Starting a business from scratch can be challenging as it requires a lot of work, time, and money.
However, with the right entrepreneurial mindset and efficient budgeting, every start-up can grow and become a big corporation.
In today’s business world, many new entrepreneurs do not need a physical office or cannot afford one from the very beginning. Therefore, investing money in rent or lease for an office space can be risky and counterproductive.
The good news is that the modern digital world allows entrepreneurs to run their companies without a brick-and-mortar office while keeping a professional business image. Expensive physical office space is no longer an absolute must for small businesses.
5 Steps To Start A Business In Australia Without A Physical Office in Australia
- Preparation
Every business owner should first prepare for starting a business by answering the following key questions: “Am I ready to run a business?”, “Is it more suitable for me to work on my own or as an employee?”
Secondly, entrepreneurs should decide whether the activities they are willing to perform are a hobby or not.
In Australia, an individual providing evidence that their business activities are a hobby does not need to register a business or hold an ABN (Australian Business Number). In this case, the company that is making the purchase can withhold the top tax rate from their payment. Therefore, understanding the differences between a hobby and a business from the very beginning is very important to determine tax and legal obligations.
- Decision-making
There are four types of business structures in Australia:
- Sole trader (the simplest business structure)
- Partnership (a group of people running a business)
- Company (a legal entity with higher administration costs)
- Trust (a legally recognised relationship)
Every entrepreneur should carefully choose the most suitable type of business structure for them. Then, they can choose a business name and a location.
All business owners should get the best virtual office as a cost-effective alternative to an expensive traditional office. A virtual address can provide a business with a professional image but without high overhead costs.
- Business registration
In Australia, every business must be registered with ASIC (Australian Securities and Investments Commission). ASIC allows companies to be registered with a virtual address (meaning a virtual address is legal to use).
Also, new entrepreneurs should get an ABN (Australian Business Number) once they register their businesses. An ABN is a unique 11 digit number that identifies a company. After they get their ABN, they should determine the taxes that apply to their businesses and figure out whether they need any special licenses and permits. Finally, all entrepreneurs should know the laws applicable to the industry where they will be operating.
- Budgeting
Running out of funds is the main reason why most start-ups fail. Having an adequate budget strategy is highly important for every start-up.
Therefore, new business owners should establish reachable financial goals, develop a pricing strategy, track spending, and limit expenses. A virtual office address is an excellent way to reduce costs as it allows business owners to enjoy a wide range of beneficial services at a fraction of the cost.
Also, business owners should find resources to finance their businesses (e.g., crowdfunding, bank loan, etc.) – unless they prefer to bootstrap and rely on their own savings.
- Business operations
Once they register their businesses and prepare a budget, business owners should start setting up operations, such as hiring employees, managing suppliers, and communicating with customers.
Remote teams that do not need to commute or travel to work can be incredibly productive and efficient. With a virtual office, every start-up owner can access a wide talent pool and hire the finest talent anywhere in the world. Also, they can organise their first business meetings with customers and suppliers using the professional meeting room included in their virtual office package.
Start-ups and small companies do not need a physical office to run effectively and achieve success.
Setting up a business with a virtual office address is legal, easy, and beneficial. Thanks to modern technology and communication tools, every business owner can operate remotely from anywhere while having a professional and reliable business presence.
Images source: https://universe.jumpstory.com