Starting a Small Business

Starting A Small Business In Australia

A how-to guide by Dane Pymble
www.smallbusinesswizardry.com

Starting A Small Business In Australia

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Disclaimer
The information in this eBook represents the views of the author at the date of publication. This eBook is for informational purposes only and the author does not accept responsibility for any liabilities resulting from the use of this information. Although the suggestions may be helpful, it is always your choice as to how you interpret and act upon this information. Accordingly, Small Business Wizardry expressly disclaims all and any liability in relation to any act or omission that is done by any person in reliance on all or any part of this material, information or opinion. While every attempt has been made to verify the information provided here, the author cannot assume any responsibility for errors, inaccuracies or omissions. Dane Pymble Small Business Wizardry http://www.smallbusinesswizardry.com Copyright © 2012 eBook edited and designed by Margit Zsigmond of Shire Web Writer.

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About the author
To understand the reasons why I wrote this ebook, we need to go back to the beginning of Small Business Wizardry. I always wanted to run my own website but was at a loss as to how to go about it. Being the reductionist that I am, I would have loved to find a step-by-step guide to take me through all the aspects of not only starting the website, but everything else, from developing the idea, to creating a plan, to setting it all up, and finally, growing it. There are lots of guides out there and I poured through my fair share of them, but none of them gave me exactly what I needed. I figured, if this was something I needed then perhaps others might get value from it as well, so I set about creating it! It would be remiss of me to neglect to mention that the true inspiration behind this eBook is my mother. When I was growing up, we weren’t the wealthiest family around, and I wasn’t the most self-confident lad, but Mum was always there encouraging me to pursue my interests. I dedicate this book to Mum and every person out there who is guiding those who want to be part of something bigger.

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How to use this book
This eBook is arranged in the order of tasks and other information that you need to consider if you are starting a small business in Australia. The information is categorised in the following sections:      Part 1: Setting Up (page 8) Part 2: Getting Started (page 25) Part 3: Financing (page 34) Part 4: Marketing (page 42) Part 5: Social Media (page 48)

Small Business Resources on page 54 has links to valuable resources that will help you put the information in this eBook into action. Depending on what stage you’re at in setting up your business, you can either read through th e eBook from start to finish or read through the contents on page 6 to find topics of interest.

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Introduction
You may be motivated to start a business for all sorts of reasons, but where do you start? Coming up with a great business idea is not always simple and clear cut, especially when you are looking at it from the narrow perspective of what currently exists in your industry and/or marketplace of choice. So, it’s worth taking it slow in the beginning and spending time assessing your strengths and what you have to offer. Knowing your strengths, knowing who you really are, and knowing what you can bring to your customers is what really counts and what your customers truly value. Once you have that brilliant idea, there are a number of steps you should take to plan, fund and grow your business. Success is never guaranteed, but often the difference between a successful business and one that fails is in the planning and getting the basics right. In practical terms, it means coming to grips with the ever changing requirements of Australian government legislature, understanding the personality of your niche market, and knowing where to get assistance and advice. This eBook brings together the essential areas you need to consider, such as, choosing the correct business structure, understanding the business registration process and tax liabilities in Australia, structuring your finances, developing sound marketing strategies, getting the most out of social media, and much more.

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Contents
Disclaimer ................................................................................................................................ 2 About the author ................................................................................................................... 3 How to use this book ........................................................................................................... 4 Introduction ............................................................................................................................ 5 PART 1: SETTING UP 8 Coming up with a business idea ......................................................................................... 9 What are your interests? .......................................................................................... 9 What are your strengths? ......................................................................................... 9 What problems can you solve? ................................................................................ 9 How much money do you have? ............................................................................. 9 How much time can you dedicate? .......................................................................10 Get inspired ................................................................................................................10 Choosing the right business structure ............................................................................11 A quick quiz ................................................................................................................11 Available business structures ..................................................................................12 Still unsure? .................................................................................................................12 Registering the business .....................................................................................................13 Business name ............................................................................................................13 Australian Business Number (ABN) .....................................................................13 Australian Company Number (ACN) ..................................................................14 Trademarks ................................................................................................................14 Goods and Services Tax (GST)..............................................................................16 Writing the business plan...................................................................................................17 Typical table of contents .........................................................................................17 What’s in each section .............................................................................................17 What you’ve learned so far ...............................................................................................24 PART 2: GETTING STARTED 25 Registering a domain name ................................................................................................26 What is a domain name? .........................................................................................26 Email addresses and domain names ......................................................................26 Coming up with a domain name ............................................................................26 How to register a domain name ............................................................................27 Getting a website .................................................................................................................28 Prepare the design brief...........................................................................................28 D.I.Y. with Wordpress.............................................................................................28 Crowdsource your web design..............................................................................29 Hiring a professional .................................................................................................29 Designing a logo ...................................................................................................................30 Brand or logo? ...........................................................................................................30 Research your target market .................................................................................30 The design brief .........................................................................................................31 Make it simple ............................................................................................................32 Getting a designer .....................................................................................................32 What you have learned so far...........................................................................................33 PART 3: FINANCING 34

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Starting A Small Business In Australia Going it alone without capital ...........................................................................................35 Do some bootstrapping...........................................................................................35 Raising capital ........................................................................................................................36 Attract investors .......................................................................................................37 Get a government grant ..........................................................................................39 Get a business loan ...................................................................................................39 What you have learned so far...........................................................................................41 PART 4: MARKETING 42 Developing a marketing strategy ......................................................................................43 Offline strategies .......................................................................................................43 Your website ..............................................................................................................43 Social media ................................................................................................................43 Search engine marketing..........................................................................................44 Choosing the right marketing service .............................................................................46 What you have learned so far...........................................................................................47 PART 5: SOCIAL MEDIA 48 Facebook................................................................................................................................49 How to set up a Facebook Page ............................................................................49 Start posting ...............................................................................................................49 Get liked......................................................................................................................49 Twitter ...................................................................................................................................50 How to sign up ..........................................................................................................50 Finding people to follow ..........................................................................................50 Making Twitter work for you .................................................................................50 Pinterest .................................................................................................................................51 How to create a board ............................................................................................51 LinkedIn ..................................................................................................................................52 How to subscribe......................................................................................................52 Getting the most out of LinkedIn ..........................................................................52 Need help with social media? .................................................................................52 What you have learned so far...........................................................................................53 SMALL BUSINESS RESOURCES 54

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PART 1: SETTING UP

O

ne of your first undertakings in setting up a small business is finding a market niche and being clear about what you have to offer to your customers, not to mention who your customers are. Often, it’s simply a matter of thinking about your strengths, skills and passions, and then coming up with solutions to people’s problems. Keep in mind this quote: “People like to buy but they don’t like to be sold to”. Part 1: Setting Up guides you through the process of coming up with a business idea, choosing the right business structure, registering your business, and writing the business plan.

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Coming up with a business idea
It’s no surprise that many people are stuck in jobs they hate, trudging through their nineto-five lives wishing they could break out of the rut and start a business. Understandably, fears, confusion and anxiety surround the unknown prospects that a new business offers. Where do you start? It all starts with you and your interests, strengths, know-how, and motivation.

What are your interests?
What do you enjoy doing in your spare time? You will be surprised at the great business ideas that can emerge from people’s hobbies. Marissa Evans, founder of Go Try It On, came up with her business idea after continually asking friends whether an outfit looked good on her. The usual advice was “Go try it on!” which became the web address for an online marketplace of opinions for people wanting to know if an outfit was right for them. What do people ask your advice about? What are you passionate about? Which of your interests can you turn into a business idea?

What are your strengths?
Think about those times when you’ve received positive feedback. Perhaps you’ve helped someone out of a bind or been appreciated for your knowledge and talents. Whatever it is, people’s acknowledgement of your skills and expertise can form the kernel of a business idea and services that you could be offering to a wider population.

What problems can you solve?
Is there a service or product you wish was out there to make some part of your life easier? If you can’t find such a service or product, why not set about creating it? Chances are, if you want such a service or product, other people do, too. Perhaps you work in an industry where your competitors offer poor customer service, or you believe that your employer doesn’t deliver value to its customers. If you think you can do it better, chances are you can create a successful point of difference that customers will value. The key point to remember is that people are looking for solutions to their problems, not for things to buy. What problems can you solve for your customers?

How much money do you have?
Sometimes your dream business, whether it’s a corner store, a café, or other business, may be out of reach because of insufficient funds. If that is the case, how can you get involved in the industry at minimal cost? Can you work part time in your desired industry? This is a great way of deciding whether your desired industry is your true

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Starting A Small Business In Australia passion. It can give you valuable insights into what works and what doesn’t, and how you can improve on the service or what competitors are offering.

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If you need access to funding, a well-prepared business plan (see page 17) and knowing where to look for money (see page 34) will help. Another low-cost way is to get yourself known through consulting or blogging about your industry. This may be more successful than your initial vision of owning a store or providing a service outright. Again, look to how you can solve existing problems in your industry. People will pay if you can identify a problem in their lives and solve it.

How much time can you dedicate?
This may be tied to how much funding you have. Many people say they can’t start a business because they don’t have the time, or they can’t risk leaving their job and risk starting a business. But, there is a middle way if you start small. Perhaps you can build a website in your spare time. Or create a product that you can sell online. How about writing an eBook? These building blocks will eventually lead to a full-blown enterprise where all that’s involved is getting out and promoting it.

Get inspired
Check out a video from Business Insider about Marissa Evans, founder of Go Try It On.

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Choosing the right business structure
Your business idea is a goer and you’re ready to take the next step, which is choosing the right business structure. This can be daunting, but it’s one of the first and most important tasks you need to do. The structure you choose will affect your ability to raise capital, increase assets, and will impact on your tax liability. Your decision also determines how you register your business and the laws by which you must abide.

A quick quiz
1. What kind of product or service are you offering? ______________________________________________________ 2. Do you need state or nationwide recognition?  STATE  NATIONWIDE 3. Are you prepared to deal with legal squabbling to get your business going?  NO  YES 4. Are you planning to enlist investors and venture capitalists or are you using personal funds?  INVESTORS  PERSONAL FUNDS 5. Do you wish to separate your personal assets from your business?  NO  YES 6. How well do you deal with bureaucracy, paperwork and government formalities? ______________________________________________________ 7. How do you wish to handle taxes? ______________________________________________________ 8. Will you have partners, and if so, how will you split the responsibility?  NO  YES ________________________________________ 9. Do you plan to sell the company in future?  NO  YES 10. Do you plan to take your company public?  NO  YES 11. How important are fringe benefits to you? ______________________________________________________ Take the answers to these questions to a meeting with an accountant or a lawyer to help you decide on the best structure for your business. Email your completed quiz to me and I will help point you in the right direction.

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Available business structures
The following table outlines the most common Australian business structures, together with the pros and cons for each.
Structure
Sole trader

Description
An individual trading on their own.

Pros
 Simple and cheap to set up.  You can operate under your own name.  You control all business decisions.  All profits are yours.  If profits are low, there are tax benefits.

Cons
 Personal duty and accountability.  Your capital is limited to your own assets (unlimited liability).  All debts incurred are your responsibility.  It can be difficult to sell ownership  If profits are high, there are tax disadvantages  Potential for disagreements.  All debts incurred are your responsibility (unlimited liability).  Personal assets are at risk.  Profits must be shared.  If profits are high, there may be tax disadvantages.  Complex structure and establishment procedure.  A trustee is difficult to dissolve or to make changes to once it has been established.  Distribution of tax losses.  Establishment and administration costs can be high.

Partnership

Two or more people run the business to make a profit. The partnership can operate under personal names or under a registered business name. It is recommended that you and your partner(s) enter into a formal partnership agreement.

 Simple and cheap to set up.  Additional start-up capital.  A pool of skills and knowledge.  Profit belongs to you and your partner(s).  Reduced individual burdens.

Trust

A trustee is a company or an individual that carries out the business on behalf of the members or beneficiaries of the trust. Types of trusts are:  Discretionary trusts/family trust where funds distribution to beneficiaries is at the discretion of the trustee.  Unit trust where members hold units in the trust and distribution of funds is based on the number of units held.  Hybrid trust which is a combination of a unit trust and a discretionary trust. You can set up at trust at http://www.shelcom.com.au/services There are two types of companies:  Proprietary company , which is generally not permitted to offer shares or securities to the public. The company must have at least one shareholder and one director. At least one director must reside in Australia.  Public company, which may have more than 50 nonemployee shareholders, can offer shares and securities to the public, and may seek a listing on the Australian Stock Exchange. You can start a company and register a company name at http://www.shelcom.com.au/start-a-company

 Fewer formalities.  Substantial tax benefits.  Relatively simple to wind up a trust.  Assets are protected  Flexibility of asset and income distribution.  Reduced liability.

Company

 A company is a separate legal entity from its owners.  Shareholders hold limited liability.  The company tax rate of 30% is much lower than the tax rate for individuals.  You can own property in the name of the company.  A company can be owned and operated by only one director and one shareholder.  A company business structure makes raising capital easier.  A company is easy to sell.

 Establishment is complex and administration costs can quickly add up.  Shares may be difficult to sell if you are a sole shareholder.  Minority shareholders may have little say in the company’s affairs.  Must comply with ongoing company regulations.  Cannot distribute losses to shareholders.

Still unsure?
Use Shelcom’s 60-second Business Structure Wizard.

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Registering the business
Business name
A business name, or trading name, is the name or title under which your business trades. It identifies you to your customers and distinguishes you from your competitors. If you intend to:   use your own or your partner’s name, you don’t need to register the business name use a different name and you are setting up as a sole trader, partnership or a trust (but not a company), you need to register the business name with the Australian Securities and Exchange Commission (ASIC).

N O T E

Registering a business name does not give you exclusive rights to that name. Only a trademark will do that (see page 14).

Australian Business Number (ABN)
The ABN is a unique 11-digit number that enables the Australian Tax Office (ATO) and other government agencies to identify your business. You don’t have to have one, unless you are registered for Goods and Services Tax (GST) (see page 16), in which case you must display the ABN on your invoices to make them ‘tax invoices’.
N O T E Not everyone who applies for an ABN gets one. To be eligible, you must prove that you are committed to starting a business that provides goods and services to yield a profit. If you are conducting an activity primarily as a pastime or hobby that does not create revenue, you will not be assigned an ABN.

Why you should have an ABN
An ABN:  allows other businesses to easily confirm your business’s details when ordering and billing  helps with Goods and Services Tax (GST) claims (see page 16) and fuel tax credits.  prevents excessive Pay As You Go (PAYG) withholding tax  is mandatory when your annual turnover reaches $75,000. At this point, you must also apply for GST, which you can only do if you have an ABN.

If you don’t have an ABN…

… anyone who buys from you is required by law to withhold 46.5% of what they pay you and forward that amount to the ATO.

Getting an ABN is fairly simple and quick. The application form should take no longer than 15 to 20 minutes to complete. If you are applying as a sole trader, you must have a tax file number.

How to apply
  Online at the Australian Business Register website OR By telephone to the ATO (tel. 1300 720 092) OR

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Starting A Small Business In Australia   

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Through a tax agent or accountant OR By requesting, completing, and mailing a paper application form from the ATO (tel. 1300 720 092) OR Through a corporate service provider, which can be a one-stop-shop for all your business set-up needs (for example, Shelcom Corporate Services).

Your obligations
After you receive the ABN, you must:  report all earnings on your tax return to the ATO  inform the ATO of any change to your personal details within 28 days of the change occurring, for example, a change of address, change of surname. Otherwise, penalties may apply.  cancel your ABN if you terminate your business. The closure is not final, and the ABN will be re-issued if you start another business. Some of your details will be placed in the Australian Business Register (ABR), which is administered by the Australian Business Registrar, who is also the Commissioner of Taxation.

Need help?
Visit:    www.ato.gov.au to download publications, rulings and other general tax information for businesses. www.business.gov.au for an interactive service which provides access to business information and transactions with the government. www.shelcom.com.au/info/faq for answers to frequently asked questions.

Australian Company Number (ACN)
If you are setting up a company, you need to apply to ASIC to register it. ASIC will provide you with the ACN, which is a unique nine-digit number printed in intervals of three numbers: xxx xxx xxx. You must quote the ACN on all company correspondence, legal documents, invoices and financial statements.

Choosing a company name
Make sure that the company name you choose is not already registered to another company or business. Search all Australian company and business names at the Organisations & Business Names Index Search.

Trademarks
Businesses use trademarks to distinguish their products and services from those of other businesses. A trademark can be a slogan, name, logo, colour, shape, smell, aspect of packaging, or any combination of these. However, it cannot be a commonly used term or similar to another trademark.

Who governs trademark registrations?
Trademark registrations are governed by IP Australia. When you register the trademark, you are confirming that you are the rightful owner of that trademark and are using it honestly or have an honest intent to use it in relation to the goods and/or services specified in your trademark application.

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Starting A Small Business In Australia As the owner of the trademark, you have the right to:  use it for the products and services nominated  authorise (license) others to use the trademark  take action against anyone found to be infringing your trademark rights.

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The initial period of trademark registration in Australia is 10 years, commencing on the date that the trademark application is first filed. These rights can last forever, so long as the trademark owner renews the rights every 10 years and the trademark remains in use. If a trademark is not used for a period of time it may be removed.

Should you register your trademark?
One of the main reasons for registering a trademark is to allay any costs involved in defending against another company’s allegations of infringement or the cost of trying to get someone to stop using an unregistered brand name.

How much does it cost?
If you do it yourself, trademark registration can cost as little as a few hundred dollars, provided you are only registering one class of trademark, to around $900 – $1,000 if a trademark agent does it for you. A professional trademark agent will help you navigate the complexities of the application process to ensure you get the right protection.

Trademark classes
When you register your trademark, you will be required to nominate the class or classes to which the trademark belongs. There are 45 classes, and the cost to register your trademark depends on how many classes you nominate.
N O T E You cannot add classes or expand on the number of products and services within a class at a later stage. For this reason, it’s important that you include all relevant products and services when you first register the trademark. Otherwise, you need to file another application to cover further products or services.

How to register a trademark
Go to IP Australia’s website and follow the instructions.

The process
IP Australia’s examination of your application can take up to four months before it is approved. The next phase is a three-month opposition period when others can file a formal objection to your proposed trademark if they have grounds to believe it shouldn’t be registered. An objection doesn’t mean that the trademark is rejected. The two most common objections are:

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Starting A Small Business In Australia 1. The trademark is likely to be needed by other traders. The trademark is either too descriptive or is commonly used. The trademark or brand must be unique if this objection is to be avoided.

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2. Conflicting trademarks. If your trademark resembles an earlier filed trademark for the same or related products and services, then the earlier trademark may be raised as a conflicting trademark. This objection can be avoided by thorough research when creating a logo or brand name.

Need help?
If you need professional help in handling the trademark process, contact Small Business Wizardry and ask about our Trademark Registration Service.

Goods and Services Tax (GST)
You must register for GST if your annual turnover is exceeds the threshold of AUD$75,000 (excluding GST) or AUD$150,000 (excluding GST) if you are a non-profit entity. However, you can still register for GST to claim GST credits, even if your turnover does not meet the threshold. All the information you need about GST is in the ATO’s website.

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Writing the business plan
Why do so many small businesses fail in the first few years? Often, it’s because they have insufficient capital and inadequate or no planning. A business plan isn’t a magic bullet, but it does help you to focus on your objectives and to appraise your finances realistically. It also allows you to be better prepared for dealing with any difficulties you that may arise.
N O T E Remember to cite all sources of information when writing the business plan.

Typical table of contents
The following table of contents suits most small businesses at start-up.
Cover page (business name, address, month and year, prepared by) Mission statement Competitive advantage Objectives (first year, second year) Slogan Table of contents Executive summary 1. Introduction 2. Market analysis 3. Marketing plan 4. Operations plan 5. Financial plan 6. Set-up plan

What’s in each section
The following is a brief overview of what you should include in each section of the business plan.

The Executive Summary
Write this last. The Executive Summary is an overview of the business and a summary of what’s in the business plan. This is a narrative, without headings, that captures the main points of each section of the business plan.

The Introduction section
How did the business come about? What was the inspiration for founding it? Who’s behind it and what are their backgrounds? What does the business do? How does the business aim to derive its income? Which gap in the marketplace is the business aiming to target?

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Need help?
Watch the video by John Jantsch on developing a competitive edge.

The Market Analysis section
Understanding your market is crucial for targeting the right customers. You need to know not only who your competitors are but also who your typical customer is and which market segments you will be targeting.
Typical headings
The industry Customers

Consider
A brief description of your industry and where you fit in, the challenges the industry faces, the opportunities. Age, gender, where they live, their family structure, income, what they do for a living, lifestyle, leisure time, motivations, size of target market. Consider other aspects relevant to your business, such as how often or when customers are likely to buy your products and services and what proportion are likely to be repeat customers. Are your competitors global or local? Develop a matrix, such as the following, to capture a profile of your main competitors. Competitor’s name Main services Strengths Weaknesses If relevant, include a map of the catchment area, showing where your competitors are located.

Competitors

Need help?
Small Business Wizardry provides a professional Business Plan Writing Service that includes access to leading local and International Market Research firms

The Marketing Plan section
Marketing is not advertising. Laura Lake of about.com describes marketing as: The systematic planning, implementation and control of a mix of business activities intended to bring together buyers and sellers for the mutually advantageous exchange or transfer of products. Advertising, on the other hand, is: The paid, public, non-personal announcement of a persuasive message by an identified sponsor; the non-personal presentation or promotion by a firm of its products to its existing and potential customers The marketing plan outlines the strategies you will use to sell your services. Some strategies include:  attending networking events (if you are like me and feel sick to the stomach at the prospect of live networking events, try the online versions, such as forums, and social media platforms like Facebook, Twitter & LinkedIn (see page 48) where topics of interest are discussed—a much less confronting way of networking!) establishing a website to promote your products and services writing informative articles on your niche in a blog that links to your products and services promoting referral through word of mouth

  

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Starting A Small Business In Australia   email/fax/mail advertising pay-per-click advertising.

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Select the strategies that suit your niche, help leverage the uniqueness of your products and services, and are manageable within your time and budget.
Typical headings
Services/products and customers

Consider
Develop a matrix, for example: Products/services Target customers

Distribution methods Payment methods Promotion and advertising

For example, online, Australia Post, courier, truck delivery. How customers will pay you, for example, direct deposit to bank account, PayPal, credit card, cheque, cash. Your target customers and how you plan to reach them. For example, website, newspaper advertisements, Yellow Pages, cold calls, email marketing, flyers, leaflets, brochures. Target customers Strategies to reach them

Cost of promotion and advertising

Cost of marketing materials, for example, business card, flyers, and brochures. Promotion Total cost for first year of operation $ $

Customer satisfaction strategy Customer complaints procedure Sales forecast for 12 months

How will you ensure customer satisfaction? For example, timely delivery, value add. What is your procedure for dealing with disputes with customers? Create a matrix, for example: Per unit sold Product/ service Nov Dec Jan etc. for 12 months Total units

Sales revenue Product/ service Selling price $ Nov Dec etc. for 12 months Total revenue

The Operations Plan section
Operations are the day-to-day activities of the business. If there are a number of people involved in the business, the operations plan describes those people and their key responsibilities. This is also where you identify government and industry-specific licensing or codes of conduct and how your business complies with them.

Typical headings
Owner/operator Staffing Roles and responsibilities Relevant skills

Consider
Name of the owner/operator. Number of staff. The roles and responsibilities of everyone in the business. Skills of each staff member.

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Regulatory requirements Insurance Set-up costs

The business’s Australian Business Number (ABN) or Australian Company Number (ACN); Goods and Services Tax registration; industry code, etc. Workers compensation; business insurance. Costs involved in setting up the business. For example, computers, printers, phones, stock, stationery.

The SWOT section
SWOT stands for:   

Strengths—what you do better than your competitors, for example, great
location, exclusive license for a high-demand product.

Weaknesses—areas of your business that aren’t so great, for example, reliance
upon a key customer group, seasonal limitations.

Opportunities—the key reasons for setting up the business, for example,
servicing a customer group that is being neglected, the possibility of large tenders.



Threats—future factors that can affect the business adversely, for example, a
competitor’s release of a new product, change in government legislation.
Consider
Create a grid: STRENGTHS (internal) WEAKNESSES (internal) OPPORTUNITIES (external) THREATS (external)

Typical headings
SWOT analysis

Building on strengths and opportunities

Create a matrix, for example: Key strengths and opportunities

Strategies and actions

Overcoming obstacles

Create a matrix, for example: Key weaknesses and threats

Strategies and actions

Plan for growth

List your objectives. For example:  Objective 1: Earn a minimum income of $50,000 after taxes in the first year of operation. o List of actions and strategies to achieve this objective.  Objective 2: Become a sought-after service in the local area. o List of actions and strategies to achieve this objective.  Objective 3: Have a steady customer base sourced by referrals. o List of actions and strategies to achieve this objective.

The Cash flow Analysis section
Cash flow analysis is a projection of the revenue and expenditure you expect over the next week, month, and year. You need to maintain and update this section regularly. It’s important that you are always aware of where you stand financially when you compare

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Starting A Small Business In Australia your actual with your projections. The cash flow analysis enables you to increase your marketing expenditure if you are ahead of projections or pull back if you aren’t.

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New business owners often identify fantastic revenue opportunities without a proper appreciation of the costs involved. It’s best to err on the side of conservatism by halving your expectations of revenue and then considering if you can still operate a viable business.
Typical headings
Operating expenses

Consider
Create a matrix, for example: Operating expense Operating expense item (non GST) item (GST) Bank charges Internet broadband etc. First 12 months ($) 150.00 1200.00 Explanation $15.00/month. $100.00/month

Total fixed costs for first 12 months

Create a matrix for the depreciation schedule, for example: Asset $ value at Depreciation rate % commencement Personal computer etc. 500.00 15

Depreciation year 1 75.00

Total fixed costs for the first 12 months is total operating expenses PLUS decline in depreciating assets. Fixed costs per week Total operating expenses divided by 52 weeks.

The Financial Plan section
The financial plan is a statement of your personal net worth, schedule of personal budget for the first 12 months, opening balance sheet, and income tax liability.
Typical headings
Statement of personal worth

Consider
Create a matrix, for example: Assets$ Cash on hand Surrender value of superannuation Home Furnishings Car(s) Personal effects Total assets $ $ $ $ $ $ Total liabilities Liabilities Bills unpaid Mortgage Credit cards Other loans $ $ $ $

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$

Typical headings
Schedule of personal budget year 1

Consider
Create a matrix, for example: Income Allowances etc. A. Total income Expenses Mortgage Insurance etc. B. Total expenses Proposed drawings (B minus A) $ $ $

Opening balance sheet

Create a matrix, for example: Current assets Cash at bank Stock Receivables Petty cash Other Total current assets Fixed assets Property Car(s) Plant and equipment Investments Other Total fixed assets Total assets Current liabilities Creditors Borrowings Total current liabilities Non-current liabilities Creditors Borrowings Total non-current liabilities Total liabilities Net assets/owner’s equity

$

$ $

$ $ $

$ $

$ $ $

Income tax liability

GST liability and income tax liability based on net profit.

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The Set-up Plan section
The set-up plan outlines specific actions and strategies during the first three months of getting the business started.
Typical headings
Set-up actions Marketing Immediate and recurring tasks

Consider
Register business name, obtain ABN, purchase web hosting, etc. Design logo, business cards, website, advertising, etc. Business insurance, accounting system, business bank account, business stationery, product design, promotional materials, etc.

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What you’ve learned so far

How to:  turn your business idea into reality  establish the right business structure  register your business  write a business plan

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PART 2: GETTING STARTED

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hen someone wants to find out more about you and your business, they will check out your business’s website. This is just one reason why an online presence is essential for any small business.

It goes without saying that the Internet has revolutionised the role of small business. For the first time, you can compete with big business by leveraging your online presence against the big players. For example, the ability of strangers to share reviews online about products and services means you have to figure out where people go to get their news and then how to engage with them. Part 2: Getting Started is about establishing your online presence, by registering a website domain, designing a website, and designing a logo.

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Registering a domain name
What is a domain name?
A domain name is the www address that you type into your browser (Internet Explorer, Firefox, Chrome, etc.) to visit specific websites. About domain names
The first domain name was .com and is called a top level domain or TLD. TLDs have only one suffix, for example, .biz, .com, .net, .edu, and so on. Second level domains, or 2TLDs, contain another level after the suffix to show the country of origin. For example, .com.au tells you that the website originates in Australia. The three most popular TLDs are .com, .net and .org.  .com stands for commercial, and is the most widely used.  .net stands for network and was used primarily by Internet service providers, web hosting companies, and others directly involved in Internet infrastructure. Today, there are no such restrictions.  .org stands for organisation and is used primarily by non-profit organisations and trade associations, but again, the suffix is available to everyone.

Email addresses and domain names
Email addresses rely on the domain name. Once you’ve set up the domain name, it’s easy to then create email addresses, for example, [email protected]. The process for registering a domain name is more than just finding a fancy name for your website address. It requires some research, strategic planning, and some creativity. It’s okay to register a domain name because you like the sound of it, but a more strategic approach is to choose a name that reflects the purpose of your website.

Coming up with a domain name
According to Smashing Magazine:

Coming up with a good domain name requires a combination of strategy, imagination and good linguistic design practice. Think about your business from the point of view of someone searching the web for your products or services. They rarely type in a domain name; rather, they are more likely to type in the specific item they want. For example, someone looking for cheap pet food will type ‘cheap pet food’ into the search engine bar. The search engine will display the most relevant websites first, prioritising the ones with the best content. There’s only one ‘number one’ spot, and you will increase your chances of getting there by including the top search items in your domain name. You can’t go wrong if you choose a practical, easy-to-remember name. For example, if you sell cheap pet food, you could try for cheappetfood.com. If the name you want is unavailable, think of another name connected to your product or service. In addition, your domain name should be:  short, catchy and memorable  easy to pronounce

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Starting A Small Business In Australia  easy to spell.

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It should NOT be:  similar to competing domain names  in violation of someone’s trademark.
N O T E Remember that to rank well in search engine results, your domain name should match your website’s content.

How to register a domain name
1. Go online to find a domain registration company. There are several to choose from. Simply search for ‘domain name registration’. 2. Check if your chosen domain name is available. All domain registration companies provide a domain name search facility. 3. Select the suffix. The most popular one is .com, but you can choose .net, .biz, .info, .org, depending on the purpose of your website. 4. Purchase the name. Domain names usually cost between $10 and $15 per year.

Need help?
See:    Go Daddy at http://www.godaddy.com/ GoAustraliaDomains at http://goaustraliadomains.com/ CrazyDomains at http://www.crazydomains.com.au/

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Getting a website
Having a professionally designed, eye-catching website is becoming increasingly important. Not only does a website add credibility to your brand, but just like a shopfront in a prime location that attracts passing foot traffic, a well-developed website attracts online customers to your business. It is so easy these days to create a web presence that online business is getting incredibly crowded. Your website has to stand out among the noise. Web design firms and freelance designers can be very expensive for start-up businesses. However, if you know where to look, you can find cheap, quality web design options.

Prepare the design brief
But first, you need to prepare a design brief that answers the following questions:  What is the purpose of your website?  Who is your target audience and what do they need?  Will they buy directly from your website via a shopping cart?

eCommerce
If you are planning to sell products on your website, you will need to set up an account in PayPal or another payment gateway in order to receive payments. Many affordable eCommerce platforms are available, such as Shopify.com and BigCommerce.com, which integrate with Facebook and other social media sites.

User experience
Remember, the ultimate aim of your website is to convert visitors into prospects. While the design of your website is important, it is equally important that your visitors have an easy, pleasant experience.

D.I.Y. with Wordpress
If you want to design and develop the website yourself, WordPress is a good option. It’s free and reasonably simple to set up from your web host’s cPanel or directly within Wordpress’ dashboard. Wordpress is more than just a blogging platform. You can select a magazine style theme that has more than the usual blogging features. There are thousands of free WordPress themes to choose from. One of the advantages of WordPress is that you don’t have to know how to code HTML, CSS, PHP, etc. When you upload content, it’s as easy as creating a Word document. Wordpress does the backend coding for you. The WordPress guidelines provide valuable information on terminology, features, and requirements, so read them before you start.

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Crowdsource your web design
An increasingly popular way of getting a website, especially if money is tight, is to crowdsource it via a website such as DesignCrowd.com.au. Crowdsourcing involves posting your design brief online and receiving hundreds of ideas and concepts from various designers around the world. And it’s fast, especially if you are aiming to catch a trend and get ahead of your competition. Once you select a submission from a designer, you can work with them to get the website that’s right for you.

Hiring a professional
If your budget can stretch a little further, you can spend some time researching web designers. Some are very expensive, but it is possible to find one who is very good yet affordable. Like everyone else, web designers know that times are tough and that budgets are tight, so they are often willing to shift their price expectations. As you research, you’ll come across an increasing number of freelancers and agencies that specialise in web design for small business, side business, students, and work-from-home parents. Their pricing and package deals are lower, but they do offer great quality, often with copywriting, marketing and branding thrown in.

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Famous logos

Designing a logo
Getting the right logo for your business not only strengthens your brand but helps you to stand out from the crowd. A good logo will articulate succinctly what you are about and what you can deliver to your customers. Unless you’re in the business of graphic design, a logo is not something you should do yourself. Here are some steps to ensure that your logo is effective, professional and appealing.

Brand or logo?
Before you begin, it’s important to understand the difference between a brand and a logo. They are not the same. The logo is not your brand, and vice versa. Your brand encompasses every interaction you have with the marketplace: positioning, messages, visual design, voice, promotions, presence, and the experience that customers have with your business. It is a strategy that helps communicate your expertise and position in the marketplace. Your logo, on the other hand, is an easily recognised design element that often includes your business name, a symbol, specific colours, and any trademarks. Brand and logo direction develop over time as you learn more about your customers and their aspirations. Together, they attract attention to your message, values, and the benefits of your products and services.

Research your target market
Before thinking about the design of your logo, you need to research your target market and industry, something you would have done while creating your business plan (see page 17). The more you know about your customers and the competition, the better understanding you’ll have of where your business fits. Surveying your customers and business network will help you to gain insights into their expectations, the impressions they already have of your business, and their

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Starting A Small Business In Australia attitudes towards your competitors.

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Some typical survey questions are:  What do you like most about us? Price, product, customer service, location, etc.  Which one of our competitors do you like the most besides us? Provide a list of competitors.  How did you hear about us? Newspaper, Internet, social media, other. The answers help you to brief your logo designer. For example, if most of your customers found you through newspaper ads, then the designer will ensure that the logo looks good in print.

Survey tools
Online survey tools can be found at:  Google’s Chrome web store, which you can access via your Gmail account  SurveyMonkey.com  Wufoo.com

The design brief
In order to come up with the perfect logo, the designer needs to understand your business, so they will ask for a brief. The design brief includes the research you’ve done and the results of any surveys. It is the perfect opportunity for you to capture the essence of your brand, values, vision, and goals. Some typical questions that a designer will ask are:  Who is your target market? Where do you position your product or service within this market? What is the scale and size of the target market?  What is your brand’s position? If you are re-branding, do you intend to increase market share and customer base, or refresh your existing look, or reflect the changing face of your business? For a new product or service, it’s best to position yourself in the dominant market niche.  What is your brand’s scope of scale? This refers to the breadth and extent of exposure for your brand, e.g. huge billboards, newspaper ads, TV, website only, etc.  Is the logo also your brand? Remember, the logo and the brand are not the same thing. Be clear about whether you are after full-blown branding that includes art direction, shifting, colour palettes, brand strategy, photographic style, or a simple logo only.  Who are your allies and who is your competition? For example, are you allied to any government agencies or corporations? Who are your key competitors? Are you a standalone venture or are you a possible acquisition target?

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Make it simple
The most effective logos are simple and easily understood. Simplicity comes from getting to the essence of what makes your business special and why customers should care. Providing the designer with a succinct summary of your unique selling point will help them with visual cues.

Getting a designer
There are many graphic designers ready and able to design your logo, and you can find them via crowdsourcing or design companies.

Crowdsourcing
Crowdsourcing is one of the cheapest ways of getting a logo. DesignCrowd.com.au is one such source where you can post your design brief and receive hundreds of ideas and concepts from different designers. If you are struggling with your brand and don’t know how to represent your business, crowdsourcing can yield countless ideas that will help you focus your brand vision. Just as with the traditional design process, you can give feedback and work with the designers to come up with just the right logo.

Stock design
As a start-up business with little experience, you can also consider a stock design company, such as BrandCrowd. BrandCrowd has hundreds of designs, from simple logos to fully-realised brands that you can browse and buy. You can also work with the original designer to apply a creative vision and further develop your brand. It gives you the opportunity to look at professionally-created concepts and logos and choose one that you like and that matches your ideas and values.

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What you have learned so far

How to:  register a domain name for your website  get a website  design a logo

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PART 3: FINANCING

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hen it comes to financing, there are only two ways to start a business: with capital or without capital. No matter what state your finances are in when you start a business, all things are possible if you keep alive your drive and enthusiasm. Most small businesses assume that a business loan is only option. Not true. Part 3: Financing covers the business loan process, but also looks at alternative ways of finding money to fund your small business venture.

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Going it alone without capital
Even without an external source of capital, an aspiring entrepreneur can start a business. All it takes is a little luck, lots of effort, and a great idea. Author of Bootstrapping Your Business, Greg Gianforte, is a great example of starting with nothing and ending up with a $30 million business.

Do some bootstrapping
According to Gianforte, the single best way of launching a business is to boostrap it. Besides cost cutting and saving the meagre money you have, bootstrapping means spending funds in the right places. Here’s a quick summary from Guy Kawasaki on what to do: 1. Focus on cash flow, not profitability. Cash is king! Pass up on the big sale that may take 12 months to close, deliver and collect. Instead, focus on short sales cycles, short payment terms, and recurring revenue. 2. Forget the “proven” team. Hire young, cheap and hungry people. Once you achieve significant cash flow, you can hire adult supervision. Until then, hire what you can afford. 3. Start as a service business. Until you develop that great product, provide consulting and services. This way, you get immediate revenue and a true customer testing of your product. 4. Focus on function, not form. Design great stuff, but buy cheap. 5. Pick your battles. You cannot afford to fight on all fronts. 6. Go direct. Stores and wholesalers fill demand, they don’t create it. 7. Position against the leader. For example, “poor man’s Bose noise-cancelling headphones”, “cheap iPod”. In other words, you don’t have to explain the Bose and iPod.

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Raising capital
The options for raising capital include attracting people to invest in your idea, seeking government grants, and borrowing money from the bank. But before you think about raising capital in this post-GFC world, it’s worth knowing what the expert venture capitalists have to say about the subject. One such expert is cofounder of AngelList, Naval Ravikant. AngelList is a free platform where start-up businesses can pitch for funding. Ravikant shares nine key steps to follow before looking to raise funds for your business. 1. There is no formula to founding a start-up Focus on what works with you skill set and take bits and pieces from successful entrepreneurs to develop your unique business model. 2. Move to a hub Business hubs are everywhere. Check them out and consider moving into one. You’ll have access to like-minded entrepreneurs, networking opportunities, and access to valuable resources and technologies. 3. Pick a great co-founder And it’s not your best mate! Think about who is the best person to complement your skills and has a personality compatible with yours. 4. Intelligence, integrity, energy If it’s good enough for the world’s most successful investor, Warren Buffett, then it’s good enough for you. Intelligence, integrity and energy are the principles you should live by and the attributes of the people you should go into business with. 5. Pick a big market It’s not enough to have a great idea. There’s no point in having a fantastic idea to revolutionise an industry, product or service if the market size isn’t big enough to warrant a sufficient return on your investment. The market you choose has to be big enough to realise the value of your idea. But, don’t stress over this. The idea you begin with is bound to change many times as you journey through the development stage. The key is to take action. 6. Develop the minimum viable product you are passionate about With the opening up of the global market for developers, designers and other freelancers, it is extremely cost-effective to hire an expert developer to design any idea you want. The key is to think about the simplest imaginable concept and go with it. Work on refining your product for market fit and make sure you maintain your passion for it. Once you’ve done that, you’re ready to look for capital. 7. Keep testing the product/market fit Test, test, test! That lightbulb moment can come in many ways. You don’t have to force it if you maintain your passion. It will come. Stick with it, and only look for

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Starting A Small Business In Australia capital when you can prove that there is a genuine demand for your product or service. 8. Raise money from people you trust and admire Speak to entrepreneurs who have been successful at raising capital. If the experience was positive for them, then it’s likely to be positive for you.

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9. Scaling Once you have developed a product you are proud of, that has market demand, and is attractive to potential investors, start focusing on scaling. The key to scaling is a balance between a great product or service and maximum market demand. Less is more. You don’t want to build in a thousand great features that most people won’t use. It’s a fine balance, and one you will only discover through constant testing and refining.

Need help?
Check out Udemy’s Raising Money For Start-Ups. The course costs only $19.00.

Attract investors
When you’re confident that your business idea is a winner, here are a number of options available for getting capital that don’t involve the usual bank overdraft facility or begging, borrowing and stealing from the family. But before heading down this road, remember that the business financing process is long and drawn-out, with no guarantees of success. Also, be aware that if people provide you with capital, they will expect you to take note of their views on the direction your business should take. This is why your business plan has to be well-written and convincing (see page 17).

Angel investors
The Australian Investment Network at http://www.australianinvestmentnetwork.com is a website that connects “angel investors” with Australian small businesses. According to Wikipedia, an angel investor is… … an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. You pay a small fee to list your business on their website in the hope of attracting the interest of an angel investor. If no one is interested, you get your fee back. There are over 20,000 registered angel investors on the website, with over 5000 connections made each month.

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Pozible
If you have a creative project, then Pozible at http://www.pozible.com is for you. It’s great for musicians, artists, designers, and filmmakers. Pozible is what’s called a “crowdfunding site”, which, according to Wikipedia… … describes the collective cooperation, attention and trust by people who network and pool their money and other resources together, usually via the Internet, to support efforts initiated by other people or organizations.

Australian Small Scale Offerings Board (ASSOB)
Think of ASSOB as the Stock Exchange for Australian Small Businesses. It is a platform for companies seeking to raise $250K to $5m from investors. When looking to raise capital through ASSOB, you are partnered with an ASSOB-accredited sponsor who guides you through the process of submitting your application to list on ASSOB, preparing an investor offer document, and promoting your offer to the broader investment community. Your sponsor also helps you to find people within your own network who may be interested in investing with you. After all, if no one in your own network wants to invest, then who else will want to?

Pollenizer
Pollenizer provides web-based businesses with capital and expertise in growing their business. The criteria for attending their start-up bootcamps are as follows:  Your business is web based, but not e-commerce or e-tailing.  You are at the concept stage and have yet to develop or launch the business.  You are the founder who will lead the business.  You want a partnership with Pollenizer and are willing to offer an equity share and to remunerate Pollenizer for their services.  You are based in Australia, preferably Sydney.  You are not afraid to share your ideas and allow them to evolve.

Seed Accelerator
Seed Accelerator assists start-up technology businesses in the Asia-Pacific region, and offer five services:      Startup Seed Program for startups with an idea or a prototype Business Seed Program for early-stage and late-stage technology ventures Idea Seed Program for exceptional entrepreneurs and teams of founders without a unique business idea Innovation Seed Program to accelerate innovation for medium-sized and large enterprises Consulting Services to provide practical advice and support to startups, technology ventures, enterprises, and investors.

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Get a government grant
More than 300 government grants and a broad range of tax concessions are available to Australian businesses. However, finding and accessing all the benefits to which you are entitled is a daunting task. To find a government grant, go to the Australi an government’s Grants & Assistance Finder. See also Business Grants Australia at http://australianbusinessgrants.com.au/. Another option is to find an agent who will obtain a grant for you, but make sure that the agent demonstrates clearly their understanding of your industry. Grants Spectrum Australia come highly recommended. Clients I have referred to them have been successful in obtaining government grants.
N O T E Before applying, you will need to demonstrate that you have invested money in the area of your business that you are seeking a grant for.

Get a business loan
The health of the economy plays a large role in determining your line of credit if you go for a business loan. Access to business loans has dried up significantly since the GFC. However, it’s not impossible to secure a line of credit from a bank.

Choose the right bank
1. Begin with a clear idea of the services you need from a bank, not what they want to sell you. Remember, banks want to make a profit. So, the diligent banking representative showing you the bells and whistles of their credit card, overdraft facilities, and insurance products is simply doing their job, which is to sell you as many products as they can. Their first priority is to the bank. There are hundreds of online comparison websites that provide valuable information to help you choose, such as infochoice.com.au, so shop around. 2. Develop a relationship with your bank. Having the bank manage all your banking facilities increases your value as a customer and can increase the probability of your obtaining a business loan. 3. Find out what other people think. Roy Morgan Research survey customers of Australian banks, measuring satisfaction across a number of areas, including per product comparisons (loans, deposits, superannuation, insurance) and relationship management. These surveys

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Starting A Small Business In Australia can help you make an informed decision. Or, ask your friends. There’s nothing better than first-hand experience to help guide you. 4. Be strategic.

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Once you secure a loan, make debt repayment a priority. Repaying the debt yields the return of the interest you don’t have to pay as your debt level re duces. Rather than leaving money lying around in a savings account, put it towards reducing your debt burden. The interest you pay on the loan will be much higher than the interest you earn in a savings account.

Choose the right loan
When it comes to your finances, it pays to make the right choices. There are a number of considerations when choosing a business loan.
Types of loans Fees Security Term Interest rate fully drawn advance, overdraft, line of credit entry fees, exit fees, annual fees residential, non-residential short-term, long-term up to five years fixed, variable

Need help?
Use the small business loans selector at infochoice.com.au.

Glossary of business loan terms
Term
Balance sheet Collateral Collateral Factoring Fixed rate Guarantor Interest rate

Description
A statement showing the assets and liabilities of your business at a given date usually provided when seeking a loan. The assets you provide the lender as security for your loan. If you are unable to repay the default on your loan, the lender will have first rights to these assets. The buying and selling of receivables. The percentage interest rate that applies to the loan remains the same throughout its term. A third party that guarantees the repayment of the loan if you be unable to repay. Usually presented as a percentage per annum, reflecting the amount you need to repay on top of the principal to compensate the lender for the risk that you won’t pay the full amount back. Usually used in trade finance, it represents an irrevocable undertaking of payment. The parties to a letter of credit are usually the beneficiary, who receives the funds for goods sold and the issuing bank. The amount the lender lends to the borrower, before interest. The percentage interest rate varies over the lifetime of the loan. Usually, variable rate loans are linked to movements in the official interest rates set by the Reserve Bank.

Letter of credit

Principal Variable rate

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What you have learned so far

How to:  do some bootstrapping  finetune your business idea  attract investors  get a government grant  get a business loan

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PART 4: MARKETING

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t’s time to get known. If people don’t know about your amazing products or services, they’re not going to ask to buy those products or hire you for those services, regardless of how wonderful and amazing they might be. So, your first job is to get the word out. Effective marketing can mean the difference between having a successful business with a thriving customer base and going out of business in short order due to an inability to attract customers. Marketing strategies underpin your business’s marketing plan. They are the processes and tasks that you embark on to increase sales and achieve a competitive advantage. In Part 4: Marketing, you learn about developing a marketing strategy and choosing the right marketing service.

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Developing a marketing strategy
While the bricks and mortar of a business are important, online marketing strategies are becoming increasingly more common. Google is now a dominant online source for finding information, products, and services. Without a strong online presence, your business could be missing out unnecessarily on many interested clients. Online strategies include spreading the word via social media, Google AdWords, search engine marketing, blogging, internet marketing, and more.

Offline strategies
Talk to people
Tell as many people as possible that you’re in business. This includes friends, family, past co-workers, clubs, sporting groups, institutions, and other circles you mix in. While not all of these people will turn into customers, getting the word out means at least some of them will share the information with others who might be interested in what you have to offer. That awareness and publicity can lead to a breakthrough in sales down the road.

Print advertisements
These include newspaper advertisements, Yellow Pages, flyers, brochures, stationery, business cards, vehicle tags, and window displays.

Your website
Whichever online strategy you choose, it all starts with your website. Your website is the online representation of you, your brand, and your business. It may sound obvious, but your website must be user-friendly, not an exercise in designer vanity. It has to be functional, informative and easy to navigate. Visitors to websites tend to scan rather than read content, and if they don’t see what they want, they will leave after a few seconds. So, a clear call to action is a must. Consider carefully what your website aims to achieve. Is it an informational site or an ecommerce site? Are your products and services presented clearly? Is it easy for your customers to obtain your products and services?

Social media
Social media includes Facebook, Twitter, Pinterest, Myspace, YouTube and any other social website where you have a presence. These can play a significant role in getting the word out about your business, and there are a number of small businesses that rely entirely on social networking to market themselves and attract customers. See page Part 5 on page 48 for details on setting up your social media presence.

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A word about keywords
The terms ‘keywords’ and ‘keyphrases’ are often used to describe the search terms people use in search engines to find the information they are looking for.. Knowing the most often used terms used to search for the products or services in your niche gives you a great advantage when putting together your web copy and website structure. Knowing which keywords to use marks the difference between a winning marketing campaign and losing a lot of money. For example, a dress shop owner might try to use the word ‘fashion’ to attract visitors but a far better tactic would be to be more specific and use words aimed at a particular market segment, such as ‘plus sized dresses’. Being very specific rewards you with a smaller traffic load and a higher conversion rate.

Search engine marketing
Search engine marketing is the process of marketing yourself, your services or your products in search engines. It can include Search Engine Optimisation (SEO) and Pay Per Click (PPC) advertising, video or image listings, news listing, and so on. Of course, getting free and frequent traffic to your website is the ideal. The traffic can come from various sources, including social media sites. Search engine traffic is highly valued because it is quality traffic that tends to convert into leads or sales at a higher rate than referred traffic. Someone has searched using specific keywords, demonstrating a genuine desire or curiosity about something as opposed to the person who clicked on a link while reading something on another website.

Search engine optimisation (SEO)
SEO means maximising free traffic from search engines by optimising your website for target search terms, or keywords. It means including relevant keywords in the web content and structuring the content in a way that search engines love. It also involves scoring points by attracting links from other websites, thereby showing the value of your website in other people’s eyes. The search engines constantly change the algorithms they use for obtaining the best search results for keywords. Your job is to push for quality results.

Here are some basic tips for optimising your website:  Include keywords in web page titles, headings and copy. A good resource for finding the most used keywords for your industry is Google’s Keyword Tool.  Add a meta description to the code. These are the words that search engines, such as Google, often use to describe the content in your website (see the diagram). They should be no more than 160 characters long. (Your web designer knows what this means.) A meta description won’t help you rank but it can be used to attract clicks on your listing.

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Add <alt> text to all your images. (Again, your web designer knows what this means.) Get other websites to link to you. You should also register your website with the many directories available, such as Hot Frog, True Local, and directories relevant to your industry (associations, interest groups, etc.)

Search engines and authority
Authority is a rubbery concept, but it’s something that the search engines value highly. Authority develops with time and link building and the more authoritative you are in your industry, the higher your site tends to rank above the others. Search engines value the number of relevant websites that link to yours. Google, for example, sees those incoming links as a sign of relevance and trust
N O T E For optimum results continue to add quality content, build your brand, and make social connections, especially if you are in a highly competitive industry.

Need help?
See Adsurf Online Marketing for numerous articles on SEO or contact me if you are looking for help with your search engine marketing.

Google AdWords
Google AdWords is Google’s advertising product and main source of revenue. It is a keyword advertising system, consisting of a headline of 25 characters and two additional text lines of 35 characters each, displayed as sponsored links in the search results pages of Google, AOL, Ask.com and others. You pay Google only if people click on your ads, hence the term Pay Per Click (PPC). See Google AdWords for sign-up and payment options or contact me for assistance with running a PPC campaign.

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Choosing the right marketing service
Small businesses sink or swim, depending on the success they have in establishing themselves within their target client base. As a result, it is no surprise that small business marketing services have taken off as ways of helping small businesses effectively reach their desired customers and taking their businesses to the next level. However, businesses that are new to the idea of marketing may be overwhelmed when it comes to choosing the right marketing company for their needs. Here are some tips to help you choose the marketing service that best fits your goals and budget. 1. Decide where you would like to build you presence and look for marketers that specialise in those areas. For example, if you want to establish your business reputation as a provider of camera equipment and expertise, look for marketers with established backgrounds in photographic companies and photographers in general. If you are an online retailer, look for marketers that are experienced in putting you at the top of search engine rankings. Online versus offline marketing expertise is very important as more businesses begin to adopt online marketing tactics. 2. Read reviews of small business marketing firms. You want to work with a marketer that has a track record and a positive reputation for delivering results. If a marketer has no reviews and you are interested in working with them, ask lots of questions about their services, such as the following: o o o o How will you generate results and buzz for my business? Which marketing strategies do you prefer to use? How long will it be before I see results? What happens if you cannot meet my goals?

For example, if you are based in Sydney and are trying to promote your plumbing services, you might want to think twice about an SEO marketing firm that promises you the number one Google position for the Sydney Plumbers keyword. Results cannot be guaranteed in such a highly competitive market.

Need help?
If you are looking for help with marketing your small business, please get in touch and I will help point you in the right direction.

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What you have learned so far

How to:  get known, offline and online  get found on the Internet  choose a marketing service

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PART 5: SOCIAL MEDIA

W

ith consumers spending vast amounts of time on social media, getting on the social media wagon is a must for business today. As consumers become more savvy and outspoken about their likes and dislikes, a positive presence in social media goes a long way towards building trust in your brand. The most important thing to remember about social media is that you are engaging in a conversation. The days of simply shouting out a message over radio, television and print media are slowly dying. As with all forms of marketing, social media is all about consistency. There is no point churning out 20 posts in two days and then going silent for a month. One of the best ways to manage the time you spend on social media marketing is to dedicate 15 minutes a day. Choose the time that’s best for you, and eventually it will become as natural as checking your emails. Part 5: Social Media takes you through the process of getting started in Facebook, Twitter, Pinterest and LinkedIn.

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Facebook
Facebook is a great way for small business to connect with new and loyal customers. Once you’ve created a Facebook Page, you can:  include your location, links, hours, photos, and anything else about your business  claim your physical location to enable people to check in  invite people to like your Page  promote your Page in flyers, emails and website links.

Facebook is a social networking service and website that was launched in February 2004 by Mark Zuckerberg and his college classmates. In May 2012, it had over 900 million active users. The name “Facebook” came from the book that some United States universities issue to students at the start of the academic year to help them orient to university life. People use Facebook to stay connected with their friends and family, to discover what is going on, and to share and express what matters to them. On 17 May, 2012, Facebook went public, raising US$16 billion in its initial public offering at US$38.00 a share. However, in the following days, the share price dropped to 18 percent below its offering price. The challenge for Facebook is justifying its valuation at US$104 billion. Facebook has a spectacularly rich vault of information about its users, who cannot seem to stay away from the site. Americans, on average, now spend 20 percent of their online time on Facebook alone. Some 300 million photos are uploaded to the site daily. How Facebook exploits its users’ information — and how those users react — is the next reckoning. (Source: The New York Times, 22 June 2012)

How to set up a Facebook Page
1. Go to Facebook’s create a page and select the type of business and category. 2. Name the page, but choose carefully. Remember, you want to make it as easy as possible for people to find you in Facebook Search. 3. Complete the About section with as much detail as you can. If necessary, copy and paste from your website’s About Us page. And be sure to include a link to your website.

Start posting
Once you are set up, submit one or two posts a day. Test the times of day that get the most engagement.
N O T E Be careful when posting not to selfpromote. Make 80 percent of it information about your industry, questions to your readers, and lighthearted banter.

Sharing funny cartoons and photos can work, but above all, be yourself!

Get liked
To get liked, participate in discussions on other pages where you can add value. Think about your ideal customer and their interests, then find those pages and start participating and sharing.

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Twitter
One of the best resources for learning about Twitter is Bridie’s Guide to Twitter for Business. It’s free, and it tells you how to:  create and optimise your Twitter profile  find people to follow and how to manage them  effectively use hashtags. For business, the main objective of having a twitter account is to gain followers and increase awareness of your services and products.
Twitter was launched in 2006 by Jack Dorsey as a means for a group of people to communicate with each other using an SMS service. It quickly became an online social networking and microblogging service, and today it has over 500 million active users. Users, or twitterers, can read, write and share tweets of up to 140 characters. These tweets are available to anyone who is interested in reading them, and you don’t have to be logged in to read them. This unique combination of open, public, unfiltered tweets allows twitterers to share what’s happening in real time. As a twitterer, you can post updates, follow other twitterers, send public or private replies, and share links to photos, videos, music, and events. (Source: Wikipedia)

How to sign up
1. Go to https://twitter.com/signup/ and enter your name, email address, password and username, then click Create My Account.
N O T E When choosing a username, remember that it represents your business.

2. Complete your account settings. (See Bridie’s Guide for some valuable tips.)

Finding people to follow
You can follow whoever you like in Twitter. You may want to start with your business contacts and then use Twitter’s search function to find individuals or businesses you are interested in following. Select a few to follow and see who they are following.

Making Twitter work for you
Here are some ways of making Twitter work for you:  Personally thank everyone who follows you, and better still, give them something of value for free, such as an eBook or advice that shows you care about the relationship you’re developing with them.  Follow key people in your niche, and respond to their tweets with something of value. You never know, they may engage in a conversation with you, thereby positioning you as an equal with other experts in your field.  Re-tweet relevant posts. Not only will you be giving your followers valuable information, but the person you re-tweeted may reciprocate.

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Pinterest
Pinterest is one of the fastest growing social services in the world and describes itself as a “virtual pinboard to organize and share the things you love”. It allows people to create and manage theme-based collections on interests, events, hobbies, and much more. People can browse other pinboards, re-pin images to their own collections, and ‘like’ photos.
Pinterest began in 2009 as a social image bookmarking system and has grown into an enterprise worth over US$1 billion. Retailers have taken advantage of Pinterest for advertising and style trending. The web design provides an ideal layout for style conscious retailers, who can display their products easily within a consumer context. (Source: Wikipedia)

How to create a board
You can create as many pinboards as you like. To get started, go to http://pinterest.com/ and click Request an Invite or log in with your Facebook or Twitter login. Select a board to follow, and then create your boards.

Don’t be afraid to share personal interests here. Be yourself and unleash your passion. It may be about cooking, travel, your pets, your children. Here are some ways to expose your business:  Pin your website’s content, pictures, videos, blogs. It’s important to upload graphics and images that will attract attention.  Engage with other boards of interest by liking another pin, re-pinning something you like, or commenting. This is similar to liking, sharing and re-tweeting in Facebook and Twitter.

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LinkedIn
LinkedIn is more than just an online resumé service. It is a way of connecting with other businesses that may be potential customers or suppliers. Think of it as a less daunting way of networking than swapping business cards at functions.
LinkedIn was launched in 2003 as a social networking website for professionals. In 2012, it had more than 161 subscribers in over 200 countries. In 2011, LinkedIn earned US$154.6 million in advertising revenue, beating Twitter, which earned US$139.5 million. One of LinkedIn’s major features is its use as a job seeking service. Subscribers can upload their resumes, showcase their work and community experiences, participate in interest groups, and find out about companies they want to work for. (Source: Wikipedia.)

How to subscribe
Go to http://www.linkedin.com/ and follow the instructions.

Getting the most out of LinkedIn
Here are some ways to get the most out of your profile and drive more traffic to your business. 

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Keep your profile up to date. When people search your name, your LinkedIn profile is likely to display at the top of the search results. It can be embarrassing if your profile is incomplete. The more you have in your profile, the more people can learn about what you can do. LinkedIn also offers lots of customisation for business pages. It’s a great place to post jobs, business news, and links to your products and services. Ask for recommendations A valuable way of building credibility is to ask for recommendations from past employers and customers. Find potential leads at LinkedIn Answers LinkedIn Answers is where people ask questions about all sorts of issues. If you can solve a problem, you build credibility with not only the person asking the question but also with anyone reading the questions and answers. Join Groups There are LinkedIn Groups for almost every professional skill set. Search for something in your field and join the groups that interest you. Groups are a great way of staying up-to-date with news and making connections with people in your industry. Link your Twitter feed Add valuable content to your LinkedIn profile by linking your Twitter feed. Limit your feeds to those with the hashtag #in to avoid annoying your LinkedIn connections with irrelevant conversations. Remember, your LinkedIn connections are looking for information.

Need help with social media?
Visit Visit Social Media in 7 Minutes for free access to a series of videos and an eBook.

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What you have learned so far

How to:  get onto Facebook, Twitter, Pinterest and LinkedIn  make the most of social media.

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SMALL BUSINESS RESOURCES
Setting up
Coming up with a business idea Shelcom’s 60-second Business Structure Wizard Australian Securities and Exchange Commission (ASIC) http://www.ato.gov.au/ http://www.business.gov.au/ Trademarks IP Australia’s

Getting started
Competitive edge John Jantsch Industry statistics and forecasts http://www.ibisworld.com.au/ Customer surveys http://www.forrester.com/ Choosing a domain name Smashing Magazine Domain registration http://www.godaddy.com/, http://goaustraliadomains.com/, http://www.crazydomains.com.au/ Dynamic Business http://www.dynamicbusiness.com.au/ Webhosts Bluehost, Crazy Domains Hostgator PayPal Shopify.com BigCommerce.com WordPress Magazine-style Wordpress themes WordPress guidelines squarespace.com DesignCrowd.com.au Google’s Chrome web store Wufoo.com BrandCrowd

Financing
Bootstrapping Guy Kawasaki AngelList Udemy’s Raising Money For Start-Ups The Australian Investment Network http://www.australianinvestmentnetwork.com Pozible http://www.pozible.com Australian Small Scale Offerings Board ASSOB Pollenizer

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Starting A Small Business In Australia Startup Seed Program Business Seed Program Innovation Seed Program Consulting Services Government grants Grants & Assistance Finder Grants Spectrum Australia Business Grants Australia http://australianbusinessgrants.com.au/ Choosing a bank infochoice.com.au, Roy Morgan Research Small business loans selector infochoice.com.au

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Marketing
Google’s Keyword Tool Hot Frog True Local SEO Adsurf Online Marketing Google AdWords

Social media
Create a Facebook page Bridie’s Guide to Twitter for Business Twitter sign-up http://pinterest.com/ http://www.linkedin.com/ LinkedIn Answers LinkedIn Groups Social Media in 7 Minutes

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