Checklist for the first steps in starting a business

1. Assess your business funding requirements

The funding you need to start your business depends on your initial set-up costs and the amount required to cover expenses before generating revenue. Begin by calculating the following essentials, and use our handy business loan repayment calculator to determine any funding requirements.

Identify your startup costs

This can include items like vehicles or equipment, initial inventory, marketing materials, and any other expenses incurred before you even open your doors. We have created this useful business viability calculator, opens in new window to help you identify initial startup costs.

Estimate your cash buffer

Determine the amount you need in the bank to cover monthly overheads, salaries, and drawings, until your business starts generating sales.

Conduct a break-even and profit analysis

This analysis will help you determine if your projected revenue will cover all costs and yield a profit. Use our break-even calculator, opens in new window to find out how much you need to sell in order to achieve a return.

Forecast your cashflow

Create a cash flow forecast to anticipate monthly sales and expense fluctuations. This will help you predict periods of cash surplus or shortfall. Use our cashflow forecasting template to assist you with this.

2. Simplify payments for your business

Make it convenient for both your customers to pay you and for you to pay your suppliers. Offering multiple payment options increases flexibility and overall customer satisfaction. NAB offers a range of products designed to help your business manage payments, whether in-store, on the go, or online.

These options include:

• NAB EFTPOS or Online and eCommerce payment solutions for on-the-go and in-store payments
• NAB Direct Debit allows you to debit funds straight from your customers’ accounts
• NAB Business Cards to pay for business expenses immediately and manage your cash flow.
• NAB Easy Tap for accepting mobile payments with your Android device.

3. What you need to start a business in Australia

There are several things you need to do before getting started.

Visa requirements to start a business

For migrants looking to start a business in Australia, you'll need a visa that permits work and business activities. The Business Innovation and Investment Program, opens in new window offers several streams with specific requirements related to investment, experience and innovation.

The Temporary Skill Shortage visa (subclass 482),, opens in new window might be an option for those with an approved sponsor and a business related to their nominated occupation.

Keep in mind that you should explore all visa options and consult with a registered migration agent to receive personalised advice in determining the best fit for your circumstances.

Get an Australian Tax File Number (TFN)

A TFN is a necessary required from the Australian Tax Office (ATO). If you’re a sole trader, you can use your own personal TFN.

Partnerships, companies, and trusts require a separate TFN, and the most efficient way to obtain one is when you apply for an ABN. You can do this if you set up your business with EasyCompanies, or through the Australian Business Register, opens in new window.

Check what licenses or permits you’ll need.

The Australian Business Licence and Information Service (ABLIS) , opens in new windowcan help you find information regarding any government licences, permits, approvals, codes of practice, standards and guidelines that you may require, depending on your industry.

Address potential intellectual property concerns

Protect your business by making sure you’re not unintentionally infringing on another company’s intellectual property. This includes avoiding the use of a business name, ideas, logos, or processes that may already be legally protected. Visit IP Australia, opens in new window for more information.

4. Develop and write an effective business plan

A well-crafted business plan is essential for setting clear business objectives and staying focused on the goals of your business. Writing your business plan help you consider each aspect of your business and identify any potential challenges or risks that may be associated with getting started.

Your plan should include market research, a marketing strategy, and a plan to establish a digital presence, since operating online can significantly expand your reach. When it’s time to launch, a business plan with solid financial projections can also be instrumental in securing funding from investors and lenders.

This plan will serve as a roadmap, outlining what’s most important for your business’s success. We offer a complimentary guide and business plan template that will help you write your business plan.

5. Manage your business bank accounts

You should consider opening a business bank account that is separate from your personal one. It’s important to separate your business income and expenses from your personal account for better cash flow management, reconciling your BAS and tax returns, and for establishing your business as a professional entity.

Compare bank accounts to determine which account is right for your business, whether it’s a business bank accounts for a startup, or another type of business. This simple side-by-side comparison tool compares the features and costs of transaction, savings, and specialised bank accounts.

6. Organise your business admin tasks

Each business has unique needs, but in general, it’s important to consider the following:

• Set up an accounting system so you know how your money is being managed. This gives you an overall picture of activity. Once this has been implemented, you can integrate your accounting package with your NAB account to make bank reconciliation fast and easy.
• Check with your lawyer, Business banker and accountant to ensure that you haven’t missed anything important. They’ll also go over your business plan and provide any recommendations to ensure you are heading in the right direction.
• Obtain business insurance. It’s important that your business is covered by the right insurance just in case any unexpected issues occur.
• Have a back-up plan. Once you’ve worked out how much capital is required to start your business, it’s time to decide if you’ll need financial assistance.

Typical options for small business financing include:

• Order product or materials using supplier finance and negotiate to pay for them later.
• Using business credit cards for initial purchases.
• Accessing vehicle and equipment finance if you need machinery and equipment.
• Getting a Business Overdraft or a NAB QuickBiz Loan if you’re unsure of what your monthly shortfall will be.