Tips to Start business in Melbourne

Tips to Start business in Melbourne
Josh Martin
Griffith University
Key Terms: Top 5 Reasons to Buy a Business in Melbourne, How to Start a New
Business in Australia
Introduction:
Melbourne is an exciting city where modern architecture and design is juxtaposed
with heritage buildings reflecting Australia’s unique history. As the capital of the
state of Victoria, Melbourne’s resource boom presents the single most significant
opportunity for the state economy over the next 20 years.
Beneath the city’s impressive façade, lies the true heart and soul of the city;
laneways which snake the city grid to reveal cafés and bars, fashion houses,
boutiques, innovative cuisine, galleries, theatres and museums.
Melbourne has an eclectic mix of residents from students, business people and
tourists. Melbourne’s many free public events, Aboriginal cultural centres,
sophisticated secret laneways, and golf courses create countless business
opportunities for any budding entrepreneur who wants to do business in Melbourne.
To take an idea and turn it into a business can be an exciting but often anxious time.
You need to create a business plan with concrete data, ensure you have all required
permits, and register your business with the proper authorities. The good news is
that there is plenty of assistance out there, particularly at various levels of
government.
Top 5 Reasons to Buy a Business in Melbourne
Buying a business in Melbourne is a great alternative to starting your own from
scratch. The process of starting a business can be an overwhelming prospect,
especially for those who have never started or owned their own business before.
When you buy a business, there’s already an established infrastructure and cash
flow. When you start a business from scratch, it may take some time before you
start to see sales, and not knowing how long that delay will last can be worrisome.
People often buy businesses for similar reasons, most notably that established
businesses have a proven track record that shows they are viable. Buying an
established business in Melbourne may be the perfect business option for you.

These are some of the types of businesses that thrive in Melbourne
Melbourne is where a lot of Australia’s technology industry is located with more than
half of the top twenty technology firms in Australia being located here. The
technology industry not only makes up a large part of Australia’s economic output,
it also employs a good proportion of Australia’s workforce. Melbourne produces
more graduates who have studied some form of technology course than any other
city in Australia. As such, there’s no shortage of qualified workers for this industry.
Some of the technology areas that Melbourne specialises in include data analytics,
social networks, mobile technology, digital games, software development and cloud
technology. It’s easy to see that Melbourne is a great place for technology firms.
However, what if the type of business you’re thinking about buying isn’t in the
technology industry? That’s perfectly fine, as there are plenty of businesses that
cater to the technology industry. There are many businesses that work with the
technology industry or do outsourcing work for the industry. There are also many
opportunities to provide products or services to workers of the tech industry. This
could be as simple as giving them a place to eat or have a coffee. Tech industry
workers generally get paid well so they have disposable income to spend at the
business you buy.
Five Reasons to Buy a Business in Melbourne
1. Melbourne has a substantial big-city infrastructure
Melbourne has one of the most sophisticated infrastructures of any major city in the
world. There are well-planned highways, roads, tollways and transportation system
in general including the world’s largest tram system. Not only that, but 93% of
businesses have internet access and over 83% of households have internet access.
Of those, 93% have at least broadband in regards to internet speed. This means
that if you buy a business in Melbourne, you’ll be buying a business in an area that
will easily be able to make shipments, receive shipments and have your employees
travel within the region. You’ll also have access to fast Internet, which is becoming
increasingly important in today’s market. Not only that, but potential customers will
also have the benefit of easily being able to arrive at your place of business and be
able to find you Internet searches.

2. Large number of businesses to choose from
Melbourne has the second largest number of businesses for sale after Sydney in
Australia. Listed on Businesses2sell, you can find over 2700 businesses for sale in
Melbourne. This is a result of Melbourne’s size and very healthy economy.
Melbourne is Australia’s second largest city with major commercial and industrial
centres, which means plenty of opportunities to buy and sell businesses. With an
average population increase of 2% per year, the amount of available businesses is
likely to stay on the rise for the foreseeable future.
3. Melbourne Has Been Named “World’s Most Liveable City”
Melbourne have been named as World’s Most Liveable fifth year in a row by
Economist Intelligence Unit’s (EIU) due to its thriving economy and cultural
atmosphere. There’s no shortage of activities to take part in in Melbourne. It rightly
lays claim as one of the world’s great sporting cities, there are many, many hipster
cafes, in fact, there is something for everyone. This open cultural landscape leads to
customers that are open-minded to new businesses that could benefit them. That’s
where you, and your new business, come in. Not just that, but a great economy and
a helathy real estate market means that Melbourne residents have the budget to
purchase your product or service.
4. Lots of Resources at your Disposal
Melbourne has established itself as the business start-up capital of Australia and has
multiple business coaches, consultants and brokers that can help you get your
businesses started on the right foot. Ranking as the second largest city in Australia
with over 4 Million residents, it provides you with ample human resources. There is
certainly competition among businesses in Melbourne, but competition is not always
a bad thing as it means the industry is profitable and viable. Having so many
resources at your disposal in Melbourne is a huge benefit over buying a business in
some other locations. At some point when buying a business you are going to need
some help and even more so if you’re buying a business for the first time.
5. Start-up Benefits Provided by the Government
Local government in Melbourne has incentive programs for first time business
investors. These programs have been introduced to encourage investment and
stimulate the economy. Two of these programs are New Business Startup Grants and
Small Business Startup Grants. If you’re dealing with a limited budget, this is a great
way to get started. To get either one of these loans, you must first have certain
documents in order such as a proposal, a detailed budget and a comprehensive
business plan. Getting a business plan put together takes some effort but is

important for handling a business and is completely worth it for the potential
monetary benefits of acquiring a grant.
If you’re interested in buying a business in Melbourne, there are multiple sites that
offer the opportunity to quickly buy businesses for sale in that city. With today’s
technology it’s easier and faster than ever to search for the business you want. With
so many people selling a business in Melbourne, there are plenty of options to
choose from to suit your preferences. Whether you’re looking to buy a restaurant or
a small business in the tech industry, there is most likely a business out there for
you. Before making a purchase of a business in Melbourne or any location for that
matter, be sure to do your research and make sure that you can make whatever
business you choose to buy a profitable business decision. If you've never owned a
business before, buying a business can be the perfect introduction into business
ownership, as it does away with a lot of the challenges that come with starting a
business from scratch.
Checklist before buying a business.
Assessing the advantages and disadvantages of buying an existing business will
help you to avoid a costly financial mistake. Ensure you have the right skills and
research completed before committing yourself and your money to a business.
Consider the advantages and disadvantages:
Buying an existing business means you're buying the owner's assets, stock and
customer loyalty. Financiers lend more readily to an existing business with a trading
record. It can reduce the risk of failure, but a common problem is the departure of
the owner may negatively affect the business and so the current takings cannot be
guaranteed.
Potential issues that you also need to consider include:
a) paying existing staff entitlements such as long service leave payments
b) dealing with a bad image which is difficult to change
c) the business being overpriced or not easily transferable
d) inadequate or old premises, plant or equipment
e) Difficulties in getting the lease assigned with existing entitlements, with the
landlord only prepared to offer a new lease.
Research your industry
Research your industry to identify your customers, your competitors and your
industry. When you're planning to buy a business, make sure you use tools such as

the Australian Taxation Office's small business benchmarks External link (opens in
same window) to help you assess how the industry is performing overall.
Value your potential purchase
Do your financial due diligence – while the owner may set their sale price based on
factors such as projections on future earnings or benchmarking against other similar
businesses, you need to independently collect and check financial information about
the business before buying it. Doing sufficient research also means that you're
buying it at the right price. A CPA survey says that a surprising 80 percent of buyers
who did financial due diligence with an accountant avoided paying too much.
Get detailed professional valuations of all assets and liabilities of the business you
want to buy to reduce the risk of making a bad purchase.
An objective assessment of total worth will include a valuation of:
Goodwill
The reputation, viability and potential of a business represent goodwill. This should
be assessed as part of the overall investment in a business that needs to be
sufficiently profitable, to at least cover the capital repayments after tax, and provide
a fair income for the new proprietor.
Assets
Tangible assets include buildings, land, equipment, stock, fixtures and fittings.
They're usually valued with an estimation of how they've depreciated, or an
estimation of their resale value. Intangible assets includes intellectual property and
goodwill, such as a strong client list.
Work in progress
Work in progress represents existing contracts a purchaser will receive from buying
the business.
Liabilities of the seller
A purchaser may have to take on responsibility for employee entitlements such as
holiday and long service leave. These entitlements would have to be assessed and
deducted from the purchase price. The liabilities of the seller are not normally
calculated in a sale price and a purchaser would not normally take over debtors,
creditors or liability for future orders.

For businesses costing under $350,000, a Vendor's Statement (or Section 52
Statement External link (opens in same window)) must also be provided by a seller
to a prospective buyer.
Learn more about long service leave.
Business profits
In buying a business, you need to make sure it will continue to make a profit by
checking the following:
Commercial life of the business
The value of a business fluctuates throughout its commercial life. For instance,
changes in the economy, the need to replace failing equipment, and cancelled
contracts will all impact on the viability of the business and its ability to remain
profitable. A business can't always be resold later for the same amount of money.
For example, if you're running a corner store and a large supermarket chain opens
down the road, this will devalue your business.
Opportunity costs
The cost of passing up the next best choice when making a decision to invest
represents opportunity costs. This accounts for the purchaser missing the
opportunity to get income from other possible investments, such as earning an
income, or putting the money into a term deposit.
Work out your finances
Find out how much it costs to take over the business. Seek out possible sources of
financing and speak to your financiers on loan or investment options.
Checklist: How to Start a New Business in Australia
Starting a new business can be very rewarding and provide an opportunity to
achieve greater work-life balance and pursue your passions.
However, a lot of prospective small business owners don’t have much background
knowledge in terms of how to get their new business up and running.
We’ve put together a checklist to get the basics right when you’re starting a
business so you are well prepared.
There is a great deal to think about when starting a new business, from product
development to marketing and from IT issues to finance. The distractions and
demands are numerous.

However, if you get the set-up of the business right, meaning the basic registrations
and systems are in place, then you are preparing for success in a business
environment that naturally encourages performance.
1. Figure out the best business structure
Are you better off as a sole trader, partnership, trust or company? Each has its own
advantages and comes with specific tax reporting responsibilities, regulatory
necessities and work health and safety obligations.
Speak to your accountant or lawyer to find out which best suits your current, and
future, structure.
2. Where is your funding coming from?
If your business needs funding, discuss with your accountant the pros and cons of
each option, whether it be banks, venture capital, personal savings, personal loans
or one of several other options.
3. Decide on a business name and get it registered
It’s very important that you make sure you can register your business name or
company name before having business cards, letterheads, logos, websites and so
on designed, and before purchasing a URL.
Is the name accepted by the Australian Securities and Investments Commission
(ASIC) and is it available? Start the process at ASIC Connect.
4. Should your business name or logo be registered as a trademark?
Do you need to protect your business name or logo? What about patent or copyright
protection? For a proper understanding of intellectual property issues, visit IP
Australia.
5. Apply for an ABN
If you’re going to be registered to collect GST (annual turnover of $75,000 or more),
then you’ll likely need an Australian Business Number (ABN).
To apply, visit the Australian Business Register. At the same time, if you’re opening a
partnership, trust or company then it will need its own Tax File Number (TFN) from
the Australian Tax Office (ATO), too.
6. Familiarise yourself with PAYG withholding responsibilities
Employee salaries must have taxable amounts withheld from their payments.
Certain contractor payments must also receive a similar treatment.

Speak with your accountant to make sure your business is meeting all of its tax
responsibilities.
7. Investigate all necessary permits and licences
Visit business.gov.au to find out whether any national, state or local licences are
required for your business.
While you’re at it, check out the ATO’s fuel scheme info to investigate whether your
business is eligible for fuel tax credits.
8. Open an Australian Business Account
A one-stop shop for many government-related permits, licences and registrations
and a rare and welcome partnership between national, state and local governments,
an Australian Business Account can save a great deal of time and effort.
9. Understand the legal requirements
Various laws apply to different businesses, products and services. A good starting
place for small business owners interested in their legal obligations is the Australian
Government Department of Industry.
Australian Consumer Law, our privacy laws and the Competition and Consumer Act
should also be understood at a general level.
10. Set up your accounting systems
No matter how it is done, if an accounting system is set up properly from the very
beginning and with future growth in mind, you’ll save an enormous amount of effort
in the long run.
All levels of business have legal and tax obligations when it comes to record
keeping. Commercial offerings customised specifically for the Australian regulatory
landscape, such as business2sell, ( take a lot of the weight off your shoulders,
freeing you up to work on your business, not in it )/
Read more here
Top 20 Small Business Investment Opportunities in Melbourne
1. Events Promoter: Events like business meetings, product launch, even family
reunions all need people to organize them. If you like to plan and coordinate events,
this is a perfect opportunity for you.
2. Restaurant/Eatery: People love to eat innovative cuisine that is different from
what they eat daily. If you can cook creatively, you are bound to be very profitable
in this business.

3. Club/Bar: The club scene in Melbourne is always buzzing; looking for the next
hot place to go. If you are very sociable, and like to party, then this is for you!
4. Event DJing: If you have a great collection of music and a good sound system,
you can hire yourself out as a DJ to various events and receptions.
5. Food Vendor: You can open a business selling food to people in the business
districts from a food cart. It requires very little start-up capital and you perform a
service to busy people.
6. Transportation Business: As a city with numerous bus lanes, waterways,
tramways; most people find it a bit tedious to move about. You can offer a motor
pool service that would reduce the time people spend using public transport.
7. Wine shop: With the numerous vineyards in Melbourne, a wine shop dedicated
to serving the local wines could be a good boost for the industry.
8. Retail Store: A lot of tourists and even local residents like to shop at bargain
prices. You can open either a physical store or an online store to render your
services.
9. Fashion Boutique: Buy fashion pieces from brand name designers at discount
prices and start your own fashion outlet. A lot of Melbourne residents are label
conscious and will patronize your shop.
10. Coffee/Tea Shop: There’s nothing that breaks the ice between strangers than
sharing a cup of coffee or tea. Offering coffee delivery services and also selling
health teas are also some side-line business that would earn you more money from
your coffee shop.
11. Tourist Guide
If you know your way round the city and have a good knowledge of the secret
laneways, you can start your own tourist guide business for newcomers to the city.
You can even take it further by being a resource person and showing them how to
use the transportation system, where the good shops are, where to go for
entertainment and other essential services that they need to start up their new lives
in Melbourne.
12. Laundry Delivery Service: You can offer to pick up people’s laundry and
deliver it to them either at their homes or offices; saving them time.
13. Interior decorating: Being touted as a designer city, Melbourne boasts of
tasteful homeowners. If you have an eye for design, many people would be more
than happy to hire you to decorate their homes.

14. Landscaping Services: If you are physically fit and willing to mow lawns,
plant gardens and trim trees, you can start your own landscaping business that
would make you quite a tidy sum of money.
15. Business Consultant
A lot of new businesses move their base of operations to Melbourne every day. If
you have an idea of the legal and financial procedures and hoops they need to go
through to establish their business, then you can consult for them for a fee.
16. Golf Trainer
With its 15 championship golf courses, a lot of people would pay to improve their
golf game or to even learn the sport; especially as many business deals are
concluded on the golf course. Many of Melbourne’s golf courses would be willing to
accommodate your business especially if it brings more income for them.
17. Cleaning Services: Many business and civic centers have a need for
individuals who can provide cheap cleaning services after business hours.
18. Personal Shopper: Many very busy people and the elderly need people who
would do their shopping and go on other errands for them. For a little fee, you can
offer this service to them.
19. Produce Selling
With the growing organic trend, you can grow or purchase organic vegetables and
other food items and sell them to people who buy them. Giving the fact that these
organic produce cost money; the profit margin is very high especially if you buy at
wholesale prices and sell at retail prices.
20. Sewing and Alterations: If you are handy with machines and can sew, you
can offer a wide range of services to people like basic garment repair, modification
and hemming for a small price.
Conclusions
The decision of buying a well-established business in hotspots of Australia is
completely reliable on the developments of economic, infrastructure and business
sectors. If you really want to relish your entrepreneurial journey, then these five
locations would be an ideal home for your business. You can find business
opportunities here and build your own success story.
In a nutshell, we can say, investing in 2018 for business is largely depends on your
business goals, plans and existing local market. Do the complete research, analyse
your finances and then take a buying decision.

References
https://www.business2sell.com.au/businesses/vic/melbourne/cat-fashion
https://www.business2sell.com.au/businesses/vic/melbourne/Dandenong
https://www.business2sell.com.au/businesses/vic/melbourne/footscray
https://www.business.gov.au/info/plan-and-start/start-yourbusiness/coming-to-australia-to-start-a-business
https://www.business2sell.com.au/businesses/vic/melbourne/takeawayfood
https://www.business2sell.com.au/businesses/vic/melbourne/catsupermarket/latest_listings
http://www.melbourne.vic.gov.au/business/doing-business/Pages/start-abusiness.aspx
https://www.business2sell.com.au/businesses/vic/melbourne/cat-bottleshop/latest_listings
https://www.business2sell.com.au/businesses/vic/melbourne/cat-takeawayfood
https://www.business2sell.com.au/businesses/vic/melbourne/cat-cafe-andcoffee-shop/latest_listings
https://www.business2sell.com.auu/businesses/vic/melbourne/portmelbourne
http://www.business.vic.gov.au/setting-up-a-business/buy-abusiness/checklist-considering-buying-a-business
https://www.business2sell.com.au/blogs/2018/03/What-could-be-the-bestplace-to-invest.php
https://www.business2sell.com.au/businesses/vic/melbourne/st-kilda
https://www.business2sell.com.au/businesses/vic/melbourne/frankston
https://en.wikipedia.org/wiki/Melbourne
https://www.business2sell.com.au/businesses/vic/melbourne/Toorak