If you’re someone with a great career and a good business idea, this might be the right time to start up your side hustle.
A report from the Australian Bureau of Statistics, released in 2018, found that more than 60% of businesses failed during the 2016-17 financial year1. Here are 6 tips for how you can transition from an employee to a successful business owner with ease.
1. Make the most of your spare time
Can you get your business idea off the ground without giving up your day job? While your day job might not be what you’re 100% passionate about it, this does provide stable income while your true passion can grow into a business.
2. See if your employer offers flexible working
Some business ideas will need you to be available to your customer or client during normal working hours. If you can, chat to your manager or people leader about how you can adapt your existing working hours to suit your new goals.
3. Do the ground work for your side hustle early
Make sure your website and social media presence is one of the first things you do. When people hear about what you offer, you want them to be able to find you immediately. You can register your business name and consider any appropriate trade mark to be registered with IP Australia early, as we understand this can take up to 4 months for IP Australia to approve.
4. Have cash for 18 months of costs
While your flow of clients is being established, you will want to have enough cash in reserve to cover your costs until your business is cash flow positive. Consider what types of costs you may have such as rent, inventory and equipment.
5. Work with your first few clients
Once in business, people will ask whether you have clients and how many as a gauge of your business performance. If you can land your first few clients while you keep your day job, you might be able to receive reviews, recommendations and testimonials to add to your website and discussions with potential new clients.
6. Set your side hustle up as a proper business
Most of the business admin you can do while you still have your day job. Apart from registering your business name and registering any trade marks, you can obtain an Australian Business Number (ABN), choose your business structure, register for GST and open your business bank accounts2 now. This will make sure your personal and business money is separate right from the start and will save you a lot of hassle at tax time.3 We also suggest you use electronic payments wherever possible, as this will make it so much easier for tracking in your accounts and accounting software (like Xero and MYOB).
Things you should know
1. Australian Bureau of Statistics http://www.abs.gov.au/ausstats/abs@.nsf/mf/8165.0
2. Terms and Conditions, fees and charges apply with respect to Westpac’s transaction and savings accounts and Online Banking facility. This information does not take your personal objectives, circumstances or needs into account. Consider its appropriateness to these factors before acting on it. Read the disclosure documents for your selected product or service, including the Product Disclosure Statement and before deciding.
3. Any tax related information we provide should be used as a guide only. We recommend that you seek independent professional legal and tax advice about your specific circumstances.
Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714. This information does not take into account your personal circumstances and is general. It is an overview only and should not be considered a comprehensive statement on any matter or relied upon. This information including any tax information provided in this article should be used as a guide only. We recommend that you seek independent professional legal and tax advice about your specific circumstances.