What You Need To Know About Starting A Business In 2021

Are you a budding entrepreneur dreaming of starting a business next year? Here are a few of our cheat codes to give you the best possible shot at success. 

The sad reality of trading in Australia is that it truly is a jungle out there. According to the Australia Bureau of Statistics, more than 60% of small businesses cease operations entirely within their first three years of trading. One of the most common reasons that they fail is due to a lack of cash available to meet their expenses, particularly within the first six to twelve months - and these figures were issued before the arrival of Covid-19. 

When it comes to starting a business of your very own, are there specific things you can do to at least try to get it right the first time? 

Seven Insider Tips On Starting A Business 

If you truly want to be the boss, then it’s important to know that it’s not all glitz and glamour. Starting a business requires analytical thinking, determined organization, and detailed record keeping if you have a hope in hell of lasting six months, let alone turning a profit. 

While there will of course be lumps and bumps on the path to financial success, the good news is that with a little preparation and foresight -  you can handle and even avoid them. Before you start trying to sell a new product or service, try to cover the below before you open your doors and start trading. 

Stay Employed - How long can you pay your bills without any form of income? If you don’t want to find out, ensure that you stay employed in the early days of your business. A regular pay cheque can help take the pressure off until you manage to turn your first profit. 

Don’t Do It Solo - While the support of your friends and family will go a long way in terms of bouncing ideas around and getting through the hard days, it’s also important to find yourself a mentor. This will allow you to learn from their mistakes, particularly during the startup process. 

Do A Business Plan - All budding entrepreneurs should think of a business plan as a road map to their goals. On paper, a good business plan identifies where you currently are, where you want to be, and your plan as to how to get there.

Start Collecting Clients - If you’re able to start marketing yourself, your brand, product or service before you open the doors, it’s going to go a long way in terms of really getting things moving as a business. Don’t be afraid to research on LinkedIn or attend networking events. 

Sort Your Finances - One of the primary reasons new businesses flop within the first year is costs that they didn’t anticipate. Make sure you have a solid plan of attack with realistic expectations in regards to the finances of your new enterprise. 

Handle The Legal Stuff - Although it’s certainly not one of the “fun” parts of starting a business, getting your tax and legal obligations right the first time will save you a lot of pain further down the track. If you aren’t sure as to what your obligations are, ask for help. 

Speak To The Professionals - “Winging it” doesn’t always work out in your favour, and you’re not an expert in every field. If you find yourself requiring the services of an accountant, book keeper or even a solicitor - just do it. In the long run, it will work out in your favour. 

A Professional Insight On How To Write A Business Plan

If understanding your finances or the in’s and outs of doing business isn’t your strong point, then it may be reassuring to know that you’re not alone. In fact, many businesses (big and small) enlist the services of an accountant and business advisor in order to free up their time while knowing that their financial obligations are already taken care of by the professionals. 

What you choose to invest in or shy away from as a business owner can have a domino effect that ripples through your entire team - so are you confident in your financial choices? 

At Muro, we are more than just accountants, we offer our clients strategic business advice and ongoing support to help them reach their business and financial goals. Get in touch with us at Muro today to ensure that you’re on the right path for success in starting a business in 2021.