With more than 452,000 of them in operation across the state, it is fair to say that small business is the backbone of the Queensland economy.
There are over 65,000 small businesses in Brisbane (PDF) alone – defined as those that employ less than 19 people. And with new ones opening every day, it seems like now is as good a time as any to launch one of your own.
Inaugurating a business is not easy though. After all, around a third of them fold within the first year of operation. While only one in four survives beyond the five-year mark.
But whilst it is tough to run a profitable venture. You will never be a success if you don’t at least try. Also, with Brissie winning the rights to host the 2032 Olympics, now is probably an excellent time to do so.
With that in mind, here are 8 considerations when starting a local business in Brisbane. If you follow these guidelines, you will go a long way to setting your company off on the right foot.
1. Work out what type of business will you launch
Most businesses start with an idea and maybe a source of inspiration.
However, before you can launch, you will need to work out what type of business you want to run. To do this, you should ask yourself several pertinent questions. This will give you a handle on what you are going to do.
For instance, you will need to determine if there is a demand for the products or services you want to offer in your local area. You should also figure out who your target audience is and if you intend to have a physical store or purely an online business.
It is also worth finding out who your competition is and most importantly asking yourself if you are ready to invest the kind of commitment needed to run your business. The latter is something you will have to answer truthfully.
2. Draw up a business plan
It is fair to assume that most small businesses that survive beyond the five-year mark do so because they have been working towards a solid, well-considered business plan.
Having one for your venture is crucial because it should give you a framework in which to meet your strategic business goals.
It will also give you a clear indication of what resources and manpower you require to conduct your daily activities.
In addition, should you need to seek funding from a bank or other financial institution, they will ask to see this plan before they would even entertain the thought of approving your request.
Some business owners can find it tough to write a business plan. So you might want to hire an experienced business mentor who can help you to do that.
3. Make sure you register your business
After your plan has been written, you will need to let the Australian government know of your intention to run a business.
You can do this easily by visiting their business registration service and typing in your details.
This service is very user-friendly and won’t cost you anything. It will also only take a couple of minutes to complete.
Whilst doing this, there is even a convenient tool that can assist you to work out which business structure and tax registration would be most appropriate for you to adopt.
4. How will you fund it?
Unless you have plenty of personal savings to fall back on, you are going to need to source funding for your business.
Doing so is crucial as it can help you pay for set-up costs like buying equipment, renting out premises and purchasing furniture. It could also cover marketing activities and general operating costs for the first few months.
Typically, most small businesses approach a bank or financial institution for a loan. However, there are several funding initiatives and grants available from the Australian government, which you may want to apply to. You may also want to seek investment from private equity firms or crowdfunding platforms.
5. How will you promote your business?
If you have successfully sourced funding. Or if you have enough cash reserves to start trading immediately, you will need to determine how you will promote your business.
Depending on your business, this will involve developing a website, implementing a good SEO strategy, blogging, advertising, public relations and running social media platforms.
Should you operate out of a physical storefront, you will also need to consider what sales promotions you want to host.
Again, it might be worth hiring a company or expert to help you devise a marketing and promotional plan.
6. Decide how you will process payments
All businesses that sell products or services will need to process payments.
Before opening your doors for trade, some thought should be given to the best way of doing this. While cash is the preferred choice of many customers still. Some rely solely on their debit or card.
For this reason, it is worth investing in an EFTPOS machine or credit card reader. You don’t want to miss out on sales just because you don’t have those technologies in place. You can find out more about credit card readers here.
7. Consider opening softly
In their enthusiasm to open, many business owners fall into the trap of launching straight away to huge fanfare.
Whilst this might attract immediate interest from potential customers, if your business is not quite a well-oiled machine yet, it can do more harm than good.
All new businesses, large or small, tend to have teething problems when they first start. For instance, certain technologies might not work, and staff may not be fully au fait with your business processes. For this reason, a soft opening might be a good idea. This will buy you some time to smooth out any issues that might arise in the first few weeks of trading.
The time to have your grand opening is when everything in your operation is running with the precision of Swiss clockwork. In such circumstances, customers are more likely to look upon your business favourably.
8. How will you maintain a good work/life balance
Last but not least, you will need to work out how you will maintain a good balance between your work and lifestyle.
While the thought of launching and running a new business might be your passion, it should not be all-consuming in your life.
You will, of course, want to make it as successful as you can. However, you will also need to ensure that you are taking the time to get enough sleep, refresh and relax. Failure to do this would not only lead to burnout and ill health. But it could also result in a loss of contact or detachment from friends and family.
Make sure you sleep well. Also, set aside time for exercise and to do activities you like, such as reading, fishing, yoga etc. If you are in a relationship, be sure to set aside time for date night and meet up regularly with your nearest and dearest.
Doing this is important, as it will give you some time out from your business. This will enable you to refresh your mind and maintain your enthusiasm. In turn, it will also ensure you are in peak form when you are at work.
Final Thoughts
If you are planning on starting a local small business in Brisbane, now is probably a very exciting time for you. Backed with a good idea, a solid business plan and decent capital, you will want to give 100% to building a profitable enterprise. While doing this is hard, rest assured it is not impossible. Just ask the 25% of small business owners that do make it past the five-year mark. For more information, check out our guide on 5 Tips For Starting Your First Business.
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