How to Start an Online Business in Australia

Starting an online business is a great way to strike out on your own and build financial independence. Not only is it something you can do from the comfort of your own home, but the digital world is undoubtedly the commercial platform of the future. Online purchases in Australia saw a huge increase during the global pandemic, which has only accelerated since. The national average of online purchases in 2021 saw a 16.6% increase over the preceding year, according to Australia Post; a trend that’s expected to stick around for a long time to come.

Projected revenue from online purchases is estimated to reach US$45.5 billion in 2022, so if you want your share of that, now’s definitely the time to get started.

Running an online business isn’t as easy as placing an Amazon order, though. There are a bunch of hoops to jump through before you can get started. Fear not; we’ve got you covered with this guide on the top things you need to sort out to get started.

1. Define the Goal of Your Online Business

There’s no point in starting a business if you don’t know what business you want to start. Obviously! So what kind of business do you want to start? Are you going to sell products? Provide a service? Is it going to be a sideline or a full-time gig? Are you doing it alone, or are some business buddies coming along for the ride?

It could be you just want to do what you already do for a living, just run it yourself instead of working for the man. Or it could be that you have a hobby or interest that could make you some money on the side.

What you decide here is going to affect how you structure your business. Setting up as a Sole Trader versus a Company or Partnership will have quite different parameters and requirements.

Once you know what you want to do, have a chat with a lawyer and an accountant to iron out the details and get some advice on how to get started while sticking within the legal lines.

2. Register Your Business

Yep, we’ve reached the lamentable legal side of starting a business in Australia. There are some pretty firm rules you need to abide by, and not following the letter of the law on these things can get you into a bunch of trouble down the line, so it’s worth setting it up properly at the start.

First off, every Aussie business needs to have an Australian Business Number (ABN). This 11-digit number identifies your business as an official entity and means you can legally operate in Australia. It’s free to apply for through the Australian Government website.

Once you’ve got your ABN, you can register your business name (do this at the same time as your ABN application for the sake of time and ease), set up for taxes, create your website domain, invoice customers, and make business purchases.

3. Set up Your Website

Once you’re all squared away with the authorities and the taxman, it’s time to get your website up and running. There are four key points to consider before you start building your website.

Functionality

Choose a website design platform that allows you to do everything your business will need to operate. That could mean having online store functionality, a way to book appointments, or having a dedicated section available only to members.

If you want to keep things simple, you can go for a more accessible content management system (CMS) that allows you to easily make changes but does have some limitations to how much you can achieve. Simple website builders are a great choice for beginners or anyone with a business that only requires a low maintenance website.

Alternatively, if you fancy getting your hands digitally dirty to make something more customised, you could look at something like WordPress hosting. This avenue will require more DIY and maintenance, but it also allows you to explore advanced options, such as e-commerce.

Think about everything your business and website need to offer, then explore some options to find what’s best for you.

Domain

You’ll want a domain name that matches your business name as closely as possible, to avoid any confusion about who you are and whether visitors have found the right website. You don’t want your URL’s lack of punctuation to cause any unfortunate misinterpretations, like Old Man’s Haven experienced! Try to stick to a few best practice rules to give yourself the best chance of having a strong presence online.

Should I get a .COM or .COM.AU domain?

If your customers will all be in Australia, use a .COM.AU or .AU domain, but if you’re going global, then get a .COM domain. If you can get all of them, go for it! That’ll cover you for any eventuality.

You’ll need your ABN number to register a .com.au or .au domain.

Hosting your website

You’ll need to choose a hosting provider. This is where your website will actually be stored, so you want a quality hosting service that can give you great connection speeds, reliability, and flexibility.

We would recommend hosting your website in Australia so your website is located close to your customers which can result in less latency, meaning a shorter load time. 

Email

Create a dedicated email account for your business. Many hosting providers — including OnlyDomains — offer bespoke email as part of the package. Setting up an email address that appears as yourname@businessname.com brings a touch of professionalism to your communications, not to mention it keeps your work and private emails separate. 

4. Planning for Payments

You’re starting a business to get paid. So you’ll need a way for customers to give you their money. The payment method you choose will largely depend on what you’re selling. Products will require a checkout system for customers to use PayPal or POLi, input card details, or use digital wallets, like Google Pay or Apple Wallet. On the other hand, services or subscriptions will involve having monthly or annual direct debits.

Consider what you’re selling and the best way for customers to pay. It needs to be easy for as many of them as possible because if they can’t pay, they won’t pay. And while newer forms of payment are growing in popularity, 50% of online payments are still made using credit and debit cards.

5. Get Found

As your website will be brand new, it’ll have limited immediate traction for search results, even if you get it optimised for SEO. Over time this will improve, but it takes a while.

To give your site the best chance of making an impact in search results, list your business on Google My Business. This will tell Google that you exist and you’ll start being identified for your products or services in related searches.

There are plenty of other Australian business listings that you can look at joining too, like the Australian Business Directory. So if you’re only operating in Australia, registering on these can improve your chances of climbing up those local search results.

With these five key starting tips, you’ll be able to get your online business going and give yourself a strong chance of success. To find out more about how we can help you build your online business, check out the full suite of products we offer here at OnlyDomains.