Starting a Micro Business

Starting a micro business can be an exciting and rewarding endeavour. It can also be a lot of hard work and the reality is that most small businesses fail. Often due to poor planning. It is important to carefully consider all of the factors involved before taking the plunge so that your business survives and thrives.

Choose a Business Idea That You Are Passionate About

When choosing a business idea, it is important to select something that you are passionate about and that you have a genuine interest in and know something about. Very often it will be something you do as a hobby or something you have been interested in or have some experience with.

Conduct Thorough Market Research

Before launching your business, it is essential to conduct thorough market research to assess the demand for your products or services. This will help you to identify your target audience, understand your competitors, and develop a sound marketing strategy. This also lets you set down in black and white whether or not this really is a good idea and if it is, how it can be achieved.

Create a Detailed Business Plan

A comprehensive business plan is absolutely essential for any micro business. Your business plan should outline your business goals, strategies, and financial projections. Money will always be tight and your time tighter. You need to set concrete goals. But don’t forget to be flexible. Be prepared to ditch something that isn’t working and always look for ways to innovate.

Choose the Right Business Structure

There are several different business structures to choose from, each with its own advantages and disadvantages. Most micro businesses will be just you so you will probably start as a sole trader. Click here for more info. Or maybe there will be two of you and consider setting up a partnership. Click here for more info.

Secure Funding

Micro businesses often require funding to get started. There are a number of different funding options available, including personal savings, loans, grants, and crowdfunding. Make sure you have a clear idea of what money is available to your business and over what time frame. There is nothing worse than seeing your hard work die – even though it is clearly going to be a success, just because you ran out of money.

Obtain the Necessary Licenses, Accreditations and Permits

Depending on your business type and location, you may need to obtain certain licenses and permits from the government. This one to do at the beginning. One easy way to find out what you need is to ask people who are already doing it. Consult with your accountant and research on the many government websites available to small business.

Set Up a Business Bank Account

It is important to separate your business finances from your personal finances. This will help you to track your business income and expenses, and it will also make it easier to do your taxes.


Apply for an ABN (Australian Business Number) here. Register your business name with ASIC here. Don’t forget to purchase a domain name (for example, is our domain name). You want to check that the business name you want is available as a domain name. Even If you think you might not need it – get it just in case. Domain names are fairly cheap. So if there are any others you think might be handy – buy them before somebody else does. You can check on what’s available here.

Get online

it is essential for micro businesses (or any business) to have a strong online presence. This may include creating a website and social media profiles. Since you will only be a one or two person business you should do some research on this. You only have so many hours you can work. Many micro businesses operate solely on Facebook or other social media. Some only have a website. Work out what will get you the best bang for your buck.

Market Your Business Effectively

There are a number of different marketing channels that you can use to reach your target audience. Some popular options include online advertising, social media marketing, and content marketing. As before, you won’t be able to use every possible channel. Do some research and experimenting to see what works best for your particular business and customer.

Network with Other Businesses

Networking with other businesses can be a great way to learn from others, get referrals and find new opportunities. If you sell nails – make friends with carpenters.

Seek Professional Advice

When starting a micro business, it is helpful to seek professional advice from accountants. The things you should ask about before you even start your business is: What type of business structure is suitable? What are the tax implications? How do I set up bookkeeping? What am I forgetting?

Be Prepared to Work Hard

Starting and running a successful micro business requires a lot of hard work and dedication. However, the rewards can be great, both financially and personally. But it will eat your days and nights and can be stressful. It can also take a toll on your personal life if you let it. So don’t let it!

Additional Tips

  • Start small and scale up gradually.
  • Be patient and don’t expect to get rich overnight.
  • Be willing to adapt and pivot your business as needed.
  • Celebrate your successes along the way.


Starting a micro business can be a challenging but rewarding experience. Do as much work, set up and research as you can before you start and good luck!

Here are some resources you may find helpful.

Australian Small Business Advisory Service (ASBAS): Provides free and confidential advice and support to small businesses.

Small Business Digital Solutions Program: Provides discounts on digital tools and services to help small businesses adopt technology.

The Australian Taxation Office: The ATO can be a surprisingly helpful place for advice on a wide range of things for small business. But check out the tax topics too.

If you would like some advice on all of this, please call us on 1300 268 800