Starting a business is always a good idea; the freedom of being your own boss and going about your business as you please can be incredibly refreshing. However, a great idea is never enough, as many growing businesses tend to crumble after only three years.
If you live in Adelaide, here is a guide to starting and running a small business effectively to avoid the disappointment of watching your dream go down the drain.
Carry out a Feasibility Test
Your idea may be the next big thing, but the only way to really ascertain that is to do some thorough research. Adelaide is home to over 20,000 residents, thousands of college students, and about 100,000 visitors and tourists, all of whom will be your potential customers.
What are their tastes and preferences? What are the solutions to their problems? What is the competition like? Carry out plenty of research, so you obtain the correct answers to these questions.
Across culture, sport, music and more, you can segment your target market and identify whether your business has the pool in which to be successful.
Make a Business Plan
A business plan is a must-have for all businesses. A plan is a blueprint that clearly illustrates your target market, marketing campaigns, product names, financial sources and projections, and overall business goals.
If you need financial assistance, a reputable small business financier will need to see a comprehensive business plan.
According to the experts at Max Funding, “Lenders, as is the case for would-be investors, need an insight into what they are getting themselves into. A partnership must be built on transparency and so a business plan will help you establish trust and receive the financial support you need.”
Make a reasonable budget
Starting a business will require some amount of capital, so will paying overheads like electricity, rent, and wages. Make a spreadsheet that will help estimate your costs for all overheads plus your own salary, insurance, research, and inventory for the next 12 months.
Getting adequate financial support for the business can be very difficult. Creating a reasonable budget will help you identify where your financial support is most necessary and where you are stretching beyond your means.
Select a Business Structure
Your business can be a sole proprietorship, a partnership, or a proprietary company. A sole proprietorship is easy and inexpensive to start and has minimal legal requirements. However, you will be taxed at the marginal personal rate, and your personal assets are at risk if your business fails.
A partnership offers you the chance to pool resources and expertise, but again, if the business fails, all partners’ assets can be claimed. Moreover, if a partner dies or becomes bankrupt, the partnership has to be reformed.
A proprietary company requires 2-20 members, and may be expensive and have rather complex legal requirements. However, your business will continue running despite death or bankruptcy of shareholders, and you and your shareholders have limited liability by their value of shares.
Register Your Business Name
Choose a good business name under which your business will operate. Check the Australian Securities and Investments website to ensure that it not in use, and the IP Australia if you want to trademark your business name.
You can also start a robust business website and register it with a unique domain. You can search through the AU Domain Registration Limited (auDA) website to ensure your domain is not in use.
Get the requisite licenses and permits
The Australian Business License and Information Service (ABLIS) will give you reliable and current information regarding what kind of licenses and permits you need to obtain.
Set Up Your Location and Obtain Your Staff
Will you have some retail space, a home office or a shared private office? It is most advisable to lease some commercial space with the advice of legal counsel to ensure you sign a desirable deal. You can also hire some employees to help run your business.
Promote your business
Lastly, you need to let your potential customers that you are in business with an aggressive marketing campaign. Try fliers, social media and other forms of digital marketing, and attending business forums with your business cards at the ready.
Adelaide cleaning business, The Driveway Doctor, agrees with the importance of promotion, saying “We moved from flyers to a digital presence and saw a massive spike in enquiries and leads. In 2019 it’s important to adopt an omni-channel approach and promote your business. No matter how good your are, if no one knows about you, it won’t matter!”
Where To Next?
With these steps, you are ready to start reaping the benefits of being a business owner in a bustling city like Adelaide. A thriving business does not come overnight, but with enough patience and hard work, you will definitely be successful.