Been dreaming of starting your own business? You’re in good company. According to a 2022 National Australia Bank (NAB) survey, 41% of Australians want to own their own business, but only 9% take the leap.
What’s holding people back? Primarily funding concerns, regulatory complexities and fears about financial uncertainty. The good news is with proper planning and the right financial guidance these obstacles can be overcome.
As financial planners and wealth advisors based in Newcastle NSW we have helped many local business owners turn their business dreams into a reality. Here’s our step by step guide to getting started.
1. Leverage Government Resources
Many first time business owners overlook valuable government support programs that can give their business a big boost.
- Grants and Support Packages: The Australian government has many programs for start-ups across various industries. Start by searching the Grants and Programs Finder to find opportunities relevant to your business idea.
- Free Workshops and Training: Take advantage of free local training on business basics offered by Newcastle City Council and NSW small business advisory services.
Remember starting a business doesn’t mean doing everything alone. These resources can provide both financial assistance and expert guidance as you navigate the early stages.
2. Create a Solid Financial Foundation
A well structured financial plan is essential for any start-up.
- Research Funding Options Carefully: While avoiding debt is ideal, when loans are necessary compare interest rates, credit terms and additional benefits like business advisory services. Some lenders offer free business consulting with their funding packages.
- Build an Adequate Cash Reserve: Unexpected expenses will arise. Work with a qualified financial planner to determine an appropriate cash buffer for your business model and identify where to keep these funds so they are accessible but still earning interest.
- Implement Tight Control of Costs: Regularly review expenses to find unnecessary costs. Negotiate with suppliers for better terms, consider bulk purchasing discounts and regularly reassess operational costs to optimise cash flow.
3. Smart Inventory Management
For businesses selling physical products inventory management is crucial for financial success.
Finding the right balance helps you avoid two costly mistakes:
- Overstocking: Tying up too much capital in unsold inventory
- Understocking: Disappointing customers and missing sales opportunities
Consider using inventory management software that can help you manage your stock levels based on your sales history and projections.
4. Optimise Cash Flow
Cash flow is one of the top reasons new businesses fail. Try these:
- Send invoices as soon as work is completed
- Reduce payment terms (from 30 days to 14 days where possible)
- Offer early payment discounts as incentives
- Accept online and phone payments to speed up transaction processing
If clients don’t adhere to payment terms don’t be afraid to use resources like the Australian government’s standard letter of demand templates to maintain professional communication and get paid.
5. Invest in Learning and Networking
Continuous learning and quality mentorship increases your chances of business success.
- Attend Workshops and Join Business Groups: Take advantage of local Newcastle business networks, online forums and state sponsored education sessions to learn and connect with other entrepreneurs.
- Seek Experienced Mentorship: Get insight from professionals who have navigated the business landscape. Resources like Lawpath.com.au can provide guidance on legal compliance, business registration and professional networking opportunities.
6. Understand the Risks and Be Resilient
Yes, approximately 20% of new small businesses don’t survive their first year. But that also means 80% do.
Building a business requires resilience, determination and sound financial planning – all areas where professional guidance can make a big difference.
Ready to Get Started?
Starting a business is tough, but with proper planning, expert financial guidance and a focus on building a strong financial foundation, you can join the ranks of business owners.
Our team of financial planners and wealth advisors in Newcastle specialise in helping entrepreneurs build financially viable businesses. We offer personal advice on funding options, cash flow management and long term financial planning.
Don’t let your business idea remain just an idea. Contact us today for a consultation and let’s turn your entrepreneurial vision into a real business.
For more resources, visit Business.gov.au to find free tools, grants and templates for Australian start-ups.
