friendly policies in action, as well as the fact that the talent pool is quite impressive. The overall system of education, both formal and vocational is at a high level and the overall competence of the workforce is admirable. Here are some tips on starting a company in Australia.
Check if there is a market need for your enterprise
The number one reason why the majority of startups fail is due because there is no need for their product/service. Just because you have a great idea, it doesn’t mean that people are willing to pay for it. In order for something to be worth it, in the eyes of an average consumer, the cost-to-priority ratio needs to be great. So, when surveying your target demographic, don’t just ask if they would like to have an item. Ask how much would they be willing to pay for it or if they would be willing to pay X dollars for it. This way, you’ll know exactly if it’s worth your while to even make an attempt at entering this industry.
Consider your fundraising options
Once you have the amount of money that you need to start a business, you need to figure out how to get these funds and there are several options that you need to consider. The majority of enterprises are financed through personal means, while as many as 38 percent of them come from money from friends and family members. Other than this, you can also apply for a small business loan or even a personal loan if your financial circumstances aren’t that great. Finding investors, partners or even crowdfunding are all amazing ideas. Just keep in mind that it might take your business a while until it becomes profitable and self-sustainable, which is why you need to have enough money in reserve for your cash flow, as well.
Protect your IP
One of the most important things when it comes to running a business is – being able to protect your work. This is what intellectual property (IP) mechanisms are for. First, you need to register a company in Australia, since the majority of trademarks are nation-based. This is why Burger King had to go under name Hungry Jack’s in Australia and why Wendy’s couldn’t get permission to start a franchise in EU under that same name. Other than this, you also need to find a reliable legal team specializing in intellectual property and consult them in order to determine whether you need to apply for a copyright and patent, as well.
Assemble a team
The last thing you need to consider is that you won’t get far without the right team on your side. Regardless if you have 3 employees or hundreds, it’s both their individual effort and their ability to work as a team that will determine both your productivity and your quality of services. Therefore, when assembling a team, you need to look for people’s qualifications and work history but also consider whether these potential employees fit in your company culture. One more tip for your hiring strategy – never base your decision solely on the interview, seeing as how extroverts always dominate in an interview and you need introverts in your employ, as well.
In the end, Australia is a startup- and small business-friendly country but this doesn’t mean that succeeding in running a business here is an easy thing. Still, knowing that, with the right course of action, you can have a somewhat smoother start, can be more than reassuring.
Dan Radak is a marketing professional with eleven years of experience. He is a coauthor on several websites and regular contributor to BizzMark Blog. Currently, he is working with a number of companies in the field of digital marketing, closely collaborating with a couple of e-commerce companies.