Starting a business is an exciting venture, but it requires careful planning and preparation. In Scott Perry’s Start-Up Essentials workshop, participants explored the key steps to setting up a business in Australia, including business structures, record-keeping, tax obligations, and financial planning.
In this blog, we’ll cover the fundamental aspects of launching a business, with practical insights and Australian business resources to support your journey.
- Choosing the Right Business Structure
Before launching, selecting the appropriate business structure is crucial. Each structure has different legal, financial, and tax implications. In Australia, the four main business structures are:
🔹 Sole Trader – A simple and cost-effective structure where the owner is responsible for all business decisions and liabilities.
🔹 Company – A separate legal entity that provides limited liability but involves more regulatory requirements.
🔹 Partnership – A business shared between two or more people, with profits and liabilities divided accordingly.
🔹 Trust – A business structure used for asset protection, managed by a trustee on behalf of beneficiaries.
💡 To register your business structure, visit Australian Business Register.
- Picking a Business Type
Your business type will determine your industry requirements, legal obligations, and operating model. Some common business types include:
📦 E-commerce/Online Businesses – Selling products or services via an online store.
🏪 Brick-and-Mortar Businesses – Physical retail or service locations.
💼 Independent Contractors – Self-employed professionals offering services.
🚀 Franchises – Operating under an established brand.
🎟 Experience-Based Businesses – Providing workshops, events, tourism or travel experiences.
Before starting, check whether your industry requires specific licenses or training using the Australian Business Licence and Information Service.
- Registering Your Business Name & ABN
To legally operate in Australia, you must apply for an Australian Business Number (ABN) and register your business name.
📌 Steps to Register:
✅ Apply for an ABN (Apply Here).
✅ Register a business name through the Australian Securities & Investments Commission (ASIC).
✅ Consider registering your business for Goods and Services Tax (GST) if your turnover exceeds $75,000 AUD.
💡 Need a business domain name?
- Identifying Funding Sources
Many new businesses struggle with funding during the early stages. It’s essential to explore different financing options, such as:
💰 Self-Funding – Using personal savings or reinvesting profits.
👨👩👧👦 Family & Friends – Borrowing from personal networks.
🏦 Small Business Loans – Available through banks and credit unions.
🎯 Government Grants & Support – Programs like the Self-Employment Assistance Program.
💡 Check your local state government funding programs for additional support.
- Understanding Tax & Record-Keeping Obligations
Keeping accurate financial records is legally required and helps monitor your business’s financial health.
Key Taxes for Businesses:
✔️ Goods and Services Tax (GST) – Required if your business turnover is $75,000 AUD or more.
✔️ Pay As You Go (PAYG) Withholding – If you have employees or subcontractors.
✔️ Fringe Benefits Tax (FBT) – For businesses offering perks like company cars.
💡 For tax and registration information, visit ATO Business.
Essential Financial Records to Keep:
📊 Income & expenses
📜 Tax and superannuation records
🏦 Bank statements
📑 Business purchases and invoices
💡 Use cloud accounting software like Xero, MYOB, or QuickBooks for automated bookkeeping.
- Managing Cash Flow & Financial Planning
Cash flow is the lifeblood of any business. Without proper management, even profitable businesses can struggle.
Why Cash Flow Matters:
✅ Ensures you can cover operating costs.
✅ Helps secure loans or investor funding.
✅ Identifies periods of high/low revenue.
Break-Even Analysis: When Will Your Business Be Profitable?
A break-even analysis helps determine when your business will cover its costs and start making a profit.
Formula:
📌 Break-Even Point (Units) = Fixed Costs ÷ (Revenue per Unit – Variable Cost per Unit)
📌 Break-Even Point (Sales Dollars) = Fixed Costs ÷ Contribution Margin
💡 To learn more about financial planning, check out Business.gov.au Financial Guides.
- Developing a Financial Plan
To ensure long-term sustainability, answer these critical financial questions:
✔️ What are your startup costs (equipment, marketing, legal fees)?
✔️ What are your fixed and variable expenses?
✔️ How much will you pay yourself as a business owner?
✔️ Do you have a backup funding plan in case of unexpected costs?
💡 Download a free budget template from the Australian Government Business Website.
Starting a business requires more than just a great idea—you need the right structure, financial planning, and compliance knowledge to build a sustainable enterprise.
💡 Key Takeaways:
✔️ Choose the best business structure for your needs.
✔️ Register your ABN, business name, and domain.
✔️ Plan your funding and financial management strategies.
✔️ Keep accurate records for tax and compliance purposes.
✔️ Conduct a break-even analysis to track profitability.
By taking these steps early on, you’ll create a strong foundation for business success.
📢 Need expert guidance? Check out Scott Perry’s workshops for step-by-step business support.
🔗 Explore more: Scott Perry’s Blog
Stay tuned for the next workshop recap, where we’ll explore marketing strategies for small businesses! 🚀