Starting a business: what does it take?

Few things are more exciting than starting your own business. There are approximately one million small businesses operating in Australia. However, starting your own business can be risky. According to the Australian Bureau of Statistics (www.abs.gov.au), just under 10% of small businesses fail in their first year of operation, and 24% in less than three years.

The main reasons new businesses fail are poor planning and poor cash flow (the balance between your income and expenditure). So before you begin, it’s important to know what’s required.

Your business plan
A good business plan is the foundation of your business. It helps clarify, develop and sustain its growth.

Tax
ABN, GST, Activity Statements, business records – running a business always involves lots of paperwork.

Financing
At some stage, most businesses require financing in some form. There are many options, each with their own benefits and drawbacks.

Marketing
You not only need to know who your customers are, but how to talk to them, how to reach them, and how to keep them.