The process of starting an online business can be complicated and disorienting but it doesn’t have to be. Online businesses provide countless benefits, allowing you to work anywhere and anytime you want, set your own schedule, and maybe travel the world while working a few hours a day.
The Australian eCommerce market has continued to grow and right now is the best time to start your own online business. In this post, we will go through everything you need to know to get started today.
Starting an Online Business In Australia
1. Deciding What Online Business to Start
The first step is to decide what you want to do. In order to do that, consider the following:
What are your strengths and weaknesses?
E.g. Are you good at dealing with people or are you an introvert?
What do others think you are good at?
What are your passions?
E.g. Writing, designing, problem-solving, or fashion?
What skill sets do you have?
E.g. Programming, sales, or managing social media accounts.
Experience in a particular field/ Life experience?
E.g. A skill you can teach others
What pain point do people have and how you can solve it?
E.g. Struggle with time management (Find a solution for this)
How much money do you have to start your business?
Some low-cost businesses you can consider.
If you are still not sure, check out this post to get some ideas.
2. Conduct Market Research
Once you have a few options in mind, you must conduct a thorough market research. Your idea might seem like a good one but you must validate your ideas.
You should also conduct competitor research and figure out who your potential competitors are, and whether it’s possible to compete with them.
3. Choose Your Business Structure
Choosing the right business structure is important, especially in the early stages of your business. The choice of your business structure depends on many factors such as your risk tolerance, personal preference, tax, and more.
Four Most Common Business Structures in Australia:
Sole Trader: You own 100% of the business and have full responsibility and control
Partnership: You and your partner(s) own the business together.
Company: You still own the business but have limited liability (some protection to your personal assets)
Trust: More complicated business structure. To know about trust, read this post.
Each structure has its pros and cons and you should choose the one that is most appropriate for you. If you are in doubt, chat with a professional.
4. Funding
Having enough capital for your business is important. According to GrowthList, 44% of businesses fail because they run out of cash. Think about how you want to finance your business, here are some ways to do that:
Bootstrapping – self-financing your business with your savings or income.
Looking for investors
Angel investors – Wealthy individuals provide funding in exchange for equity.
Venture Capital – Investing firms provide funding in exchange for equity.
Determine your financial situation and weigh the pros and cons of having investors to help you make this decision.
5. Register Your Business
There are many aspects to consider when setting up your business. Some of them, such as registering your business are mandatory, but others are optional.
Registering for Australian Business Number (ABN)
ABN is required for every business owner in Australia. It identifies your business with the government.
Register Your Business Name
A business name is not required if it is conducted under your legal name. However, the business name should be exactly the same as your name, which means you are not allowed to add any letters or symbols. Otherwise, you will need to register a business name.
For example, with a personal name “Amy Cho” you will need to register a business name if you operate under the name of “Amy Cho Bakery”.
Register For GST
Registering for GST is not required unless your turnover is $75,000 or more. However, registering for GST at the very start of your business may be a good idea, so you don’t have to take GST into account and change your pricing later.
Register A New Email
A professional email can increase credibility and trust, but it does come with a cost.
Set Up A Business Bank Account
A separate business account is compulsory for partnership, company, and trust. If you are operating your business as a sole trader, it will still be a good idea to do so to keep your business and personal expenses separate.
6. Build Your Website
Having a website for your business is a must in this digital world, and here’s where you start.
Choose A Domain Name
A domain name can be purchased a domain name from websites like GoDaddy. Most of the time, a domain name can be purchased from a web hosting provider such as Shopify.
Choose a web hosting provider and build your website
If for whatever reason, you decide not to go with the web hosting provider you have purchased your domain name from, you need to find a web hosting provider. Some options are Hostinger, Bluehost, and Shopify.
Most companies allow you to do all three on one platform, do some research weigh the pros and cons of each, and start building your website.
Google Analytics
Analytic tools are crucial to understanding your customer’s demographics and the performance of your website. Google Analytics is the best free analytic tool that is currently available.
7. Understand Legal Requirements
Apart from registering your business, understanding other legal requirements that are specific to your business is important to protect yourself and your business.
What you need to do:
- Understand consumer laws
- Have well-defined privacy policies and terms of service
- Comply with industry-specific regulations
- Register for trademark and patent
- Register for license
Research the legal requirements and consult with professionals to ensure that you have full protection for your business.
8. Create a Marketing Strategy
Create funnels that drive traffic to your website and business. What you can do:
SEO: People search for products and services online every day, when they do that, you want your business to appear on top of their searches.
Content marketing: Create blog posts, videos, and podcasts to increase your visibility.
Social media marketing: Create user-generated content (UGC) to promote your business and increase organic reach.
Email marketing: A good strategy to target potential customers who are interested in your products or services.
Conclusion
Starting an online business in Australia might seem daunting and overwhelming at first. However, by following the steps in this guide, you will be launching your online business in no time.
We know that you want to start an online business, therefore, we have prepared a free guide for you to get started. Subscribe to our email list and get yours today.
