Starting a business can be cheaper than you think.
According to a study by the Reserve Bank, small business owners are feeling overwhelmed with the task of financing their company. There’s lease payments, administrative costs, legal fees and compliances that all need to be kept in mind.
Data from the last Australian census confirms the survival rate for small businesses was 77% and sole traders just 56%. But why?
“One of the most common causes of new business failures is not having enough cash to meet expenses - especially in the first 6-12 months,” states Business Queensland.
So what can you do in the first few months to set your business up for financial success? Minimising your startup costs is a smart way to allow for greater cash flow to invest in the brunt of your business.
What startup costs do I need to consider?
Startup costs lay the foundation of your business, covering everything you need to get up and running. Startup costs can be split into two categories: legalities and identity building costs.
New business owners need to be across legal and accounting necessities like an ABN, business name, GST registration and other requirements to declare your business to the ATO.
Additional outlays for startups are the costs to build the identity of your business. This includes establishing a website, domain name, professional email address, Google business listing and other essential assets to launch your business.
So how much are we talking?
On average, Australians can spend anywhere between $3,000 - $5,000 on starting their small business. Depending on the business structure and industry, some small business owners are paying up to $10,000.
This doesn’t include the hidden price tags you pay by way of your time, patience, sleep and let’s face it, your sanity.
Application processes are lengthy. One minute you may be contacting ASIC and the next following up documentation from IP Australia.
These road blocks are what many business owners waste time on instead of focusing on their business, says Emma Isacs, entrepreneur and author of Winging It: Stop Thinking, Start Doing.
“The faster you get help to do tasks that take up hours of your time, the faster you can grow and ultimately build scale," she says.
That’s where Honcho comes in. We make it simple. We provide one-stop solution for everything you need at a fraction of the cost. Honcho has a team of 160 specialists who work with you on every aspect, from registering your ABN to helping you get online. For less than $1000, we secure your:
✓ Business name
✓ Domain name
✓ Google Business Listing
As a registered ASIC agent we provide one of the fastest registration services in Australia. That’s why more than 100,000 Australians start their business with us every year.
Simply call us on 1300 550 730, join us on live chat or email email@example.com. Chat to one of our Honcho specialists today to save on your foundation costs.
The latest insights in your mailbox