Tips for starting a new business

Despite the setbacks of the past few years, the small business industry is booming in Australia. More and more people are striking out on their own and the trend looks set to continue.

Research shows projections that an estimated 3.5 million small businesses will be created over the next 10 years, bringing $370 billion in value to the economy. 

Let’s look at some things to consider if you are thinking about starting your own business, and how to set yourself up for success.

Why do you want to do it?

Before you start, it is important to work out whether owning and running your own business is the right thing for you. Everyone has their own reason for setting up shop; for example, you may be looking for more flexibility, be unemployed and need a job, want to be your own boss, or you may have spotted an opportunity and want to fill an unmet need. 

Asking yourself some key questions at the start helps you plan your business model and provides a foundation for you to build on.

• How good is my business idea?
• Can I access money to start off?
• How will I manage the finances?
• Am I prepared to seek help?
• How will I promote my idea?

Develop a plan

A business plan is essential, it will set out your goals and objectives and help you make key decisions, including how to take payments, attract customers, manage your finances and even secure funding to get started. It will also establish whether there is a need for the business in the first place through research and surveys, helping to outline strategies and timelines that should be implemented and met.

Most importantly, banks and investors often require a viable business plan before deciding whether they’ll provide any capital to a new venture.

Ask for help

Leaning on your business community for advice can help save time when an issue appears and prevent you from making mistakes that could be avoided.

Data shows most people rely on internet searches or social media on how to start a business. Not many people think about talking to their bank when they are getting started, despite dedicated experts being available to guide new business owners. 

Talking to a business banking expert may help you understand what financial assistance you may need — whether you need to apply for a business loan, equipment finance or find out about government support available to business owners.

Financial management

Being in charge of your business finances and knowing how to manage your cash flow is essential. A fundamental need for any new business is also choosing the right account to make sure everyday business transactions can be processed. 

There are a raft of accounts that are geared to small business owners. Look for ones that don’t charge fees, as well as other features such as cyber security protection for digital payments. CommBank’s Business Transaction Account is a good example that lets you see your cash flow at a glance, with no hefty fees attached. Plus a Smart Terminal can help keep you connected, making sure you’re always ready to take payments.

You may also need to make sure you have fast access to finance, whether it is to purchase assets such as property, vehicles and equipment, or so you can pay staff and suppliers. 

Look for options that offer zero deposit or monthly fees, as well as those that provide access to funds tied up in unpaid invoices, such as CommBank’s Stream Working Capital cash flow solution.* 

Marketing and customer relationships

No business will succeed if it can’t connect efficiently with customers and clients, supported by a marketing plan that will grow your business with customer referrals and repeat customers. 

There are many ways you can get customers; advertising, social media, and word of mouth. It is up to you how you choose to acquire new customers, but it’s best to have a plan for each method. If you are relying on the internet for leads, support and delivery, there are some great business deals out there suited to different business needs.

Shop around and set yourself up for success from the beginning, as well as laying the foundations for growth and expansion in the future.

Achieve more in business with CommBank

CommBank makes everyday business banking easier by giving you greater control, services and tools to start, run and grow your business.
Visit commbank.com.au/business to learn more. 

Things you should know: 

This article has been prepared without taking into account your individual or business needs and objectives. You can view the Terms and Conditions for Business Transaction and Savings Accounts, our Financial Services Guide and the Electronic Banking Terms and Conditions and should consider them before making any decision about these products and services. Bank fees and charges may apply.

*Applications for finance are subject to the Bank’s eligibility and suitability criteria and normal credit approval processes. The minimum value of nominated invoices is $15,000 per month. A minimum facility limit of $50,000 or more applies to Stream Working Capital. Full terms and conditions, interest rate, establishment fee and line fee are included in the Loan Offer, you should consider these before making any decisions about these products. Bank fees and charges may apply.