Starting a Small Business Checklist

How to set up a small business

There are many benefits to being your own boss, including setting your hours and controlling the business's profits. But before you can reap the rewards, you need to set up your business. To help you get up and running, we've compiled a step-by-step checklist of the essential tasks every new business owner should tackle.

Plan your business

Before diving into branding or legal paperwork, it’s crucial to establish a strong foundation. This means getting crystal clear on what your business is, who it serves, and how it fits into the market. A clear direction at this stage can save time, prevent costly missteps, and give your business the best chance to succeed.

• Define what your business offers, the problem it aims to solve, and why it stands out in the market.

• Narrow down your target market. Consider age, income, interests, location, and buying behaviour.

• Conduct market research and competitor analysis. Identify the trends, customer needs, and opportunities to offer something different.

• Create a business plan that outlines your mission, strategy, pricing, and financial forecasts.

Decide on a business structure

Your business structure will impact everything from taxes and personal liability to registration requirements and ongoing compliance. It’s essential to make sure you understand the advantages of each structure.

The table below summarises the common legal business structures in Australia, along with key features to highlight their differences.

Take care of legal and regulatory requirements

Completing the necessary registrations and securing the right permits ensures your operation is compliant and protected from potential fines or shutdowns. Different rules apply depending on your location, industry, and business model, so understanding and meeting these obligations upfront will save time and hassle down the track.

• Register your business with the relevant government bodies. This may vary depending on where you operate in Australia.

• Apply for an Australian Business Number (ABN), which is essential for tax purposes, invoicing, and fulfilling government compliance requirements.

• Register for Goods and Services Tax (GST) if your annual business turnover is more than $75,000.

• You might need to apply for one or more licences depending on the type of business you have. This might need to be done with the Federal, State or Local Governments. If you're unsure about what types of licences you might need, you can check with the Australian Business Licence and Information Service.

Find your funding and set up finances

Managing your business finances properly is crucial from the start. Separating your personal and business finances is essential to maintain clear records and track profitability… and also resist the urge to dip into your business revenues!

Beyond banking, understanding your funding needs is equally important. Whether your business starts small or requires significant investment for staff, equipment, or inventory, having a clear financing strategy will help you stay on track and scale effectively.

• Open a bank account solely dedicated to your business.

• Determine how much capital you’ll need based on your business model, growth plans, and operational costs.

• Explore your financing options. Some common avenues to finance your business include:

  • Business grants: These are non-repayable funds provided by the government or private entities to support specific types of businesses or projects. They can be an excellent source of early-stage funding, but often come with eligibility requirements.

  • Business loans and credit products: Banks and financial institutions offer a range of funding options, including term loans, overdraft facilities, and business credit cards. Even if you receive a grant, these options can help manage cash flow and support growth.

Organise your operations

Once you’ve laid the groundwork with planning and legal setup, it’s time to focus on the day-to-day elements that keep your business running smoothly.

• Decide whether your business will operate from a physical storefront, a virtual space, or a home office.

• If you plan to use a physical location, be sure to check local zoning laws to ensure your business activities are permitted in that area. If you have a self-managed super fund, consider whether leveraging and leasing to yourself via a commercial property SMSF loan is right for you.

• Purchase equipment, tools, or inventory that your business needs to function effectively.

• Implement tools for customer relationship management (CRM), invoicing, email, scheduling, and other essential business processes

• Identify and contract with vendors, suppliers, or service providers

Find out what support and tax benefits are available

If you run a small business in Australia, there are valuable government supports and tax benefits available at both federal and state levels to help cut costs and support growth.

• Check if your business is eligible for various grants, low-interest loans, or mentoring programs. These can include start-up grants, digital business support, equipment subsidies, or incentives for hiring trainees.

• You may be eligible for instant asset write-offs, apprentice wage subsidies, or small business tax offsets that ease financial pressure.

• Depending on where your business is located, you may also qualify for local support such as payroll tax rebates, fee waivers, energy efficiency grants, or regional business support programs.

Launch time

Successful launches combine clear communication, targeted marketing, and attentive follow-up to build momentum and lay the foundation for growth.

• Announce your launch through email newsletters, social media channels, and community events to attract attention.

• Run marketing campaigns through ads or local outreach strategies.

• Start selling and delivering your product or service.

• Keep a close eye on how your business is performing by regularly tracking key metrics such as sales figures, customer satisfaction, and the effectiveness of your marketing efforts. Be ready to adapt your strategies to stay competitive in the market.

If you're thinking about starting your own business, start by learning more about small business loans with InfoChoice.

Read more: Business Basics

Bea Garcia

Finance Journalist

Bea is a journalist with a focus on finance and lifestyle. Currently writing for the InfoChoice Group, she brings her experience working with established media organisations in helping Australians make smarter, more confident financial decisions through accessible content. She previously worked as a content specialist, focusing on workplace culture and business resilience.

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