Starting a new business? What you need to know

Starting a new business, especially in the current economy, is a stressful time. Prospective founders need all the help they can get. Here are some great tips for pulling through.

While it may be difficult, launching a start-up is achievable. According to Sam Allert, chief executive at Reckon, you just need to be smart, especially in hiring.

“Launching a start-up in Australia, or anywhere, is no simple feat, but absolutely achievable. One major challenge new business owners face in Australia is the need for more skilled workers across many industries, such as accounting, HR, marketing, and trade,” Allert said.

“Therefore, new businesses may need help sourcing the talent required. Population growth, immigration, training and development, and getting stay-at-home parents back into the workforce are all critical to help combat these skill shortages. Small businesses may also need to consider setting up in a location with a vast and skilled talent pool.”

It’s an expensive time for businesses, with operating costs inflated due to the economy. Utilising all support available can assist with any teething issues. For example, Service NSW offers grants and financial assistance for certain companies.

“The current economic environment is also a challenge for new businesses. Inflation is increasing fixed costs and the cost of supplies, making 2024 one of the most expensive times to start a business. Coupled with reduced consumer spending and typically high competition, new businesses may need help to generate profit or survive their first year,” Allert said.

Compliance and regulatory issues may also benefit from seeking outside help, such as government help and advice.

“Australia has a complex regulatory environment, with various federal, state, and local regulations governing business operations. Navigating these regulations, such as taxation, employment laws, and industry-specific regulations, can be challenging for new business owners. State and federal governments need to provide small businesses with more free help and advice to simplify the process and remove any barriers to entry for new business owners,” Allert said.

As with any major decision, the prior strategy and planning will go a long way.

“Appropriate planning is vital to starting a business. Every business owner needs a clear plan before launching. The business plan should include product and service offerings, market research, marketing strategy, and operational and financial planning,” Allert said.

“From running Reckon and working with thousands of small-business owners, I’ve also found that pushing harder isn’t as important as eliminating areas of drag. A vital part of the planning process is ensuring nothing is holding the business back before moving forward. Once the planning is done, it is crucial to ensure the business is legally compliant. New business owners must register their businesses and apply for relevant business licences and certifications.”

Further to planning, picking an area to establish a business should be a major consideration. The rise of remote and hybrid working has made it easier to pick a location as staff can often work offsite. However, care should still be used when choosing a location, as infrastructure and pricing can vary massively depending on the area.

“A robust internet connection is vital in today’s digital age, where many employees work in hybrid roles remotely and business operations run online. This explains why our survey of small-business owners found that the most important consideration for small businesses when choosing a business location is internet speed. Towns and cities with fast upload speeds, download speeds, and latency make good places to start a business; however, internet speeds shouldn’t be considered in isolation,” Allert said.

“Cost efficiency is also very important for small-business owners. Starting a business is expensive, and with a third of all businesses failing after four years, the costs of running a business must be as low as possible to increase the likelihood of survival. Therefore, areas with affordable rent, mortgages, and bills and a lower cost of living make good places to start a business.”

He said: “Additional factors that make a place hospitable for new businesses include a vast and skilled talent pool and a successful and supportive business landscape. If I were building out a new business idea, I’d concentrate on a stable geographical location with solid business infrastructure and lower living costs.”

For Aussies, Reckon listed the top 10 places to start a new business in the country:

1. Geelong, Victoria
2. Ballarat, Victoria
3. Melbourne, Victoria
4. Shepparton, Victoria
5. Toowoomba, Queensland
6. Bendigo, Victoria
7. Mackay, Queensland
8. Brisbane, Queensland
9. Townsville, Queensland
10. Warrnambool, Victoria