Setting up your start-up is a growing tendency from year to year. You take your own responsabilities, you are free and you love what you do. Despite these super-attractive advantages, it is not a dull thing to do. The early growth stages of a company are crucial and will influence its direction. Here are 5 Mistakes to avoid when building your start-up, according to Biz Latin Hub and Australiance teams. If you want to ask for more help, contact us here.
Starting your own business in Australia has a whole host of benefits. Not only is Australia one of the world’s most diverse and thriving economies, but it has established trading relationships with countries such as the United States, the United Kingdom, China, Latin America, Japan, the United Arab Emirates and many more, making it a key player on the global business stage.
1) Taking too long to get started
The world is becoming increasingly globalised, and as such, it’s essential that you jump on new opportunities as soon as they come to you. The chances are that you’ve already got an interest in forming a business in Australia, but have you put the wheels in motion yet? If you take too long to get started, then there’s a chance that your competitors will get there ahead of you and dominate the market before you make a move. In terms of business expansion, it pays to take risks and get started on a venture as soon as you possibly can, so don’t delay.
If you’re worried that you’re jumping in head first without a plan, then take a step back as soon as possible and weigh up your opportunity costs. Sure, you might have to invest some of your business savings in opening a new office in Australia, and you might be away from your core business for several months whilst you oversee a new startup, but in the long run, you could open a new revenue stream and diversify your business portfolio, so it’s worth it.
2) Choosing the wrong company structure
When you enter into Australia, you should think about forming your business as soon as possible, but knowing which company structure to go for is important. The good news is that in Australia, you are allowed to switch your business structure as and when you like, so if you start as a sole trader and quickly grow, then you don’t have to form a new company or go through months of challenges and paperwork to change your structure.
There are four key company structures in Australia, and it’s essential that you choose the right one so that you pay the right levels of tax and have your assets protected. Perhaps the most popular form of business structure is a Sole Trader, which means you are the only owner of the business and have total control over everyday running and operations. You can employ other people to work for your business, but you cannot make yourself an employee – you’ll have to pay employees’ supers, and you’ll be responsible for your own super, too.
Partnerships are another form of business structure in Australia, where you’ll enter into a new business venture with a friend or family member, whereas a Company is a legal entity, run by directors and owned by its shareholders, removing the personal responsibility of tax, profits and losses from your shoulders, and making it a business responsibility instead. The final company structure is the Trust, which can be expensive to set up, but allows additional benefits and makes individual trustees responsible for their own taxes, rather than the Trust.
3) Not adapting to Australia’s way of life
Another mistake that many businesses make when entering into a territory such as Australia is its unique culture and way of life. Indeed, Australians are known for their relaxed and laid back attitude towards business, and as such, you must be able to become a chameleon and ‘change your stripes’ when talking to executives from different parts of the world. If you want to do business with an Australian but you’re too professional and uptight, they may decide to work with an Australian national, or someone who understands the country’s culture better.
When starting business in Australia, consider the benefits of working with a business support organisation that has an understanding of the market, or find a local partner that will be able to fill you in on everything you need to know about doing business within the territory. Sure, you might have to sacrifice a percentage of your startup’s ownership, but the expertise and local knowledge that a partner can provide is truly priceless and can unlock doors that would otherwise have been out of reach for a foreign investor, so weigh up the pros and cons.
4) Copy-and-paste marketing
If you’re expanding your business internationally and choose Australia as your next venture, then it can be tempting to adopt a cut-and-paste approach to business activities, particularly in marketing. But as we’ve already outlined, Australians are very different to Americans or the British, both in their cultural differences and their tastes and attitudes. If you are spending hundreds, or even thousands, of dollars on a marketing campaign, then it’s important that you get your marketing messages just right in order to engage with your target audience.
Don’t underestimate the importance of working with a local marketing firm who will be able to put your products and services in front of the right people using the right methods. They may use traditional advertising like billboards and newspaper slots, or digital marketing strategies like social media, search engine optimisation and content marketing to grow your business.
5) Neglecting your staff
One final mistake to avoid is related to your staff. If you’re the head of an international brand and have offices in all four corners of the world, then the chances are that you won’t be able to keep on track of them when working on your new business. Likewise, if you’re a relatively new entrepreneur and have a small team, then expanding into a new country could also see you lose sight of your core vision and leave staff feeling neglected and undervalued.
When breaking into new markets, you must work hard to maintain relationships with your staff and keep them informed on your new ventures. Arrange regular meetings, invest in staff development and training, build a team of human resources specialists, and don’t forget about the little guys. Indeed, you could get your existing team involved in a new expansion, inviting them out to Australia to share their ideas and expertise, or recruit some of your staff into new positions within the country if they’re comfortable relocating for new opportunities.
☺ Australiance bonus tip ☺
Don’t be inactive. Increase your company’s visibility through events to connect to investors, partners and new clients.
Our favorite one:
- B2B Rocks Sydney (2-day conference gathering over 40 speakers and over 450 high-profile attendees), click here to know more.
There are so many things to take into consideration when starting a new business in Australia, but if you avoid these mistakes, you’ll be on to a winner. Whether you’re launching your very first business or expanding into Australia, we wish you the very best of luck. Ask your questions to our team here, we will be happy to help you.