Starting a business overseas can be both an exciting and daunting experience. Entrepreneurs are constantly looking for new opportunities in different countries around the globe, and because Australia’s economy is stable, it’s no wonder so many people are looking to set up shop there.
Almost half of the workforce Down Under hold a certificate, diploma, or college degree of some sort, and over two million people speak English and another language. It seems like the Australian government encourages foreigners to start a business or invest in an existing business, and if you understand the process and your paperwork is in order, you shouldn’t have too many issues.
However, if you are looking to buy a company that already exists, you might want to hire a broker. A reputable broker will be able to guide you through each step along the way, help you out with negotiations, a business sales plan, and sales administration. For more details, check out Marc Phillips Business Brokers Brisbane. Government officials working for the Foreign Investment Review Board will also be able to give you advice. Before agreeing on the sale of a business, you will want to make sure that you follow all of the country’s regulations.
How can I Register a Business in Australia?
There are different permits and licenses for businesses in Australia, and depending on what kind of business you want to buy, will depend on the type of license or permit you need. Before investing money, you should consider speaking to a law firm or a brokerage for advice.
The amount you will have to pay on tax depends on how your business operates, and what it is that business does. Here are a few examples:
- Partnerships: In Australia, there are two different types of partnerships. A general partnership and a limited partnership.
- Corporation: This can be an expensive and complicated process. You should consider employing a team of highly qualified lawyers to help you through the process.
- Sole proprietorship: If you are planning on setting up a small sized business in Australia, you should register it as a sole proprietorship. This is perfect if you are going to be the only person working and operating the business.
Although the process can be straightforward if you have researched everything properly, don’t assume that it is a quick process. You have to be fully committed, and you can expect it to take time and money to organize the business sale before you can start working.
Why is Australia a Good Place to Invest in a Business that Already Exists?
Setting up a new business is risky, wherever you are in the world. Although there are a lot of risks involved in purchasing an existing business, there are plenty of advantages too.
With businesses that are already up and running, the groundwork will have been done. Most established businesses will have clients on board, plus, they might have a list of contacts of people who used to do business with them in the past. When you take over the business, you might be able to make contact with these people to see if they want to do business with you.
You will be able to identify the market and understand the different products and services. The previous owner will be able to provide you with financial records, so you can see exactly how the financials worked under the previous owner.
If the business already employs a quality team, you won’t have to look for a new workforce. They will be able to give you an insight into how the business operates, and they might be able to provide you with information to help the business succeed. When starting a business from scratch, it can take years to understand how every aspect of the business works, so having people alongside you who have been working in the industry for years can help you avoid making mistakes.
Australia is a fantastic place to live, which is one of the main reasons why so many foreigners are looking to move there and invest in an already established business. The schooling system, health care, and the warm weather during the summer and spring motivate a lot of folks to move there.
What are the Downsides to Buying an Already Existing Business?
When buying an already existing business, the first question you need to ask is why are the previous owners looking to sell in the first place? However, you will have to trust them if you are going to get a genuine answer. If they are desperate to sell, it might be worth your while researching the business further, to see what you can dig out. This is why you should spend a lot of time looking through the company’s finances. However, keep in mind that some people produce false statements to make their business look like it is doing better than it actually is. Consider hiring a reputable accountant to go through all of the financial details before you spend your hard earned money on an established business.
If you are planning to use the equipment in the business, examine it thoroughly first. You might have to spend a lot of money updating the equipment if it is old and outdated. Technology is constantly improving, and if you don’t make changes you might find it hard to compete with others in the industry.
A company’s reputation is very important, and if the previous owner has a bad name amongst their previous clients, suppliers, distributors, etc. it might be very hard to change people’s attitude towards the business.
Has the Ongoing Pandemic Affected Australia’s Businesses?
Australia’s government has taken strict measures to ensure the deadly virus doesn’t spread around the nation. For most of 2020, they managed to keep the number of cases low, but the numbers have risen in recent months.
During the pandemic, a lot of businesses throughout Australia have been hit hard. The impact the spread of the coronavirus has had on many companies around the country has been devastating. Although the vaccine rollout has helped things get back to normal, there are still a lot of businesses struggling to keep their head above water. The government is known to enforce strict lockdowns, and many shops, restaurants, bars, and other businesses have been told to shut their doors during these unprecedented times. It is a difficult time to start a new business, as it is hard to predict when an outbreak will occur.
However, there are industries in Australia that have benefited from the pandemic. A report published in April showed that the unemployment rate in Australia has been falling in recent months. Identifying a business that will survive during the pandemic is key.
Australia is a huge country, as it measures over 3 million square miles, which is approximately the same size as Europe. The cost of living depends on where you live and do business. If you want to work in a company based in Byron Bay, the cost of living and running a business will cost a lot of cash. However, there are cities and towns around Australia that are less expensive. Although the country is big, the majority of people live in cities. However, most of the population who live in these cities like to go on vacation and travel around Australia. There are hundreds of national parks, most of which are stunning.