Do you want to start a business in Australia but have no cash? If yes, you have landed at the right place. Here in this article, you will learn the steps to follow to start a successful business in Australia with no money.
It must be borne in mind before starting a business of your own has got both its own pros and cons. The positive aspect of having your business is that you become your own boss. You have the freedom of when to work and how much to work and thereby have greater flexibility in controlling your own work life.
The negative side is that starting a new business requires a hell lot of work. Since you have little money to invest, most of the work of initiating a venture is to be carried out by yourself only. However, it must be said that the fruits of running your own successful venture far outweigh the negatives.
10 Steps to Start a Business in Australia with Almost No Money
1. Evaluate your Skills and Experience
Since you are planning to start a business with no or almost no money, it is essential to back your already existing skillsets, experiences, and resources. If you have gathered some skills or have gathered knowledge in your existing or previous job, it would be a huge plus. It is advised to take some time off and find out a business idea that supports your skills and experience.
2. Select a Business Idea
After your self-evaluation is over, it is time to find out an ideal business idea that fits you best. It is advised to do market research and find out the scale of local demand and existing buying trends of similar products and services in your locality. You can also check our selected list of small business ideas in Australia that can be started with little money.
3. Apply for an Australian Business Number (ABN)
ABN is an essentially 11-digit unique number provided to new business owners. This number actually is used by the government to identify your business activity. It must be mentioned here that no one can run a legal business without acquiring ABN.
Furthermore, this unique number will be needed in the future for legal company-related activities like registering a business, procuring required licenses, claiming Goods and Services Tax (GST), etc.
4. Choose a Business Structure
If you are serious about starting a legally-compliant business in Australia, registering the venture is mandatory. There is a wide range of business structures available in Australia based on your size and scale of business activities. They are Sole Trader, Partnership, Company, and Trust.
As you are planning to start with little cash, it is better to register your business as a sole trader. It is without saying, you can change the structure in the future as the company grows.
You can apply for both business registration and ABN from the Business Registration Service page of the official business site of the Government of Australia.
5. Select the Business Type
It is necessary to select a proper business model before starting a business, especially if you don’t have much money to invest. Broadly there are three types of models that one can approach. They are as follows:
- Launching a small-scale business from scratch
- Buy a franchise
- Start an online business
Buying a franchise will not be a good idea for people planning to start a business with no money. The cost of buying a franchise of a reputed brand is generally expensive. It is wise to start a product or service-based online business.
The internet has undoubtedly opened up a plethora of money-making opportunities for common people investing almost no cash. Furthermore, start from your home or garage space as it saves a lot of office rent expenses.
6. Name Your Business
The name of a business carries a lot of importance in the overall success of any business. It not only helps in building a brand personality but also helps customers relate to your products or services easily. Find a name that properly amplifies the activities of your business venture. You can check our detailed step-by-step guide to follow to name a business to learn more.
7. Register your Website Domain
After you decide on the name of your business, it is time to register the website domain name. It is worthwhile to mention here that in Australia unless you have a registered business name and ABN, website domain name registration is possible.
If you find the chosen website domain name is already taken, be ready to tweak the name or select a new one. Furthermore, if you want to secure your website domain, get in touch with the official site of the .au Domain Administration Ltd (.auDA) and pay the required amount.
You can check our detailed guide on how to register a website domain name for more information.
8. Create a Website
It is extremely easy to create a website nowadays. Anyone without any technical experience can make a website of their own. There are plenty of readymade platforms where you can create your website. If you are looking for a CMS feature for your website and greater control, WordPress is the best choice. Also, the cost of running the website is the least expensive.
9. Apply for Funds & Grants
The immediate source of funds to start a new business without any previous credentials is your own savings, friends, and relatives. It is because it is hard to get funding from established financial institutions. However, there are many grants available from governments in a wide range of sectors. Check out the grants and programs finder page of the official business site of the Government of Australia.
10. Try Not to Leave Your Day Job
Finally, a few words of caution for people looking to start a business in Australia with no or almost money. it is not prudent to leave your day job and jump into starting your own venture. It takes time to establish a business venture.
You need to be patient. If you don’t have a regular income, it would be extremely difficult to sustain the business venture. It is advised to quit your part-time or full-time job only when your business starts to generate profit equal to or more than the job earnings.
Frequently Asked Questions
How Much Does it Cost to Start a Business in Australia?
It largely depends on the type of business you want to start. However, to start a small business in Australia, one must be ready to invest a minimum of $3000 to $7000.
How Much Does an ABN Cost?
It is absolutely free to apply for an ABN if you do it yourself. But, you may need to pay some service charges if you want to do the job through a registered tax or BAS agent.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.