Leaving the dependency on others and starting their own business is an exciting thought for many. But with rewards comes a lot of challenges in business that one needs to overcome to see success.
Entrepreneurs must be ready for everything from legal and regulatory requirements to hiring and managing employees. However, no hurdle can stop you if you have the right mindset and approach.
In this article, we’ll explore some common challenges an entrepreneur may face when starting a business in Australia and the solutions for it.
Market Research
The journey of every business starts with market research.
If this point is missed, the foundation of the business will never be strong to sustain very long. Market research helps entrepreneurs identify the target market, understand their customers’ needs and preferences and assess the competition.
Conducting research reveals problems and gap in the market and help entrepreneurs make their business strategies and make informed decisions. It also helps prepare marketing and advertising and product placement and offerings.
But the person who just entered the market doesn’t even know where to start. To get assistance in this situation, entrepreneurs can seek advice from business advisors, attend workshops and training sessions, and use online resources to gain knowledge.
The government of Australia will ease this journey from you by providing a range of resources and tools.
Business.gov.au is one such important resource you can look at. In addition to that, if you want to research the data and statistics, you can visit the Australian Bureau of Statistics website.
Regularly going to trade shows and networking events also helps you gain insights into your target market and competition.
Legal and Regulatory Compliance
Once the market research is done, the next big challenge is that your business complies with various legal and regulatory requirements. This may include business registration, obtaining trade licenses and permits, tax registration, and workplace health and safety regulations.
Not complying with these requirements can result in legal penalties, fines, and even business closure.
So always make sure that you are going on the right path. But if you don’t know about the legal stuff, take the help of lawyers, accountants, and business consultants who specialize in Australian business law.
You can do your own due diligence by taking help from publicly available resources such as Australian Business License and Information Service (ABLIS), which provides information on licenses and permits required for specific business activities; another such source is the Australian Taxation Office (ATO), for information regarding tax obligations for businesses.
Access to Funding and Finance
Most businesses require a sufficient amount of capital, which is another challenge many entrepreneurs face; they struggle to secure the necessary funding to get their business off the ground.
On top of that, managing cash flow and accessing government grants and programs is not an easy process.
To overcome this challenge, consult with business mentors and funding experts. Otherwise, there are several funding options available for Australian entrepreneurs, like bank loans, angel investors, venture capitalists, crowdfunding, etc.
You can visit the Business.gov.au finance section to access online resources and tools related to finance and explore funding options.
Hiring and Managing Employees
As long as you work solo, you aren’t a businessman but a self-employed person.
To start a fully-fledged business, you must leverage other people’s help, knowledge, and expertise. But, finding the right talent, complying with employment laws and regulations, and fostering a positive workplace culture all at the same time is not only tough but also overwhelming.
Working with an HR professional and visiting the Fair Work Ombudsman website will help you in this situation. Additionally, you can outsource this task initially to professionals with years of experience in your industry.
Conclusion
Starting a business might be difficult, but it isn’t impossible.
Although, a lot of hard work is required in the initial stages, like market research, complying with legal and regulatory requirements, accessing funding and finances, hiring and managing employees effectively, and many more.
But one shouldn’t get discouraged and remember that entrepreneurs can overcome the hurdles and succeed with the right mindset and approach.