On this page…
1. Planning it out
2. Setting up the business
3. Where to find info and resources
You have a brilliant idea for a new ice cream flavour and you want to bring it to the people.
Or perhaps you have a skill - let’s say you’re handy at repairing things, and you think you can provide a service. Maybe you are just excited about being your own boss and want to set yourself up to take jobs as a contractor.
There are a lot of reasons you may be thinking about starting your own business!
Make sure you take the time to plan and think about whether this is right for you before diving in. Luckily you can gain access to plenty of support and information out there to help you on your way.
Planning it out
Do the research
There is a lot to consider when starting a business, from financial matters down to whether starting a business fits with the lifestyle you lead.
Questions you should be asking include:
Do I have the skills needed to run a business, and provide a particular product or service?
Will the business be competitive and therefore likely to succeed? (A business plan can help you out on that front. See below!)
What kind of business structure do I want to set up? Will I be a sole trader or do I want to hire employees?
Do I have the money to deal with start-up costs? Do I need to rent a space for my business, for example?
Will this business be my main source of income from the start or can I work other jobs while I build my business?
What kind of tax, insurance and other arrangements do I need to make?
The business.gov.au ‘Are you ready to start a business?’ page offers a helpful checklist to get you on your way.
Develop a business plan
Note: The following is drawn from the business.gov.au ‘Developing your business plan’ page.
© Commonwealth of Australia 2020.
Whether you've just started out or have been running your business for years, business planning can be the key to your success. Having a business plan:
helps you to prioritise – it gives your business direction, defines your objectives, maps out how you'll achieve your goals and helps you to manage possible bumps in the road
gives you control over your business – the planning process helps you learn about the different things that could affect your success. If you're already in business, it helps you to step back and look at what's working and what you can improve on
helps you seek finance – if you're seeking finance for your business, you'll need to show banks and investors why they should invest in your business.
If you're developing a detailed business plan, you may want to check our tips below before you start.
Determine what your plan is for
Is your business plan just for your reference, or will you share it externally, for example with potential investors or banks?
Deciding what the purpose is, can help you develop your plan for the right audience. If the plan has been developed for third parties, you will need to determine what they’ll be most interested in.
Prepare your finances
If you're looking for finance, lenders and investors will want to know if your finances are in order and your business is in a strong financial position. They'll want to know how much money you currently have, how much money you need and how much you expect to make in the near future. While a bit of extra funding will help you ensure you’re covered for unexpected costs, be realistic and avoid asking for more than you need.
If you're starting out and don't have financial information yet, the business plan template in the link below provides resources to help you get your finances ready.
Write your summary last
Summarise the main points of your business plan using as few words as possible. You want to get to the point but not overlook important facts. The summary should include information about your business, market, goals and what makes you different from other businesses. The business summary is your opportunity to sell yourself and your idea.
Get help
Don't leave your business plan to the last minute. It takes time, research and careful preparation to develop an effective business plan. If you aren't confident in completing the plan yourself, consider getting a professional to look over it and provide advice.
There are a number of government services available to help you plan, start or grow your business. These services can provide general advice, workshops, seminars and networking events, and can even match you with a mentor or business coach.
Review your plan regularly
As your business changes, your plan will need to change to ensure your business is still heading in the right direction. Having your plan up-to-date can keep you focused on where you are heading.
It's a good idea to keep a record of each version of your business plan.
Protect your plan
Having an understanding with third parties when distributing a plan could be enough protection for some businesses. But if you have innovative business practices, products or services, you may want people to sign a confidentiality agreement to protect your innovations.
It may also be a good idea to include some words in your plan asking the reader not to disclose the details of your plan.
There are plenty of resources out there that you can help you develop a business plan:
The Australian government’s Business.gov.au ‘Develop your business plan’ page has two different templates for you to work with. A basic ‘lean’ template to give you a high-level business plan overview, and a more detailed document that will help you fill in the detail and
You will find another useful resource on the Victorian government’s ‘Write a business plan’ page, which includes a step-by-step guide and a one-page business ‘action’ plan template.
Setting up the business
Great. You’ve thought long and hard about your business, made a plan, and mentally prepared yourself for the work ahead. That’s the fun part!
To start a business also involves paperwork! To make sure you are operating legally and in line with government requirements and regulations, there are some hurdles you have to jump.
For each of the following items, make sure you read in full the information on government sites like the Australian Tax Office and Business Victoria. If you are confused or uncertain about any of the following items, seek help. We’ve listed some places you can go for guidance at the end of this page.
Note: The following sections draw from the Australian government’s business.gov.au information pages: Register for an Australian business number (ABN) | business.gov.au, Register your business name | business.gov.au. Other information comes from ABN basics FAQs | ABN Lookup (business.gov.au). © Commonwealth of Australia 2020, and ‘Licences and registrations | Business Victoria’
Getting an ABN
Every business or enterprise in Australia needs to set themselves up with an Australian Business Number (ABN).
An Australian Business Number (ABN) enables businesses in Australia to deal with a range of government departments and agencies using a single 11-digit identification number. The ABN is a public number which does not replace your tax file number (used for personal tax reporting).
Before applying, you will need to be clear on what kind of business structure you are setting up.
To apply for an ABN, go through The Australian Business Register (ABR) website. There is no fee for applying for an ABN online or using a paper application. However if you consult a tax agent to complete an application for you they may charge a fee for their services.
Registering a business name
If you want to conduct business under a name other than your personal name, you need to register a business name. This is different from an ABN and requires registration through the Australian Securities and Investments Commission (ASIC).
To register a business name, you will need to have an Australian Business Number (ABN), or be in the process of applying for one with the Australian Business Register (ABR).
You will also need to check to see if the name you have in mind is not already in use. You can do this through ASIC’s business name availability register.
There are fees associated with registering and maintaining a business name. At the start of 2022, those fees are $33 per year to register and renew a name, and there is a slight saving if you renew for three years in advance.
Check what registrations and licences you need
This is where things get tricky. You may be required to apply for registrations and licences, depending on your business type and the kind of work you will be doing.
Here is some basic information from Business Victoria about licences and registrations to get you thinking about what you might need. Make sure you thoroughly research the registrations and licences you need, and talk to an expert if you are uncertain:
A licence is something that gives you permission to operate or do certain activities, such as footpath trading, serving or selling alcohol or operating on public holidays. You usually need to abide by certain rules to hold a licence.
Licences may be granted on a local level, such as your local council, or through other authorities such as the Victorian Commission for Gambling and Liquor Regulation (VCGLR) if you intend to sell alcohol for consumption on a premises.
A registration involves giving your business's information to a relevant authority so you can complete your business operations within the law. For example:
Registering for a tax file number with the Australian Taxation Office (ATO) allows you to carry out your tax obligations.
Registering a business name means you can trade under a name other than your personal name.
What business licenses do you need?
Use the Australian Business Licence and Information Service (ABLIS) tool to find all the local, state and federal licences, registrations and permits you need for your business.
Australian Business Licence and Information Service (ABLIS)
Search ABLIS to find the relevant licences, permits and registration required for your business.
Here are some common search terms that you can use to help you find the licences that you need:
For hospitality service search for cafe operation, restaurant operation, takeaway food operation, mobile food van operation.
For an electrician search for electrical installation work.
For beauty, health and wellness business search for personal fitness training service, hairdressing services, beauty service.
For online and other businesses search for online business, clothing accessory retailing.
Note: The above information is drawn from the ‘Licences and registrations | Business Victoria’ page, Copyright DJPR © 2022
For more information about licences and registrations visit Business Victoria and the Australian Business Licence and Information Service (links below).
Getting the right insurance
Nb: The following text is drawn from ‘Business insurance | business.gov.au’, © Commonwealth of Australia.
Some forms of insurance are compulsory for businesses and you will be required to arrange if your business satisfies the conditions.
Workers’ compensation insurance is compulsory if you have employees.
Third party personal injury insurance is compulsory if you own a motor vehicle. This is often part of your vehicle registration fee.
Public liability insurance covers you for third party death or injury, and is compulsory for certain types of companies.
These are a required part of doing business (if they apply to you), however there are other froms of insurance that may be worth looking at in order to manage risk associated with your business adventures. Check out the Business Insurance page of business.gov.au for more information.
Where to find info and resources
There are other things you will want to think about and plan when starting a business. Luckily, there are plenty of resources to help you on your journey towards starting a business, and we have listed the following by support type.
Free mentoring and webinars
Business Victoria’s Virtual Mentor Session program can help you to develop your business ideas and capabilities. A business expert will help to identify a clear direction for your business, discuss key issues and priorities, and develop a business action plan to achieve your goals, all for free. Available Monday to Friday the sessions last 45-minutes and bookings are essential.
Business Victoria workshops and webinars: Business Victoria also host a continuous calendar of online sessions covering specific topics. They are free to attend and generally last an hour. They will help you get your head around everything from starting up to marketing your business to dealing with cash flow issues.
Information and support
Your two starting points are official government sites that can give you up-to-date information about all the rules, regulations and licences you may need.
Business Victoria is the official Victorian state government information site for business starters, with huge amounts of information, webinars and programs to support business starters.
business.gov.au is the national equivalent, and features useful information, grants, webinars and training.
Youth Central have a great information section on starting a new business, with articles on everything from developing a plan to a list of small business grants.
The Victorian Small Business Commission has a ‘A small business owner’s guide to creating a mental health plan’ on their website. Starting a business can be stressful, and this guide, written in consultation with Beyond Blue, offers tips to helpyou develop resilience and ensure your mental health doesn’t take a hit as you start your business.