Tips for starting a new business
Despite the setbacks of recent years, Australia’s small business sector is thriving. More and more people are starting their own business and the trend looks set to continue.
Studies show projections that about 3.5 million small businesses will be created over the next 10 years, bringing $370 billion in value to the economy.
Let’s look at some things to consider if you’re considering starting your own business and how to set yourself up for success.
Why do you want to do it?
Before you begin, it’s important to determine if owning and running your own business is the right thing for you. Everyone has their own reason for settling; for example, maybe you are looking for more flexibility, are unemployed and need a job, want to be your own boss, or have you spotted an opportunity and want to fill an unmet need.
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Asking yourself a few key questions at the outset helps you plan your business model and gives you a foundation to build on.
- How good is my business idea?
- Can I get access to money to start?
- How will I manage finances?
- Am I ready to ask for help?
- How will I promote my idea?
Make a plan
A business plan is essential, it will define your goals and objectives and help you make key decisions, including how to accept payments, attract customers, manage your finances and even obtain funding to get started. It will also establish if there is a need for the business in the first place through research and surveys, helping to define the strategies and deadlines that need to be implemented and met.
More importantly, banks and investors often need a viable business plan before deciding whether to provide capital for a new venture.
Ask for help
Relying on your business community for advice can help save you time when a problem arises and prevent you from making mistakes that could be avoided.
Data shows that most people rely on internet searches or social media to find out how to start a business. Few people think of talking to their bank when getting started, despite the availability of dedicated experts to guide new business owners.
Talking to a business banking expert can help you understand what financial assistance you may need, whether you need to apply for a business loan, equipment financing, or inquire about government support available to contractors.
Being in charge of your company’s finances and knowing how to manage your cash flow is essential. A basic need for any new business is also to choose the right account to ensure that day-to-day business transactions can be processed.
There are a multitude of accounts aimed at small business owners. Look for ones that don’t charge fees, as well as other features like cybersecurity protection for digital payments. CommBank Business transaction account is a good example that allows you to see your cash flow at a glance, without high fees. Plus one Smart terminal can help you stay connected, ensuring you’re always ready to accept payments.
You may also need to ensure that you have quick access to finance, whether to purchase assets such as goods, vehicles and equipment, or to pay staff and suppliers.
Look for options that offer no deposit or monthly fees, as well as those that provide access to funds locked on unpaid bills, such as CommBank. Working capital flow cash solution.*
Marketing and customer relations
No business will be successful if it can’t connect effectively with customers and customers, backed by a marketing plan that will grow your business with customer referrals and repeat customers.
There are many ways to get clients; advertising, social media and word of mouth. How you choose to acquire new customers is up to you, but it’s best to have a plan for each method. If you rely on the Internet for leads, support, and delivery, there are excellent business offers tailored to different business needs.
Shop around and set yourself up for success early on, while laying the foundation for future growth and expansion.
Get more in business with CommBank
CommBank makes day-to-day business banking easier by giving you greater control, services and tools to start, manage and grow your business.
Visit commbank.com.au/business to find out more.