Tag Archives: Starting a business

How to start a small business?

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To start a small business is most likely a labour of love. Sometimes it is turning a hobby or passion into a business. Unfortunately, in some cases, some decisions are made with the heart rather than the head. Poor planning or operational choices made for the wrong reasons can easily see a business end all too quickly.

We certainly do not want to talk you out of this amazing journey, as many successful millionaires grew from a small business. The most important thing you can do here is plan well, understand the effect it will have on you and your family, and understand the implications if it does not work. This guide will give you a process to work through to maximise your chance of success.

There are more than two million small businesses in Australia, most with a turnover of less than $10 million per year and less than 20 staff. The average small business has three staff or fewer.

WHAT is important to consider before you start a small business?

Here at Small Business answers, we want to bring you the best-unbiased advice. To save you visiting many different websites, we have assembled easy-to-read guides on the most common questions and processes you must follow to start a small business. This information is broken down into easy categories, as seen at the top of this page. You can quickly find information on the subject you are looking for by using the quick search box to the right.

The basic steps to start a small business:

  1. Consider if you are really ready
    2. Evaluate your business idea
    3. Build a business plan
    4. Choose how you want your business structured
    5. Check your government/legal obligations
    6. Consider what support you will need from others
    7. Figure out your finances
    8. Promote your business

As part of your research you should visit a handy guide produced by the Australian government. Here you will find information to help you work through the steps such as being ready, making decisions, planning, etc. You can even find information on government grants, events, and training that may help you get started.

A checklist is also available that will guide you through the most important factors you need to consider. This includes checking your rationale for starting the business, determining the right business structure, tax implications, and insurance. There are tick boxes for you to check off, which will put you in a much better and safer position in the long run.
Read our essential guides on business structure, tax, GST, record keeping, marketing, building a website, and insurance, or just explore our many guides designed to make your decision-making easier.

HOW do you write a business plan to help start a business:

What is a business plan?

Starting a business is so much more than a good idea and a business plan is a document that makes you go through the entire process including financials. In many cases, a bank, investor, or maybe your partner will require a business plan to justify supporting you in this new endeavour.

A business plan will normally include the following:
  • A summary of what your business will do
  • Where will it be located
  • If it will employ staff, what will that structure look like?
  • What products and services will you offer, where and for how much?
  • How will you manage risk including insurances?
  • Are there legal considerations?
  • What do you need to buy in the way of fixed equipment like a computer or inventory to sell or make something?
  • What hours will you be open and how will you collect payment?
  • How big is the market potential and do you have competitors?
  • Who is your customer and where are they?
  • A list of Strengths, Weaknesses, Opportunities, and Threats of your business (SWOT).
  • What is your Sales and Marketing Strategy?
  • What is your vision and what objectives need to be met to get there?
  • How much money do you need to start your business?
  • How much revenue do you believe you can make?
  • Will you make a profit or a loss?
  • At what point will you actually pay yourself
  • When do you plan to break even?
  • What information have you used to back up these other questions?

It all sounds a bit daunting! But if you work through these points, you will have a much clearer picture rather than starting a business on a gut reaction. Downloading this government business plan how to guide will really make the whole process that much easier.

HINT

Another great place to consider learning more is via a TAFE course, where you will benefit from a face-to-face discussion on the subject.

The great feature of the Small Business Answers website is we are pulling together the most frequently asked questions in starting or running a small business. Please continue to visit this site as we continually update with new information to help you succeed.

SUMMARY – Gather templates and checklists

Make sure you a ready to start a small business and have done your homework on the opportunity. Use some of the fantastic templates and checklists available to help you build out a business plan.

Starting a business is just the beginning of your journey, and you should be prepared to work hard and deal with the unexpected. There is lots to learn and a high level of responsibility, especially if you hire staff. Owning your own business is not easy, but being your own boss will also bring many rewards and flexibility.

Can a Chromebook be used for business?

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Setting up or even maintaining computers in a business can be a very expensive and complicated process. So is there a better way? Can a Chromebook be used for business? This guide will look at why you might consider a Chromebook, what you need to understand, and how you decide which one to buy.

A Chromebook refers to a laptop or 2in1 that runs Google’s Chrome Operating system. The experience is a pure web browser interface and will not run windows applications.

WHY should you consider a Chromebook over a PC for business?

We live in a connected world. If you visit Officeworks, it isn’t easy to buy a piece of standalone software that you load onto a computer. Everything is now cloud-based solutions, and you use your browser to access your application via the internet. A business will most likely use an accounting package like Xero, a CRM database, a POS system or even a spreadsheet, all accessed via the internet.

Why would you not use a Chromebook?

Suppose your business needs a standalone software application with many dedicated computer resources (e.g. memory, fast processor etc.). In that case, a chrome book is not for you.
If you need to work mostly independent of the internet or there is simply no internet, then a chrome book is not for you.

Why should you consider a Chromebook?
  • Prices of Chromebooks are considerably cheaper than a PC, and this is because the hardware requirements are significantly lower.
  • A Chromebook’s reliability is likely higher as it is a simpler Operating system with no extra software that is loaded, whether for applications or hardware drivers. Thus everything is simpler, and it is unlikely you will need the services of an IT Guy.
  • Light and compact. A Chromebook is likely to be far less power-hungry so that batteries can be smaller and last all day. Thus delivering you a small package, especially if you are on the road.
  • Instant On. A Chromebook does not need to load lots of code to start and will open at the press of a button, ready for you to access information.
  • Cloud-based storage means you never run out of capacity, and the information is backed up automatically.
  • Android Apps designed to run on smartphones and tablets will run on a Chromebook

WHAT should I know about Chromebooks?

The Chromebook itself does not need to be very powerful. Almost everything you do is done online or, more correctly, in the cloud. Thus although the hardware is not as powerful, the user will not experience any disadvantage over a much more powerful PC. However, one caveat is that if your internet connection is not reliable, this will affect performance.

A Chromebook was designed with security in mind and will be safer than a Windows or macOS computer. Security updates happen automatically, and no viruses or malware are known to target Chromebooks. Indeed, you do not have to buy antivirus software.

Unlike a PC, a Chromebook comes standard with productivity software for word processing, spreadsheet, email, presentations etc. The Google productivity suite is the core software; however, Microsoft applications can be installed just like downloading an app on your smartphone.

You will never lose your work because everything is in the cloud and saved when you type it. Thus, assuming you have an internet connection, you will never regret ever not saving a document or forgetting to back up your computer.

If you are without the internet, you can still use your Chromebook to read email, take notes, create and edit documents, spreadsheets and slides, view and edit photos, listen to music, watch downloaded videos and play games offline.

Collaboration is key for sharing information with your workmates, so everyone is updated. As everything is stored in the cloud, sharing the latest information is a simple one-off permission click to allow others to share real-time data.

No extra software is needed, but if you need something, additional Android apps can be installed.

A Chromebook will connect to printers, keyboards, a wireless mouse and most importantly, an external monitor to give you the flexibility to work off a large screen.

HOW do you decide which Chromebook to buy?

Unlike our guide on which PC I should buy, your choice is determined by how you will use the Chromebook. A basic Chromebook can be purchased for a few hundred dollars, and more expensive models can have touchscreens and be used as a tablet, giving more flexibility on the road.

Options you will consider when choosing a Chromebook:

Screen size will determine the size of the unit, which may be important if you require to take the Chromebook on the road. Sizes vary from 10 to 15 inches.

A chrome book can come in the following form: laptop, convertible or detachable tablet. We like the fact you can use it as a tablet. To support this, the screen may be detachable from the keyboard, or the keyboard may swing behind on 360-degree hinges.

A touchscreen improves your ability to interact quickly with your Chromebook, especially when it is hard to use a keyboard. A stylus may also be useful, especially if you want to make handwritten notes or draw.

Consider the battery life, and will it last you the time you expect to be away from mains?

Colour is the case, not the screen, if fashion is important to you. A protective cover is also a good idea and may help position the unit.

Ram will be in the 4 to 8GB range. With 4GB is adequate for most users.

All Chromebooks use solid-state storage rather than spinning hard drives. As storage is online, you would only consider a larger capacity if you want offline access.

Some Chromebooks now have expanded keyboards with a number pad to the right of the letter keys for those working with lots of numbers.

Processor variants are available but are not as important as a PC specification as all the tough computing work will be done in the cloud.

Connectivity is a consideration if you require an onboard 4G/5G connection and also if you need Wi-Fi 6 over Wi-Fi 5.

Other options to consider include the quality of the camera, availability of extra USB ports and support for wireless charging.

The following brands sell Chromebooks in Australia:  Acer, Asus, HP, and Lenovo.

HINTS

Suppose you still need to run a standalone PC program. In that case, you can use Google’s Chrome Remote Desktop app on your Chromebook to access traditional desktop software via another computer. This app allows you to access a running PC from any location and emulate the screen on your Chromebook.

To research this topic, Small Business Answers trialled an ASUS CM3000DV Chromebook. Our findings were quite the opposite of what we expected. We thought a Chromebook would not suit business, but we completely changed our minds. The Chromebook could handle everything I had done on a 13-inch i5 Intel notebook. TheCM3000 has a detachable cover that acts as an adjustable stand in either horizontal or vertical orientations. The detachable keyboard allows 1.5mm of movement on each key, giving a realistic typing experience while keeping the package compact. Two features I loved were the included stylus and a 15-second charge providing 45minutes of use. (yes, you did read that correctly)
The CM3 is 8mm thick with a 10-inch display and up to 12 hours of use. It is a touch screen device and weighs only 0.51kg. A front 2M camera, rear 8M camera, microphone, and stereo speakers enhance multimedia capability. It only has 1 x USB-C socket so you may need a USB hub, but it supports Wi-Fi 5 and Bluetooth connectivity. For those familiar with the Google ecosystem, it helps Google Assistant and comes with one year of 100GB of Google cloud storage. Our test unit had 4GB of RAM, a 2Ghz processor and a 64GB SSD drive but we would have had no idea about this as the Chromebook just worked.

SUMMARY – Can a Chromebook be used for business?

Can a Chromebook be used for business? Yes!

When deciding to use a Chromebook, you must ask, is chrome OS the right choice for you? It will change your current mindset but remember the kids are doing it fine at school as their first computer, and they don’t know any better.

A Chromebook is a browser and app-based device that uses the internet and the cloud to do all the work. Almost every type of application today is on the cloud, so an expensive notebook computer may indeed be overkill versus a Chromebook.

A Chromebook can still be bought in different configurations, and carefully consider which options best suit your needs.

Why Aussies start their own business

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Xero’s new Tipping Point report uncovers what motivates Aussies to become self-employed, the hurdles to start own business and the qualities of a successful sole trader

Xero’s Tipping Point report is based on a survey of more than 800 existing sole traders with no employees and 200 aspiring business owners. The research uncovered the motivations for starting a business and the challenges they face along the way.

Australians have long felt an innate desire to carve their own path as ‘solopreneurs’. More than two in five (43%) sole traders have always planned to be their own boss, and close to one in four (23%) have maintained this from a childhood dream.

But starting a small business is not simply about coming up with a big idea. The research revealed the tipping point to business ownership is a combination of becoming convinced of the opportunity, the lure of financial independence, and dissatisfaction with their current work situation.

Trent Innes, Managing Director Australia and Asia, Xero said. “Australia is a nation of self-starters, with sole trader ventures accounting for the majority of our homegrown businesses. Xero’s Tipping Point report reveals that the Aussies who make this leap are driven by the freedom and independence that comes with working for yourself. While many of us may like to lay claim to a great business idea at one time or another, this research shows it takes a particular person and special set of circumstances to truly turn that idea into reality.”

Be your own boss

Among the biggest motivators to start your own business is the desire to gain freedom and control. Making their own decisions (47%) and working for themselves (46%) were top of the list as reasons for sole traders to branch out. Passion and creativity follow closely behind, with just under a third (32%) choosing to follow their passion and wanting creative freedom (31%).

Seeking the freedom that comes with being their own boss.  Many solopreneurs were drawn into career independence due to feeling stuck in a ‘rut’ in their previous jobs or careers. Four in five (79%) sole traders felt negatively towards their last job or career before they went out on their own, with millennials aged between 30 and 39 the most likely to fall in this category. The most common feelings were unhappiness with a former manager (34%), frustrations with lack of control (32%), feeling like they were going nowhere (31%) and feeling uninspired and unmotivated (30%).

Tackling the hurdles of going solo

Along with the joys of working for yourself, there are also challenges. Unsurprisingly, finance is one of the main obstacles’ sole traders face in the initial planning phase. Budgeting for unknown costs was a key challenge for more than a third (39%) of sole traders. Other challenges included staying organised and on track (55%), driving customer acquisitions (53%), and knowing where to get started (38%).

Overcoming perceived mental obstacles – particularly the confidence to go it alone – were reported as genuine road bumps on the sole trader journey. More than two in five (44%) respondents felt they had to generate self-belief and reduce self-doubt. One in three (34%) were concerned about overcoming fear, worry and anxiety.

Luckily, there is moral support to be found amongst your nearest and dearest when you first decide to go it alone. Sole traders leaning on family members as their go-to (37%), followed by a romantic partner (29%) and a colleague/friend (27%). Beyond those in their personal circles, one in five (19%) turn to an accountant for advice when starting out.

Start own business: Top attributes

The report found that being optimistic, having a strong work ethic and being adaptable are vital characteristics for success.  For those looking to start out, two in five (40%) view reliance on effective digital tools as critically important. Despite this, less than 38% of existing sole traders have a website, and among those that do, less than half (48%) can make sales transactions through their website.

While solopreneurs may be slow to adopt technology. The research found that almost two-thirds (64%) who used cloud accounting software during the pandemic believed it played a crucial role in supporting their business.

COVID-19 a catalyst to start own business

The pandemic has not dimmed the entrepreneurial spirit of aspiring sole traders, with many feeling optimistic about their short-term business prospects. In fact, two in five (41%) say the past year’s events have increased their desire to start a business.

“Australians have shown remarkable resilience in the face of the pandemic, and nowhere is this more evident than in the micro and small business sector. It’s this inherent resilience that will drive many aspiring business owners to get their idea off the ground in 2021 and gain the autonomy they’ve longed for – sometimes from as early as childhood,” Innes concluded.

Traits perceived by sole traders as critical to success

Personal habitsOrganisational habits
Stay positive and take things in their stride (69%)
Adhere to a strong work ethic (65%)
Keep adaptable and open to change (62%)
Attention to self-care – mental and physical health (57%)		Meticulous record-keeping and knowing their numbers (60%)
Maintain a decluttered and organised operation (52%)
Always plan ahead and have contingencies (51%)
Create procedures and processes (51%)
Time management habitsBusiness management habits
Ability to separate work and family life (51%)
Daily goal setting (47%)
Focus on time management and task prioritisation (46%)
Establish routines (44%)		Network regularly (48%)
Seek advice from experts/ mentors and able to ask for help when needed (45%)
Invest back in the business (40%)
Lead by doing (38%)

Small Business Answers guide to starting a small business can be found here