How to start a micro business
Over the years I have written several blogs about Micro Business in Australia. All of these blogs have been very popular as more and more people choose to become small business owners. You can use the search bar at the top of my website to find more.
The NSW Government defines a Micro Business as one run by an individual and it has up to 4 employees. With 5 to 19 employees you sit under the Small Business definition.
Are you a Micro Business Owner or a Small Business Owner?
According to the Australian Bureau of Statistics
- In 2017-18, non-employing businesses had both the highest entry (19.0%) and exit (15.2%) rates. 1,435,547 businesses.
- The most common employing businesses had between 1 and 4 employees (71.5%; or 627,932 businesses).
- In 2017-18, almost two-thirds of businesses in Australia (62.1%; or 1,435,547 businesses) were non-employing. Non-employing businesses also had the largest increase (up 4.8%; or 65,496 businesses) in 2017-18.
- At the end of 2017-18, there were 2,313,291 actively trading businesses in Australia, an increase of 3.4% (74,992 businesses) from the end of 2016-17.
- During this period, the rates of businesses entering the market sector in Australia (15.8%), and those exiting (12.5%), were higher than in the previous year (15.1% and 12.0%, respectively).
- In 2017-18, almost two-thirds (60.6%) of all businesses in Australia were in New South Wales (NSW, 783,050 businesses) and Victoria (618,189 businesses).
- Over this period, the number of businesses increased in all States and Territories (Main State); businesses in NSW (up 29,268 businesses) and Victoria (up 27,353 businesses) accounted for 75.5% of annual growth.
- In 2017-18, the largest annual percentage increase was in Victoria (up 4.6%; or 27,353 businesses), followed by the Australian Capital Territory (ACT, up 4.3%; or 1,190 businesses) and NSW (up 3.9%; or 29,268 businesses).
- Businesses in the ACT had both the highest entry (18.0%)and exit rates (13.4%) in 2017-18.
- Businesses in Tasmania had both the lowest entry (11.8%) and exit (10.2%) rates in 2017-18.
What does all this mean
These statistics are covering all business types in Australia. The most important numbers are the entry and exit numbers as these show that while overall numbers are increasing so too are exit rates.
While being self-employed can ultimately provide you with a work-life balance when you are successful. Success takes time and money. Not everyone has planned for the time or cost it can take to get there.
How to start a Micro Business
Regardless of your age or knowledge, anyone can enter the work of being self-employed. Perhaps you want to start a lawn mowing business or cleaning business. Maybe you are an artist, photographer or designer. You may be a tradie or you may be a trainer. Almost anyone can choose to be a Micro Business in Australia.
- Do your research – Who else offers what you want to offer? How can you do it uniquely?
- Get your finances in place – How long can you afford to earn nothing? What will it cost you to get set up? Remember it can take years to earn a consistent income from your business.
- Who will want what you can offer – What does your ideal client look like? Don’t say it is everyone as it is not possible to market to everyone.
- How will you spread the word – How will you get in front of your ideal clients?
- Define what success will mean to you – This is different for everyone and success is not just financial.
Why should you start a Micro Business
- To avoid the daily commute
- Better utilise your knowledge
- Grow your own dreams rather than someone else’s dreams
- Create a work/life balance
- Be available for your children
- Do something new
Know that success is not guaranteed but it is still worth taking the chance at being able to be a Micro Business Owner. Have a plan, be patient and be smart with your money and realise that all good things take time. There are no overnight success stories, just many years of hard work that not everyone gets to see.
If you enjoyed this blog, make sure you subscribe.