Build an Internet Store

Posted on April 1, 2025 by Angus Jones

In 2019, online shopping represented around 10% of total sales, and this figure is continuing to explode. Watch your local suburban street and see the stream of delivery vans parading past. In this guide, we will look at your various options and what you should consider when building an internet store.

Selling and buying online is known as e-commerce, online trading or online shopping. As a small business, you could offer e-commerce on your own website, someone else’s website, or social media. The good news is that building an internet store has never been easier, with various internet providers providing templates and tools for novices to be up and running quickly.

WHY should I build an internet store?

Setting up a brick-and-mortar store in a good location to attract customers is expensive and has a lot of risks; however, selling online is the opposite. Alternatively, expanding the sales of your existing business online can bring many advantages. These include:

Allows you to sell to a much wider audience than those who could visit your place of business
Your business is always open, and information is available to hopefully help customers make a buying decision
Fewer sales staff will be needed
Helps promote your brand, your products and services
Increases customer engagement

WHAT are the online store options?

Most of us have bought or sold something personally on eBay, and that is e-commerce. As a business,s you have three potential e-commerce channels which could be used individually or together:

Online marketplace (eBay, Amazon, Gumtree)
- Easy to set up and process payments, but at the cost of paying commissions
Website (e-commerce on your website)
- Can use a template/store builder or build from scratch
- More flexibility and no commissions to 3^rd party
Social media (Facebook marketplace)
- Similar to the online marketplace, but not as advanced

Before you select an e-commerce optio,n be sure you can answer the following questions:

What products and services do you want to sell online, and is there a market?
What is your competitive advantage?
By what methods will you accept payment? (credit card, PayPal, etc)
Do you need to collect personal data? What steps will you take to protect consumers’ privacy? (see our guide on Privacy and Protecting Personal Data)
What level of customer service will you offer, and how can you be contacted?

HOW to choose the right e-commerce platform?

Your choice can make or break your business. So take the time to compare your options.

From our three e-commerce options, you need to decide if you will sell simultaneously on a website and marketplaces. If you decide to have your own website, it is far easier, faster, and cheaper to use a template/website builder than to custom-design/build. For a small business starting of,f we recommend the website builder option available from various hosting and specialist companies (Google search – online store). When comparing, consider these factors against your needs:

Cost- How much per month compared to the features you get? (Bundled with hosting, it can be less than $20 a month)
Templates/store builder options? Do the available themes and structures suit? Consider how you will integrate graphics, colour schemes, and content (words).
If a template is not suitable, can you afford a custom build? (A custom build can easily exceed $10,000)
Shipping—How does the shipping/delivery process make your life and the customers’ lives as easy as possible? Also, see our essential guide on freight solutions.
Security? It is unlikely that a hosted e-commerce store will not be properly secured by a vendor, but always keep this in mind.
Uptime and service guarantees—This refers to the provider’s unexpected downtime. Do they provide any guarantees, and what compensation, if any, will they provide if you lose a day of trading?
Marketing your store – Does your hosting vendor offer marketing tools and services to assist you?
Discounts and promotions – If you plan to offer these, how does the solution align with your plans?
Smartphone management of site – Can you administer the site if required from the football game on a Saturday?
Marketplace integration – Is there an automated selling option across online marketplaces, like eBay?
Do they offer a payment gateway? How much do they charge as a percentage to accept credit card payments?
Seamless integration – Can other software applications like CRM or your Accounting Package seamlessly connect to your e-commerce store?

Be sure to take the solution for a test drive by:

Trialing the platform—Most offer free trials and demos, which will enable you to understand what you need to do to make it happen, but, more importantly, see the experience from a customer perspective. You should upload a few products, see what themes are available, and then buy something as if you were a customer.
Consider calling the company’s sales and support desks and asking them a few questions. This will give you a good indication of the experience you will have if you proceed.
Check out any online reviews, and if possible, talk to someone already using the solution.

HINTS on running your e-commerce store

If you sell to other stores or end customers today, will the way you sell in this new e-commerce store upset your existing customers?
Ensure you manage your inventory well. You cannot sell something that is out of stock.
Offer specials on the slow-moving stock to reduce or clear inventory.
Some products may not make sense to sell online, such as heavy or very large items, as the shipping cost may be too high.
Make sure your freight partner is reliable, otherwise you wear the blame.
Existing customers are your most valuable. New customers are the hardest to get.
Carefully consider how your website looks. Is it professional? Is it easy for customers to find what they want?
Ensure your site doesn’t feature anything controversial, such as a seductive man or lady (unless you are in that business).
Set up your products or services in categories and have descriptions that are easy to read and appealing.
Ensure pages are not too cluttered and distracting.
Consider including customer reviews.
Technical
- Fast page load speed keeps customers on your site.
- Comparisons of products are useful to customers.
- The enlarged view option lets a customer see your product better.
- Responsive design enables the site to present well on a smartphone.

Your internet store is now built and published on the internet, but do not expect people to swamp it on its first day. It will take some time before search engines like Google find it, and as nobody knows your new domain name, they will not yet find it organically. In a separate guide, we will cover SEO, Search Engine Optimisation and SEM, Search Engine Marketing. Put simply these are ways to make your business found more easily on the web and tactics you can use to promote your business online.

SUMMARY – Build an internet store to grow sales

Building an internet store can put you in business faster and cheaper than a traditional brick-and-mortar store. If you are already in business, it can grow your sales, making your offering available to a much larger audience.

In conclusion, keep the customer experience at the top of mind—from the ease of use to how it looks—and set yourself up to succeed from the start.

Renting premises and negotiating the lease

Posted on October 30, 2024 by Angus Jones

You have found the perfect place to rent for your business, and it’s time to sign a commercial lease. This guide looks at what you need to know about renting premises and negotiating the lease.

A commercial lease is a legal agreement between the owner of a commercial property and someone who wants exclusive use of it for a set period. It normally applies to a retail store, office, industrial unit, warehouse or factory.
A retail lease is a commercial lease used for retail shop businesses. Unlike explicit commercial leases, retail leases attract additional protection under State-based legislation. Generally, a lease will be governed by the relevant State Act if the retail premises is in a shopping centre.

WHY should I not just sign straight away when renting premises?

Your business must abide by the terms of this lease, which could ultimately determine your success or failure. Indeed, the lease terms are just as important as finding the right property. Please read our guide on finding the right property.

WHAT questions should you ask before signing the lease?

What is the permitted use of the premises? Check if any zoning restrictions may prohibit your business activity.
What is the lease cost per month?
What additional outgoing costs may be payable? You should request a breakdown of likely outgoings in addition to rent. These might include maintenance, cleaning, and repairs on your departure.
Are there any incentives? Fit-out subsidies, rent-free or ret reduction periods.
When does the lease end, and is there an option to renew?
How much is the security bond? This is normally negotiable.
Do I have to provide a Personal Guarantee? In an extreme case, you could be asked to put your house as collateral to ensure rent is paid (you do not have to agree)
What is the lease duration, and what are the renewal options? Your business’s goodwill can easily become associated with a location, so an option to extend protects that. Conversely, if things don’t work out, you may want a short lease as a new business. So, a one-year lease with an option for a further two years might be the answer.
When are rent reviews, and how often? This is the time you get to negotiate, as it will affect your cost increases in the future.
Do you have to pay promotional or marketing funds? If you have a retail lease, be aware of your obligations to contribute to marketing funds for the shopping centre.
What are the refurbishment requirements? A shopping centre may require you to refurbish every x years.
Who will pay to create the lease?
Does the agreement allow the lease to be terminated early?
Can the premises be assigned or sub-let?
Does the landlord have a mortgage on the premises, and has the lending authority approved the lease?

HOW do I take out a commercial lease?

Negotiation is possible with a commercial lease. The ability to negotiate depends on how long the property has been vacant, how eager the landlord is to find a tenant, and how many other potential parties are trying to secure the property.

Ensure the landlord owns the property they are attempting to lease and confirm which part is being leased. This last step is important if there are multiple tenants.

Before you sign, ensure you have all the necessary information and have done all the necessary searches. As we have seen, this legal document can be complicated, and you should get good financial and legal advice.

The savings they help negotiate from incentive terms, including fit-out, rent, signage, marketing and advertising fees, and profit-sharing arrangements, might pay for experienced legal advisor fees.

The most common disputes arising from leases revolve around renewal options, mechanisms for rental price increases, repairs, maintenance, and removal at the end of a lease.

HINTS

Ensure you have a clause in the lease agreement giving you the right to quiet enjoyment of the premises during set hours (for example, what if a noisy neighbour moves in)

Have the premises independently inspected before signing a lease. You and the owner should accept a condition report, including photographs. This report is useful if a dispute arises when the lease ends about the condition of the premises or equipment and whether this has been caused by fair wear and tear.

You should seriously consider the risks associated with redevelopment and relocation. If you cannot negotiate adequate compensation, consider whether the potential risks for your business make it worth entering into the lease.

Document everything to avoid issues at the end.

Your lease likely requires you to have valid public liability and plate glass insurance, so ensure your insurance is kept up to date.

SUMMARY – negotiate the lease for renting premises

A lease’s fine print is as important as finding the right property. Get the right financial and legal advice to help you interpret and negotiate the lease. Document everything to help avoid issues when renting premises.

Small Business Loan and Equity Funding

Posted on June 28, 2023 by Angus Jones

To start a small business or expand a business to get through a rough patch, chances are you will need to get access to additional cash. The obvious choice is a small business loan, but other options may exist. Money can be sourced from debt (you must pay it back) or equity (someone takes a share in your business). This guide will examine what loans (debt) and equity funding options are available to provide additional cash or financing to start or expand your business.

Debt is when you take a loan or a mortgage with the intent of it being paid back over time. Normally some collateral is used to secure that debt, such as an asset that will be required to be sold if you default on that debt.
Equity funding is when a share of your business is essentially sold to another permanently and is not required to be repaid. Future profits or losses will be shared with any equity partners.

WHY do you need a small business loan?

You may need a loan to start or expand your business and capitalise on a growth opportunity. Although harder to get, funds may be acquired when times are tough, or you owe money.

WHAT are the available Debt options:

Self-funding: If you have personal finance,e you can put more money into the business yourself. You are entitled to get that money back without personal tax implications unless you pay yourself interest. Other forms of finance, like investors and lenders, will expect you to have some self-funding before they offer you money.

A loan: We all understand the basic principle. Normally a bank lends us some money, and in return, we pay it back in instalments plus some interest. A bank wants the confidence it will get its money back, so it will look at your business closely to understand your turnover and assets. A bank may require personal collateral, like your home, to secure the loan. Banks are, however, not the only source of lending. Family and friends are a source but tread carefully. If things go sour, you could ruin friendships and possibly others’ livelihoods. Other organisations like finance companies will also offer loans but be aware, the easier it is to get the loan, the higher the interest charges will be to compensate for the greater risk they are taking.

Line of credit: This is similar to a loan but gives you access to a predetermined amount of credit. You can draw down on that credit and pit ay back whenever you need it. You will pay interest only on the outstanding balance.

Overdraft: This line of credit attached to your bank account allows your balance to go below zero.

Invoice finance allows for a business to borrow money against the amounts due from outstanding customer invoices. The funding company will provide a percentage of the invoice value to you upfront and when the customer pays you will receive the remainder less the funding company fees.

Leasing: Instead of buying equipment you essentially rent/borrow in return for monthly payments. A lease normally has a fixed set term of 3-5 years. The financier purchases it on your behalf and you then lease it back from them for an agreed (and fixed) monthly payment. When the lease is up, you can either re-finance the residual amount and continue a new lease on that vehicle for another set period or pay a final instalment for the ‘residual value’ of the lease and take ownership of the car. You can trade it in and upgrade to a new vehicle. A lease makes it simple to upgrade equipment like a car at the end of the lease. More details can be found in our leasing guide.

Asset financing refers to the use of a company’s balance sheet assets, including short-term investments, inventory, and accounts receivable, to borrow money or get a loan. The business borrowing the funds is providing some of its assets to secure the loan. Default on the loan and your assets will be taken away.

Store Credit: Many retailers, for example, Harvey Norman, will offer their own financing package potentially with an interest-free period. Generally the interest rates are high and failure to pay on time comes with large penalties.

Trade Credit: As an example, you buy your supplies from a company and they give you a 14-day invoice due for payment in 14 days. Thus giving you 14 days to pay for what you have already received.

Factor Companies: A factoring company will buy your outstanding invoices from you for a reduced cost and then chase up the debt themselves. It is a fast way to get cash but at a high cost compared to other methods.

HOW do I get a small business loan?

How do I get a small business loan?

Sources of debt will include banks, building societies, and credit unions.

Finance companies also provide debt but must be registered, check the Australian Securities & Investments Commission (ASIC) register https://connectonline.asic.gov.au/RegistrySearch/faces/landing/ProfessionalRegisters.jspx?_adf.ctrl-state=1cuetuxolm_4

As part of the process of getting a loan your credit history, assets and income will be reviewed.

To understand and compare loan costs and options from different institutions visit https://www.finder.com.au/business-loans

WHY do I need equity?

Equity is a great source of cash if you cannot either get a loan or a large enough loan. It is also a method of spreading risk but assumes the equity provider believes they will get their money back plus some.

WHAT are the sources of Equity funding?

As a source of additional cash in return for a slice of the business, equity funding can be done in the following ways:

Self Funding: as before, you inject additional personal money taking a larger share (assumes you are not a sole trader)

Family or friends will take a share or partnership in your business in return for their money. Remember to consider the implications.

Private investors: Same as above but not a family or friend. A new partner can often bring new valuable skills into a business.

Private equity/Venture capitalists: These are firms who search for high-growth potential businesses to invest in. They usually come with loads of experience and inject their management into the business. They often insist on a controlling percentage of the business.

Stockmarket: A small business is unlikely to list on the stock exchange, but this complex procedure allows individuals to publicly buy and sell shares in the business. Shares are issued in return for a one-time-only cash payment.

Crowdfunding: This is a very modern way of raising money for a business. Essentially you ask many people to either invest or donate monetoin your business idea via the Internet. In return you give nothing if they donated, or if they invested, a product or a cheaper product when you are up and running, equity or money back with interest. See ASIC for more details https://asic.gov.au/regulatory-resources/financial-services/crowd-sourced-funding/

Government: The government does not provide finance and is not likely to buy equity in your business however they do provide grants which may assist you greatly. The types of grants and assistance normally come in the following areas innovation, research & development, exporting, and business expansion. Some information on grants can be found at https://www.business.gov.au/Grants-and-Programs

HINT

More information on funding options can be found at the Australian Small Business and Family Enterprise Ombudsman https://www.asbfeo.gov.au/resources/business-funding-guide

SUMMARY – Get small business loan or equity advice

We strongly recommend that you speak with your accountant or business advisor before committing to loans and equity funding options. Always shop around for the best deal and always think carefully before doing business with family or friends.

SEO and SEM – Promoting your website

Posted on April 6, 2023 by Angus Jones

Establishing a website or e-commerce store is just like establishing a physical business; no one knows you exist, to begin with. Just as you would want to drive people to visit a brick-and-mortar store, you need to drive people to visit your virtual store. Similarly, if you’re going to find a website, you use a search engine. But how do you compete with everyone else to get your site near the top of the list? In this guide, we will discuss what SEO and SEM are and how they can help your website become popular.

A search engine is a program that uses a keyword to identify websites on the internet, and Google is a search engine.
Search Engine Marketing (SEM) is internet marketing that increases a site’s visibility through organic (unpaid search) search engine results and advertising. Search Engine Optimisation (SEO) is increasing the number of website visitors by making the site appear high on results returned by a search engine. SEM includes SEO as well as other search marketing tactics.

WHY use SEO and SEM?

Imagine we have moved into a retail store on a busy street. We make everything amazing inside the store but leave the outside with blacked-out windows and no signage. Will customers walk by coming in? No!

So you have a new or existing website, now is the time to get more visitors and ensure that it is optimised to give you an advantage over your competition. Put more, and help your small business drive more sales.

The best way to do this is to ensure you appear on a search engine when people are looking for your goods or services. Have you ever noticed how many results come up when you search, thousands if not millions? Your goal is to be on the first page as high up as possible.

WHAT do you need to understand about an internet search?

Search engines like Google make their money from advertising. You will find that the top searches are advertisements a business has paid for. The good news is that search engines also want to be helpful, so they understand that if all they published were advertising, people would not use them. Thus, you will find an organic or unpaid search on this page to ensure they provide the searcher with the best results. Getting your business in this organic search is key, but how the magic formula works at Google is a secret. It is a secret to stop people from manipulating the system and always being on the top of the list.

Google’s formula is considered to consider over 200 ranking criteria that are believed to be segmented into three categories: Technology, Copywriting, and Backlinks.

Technology – refers to how well a website works and includes things like the ability to represent itself just as well on a smartphone as a desktop PC, the speed a page loads, if all the links work, etc.

Copywriting – refers to the words used on the website to describe your business and offerings. Those keywords relating to a topic, the length of information, the context of your content, and even page titles and pictures will make a difference.

Backlinks – this is an incoming link from another site. If you are receiving links from other websites, then others consider your website important; thus, Google makes the same assumption.

HOW do I do SEO and SEM?

You have to decide how much money, if any, you will invest in SEM and how SEM will be integrated into other activities. For example, if you run a newspaper advertisement and the call to action is to visit your website, this is an example of SEM. Investing money can be in advertising or using the expertise of others to improve your website.

The most common form of SEM is to pay to have your site appear higher in a Google search result. The process is as follows:

You select a keyword/s to associate with your business. Think about what someone would type to search for your business.
Decide where you want your ads to appear. Just your town or the whole state or country.
Create a message around your benefit to the customer
Decide a budget
Decide when and what times of the day you want to be live

The cost of doing this depends on how many other people want to do it simultaneously and how much they are prepared to pay for that keyword. Thus a bidding process determines the cost. You can also pay based on reaching many people or for results. When someone clicks on your site, the latter is more expensive. Google has many tools to help you spend your money and help drive the best results. The key for you is to review what you paid and measure if you saw a corresponding increase in sales (Return on Investment – ROI). If you did, it worked. If you did not, try something else.

For both SEM and SEO, there are three ways to get it done:

Do it yourself – further research and tools provided by Google and others
Domain Hoster – the firm you have used to host your site that potentially helped you build it via a template or website builder will have additional packages around advertising to help you
Hire an expert – This specialist will know all the tricks and, for a fee, will advise you on your best options.

If we now look at how to get the best out of your website by using SEO, there are several steps you should follow:

Begin with research – Ensure you are optimising for the search terms to attract the best traffic to your website. It would be best if you researched keywords and competitors. A handy tool to use is Google’s Keyword Planner https://ads.google.com/intl/en_au/getstarted/. A free tool that gives you keyword ideas along with information on search volume. Just type in keywords that are relevant to your small business. Keyword Planner will generate a list of keyword ideas, along with information on search volume and competition for each keyword. You want keywords with a high search volume but low competition. The other part of SEO research is looking up your competitor’s SEO activity. You will want to understand the keywords that they are using as well as the websites that are linking to their site. This competitive information will allow you to refine your approach to SEO. Use a tool such as MOZ or SEMRush to find your competitors’ keywords.

Optimise your website– Take your list of keywords and include them in your page titles and descriptions, headers, web copy, and URLs.

Optimising your site for search is not just about keywords. Characteristics like site speed, usability, and mobile friendliness will affect your ranking. Test your site on your mobile. Get your friends to visit your site and see how fast it loads and give comments on its appeal and usability.

Content marketing – Creating relevant and educational content allows you to engage your customers and also positions you as a trustworthy expert in your space. This content relating to your keywords will boost SEO rankings and encourage others to link to your site. Consider what people want to know, including their questions and concerns. Ask yourself, is this engaging to the customer? (remember you will be biased)

HINTS

If a competitor’s website is appearing higher in the search results than yours, you might find it difficult to rank with the same keywords. In this case, look for other keywords.

When creating content for your site, avoid just using what your supplier/manufacturer has sent you. Instead, come up with engaging copy that will resonate with your audience.

SUMMARY – SEO and SEM to drive sales

For your website to be found, you will need to promote it. This can be done at a cost or organically.

You can start simply and then build on your SEM and SEO activities but ensure you plan from the beginning and use the information contained in this guide to maximise the effectiveness of the design of your new or improved website. Which in turn will help promote your small business and drive sales!

Buying a business

Posted on March 8, 2023 by Angus Jones

Starting a business from scratch means having no customers,no processes, no assets etc, however on the other hand buying an existing business could mean the hard work has already been done. Alternatively, buying an existing business can also be a way of expanding a business you already own. In this guide we will look at what you must consider.

WHY should you consider buying a business?

There are many advantages of buying a business, which for some might be buying themselves a job. For example, if you bought a lawn mowing business with all the equipment you immediately start to earn income with existing clients. Your chances for success are greater as the business already has runs on the board. Even the process of asking for a loan will be easier as there is a known risk. Ideally, you will buy a business that is undervalued or has the potential to grow through your hard efforts.
There are also disadvantages, like the business was misrepresented by the previous owner, that could be turnover, reputations, debts, etc.

WHAT do you need to consider when buying a business?

It is critical that before buying a business you do your research carefully. The more information you have the better the decision. Unless you have the skills we strongly suggest you retain the services of at least a business advisor, accountant, or lawyer. The following steps may be helpful

Where the business is conducted through a company

Do a company search to verify the vendor
ASIC Search
Are all ASIC compliance requirements up-to-date?
Does the company have any overseas operations?

Financial position

Review the last four years’ financial statements for the business. Analyse liabilities, inventory, and accounts receivable and payable.
Understand who currently owns the business such as shares, options, warrants as well as outstanding debt instruments.
Review an up-to-date copy of the business’ credit report.
Does the business have a loyal customer base? For example, subscriptions, loyalty programs, etc.
Have you considered the financial projections and major growth drivers of the business in the next four years?

Tax considerations

What are the tax obligations of the business to be purchased?
Have you obtained confirmation that all tax obligations – for example, income tax, GST, PAYG withholding, stamp duty, and payroll tax are up-to-date and paid?
Obtain the last four years’ tax returns, including supporting schedules and work papers of the business, such as capital allowance schedules, business activity statements, fringe benefits tax returns, etc.
Check if the business is currently being audited by the ATO or has been audited in the last four years and, if so, what the outcome was.
Have you considered the stamp duty implications of the purchase of the business? (fees payable to the government associated with the purchase)

Assets that you are buying that the business currently owns

Has a fixed asset register been obtained detailing all the assets being sold?
Have you sighted the assets and condition of the assets being sold?
Where assets are leased by the business, have you obtained copies of the leases?
Are the assets adequately insured until the settlement of the purchase?

Employee obligations

Have you obtained a list of the employees, including their salaries and other entitlements?
Do any employees have close contacts with customers that, if they were to leave, the business would be at risk of losing customers?
Are there any key staff who would be imperative to the smooth continued running of the business? Considerations should include special skill sets or knowledge.
Are you aware of all employment conditions, including key workplace agreements, incentive bonus plans, staff rotation policies, disciplinary procedures, etc.?
Have all outstanding employee entitlements, such as superannuation guarantee and annual leave, been accounted for?
Are the WorkCover premiums up-to-date?

Inventory

Does the current inventory include any obsolete stock?
Has the inventory been valued at market value?

Business premises

Do you have copies of all real estate lease agreements, deeds, mortgages, and any documents relevant to the premises?
If the same business premises are to continue, has the vendor facilitated a lease transfer to you?

Miscellaneous

Do you know why the vendor is selling?
Has the vendor attempted to sell the business before?
Is there a documented business plan?
How complex is the business? Do you have the skills required to continue?
Are the business operations subject to any government regulations? If so, are all relevant government licenses, permits or consents up-to-date?
Have you done a competitive analysis? Do you need a non-compete clause to stop the vendors from setting up in competition?
Does the business have any pending or ongoing lawsuits or any recently finalised litigation cases?
Have you searched the local council and other government agency records to ensure there are no plans or council orders that could disrupt the business or lead to a potential drop in sales?
Have you identified the key customer and supplier contracts, and the likely impact a change of ownership might have on these agreements?
Review the business’s current production, distribution, sales, and marketing strategies (including websites and social media) and the likely impact of a change of ownership.
Have you considered potential issues that could negatively impact the viability of the business (e.g. changing technology, trends, etc.)?
Are there any intellectual property matters to consider? For example, trademarks, licenses, patents, etc.
Seek advise on other questions you should answer

HOW do I buy a business?

Once you have completed all your due diligence and you want to move ahead its time to make an offer. Be prepared to negotiate. Once you agree you will need a contract. We strongly suggest you retain a lawyer in this process. The written contract ensures that both you and the seller clearly understand what each agrees to, for what cost, and what method of payment.

You should also understand what training will be needed and, if the original owner continues to work in the business, a specified period to do a handover.

HINTS

As the last thought we suggest you:

Make sure this is a business you want to buy
Don’t assume you will not have to work hard yourself and you are buying a money train
Have a clear vision and plan for the future
Keep records of all conversations and all documents
Do your homework

SUMMARY – Get help from a business consultant

Buying a business can help you grow quickly but be sure to follow some strict due diligence to minimise any nasty surprises. Your accountant or business advisor would be a good independent advisor for the purchase.

Buying a Franchise guide

Posted on October 11, 2022 by Angus Jones

Have you always wanted to start your own business but never had the confidence or the knowledge to do so? Is this a career change, and is it right for you? Buying a franchise may give you confidence and support in selling a proven offering. This guide will examine the pros and cons of buying a franchise and help you identify the right franchise opportunity.

A franchise is a business opportunity that allows the franchisee (possibly you) to start a business by legally using someone else’s (the Franchisor’s) brand, expertise, ideas, and processes.
Australia has three times as many franchised outlets per capita as the USA. Well-known franchises include McDonald’s, Subway and Jim’s Mowing.

Also, see our essential guides on starting and buying a business.

WHY consider buying a Franchise?

Franchises are offered in almost every industry in Australia. As an investor, you buy into an existing brand which, if you tried to set yourself up, could take years to get into the same position.

Depending on which franchise you are interested in joining, there is no guarantee that you will be accepted as a franchisee. It can be quite competitive, especially when it comes to location and also due to franchisors selecting the franchisee they believe will make the business a success.

It would help if you considered the following:

Advantages

Association with an established brand, reputation, product or service
Assistance with lease negotiations, site development, and shop fit-out
Assistance with buying equipment
Initial management training and ongoing support
Advertising and marketing support
Access to established standard procedures, operating manuals and stock control systems
Access to financial systems

Disadvantages

Less autonomy when making business decisions (franchisees generally must operate according to a standard operating manual)
You can only operate in a restricted territory
Paying ongoing fees to the Franchisor
Having to use specified suppliers
Less control if you sell your franchise; you will be required to follow certain procedures, including having your buyer approved by the Franchisor
Restraint of trade provisions (limiting the actions you can take) when the franchise ends
At the end of the agreed period, the Franchisor is not required to renew the franchise, in which case the business and its goodwill go back to the Franchisor

WHAT do I need to know about franchising?

There are three types of franchises:

Business – You have the right to use the Franchisor’s intellectual property in your industry. An example is Boost Juice.
Product – You sell the Franchisor’s product or service from a wholesale or retail outlet with exclusive rights within a specific area, for example, Jim’s Mowing or a Mazda dealership.
Processing or manufacturing – You manufacture the product, and the Franchisor provides an essential ingredient or know-how, such as Coca-Cola.

The Franchising Code of Conduct regulates franchising in Australia. The Code is mandatory and governs the conduct of franchising participants towards one another. It covers:

Disclosure requirements – the Franchisor must be provided
- When interested in acquiring a franchise
  - Information statement – 2-page document covering risks and rewards.
- If you decide to proceed
  - Disclosure document – costs, supply restrictions, and contract details of existing and former franchisees.
  - Franchise agreement – legally binding document between you and Franchisor.
Good faith obligations – how you act to one another
Dispute resolution mechanism – if a dispute remains after three weeks, either party can refer the matter to mediation
Cooling-off period for potential franchisees – you cannot sign for 14 days after receiving documents, and you can terminate the agreement up to 7 days after signing
Procedures for ending a franchise agreement – set out the terms for termination, renewal, end of term and transfer of the franchise

Some franchise systems require their franchisees to buy certain products from them or their specified supplier, known as supply restrictions. You might have no choice about where to buy some products.

The entry price of a franchise may seem like a good deal, but there may be further costs that you have to pay to establish and run your franchise. It’s important to understand the total costs you might have to pay.

HOW do I evaluate before buying a franchise?

If you buy into a franchise, investing in advice from a lawyer, accountant, or business advisor with franchise experience will help you make a better decision. You should, however, consider the following when evaluating a franchise:

Consider the effect on your family and lifestyle
Question if the business interests you and if you are comfortable with investing
Research the business. This may include getting expert advice.
Age, size, uniqueness and reputation (including management team) of the franchise
Understand all costs and fees beyond the initial outlay
Understand franchisor directives around logos, uniforms, and future capital investments like a compulsory store refresh
Be aware of what marketing support is provided and what your contribution will be towards that
Ask to see demonstrations of processes or technology
Understand how area territories work and if they are exclusive; thus, you will understand the competition from your franchise. Location is important.
Understand what training is available
Is the Franchisor a member of the Franchise Council of Australia, as this imposes certain ethical standards
Ensure what you receive in writing matches what you have been told verbally
Speak with existing and past franchisees to see if the opportunity has lived up to expectations
- What’s the work like?
- Any unexpected costs?
- How is the supply of products or services?
- What problems have you encountered?
- How supportive is the Franchisor?
- How was the training?
- Was it a good investment?
Ask about compliance checks performed by a franchisor
Consider what your exit strategy looks like

HINTS

Don’t assume the franchises will be a success.

Don’t assume you will not have to work hard in the business.

Understand your reputation is affected by the Franchisor, for example, 7Eleven underpaying employees.

Guides from the ACCC to help franchisees and prospective franchisees understand some of their rights and responsibilities under the Franchising Code of Conduct. https://www.accc.gov.au/publications/franchising-what-you-need-to-know

Franchise start-up checklist https://www.accc.gov.au/system/files/The%20franchisee%20manual__Mar%202019.pdf

Free pre-entry franchise education program https://www.franchise-ed.org.au/online-courses/pre-entry-franchise-education/

The Franchise Council of Australia has some further resources on this subject. https://www.franchise.org.au/

The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) can assist in resolving franchising disputes. https://www.asbfeo.gov.au/franchising-disputes

SUMMARY – buying a brand, expertise, and processes

Buying a franchise can be a great way of starting your own small business. It comes with the security of an established brand, expertise, ideas, and processes. However, you will have less autonomy. The mandatory industry franchise code of conduct helps to protect all parties and provides a mechanism to resolve disputes. Before buying a franchise, do your homework carefully and consider using the services of an expert in franchising.

Build a website to boost your brand

Posted on August 26, 2022 by Angus Jones

There are certainly some impressive websites out there, and they look like they have been made by a multinational corporation, though chances are a small business is running them just like you. This guide will look at what is required to build your website.

A website is a collection of publicly accessible, interlinked Web pages that share a single domain name. Websites can be created and maintained by an individual, group, business or organisation to serve various purposes. Together, all publicly accessible websites constitute the World Wide Web.

WHY should I have a website?

Do I need a Website?

A website will give you a place to explain your brand and offer your products and services to customers. It may be just an information site or may provide a digital storefront for goods 24 hours a day to a global audience.

This is a place you can promote your business and engage with customers more efficiently.

WHAT do you need to do before you build a website?

Read our essential guide on web domain and email. This will show you how to register a domain name which is your website name. for example, SBanswers.com is this site’s domain name. Once you have secured a name, you can decide what to do with it.

Your next step is to come up with a digital strategy. This strategy will include what technologies you want to use, like a website, social media, e-commerce, video, or email, and what outcome you hope to get. A good idea is to have some sort of roadmap (plan) and who is responsible for the outcomes.

Website type is your next decision:

Corporate – Don’t be confused by the name. This site for your small business provides information about your business and lets potential clients or customers know how they can get in touch with you.
Blog – This is an online journal or informational pages that is regularly updated. Gadgetguy.com.au, our sister site, is an example of this, with technology news and reviews updated most days.
E-commerce – An online store to transact a sale, including accepting money and shipping goods. Our essential guide on e-commerce covers this in detail.

HOW do I build a website?

You can build one from the ground up, which is expensive or as a small business. We expect you will use a readymade template. The site will need to be hosted, and although you could do it yourself, we do not recommend it. Instead, it would help if you looked to the domain/hosting companies that not only host your site but also will provide you templates and web builders that do not require any special expertise to pull together a professional-looking site. E.g. Crazy domains or Go Daddy.

Site content

The next step is creating the site’s content and look and feel. Remember, the site will be available 24 hours a day to anyone worldwide and, for many, will be the first impression a customer will have of your business. So choose designs and fonts that represent you, maybe you are creative, or perhaps you are very serious. They say pictures tell a thousand words, and again this is critical. Pick images that relate to what you do and the messages you want to get across. The most important part of your site is ultimately the words and how you describe your business, products, and services. Including keywords related to your offer will increase your chances of being found on the internet (SEO).

Your website is now built and published on the internet but do not expect people will swamp it on its first day. It will take some time before search engines like Google find it, and it won’t be found organically (without help) as nobody knows your new domain name yet. We cover SEO Search Engine Optimisation and SEM Search Engine Marketing in a separate guide. Put simply. These are ways to make your business found more easily on the web and tactics you can use to promote your business online.

In evaluating the different hosting providers look for the following things:

Cost – How much per month
Webspace or storage – The size of the website they will host for that plan.
Bandwidth – If there is any limit on the amount of traffic the site hosts.
Websites – Some plans allow you to have several sites in the same plan.
Email – The number of included mailboxes.
Templates & Tools – to help you build and maintain your website.
Stock images – x number of stock images will be included in your subscription.
Speed – some plans offer faster loading speeds. Customers are more likely to stay on your site if pages load fast.
Backup – whether a backup is kept of your site in case of failure.
DDoS protection – protects against Distributed Denial of Service attacks which can cause outages.
SSL certificate – This encryption is needed to keep online sales secure.
Uptime Guarantees – represented as a percentage of time they guarantee your website will be available to be viewed.
Monitoring – allows you to see statistics on your site and view any issues that arise.
Tech support – Hours of service they are there to help resolve issues.
UI – the simplicity of the interface to administer your website.

HINTS

When sourcing photos for your site, use your own or those of others but ensure you have permission if you use someone else’s. You may be provided with some “stock” photos free to use, but other photos can be utilised for a small license fee. If you use someone’s photo without permission, they may come looking for payment in the form of a letter from a lawyer.

Remember, when writing content (text), be aware of how you see your business and how a customer may see it differently. For example, your widget with doubled mirrored redundancy might mean something to you, but to the customer, they may not know what you are talking about. Always think about what the benefit to the customer is and explain it to them in their language.

It’s important to test your website before you go live, and this ensures your customers can easily navigate around it and, if you have an e-commerce store, successfully buy your products or services.

A website is not something that should be built and then forgotten. Always look to update and improve it to remain relevant and attract customers.

SUMMARY– Quality website experience

A website will boost your brand and help you sell. Setting up a site with a template is relatively simple and inexpensive. If you are not confident in building your website, many companies can assist you in producing one. Always test your website and always keep it up to date to ensure the best customer experience.

Office Productivity Software

Posted on August 11, 2022 by Angus Jones

Your new PC has arrived, and this will be your tool to run your business. It powers up, you find a browser and then look for an email and spreadsheet app. Disappointingly, you cannot find any obvious software solutions preloaded. That’s because they don’t come included, and if they are, they are probably not very good, or you have paid extra to have something added! This guide will discuss your options for adding office productivity software to your computer.

If we cut to the chase, you will most likely consider products from Microsoft or Google.

Office productivity software is application software used for producing information such as documents, presentations, spreadsheets, databases, charts, graphs, etc.

WHY do I need Microsoft Office or Google G Suite?

Suppose you want to create these documents. You have to have some sort of office productivity solution. Whether you will pay to be able to use the software will depend on how you use it.

Your choices are:

Free: Both Microsoft and Google allow you free access to some of their applications from a browser connected to the internet. These will enable you to read, edit or produce files via a cloud solution.
Buy: You can buy Microsoft Office as a once-off price for installing onto your PC (1 device only). The cost will depend on which of their applications you want to use and how many copies.
Subscribe: You can subscribe to Google G Suite or Microsoft Office in different variants and costs. The subscription version of Microsoft Office is called Microsoft 365, and it can be used across multiple devices.
1. Microsoft is PC installed software with web app also available
2. Google is a web-based app but can also work offline
3. Both offer cloud storage and collaboration (you can share files between workers)
4. Both always have access to the latest features and productivity enhancements.

If you can get a free version, why pay? Because the paid version will offer improved security and management, collaboration, and flexibility for your business. A simple example is being able to use your email domain correctly, i.e. Fred@gmail.com vs fred@yourbusiness.com

WHAT type of applications do office productivity software provide (in some combination):

Word processing – create documents such as a letter
Spreadsheet – numbers can be arranged in grid patterns to manage calculations
Presentation – used to create a pleasing document to back up a speech or sales pitch
Email – read and compose emails
Calendar – control your weekly schedule with possible sharing with office colleagues
Contacts – database of your contacts
Video conferencing- allows video calls with others
Messaging – instant text-based messaging between workers from their PC
Note-taking – ability to produce to-do lists and capture content for later reference

	Microsoft Office/365	Google G suite
Word Processing	Word	Docs
Spreadsheet	Excel	Sheets
Presentation	PowerPoint	Slides
Email	Outlook	Gmail
Calendar	Outlook	Calendar
Contacts	Outlook	Contacts
Note Taking	OneNote	Keep
Video conferencing	Skype	Meet
Cloud Storage	OneDrive	Drive

HOW to decide between Google and Microsoft?

Both companies’ solutions are great, but both have differences. When comparing, consider the following questions to help you choose between the two:

If you will use file collaboration, do you need it in real-time? (Google better)
How does security compare? (Microsoft better)
How do the costs compare to what you need? (See links below)
Is there good integration between email, contacts, and your calendar? (Microsoft better)
How much cloud storage is included? (Depends on edition)
Do the features of each application support your working needs?
What extra apps are included, like to-do lists? (Google offers additional)
What support is available?

Microsoft pricing link here.

Google pricing link here.

SUMMARY – research which office productivity software

One thing is for sure, with this software, you will never use all the features they offer, but with continual updates and fierce competition, your life will continue to get easier. You can find a feature-by-feature comparison here.

How to start a small business?

Posted on August 9, 2022 by Angus Jones

To start a small business is most likely a labour of love. Sometimes it is turning a hobby or passion into a business. Unfortunately, in some cases, some decisions are made with the heart rather than the head. Poor planning or operational choices made for the wrong reasons can easily see a business end all too quickly.

We certainly do not want to talk you out of this amazing journey, as many successful millionaires grew from a small business. The most important thing you can do here is plan well, understand the effect it will have on you and your family, and understand the implications if it does not work. This guide will give you a process to work through to maximise your chance of success.

There are more than two million small businesses in Australia, most with a turnover of less than $10 million per year and less than 20 staff. The average small business has three staff or fewer.

WHAT is important to consider before you start a small business?

Here at Small Business answers, we want to bring you the best-unbiased advice. To save you visiting many different websites, we have assembled easy-to-read guides on the most common questions and processes you must follow to start a small business. This information is broken down into easy categories, as seen at the top of this page. You can quickly find information on the subject you are looking for by using the quick search box to the right.

The basic steps to start a small business:

Consider if you are really ready
2. Evaluate your business idea
3. Build a business plan
4. Choose how you want your business structured
5. Check your government/legal obligations
6. Consider what support you will need from others
7. Figure out your finances
8. Promote your business

As part of your research you should visit a handy guide produced by the Australian government. Here you will find information to help you work through the steps such as being ready, making decisions, planning, etc. You can even find information on government grants, events, and training that may help you get started.

A checklist is also available that will guide you through the most important factors you need to consider. This includes checking your rationale for starting the business, determining the right business structure, tax implications, and insurance. There are tick boxes for you to check off, which will put you in a much better and safer position in the long run.
Read our essential guides on business structure, tax, GST, record keeping, marketing, building a website, and insurance, or just explore our many guides designed to make your decision-making easier.

HOW do you write a business plan to help start a business:

What is a business plan?

Starting a business is so much more than a good idea and a business plan is a document that makes you go through the entire process including financials. In many cases, a bank, investor, or maybe your partner will require a business plan to justify supporting you in this new endeavour.

A business plan will normally include the following:

A summary of what your business will do
Where will it be located
If it will employ staff, what will that structure look like?
What products and services will you offer, where and for how much?
How will you manage risk including insurances?
Are there legal considerations?
What do you need to buy in the way of fixed equipment like a computer or inventory to sell or make something?
What hours will you be open and how will you collect payment?
How big is the market potential and do you have competitors?
Who is your customer and where are they?
A list of Strengths, Weaknesses, Opportunities, and Threats of your business (SWOT).
What is your Sales and Marketing Strategy?
What is your vision and what objectives need to be met to get there?
How much money do you need to start your business?
How much revenue do you believe you can make?
Will you make a profit or a loss?
At what point will you actually pay yourself
When do you plan to break even?
What information have you used to back up these other questions?

It all sounds a bit daunting! But if you work through these points, you will have a much clearer picture rather than starting a business on a gut reaction. Downloading this government business plan how to guide will really make the whole process that much easier.

HINT

Another great place to consider learning more is via a TAFE course, where you will benefit from a face-to-face discussion on the subject.

The great feature of the Small Business Answers website is we are pulling together the most frequently asked questions in starting or running a small business. Please continue to visit this site as we continually update with new information to help you succeed.

SUMMARY – Gather templates and checklists

Make sure you a ready to start a small business and have done your homework on the opportunity. Use some of the fantastic templates and checklists available to help you build out a business plan.

Starting a business is just the beginning of your journey, and you should be prepared to work hard and deal with the unexpected. There is lots to learn and a high level of responsibility, especially if you hire staff. Owning your own business is not easy, but being your own boss will also bring many rewards and flexibility.

EFTPOS accepting credit cards

Posted on May 11, 2022 by Angus Jones

Depending on the type of business you are running or planning to start, it is important to make it as easy as possible to receive payment in a face to face scenario. You have two main options today, which are cash or credit card. In the future, we will see other money transfer options driven by smartphones, but today we will focus on credit cards. You will need an EFTPOS solution (Electronic Funds Transfer at Point Of Sale) to facilitate this. This guide looks at what is involved in offering EFTPOS in your business.

An EFTPOS terminal or machine is an electronic device that assists in transferring funds from a customer’s bank account to your business bank account. To pay at an EFTPOS terminal, your customers must have an EFTPOS card, Debit Card, or Credit Card. You can also load the identity of your credit card onto your mobile phone and use that as a tap solution with an EFTPOS terminal. The EFTPOS solution does need the internet to function. The transaction settlement into your account normally occurs the same day or overnight.

WHY is EFTPOS easier?

EFTPOS is a convenient form of paying for the consumer as they do not need to carry cash. Indeed modern solutions don’t even need a card to be carried with payment able to be done from a watch, phone, or even a ring.

The merchant (you) reduces your need to have cash, less change, fewer security concerns, fewer visits to the bank, less counting, etc. Instead, money is quickly transferred, and the time taken to tap & go a card is significantly quicker than other methods allowing you to move on to your next customer faster.

One might also argue that using EFTPOS makes a customer less concerned about cost as a tap is more vanilla than counting out notes.

WHAT EFTPOS fees are there?

EFTPOS Solutions are available from different providers, including banks and independent software developers. Some providers offer a flat fee, with other fees applied to each payment option, so it is worth shopping around. Any of the following fees may apply:

Price per month. A set fee that will be charged per month up to a certain dollar value of card transactions, after which you will be charged a fee as a percentage of every purchase over that dollar value.
Credit card authorisation fees. These are fees charged when an inquiry is made to ensure funds are available on a card before a transaction is processed.
Credit card service merchant fee. This fee may be charged by the bank when you process a credit card and is generally expressed as a percentage. Some cards have higher fees than others, like American Express. It is your decision about which cards you will accept. Some retailers choose to pass this fee onto their customers, but there is government restriction as to how much you can pass on. https://www.accc.gov.au/consumers/prices-surcharges-receipts/credit-debit-prepaid-card-surcharges.
Payment terminal and account fees. You may be charged fees for administering your account, installing your payment terminal, or establishing your account. Establishment fees, cancellation fees, and equipment fees may also apply.
Chargeback fees. If the cardholder disputes a credit card transaction, you will be charged a fee.
Terminal access fee. This is a rental fee for providing and maintaining your EFTPOS terminal.
Debit card fees. You may be charged fees for processing debit purchase transactions or for a customer getting cash out at an EFTPOS terminal.
Sign up offers. Rental fees or others may be waived for the first x months of operation.

HOW do I pick which EFTPOS terminal is right for me?

EFTPOS terminals can come with several different features to consider when deciding which provider to choose:

Portable payment terminals. Not all terminals need to be plugged into a power point, and a portable unit has a battery and uses the mobile phone data network to transact.
Connect to a smartphone. This is a device that will connect to your smartphone physically or wirelessly. It allows the credit card to be tapped or inserted to complete the transaction via an app on your smartphone.
Payment options. Refers to what payment methods can/will accept Visa, MasterCard, American Express, Union Pay, Diners Club, Apple pay, Google pay, JCB, or Alipay.
Insights and analysis. Results and analysis of sales can be done via the terminal.
Settlement time. This is how quickly you will see the money in your bank account.
Email receipts. The option to email customer receipts rather than giving printed receipts to customers.
Receipt printer. The option to physically print a receipt. It is normally done on heat-sensitive receipt rolls.
Terminal location. The ability to store the GPS location (address) of where the transaction took place.
Accounting package. The ability of the EFTPOS solution to be integrated into your accounting package. This simplifies backend accounting procedures.
Customer Service. This can be telephone support through to a replacement of a terminal. Make sure you also check the operating hours.

HINT

Beyond the major banks, we also recommend you compare a company called Square which sells a solution you can pick up at Officeworks and have running in minutes via your mobile.

It is also possible to make EFTPOS payments via most accounting packages without needing additional hardware. Note this will require all card details to be entered manually.

SUMMARY – Show me the money!

EFTPOS does not require you to go to the bank or keep cash secure, and the money will be available the next day. Tap and Go facilities and mobile solutions mean you can collect payment quickly anywhere you can get mobile or internet coverage.