Going solo – A guide to being self-employed in Australia

Becoming a self-employed small business owner is a dream for many Aussies. The freedom of being your own boss, doing something you love every day, and the flexibility of hours are just some of the many reasons why. Through some simple planning, staying organised and setting goals, making that self-employment dream may be achievable.

What is self-employment?

Self-employment means you work for yourself, either as a freelance contractor or the owner of a business. When you are self-employed, you are responsible for every part of running your business. You make all the decisions and take care of day-to-day operations.

Why become a self-employed business owner?

Becoming self-employed can give you much greater freedom and flexibility. As the sole decision-maker you can:

• Set your schedule
• Choose where you will work
• Choose the clients you work with and/or the type of projects you work on
• Enjoy a potential increase in income and uncapped earning potential
• Make key business decisions (i.e., outsourcing tasks, creating work policies, setting business goals)

Because self-employed people have more control over their careers, they often report greater job satisfaction. For many, this is reason enough to take up self-employment!

Tips for self-employment success

If you’re considering self-employment, here are eight steps to help set your business up for success.

1. Explore business ideas and opportunities

All businesses start with an idea. Starting with the core focus of what your business is going to be is the first step.

Some of the aspects of your business you may want to brainstorm include:

• What product and services will you provide?
• Are their government regulations and laws you must follow? (Ex: Obtaining a professional or trades license)
• Are you financially sound to start your business?
• What logistics will be required to deliver your product and services?

2. Research the market

Having a deep understanding of your local market could help boost your business from day one. When conducting market research, you may want to focus on areas such as:

• What is the need or demand for your products and services?
• Who are your ideal or target customers? Where do they look for businesses like yours?
• Who are your competitors?
• How does your product or service differ from your competitors?
• How much are your competitors charging for their products and services?

The answers to these questions and more can help you write a business plan and make strategic decisions about your business.

3. Set your business goals

Business goals give you something to work towards. They can help you track your success and motivate you to get creative in order to reach them. To create clear and attainable goals, try the SMART method:

• Specific – Goals should be clear and well-defined.
• Measurable – You should be able to track a goal’s progress and know when it is met.
• Achievable – Make your goals attainable and realistic.
• Relevant – Goals should align with your broader business objectives and purpose.
• Time-bound – Set a clear deadline, including a start and target end date.

4. Create a business plan

A business plan is a document that acts as a roadmap for growth, guiding decisions, and securing funding (if needed). It details how your business will start, run, and succeed. Sections included in many business plans include:

• A description of your business, its mission and objectives.
• Descriptions of your products and services.
• A market analysis, including your target customers, competition, and industry trends.
• A marketing and sales strategy for how you plan to attract and retain customers.
• Financial details, such as sales projections, revenue, and cash flow.

5. Register your business and get licensed

Self-employed freelancers and business owners must take some legal steps to work in Australia. Depending on the nature of your business and other factors, you may need to:

• Obtain required professional and/or trades licenses to work in your industry or occupation
• Register for an Australian Business Number
• Apply for a Tax File Number
• Check that your business name is available and register it
• Open a separate bank account for your business
• Set up your superannuation

6. Obtain business insurance

Many self-employed business owners are sole traders. This means they are personally and financially responsible for every part of their business. Unplanned bills (such as legal fees, repair costs, and compensation payments) have the potential to devastate cash flow or, in a worst-case scenario, lead to bankruptcy.

Business insurance can help self-employed freelancers protect themselves and their businesses. Popular types of cover include:

• Professional Indemnity insurance
• Public Liability insurance
• Business Insurance Package
• Cyber Liability insurance
• Personal Accident & Illness insurance

7. Start marketing

Marketing helps self-employed businesses find new customers and retain their current ones. You may decide to engage to multiple marketing activities at once, such as:

• Developing a business website
• Creating social media accounts
• Running ads on search engines and/or social media
• Networking with potential clients
• Partnering with complementary businesses
• Asking current clients and customers for referrals

8. Launch your business

With your business registered and set up, protected with business insurance, and marketing efforts firing, it’s time to officially launch your business! Depending on the type of business you are running, you might consider formal activities, like:

• Making an official announcement on social media
• Throwing a launch party or event to showcase your product
• Offer discounts or incentives to first-time customers
• Inviting a few clients to a kick off lunch or dinner

Working for yourself can be rewarding. Launching a self-employed business in Australia may take some time and effort, but you might find that the pros far outweigh the cons.