Should You Start a Business? A Practical Checklist for Australians

Starting a business is an exciting step — but before you dive in, it’s important to make sure you’ve covered the essentials. Here’s a practical checklist to help you weigh up whether you’re ready, what you’ll need, and what it might cost.

1. Clarify Your Business Idea

• Is there real demand for your product or service?

• Who is your target audience?

• Have you researched your competitors?

💡 Tip: Even “valid” ideas often come down to solving a simple problem better than anyone else.

2. Choose the Right Business Structure

In Australia, the most common structures are:

• Sole Trader – simplest and lowest cost to set up.

• Partnership – shared responsibility, still relatively low cost.

• Company – more complex but offers limited liability.

• Trust – often used for tax planning and asset protection.

Choosing the wrong structure can cost you in tax and compliance later. (This is where professional advice pays off.)

3. Understand the Costs of Starting

According to ASIC and ABS data, startup costs vary widely depending on industry, but typical expenses include:

• Business name & registrations: ~$500–$1,000

• Marketing/branding setup: ~$2,000–$5,000

• Website: ~$1,000–$5,000+

• Insurance: ~$500–$2,000 annually

• Accounting/legal setup: ~$1,500+

• Equipment, stock, premises: highly variable

💡 On average, many Australian startups budget at least $5,000–$10,000 just to get off the ground.

 4. Check Your Legal & Compliance Obligations

• ABN registration

• GST registration (if turnover > $75,000)

• Business name & trademarks

• Licences or industry-specific permits

• Record-keeping system (Xero, MYOB, QuickBooks)

5. Plan for Tax, Super & Cashflow

• Open separate business bank accounts.

• Set aside money for GST and income tax.

• Plan for super contributions if you employ staff (or even for yourself as a sole trader).

• Create a basic cashflow forecast.

6. Build Your Support Team

Behind every successful business is a solid team:

• Accountant / bookkeeper

• Business advisor / mentor

• Legal advisor

• Marketing support

7. Test Before You Leap

• Start small (pilot your product/service).

• Gather feedback.

• Refine before investing heavily.

📊Did you know…

• Over 97% of Australian businesses are small businesses.

• Around 60% of startups cease operating within the first 3 years.

• Top reasons for failure: poor cashflow, lack of planning, underestimating competition.

• Industries with the highest survival rates: healthcare, professional services, and construction.

Starting a business isn’t just about passion — it’s about preparation. The more groundwork you do now, the better your chance of long-term success. 

The truth is, the best business owners aren’t the ones trying to do it all themselves — they’re the ones focused on doing what they do best. Whether that’s baking, building, consulting, or creating, your energy is most powerful when it’s directed towards your craft and your clients.

Outsourcing the important stuff doesn’t mean you’re losing control — it means you’re investing in the strength of your foundations.

Compliance, bookkeeping, and tax planning might not be glamorous, but they’re what keep your business secure and sustainable. By getting the right support in place early, you free up headspace to focus on growth, innovation, and the parts of your business that light you up.

👉 If you’d like help structuring your business, planning your cashflow, or setting up compliance correctly from day one, MJA Business Solutions is here to guide you.