Turning a great idea for a business into an actual startup is something many Australians dream of doing. When you nail the concept, everything can start coming together very quickly – which is both exciting and stressful! Because there are so many moving parts to pay attention to, we’re diving into the startup basics and giving you a step-by-step guide on how to get your idea off the ground.
Find a gap and develop your idea
The first step in developing your startup is nailing the idea. You might have a vague concept of what you want to do, but it needs to become a viable business solution. Some people like to conduct deep research into specific markets in order to identify a gap, whereas others create a new product or service to solve an existing problem. However you like to work, make sure you conduct market research to validate your business idea and ensure there is actually demand for it.
Create a solid business plan
After you have verified that your business idea actually has the potential to make money over the long term, your next step is to sit down and write a thorough business plan. This document will outline your business goals, target market, competition, marketing strategy and financial projections. Don’t skip this step! A well-crafted business plan is essential if you want to secure funding or attract investors. You can find a simple business plan template here.
Register the business
With a plan in place, it’s time to make things official by registering your startup. This involves choosing a business structure – such as a sole trader, partnership or company –registering the business name, registering for GST and other taxes, and more. It’s important to comply with all relevant laws so use the official Business Registration Service.
Secure funding
Having enough money to keep your startup running is often the difference between success and failure. So it goes without saying that attracting funding during the startup phase is critical if you want to become an established brand. There are many options available to you, including government grants, angel investors, venture capitalists and crowdfunding.
Another funding option for start-ups is private lending. Without any trading history, your start-up won’t be eligible for funding through most traditional lenders. However, if you own a property (with or without a mortgage attached) you may be able to leverage the equity you have in your home to access business funds. This type of secured loan is called a caveat loan, and can be an excellent option for budding entrepreneurs.
Start growing your team
Building a strong team is essential to the success of any startup. Identify the skills and expertise you need right now, and then start the hiring process. If cash flow is tight and you can’t afford to bring on someone full-time, a solution may be to outsource specific tasks to freelancers or contractors.
Constantly iterate
With your team in place, the next step is to develop your product or service. This will usually involve prototyping, testing and refining until it meets the needs of your target market. Getting feedback from the public can be a great way to understand what you are getting right and what your are missing, so don’t be afraid of constantly iterating and redeveloping your solution until it’s perfect.
Launch!
The final step in your startup journey is to launch your product or service. You’ll want to have a marketing strategy in place that will help you build your brand and promote your solution to your target market. Regularly measure your progress and make adjustments to your strategy as needed.
“Creating a startup in Australia can be an exhilarating but also a stressful time in your life – to succeed, it requires careful planning, research and execution,” says Gary Rawlings, Managing Director at Ezi Private Lending. “But with a solid business plan and the right funding, you can overcome any obstacles in your path to achieve your ultimate goal of business ownership.”
If you want to get your startup off the ground but have encountered problems, private lending gives you quick and hassle-free access to the money you need. An expert broker can match you with the right private lender, so contact Ezi Private Lending today or call 1300 854 033 to find out how we can help.