Getting Started: From Idea to First Sale

Ready to turn your business idea into reality? This guide will walk you through the essential first steps to validate your concept, plan your business, and make your first sale - all within 90 days.

The Reality Check

Before we dive in, let’s be honest about the numbers:

• 97.2% of Australian businesses are small businesses
• 20% fail within their first year
• 60% don’t make it past three years
• But with proper planning and government support, you can significantly improve your odds

The key difference between successful and failed businesses isn’t always the quality of the idea - it’s the execution and support system.

Step 1: Validate Your Idea (Week 1-2)

Turn Your Idea into a Viable Concept

An idea is not a business. A business solves a specific problem for specific people who are willing to pay for that solution.

Define the Problem Clearly

Write down in one sentence what problem you’re solving:

❌ Bad: “I want to sell eco-friendly products.” ✅ Good: “New parents in inner-city Melbourne struggle to find affordable, plastic-free toys that are safe for teething babies.”

Identify Your Ideal Customer

Be specific about who you’re helping:

❌ Bad: “People who care about the environment.” ✅ Good: “Eco-conscious parents aged 28-42 living in inner Melbourne (Fitzroy, Carlton, South Yarra) with household income over $90,000.”

Research Your Competition

• Use Google, social media, and local directories
• Visit competitors’ websites and social media
• Read their reviews (what do customers love/hate?)
• If there’s zero competition, be cautious - it might mean there’s no market

Talk to Potential Customers

This is the most crucial step. Find 5-10 people who match your customer profile:

• Don’t try to sell them anything
• Ask about the problem you identified
• Listen more than you talk
• What solutions do they currently use?
• What do they wish was better?
• How much would they pay for the perfect solution?

Validation Tools

• Online surveys (SurveyMonkey, Google Forms)
• Social media polls (Instagram stories, Facebook groups)
• Local markets (test with a simple stall)
• Friends and family (but take their feedback with a grain of salt)

Step 2: Create Your One-Page Business Plan (Week 3)

Forget 50-page documents. Your business plan should fit on one page and answer seven key questions:

The One-Page Plan Template

1. Problem Statement What specific pain point are you solving?

2. Solution Description What is your product or service? How does it solve the problem?

3. Target Market Who are your ideal customers? (From Step 1)

4. Unique Selling Proposition (USP) Why should customers choose you over competitors?

5. Marketing & Sales Strategy How will customers find you?

   • Instagram marketing
   • Local farmers markets (Queen Victoria Market in Melbourne, Orange Grove in Perth)
   • Community Facebook groups
   • Letterbox drops in your suburb
   • Google Ads
   • Word of mouth

6. Pricing Strategy How much will you charge? Research competitor pricing and calculate:

   • Cost of goods/services
   • Your time
   • Business expenses
   • Profit margin (aim for 20-40% minimum)

7. Basic Financial Projections

   • Startup Costs: What do you need to buy? (equipment, website, initial inventory)
   • Monthly Expenses: Recurring costs (subscriptions, rent, utilities)
   • Revenue Goal: Realistic first-year target
   • Break-even Point: When will you cover all costs?

Example One-Page Plan

Business: Organic Baby Food Delivery (Melbourne)

1. Problem: Working parents in inner Melbourne don’t have time to make fresh, organic baby food
2. Solution: Weekly delivery of pre-made, organic baby meals in reusable containers
3. Target Market: Working parents aged 28-38, household income $80k+, with babies 6-24 months
4. USP: Only local organic ingredients, pediatric nutritionist-approved recipes, zero plastic packaging
5. Marketing: Instagram, parenting Facebook groups, partnerships with childcare centers
6. Pricing: $45/week for 10 meals (competitor analysis: $35-65 range)
7. Financials:
   • Startup: $8,000 (kitchen equipment, branding, initial inventory)
   • Monthly expenses: $3,200
   • Revenue target: $50,000 Year 1
   • Break-even: Month 6

Step 3: Access Government Support (Week 4-6)

This is where most entrepreneurs miss out on thousands of dollars in free support.

Self-Employment Assistance (The New NEIS)

This is your best starting point. The program offers:

• Free business training (Certificate IV in New Small Business)
• 12 months of mentorship from experienced business advisors
• Financial support (allowance up to 39 weeks, rental assistance up to 26 weeks)
• $300 startup cost reimbursement

How to Apply:

1. Visit Workforce Australia
2. Find a local Self-Employment Assistance provider
3. Attend an information session
4. Submit your application with your one-page business plan

Timeline: Application to approval typically takes 4-8 weeks.

Other Government Support

R&D Tax Incentive If your business involves developing new products or processes:

• Get 43.5% tax offset on R&D expenses (for small businesses)
• No minimum spending threshold
• Apply through your annual tax return

Instant Asset Write-off

• Immediately deduct assets up to $20,000
• Applies to equipment, vehicles, software
• Available until June 30, 2025

State-Specific Grants:

• NSW: MVP Ventures Program (up to $75,000)
• VIC: Business Growth Fund (equity investments)
• QLD: Ignite Ideas Fund (up to $200,000)

Step 4: Set Up Legally (Week 7-8)

Essential Business Registrations

1. Australian Business Number (ABN)

   • Free registration at Australian Business Register
   • Takes 15 minutes online
   • Required for all business transactions

2. Business Name Registration

   • Required if trading under a name other than your own
   • $37 per year through ASIC
   • Search availability first at ASIC Connect

3. GST Registration

   • Required if turnover exceeds $75,000 annually
   • Can register voluntarily if under threshold
   • 10% GST on most goods and services

4. Business Bank Account

   • Separate business finances from personal
   • Compare business account fees
   • Many banks offer fee-free periods for new businesses

Business Structure Options

Sole Trader (Most Popular for Beginners)

• ✅ Simple and cheap to set up
• ✅ Full control over business decisions
• ❌ Personal liability for business debts
• ❌ Limited tax benefits

Company

• ✅ Limited liability protection
• ✅ Tax benefits as business grows
• ❌ More complex and expensive ($537 registration)
• ❌ Additional reporting requirements

Recommendation: Start as a sole trader, consider company structure once turnover exceeds $100,000.

Step 5: Make Your First Sale (Week 9-12)

Start with a Minimum Viable Product (MVP)

Don’t wait for perfection. Launch with the simplest version of your product or service:

Service Business Examples:

• Cleaner: Start with one regular client
• Web designer: Create one landing page for a local cafe
• Consultant: Offer a 2-hour strategy session

Product Business Examples:

• Baker: Sell at Saturday markets first
• Craft maker: Start with Etsy or Facebook Marketplace
• Food product: Test at farmers markets

Marketing Your First Sale

1. Leverage Your Network

   • Tell everyone you know about your new business
   • Post on personal social media
   • Ask friends to share with their networks

2. Local Marketing

   • Join local Facebook business groups
   • Attend networking events
   • Partner with complementary businesses

3. Digital Marketing

   • Create simple social media profiles
   • Start with one platform (usually Instagram or Facebook)
   • Share behind-the-scenes content

4. Direct Outreach

   • Contact potential customers directly
   • Offer free samples or trial services
   • Follow up persistently but politely

Pricing Your First Sales

Common pricing mistakes:

• ❌ Charging too little (afraid of losing customers)
• ❌ Copying competitors blindly (without understanding costs)
• ❌ Forgetting to value your time (not including labor costs)

Simple Pricing Formula:

Price = Material Costs + Labor Costs + Overhead + Profit Margin

Labor Costs: Pay yourself at least $25/hour (minimum wage for skilled work) Profit Margin: Aim for 20-40% minimum

Your 90-Day Action Plan

Days 1-14: Validation Phase

• Define your problem and target customer
• Interview 5-10 potential customers
• Research 3-5 competitors
• Refine your business concept based on feedback

Days 15-21: Planning Phase

• Create your one-page business plan
• Calculate startup costs and pricing
• Set financial goals for Year 1
• Identify initial marketing channels

Days 22-42: Government Support Phase

• Research Self-Employment Assistance providers
• Attend information sessions
• Submit application for government support
• Research other grants and incentives

Days 43-56: Legal Setup Phase

• Register for ABN
• Register business name (if needed)
• Open business bank account
• Set up basic bookkeeping system

Days 57-90: Launch Phase

• Create MVP of your product/service
• Set up basic marketing (social media, business cards)
• Make first sale
• Get customer feedback and testimonials
• Plan for growth

Common Mistakes to Avoid

Over-Planning, Under-Executing

Don’t spend months perfecting your business plan. Start with “good enough” and improve as you go.

Ignoring Customer Feedback

Your initial idea will likely need adjustments based on real customer input.

Underestimating Time Investment

Most new businesses require 50-60 hours per week initially. Plan accordingly.

Mixing Personal and Business Finances

Always keep separate accounts and track expenses from day one.

Not Accessing Available Support

Government programs like Self-Employment Assistance can provide thousands in value - don’t miss out.

Success Metrics to Track

Week 4 Goals

• Validated business concept with customer interviews
• Completed one-page business plan
• Applied for government support

Week 8 Goals

• Registered ABN and business name
• Opened business bank account
• Created simple marketing materials

Week 12 Goals

• Made first sale
• Received customer testimonial
• Identified next 5 potential customers
• Refined pricing based on market response

What’s Next?

Congratulations! If you’ve followed this guide, you now have:

• A validated business concept
• A simple business plan
• Access to government support
• Legal business structure
• Your first customer

Next steps:

1. Government Support - Deep dive into all available funding
2. Legal Compliance - Understand your ongoing obligations
3. Business Operations - Scale your business sustainably

FAQ

How much money do I need to start?

Minimum: Just the ABN (free) and business name registration ($37). Realistically, most businesses need $2,000-$10,000 for equipment, initial marketing, and 3 months of expenses.

Should I quit my job to start a business?

Not necessarily. Many successful businesses start as side projects. Consider starting part-time and transitioning when your business income can support you.

What if my first business idea doesn’t work?

That’s normal! Most successful entrepreneurs go through several iterations. Use the experience to refine your approach for the next attempt.

How do I know if my business is viable?

Key indicators: customers are willing to pay your asking price, you have repeat customers, word-of-mouth referrals are happening naturally, and you’re covering your costs within 6-12 months.

Can I change my business structure later?

Yes, but there may be tax implications. Start simple with sole trader and consult an accountant when considering changes.

Ready to dive deeper? Explore our comprehensive Government Support Guide to discover all the funding and assistance available to Australian small businesses.