Starting a small business in Australia does not require a big financial commitment and is easier than people realise, a financial expert has said.
Dr Steven Enticott is a Melbourne-based expert and entrepreneur who considers that many Australians are missing out on opportunities to earn extra income due to myths and misconceptions surrounding side hustles.
He said that people “wrongly believe that it’s really hard to get a business idea off the ground and that it can’t be done without quitting your day job and spending bucketloads of money”.
“The opposite is actually true: anyone can start a side gig in Australia and boost their income.”
Most side gigs don’t require expensive infrastructure or equipment, Dr Enticott said, and they can be built up progressively.
“You really don’t need a lot of money to start a side gig,” he said.
“Side gigs are simple enterprises through which you can earn a bit of extra money doing something you love.
“For example, it’s free to get an ABN, set up an eBay store or a PayPal account, or just begin offering a service.”
According to the financial expert, Australia is one of the easiest and most tax-effective countries in the world to start a small business.
“You don’t have to have a lot of business experience or a lot of money to launch a side gig, and I believe anyone can do it if they really want to,” he added, before advising would-be entrepreneurs that it doesn’t cost much to book a short appointment with an accountant for honest feedback on a business idea.
Dr Enticott then provided six simple steps he said would make it easy to create a successful side gig:
1. Don’t give up your day job – even if you have a great idea, don’t immediately hand in your resignation.
“Quitting your job could put you under financial pressure and lead you to make bad business decisions that in the long run will make it more difficult to be successful,” the entrepreneur advised.
2. Action plan – you should be able to summarise your business idea and goals on one page.
“Ask your accountant or financial adviser for advice if you are having trouble putting it down on paper and get them to review your plan to ensure there are no unforeseen financial risks.”
3. Minimise costs – it’s important to keep a rein on spending if you want to start a side business.
Only use means of saving or credit that you already have access to and take advantage of free services or products as you are setting up. You should also use existing networks and social media platforms to market your new business for free.
4. Make a sale – once you have started your business, concentrate all your effort on making the first few sales to prove there’s a market for your side gig.
“Your aim should be to get yourself established and slowly start earning an income,” Dr Enticott said.
5. Scale the sale – once you have built up a track record of sales, focus on decreasing expenses and increasing turnover.
This is where an accountant or financial adviser will be able to help identify ways to increase profits and maximise tax deductions.
6. Finance – at this point, you can start thinking about how you will grow your business. Options can include taking out a business bank loan, borrowing from family or friends, or even using crowdfunding platforms such as Kickstarter.
Dr Enticott advised that the amount of money you need and where you get the funding from will depend on your individual business needs.
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