How to launch a successful small business in Australia

Thinking of starting your own business? Maybe you’ve envisioned transforming a passion project into a thriving side hustle?

You’re not alone. According to a 2022 survey by NAB (National Australia Bank), 41% of Australians expressed a desire to become business owners. Yet, only around 9% took the leap into entrepreneurship.

The gap between ambition and action often comes down to hurdles like access to funding, regulatory challenges, economic uncertainty, or the need for a stable income. While these are valid concerns, they’re not necessarily dealbreakers. With the right preparation and support, you can confidently move forward.
Here are several tips and resources to help you set your new venture up for success.

Explore Government Support

Federal and state governments offer a range of grants, tax incentives and business assistance programs for new business owners. What’s available can differ depending on your location and industry, so it’s worth researching.
Start with the Grants and Programs Finder on Business.gov.au to see what support you might be eligible for.

Tap into Free Training and Advice

Many local councils and state governments provide free workshops, short courses and mentoring sessions for small business owners.
Check your council’s website, local newspapers, community noticeboards, and newsletters for upcoming events or programs. In some states, you can even access free one-on-one business advisory sessions—just do a quick search for “small business support” in your region.

Weigh Up Your Finance Options

While it’s always wise to avoid unnecessary debt, some businesses require start-up capital to get off the ground. If you do decide to borrow, compare your options thoroughly.
Lenders offer various business loan products with different features, fees, and repayment terms. Some even provide access to business experts to help you navigate your decisions.
Whenever possible, visit lenders in person and be upfront about your needs—it could make all the difference in negotiating favourable terms.

Build a Cash Reserve

Unexpected expenses or temporary drops in income can quickly derail a new business. Having a financial buffer gives you room to breathe.

A qualified accountant or financial adviser can help you calculate how much to set aside and suggest places to store that reserve—keeping it accessible while still working for you.

Master Your Inventory

If your business involves selling physical goods, inventory management is crucial.

Having too much stock ties up cash flow, while too little risks disappointing customers. Invest in a simple stock control system that helps you maintain optimal stock levels year-round.

Keep the Cash Flowing

Cash flow is one of the biggest challenges for new business owners. To stay on top of it:

• Send invoices immediately after a job is completed
• Consider shorter payment terms (e.g. 7 or 14 days instead of 30)
• Offer discounts for prompt payment
• Enable easy payment options like phone or online payments

If payments are overdue, the Australian Government offers a standard letter of demand template and advice on managing late payments.

Keep Costs in Check

Regularly review your expenses to identify unnecessary spending. Eliminate waste and look for savings, particularly in high-cost areas like stock purchasing.
Ask suppliers about discounts for buying in bulk or early payment. Don’t hesitate to shop around—some suppliers may offer free delivery or more favourable terms.

Final Thoughts

Starting a small business in Australia is both rewarding and challenging. While it takes time, planning, and resilience, the personal and professional satisfaction can be significant.
According to Lawpath.com.au, around 20% of small businesses don’t make it through the first year. But flip the stat—and 80% do.
With the right strategy, advice from experienced professionals, and the willingness to learn as you go, you’ll give yourself the best possible start.

Need help building your business presence online?

Whether you’re launching your website, looking for branding support, or need guidance on digital tools, reach out for tailored support to make your start-up journey smoother.

Government assistance

Both state and federal governments have a range of grants and assistance packages to help you get started in business. Schemes can vary depending on where you live and the type of business you’re setting up, so to find out what’s available to you, check out the government’s Grants and programs finder.

Training and workshops

Many local government areas offer free education programs aimed at small business operators. For information, visit your council’s website, community noticeboards and local papers and newsletters for program guides.
Some state governments offer free one-on-one information sessions with business advisers. Get onto Google and search for small business support in your state.

Consider finance

It’s always preferable to avoid taking out a business loan, but if you do need some start-up capital, it pays to do your research. Business loans come in all shapes and sizes with various credit facilities, fee structures and Ts & Cs attached. Some even throw in time with a business specialist to answer your questions.
Do some old-fashioned leg-work. Visit the lenders in their offices to get the run-down on what they’re offering, and don’t be afraid to tell them what you want.

Cash-reserve is king

Building a cash buffer against unexpected expenses, or reduced income is vital. Speak with an accountant or financial planner to determine how much you’ll need and where to park it so it works for you while being accessible when needed.

Stock management

If you deal in physical goods, inventory management is a delicate balance. Do your homework and find a system that can help you maintain appropriate stock levels. You definitely don’t want:

• too much stock; this affects your liquidity,
• not enough stock; this affects your ability to service customers.

Cash flow

Possibly a start-up’s greatest challenge! Try these tips for keeping the cash flowing:

• invoice immediately after completing the service,
• reduce payment terms (30 days, 14 days, 7 days),
• consider incentives for prompt payment,
• offer online or phone payments.

If, after a number of attempts, you’re having difficulty getting an invoice paid, the government provides a standard letter of demand, along with advice around how best to use it. Visit the Business.gov website for this and other free tools and templates.

Control spending

Identify unnecessary costs by regularly auditing your spending and eliminating wastage.

For unavoidable spending like buying stock, look for bulk-purchasing discounts and negotiate better terms with suppliers. Don’t be afraid to shop around and find more cost-effective suppliers, or those that include free delivery or other incentives.

It’s true that starting a small business is exciting, ambitious and comes with more than its share of challenges. But it can also be immensely satisfying.
According to Lawpath.com.au, about 20% of small businesses fail in the first year, which only means that 80% don’t, right?

With good planning and advice from trained professionals you can be among the successful 80%. So ask questions, seek help, and set yourself up for future success.