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Starting a business is exciting, but it’s easy to get lost in the details. Some people spend months (or years) preparing without ever launching. Others jump in too fast, waste money on things they don’t need, and burn out before they even get their first real customer.
To cut through the noise, I sat down with David Connolly, a senior business advisor with over 20 years of experience helping Australian startups and small businesses grow sustainably. David has worked with high-growth companies, advised businesses through the Australian Small Business Advisory Services (ASBAS) program, and has seen firsthand what separates businesses that succeed from those that struggle.
In this Q&A, he shares straightforward, practical advice on how to start a business the right way—without the unnecessary expenses, or rookie mistakes.
Q: What’s the biggest mistake people make when starting a business?
David: They focus on the wrong things—like logos, websites, and social media—before they even know if their idea will make money.
A business isn’t a real business until someone pays you for what you offer. Before worrying about branding or setting up an ABN, test the idea. Ask yourself: Who has this problem? Are they already paying for a solution? Can I find at least 10 people who would buy from me right now? If you can’t confidently answer those questions, you’re not ready to launch. Start by validating the idea instead of assuming it’ll work.
Q: What should someone do first before launching?
David: Forget the fancy branding and focus on proof of demand.
Here’s the fastest way to start:
- Talk to potential customers. Ask about their struggles and what they’d pay to fix them.
- Pre-sell your product or service. If no one buys, tweak your offer. If they do, you’re onto something.
- Set up a simple way to get paid. Use Stripe, PayPal, or invoicing—whatever makes it easy.
Once you’ve proven that people will pay, then you can worry about things like a website and branding.
Q: When should someone legally register their business?
David: Not right away. Too many people spend money on registering their business and buying their business names before they even have customers. The best approach is to test an idea first. Stay as a sole trader. There’s no need to register a company yet. If you’re earning consistently, then consider getting an ABN, registering a business name, and setting up a business bank account. If you’re making over $75,000 a year, register for GST and consider structuring as a company for tax benefits. You don’t need to overcomplicate it in the beginning. Keep it lean until you need to formalise things.
Q: When should someone quit their job to go full-time in their business?
David: Not until they have a financial cushion. A good rule of thumb is to consider whether your business income consistently covers your basic expenses and has done so for the past 3 to 6 months. You also want to have a “buffer” of at least 6 months of savings. Finally, you don’t want to quit your day job until you’re so busy with your own business that your job is holding you back.
Too many people quit their jobs too soon, thinking it’ll force them to succeed. But financial stress kills creativity. Keep your job as long as you can while building your business on the side.
Q: What’s the best way to scale once the business is working?
David: Build systems, automate, and delegate. The key to scaling isn’t working harder—it’s removing yourself from the process as much as possible. Document repeatable tasks. If you do something twice, turn it into a standard process. Automate wherever you can. Outsource low-value tasks. As soon as you can afford it, hire a virtual assistant to take over things like emails, scheduling, and bookkeeping. Remember, scaling isn’t about doing more, it’s about setting up systems so the business can run without you.
Q: If you could give just one piece of business advice, what would it be?
David: Stop overthinking and start selling. Too many new entrepreneurs get stuck in “planning mode” and never actually launch. But the only way to know if something works is to put it in front of real customers. Instead of spending months on a perfect business plan, sell something today. Learn from real feedback. Adjust as needed. Then repeat.
Q: What products or tools have you found the most useful for Australian businesses and which ones do you recommend?
David: It really depends on the type of business, but there are a few tools I consistently recommend because they save time, simplify processes, and help businesses stay organised. For finance and accounting, Xero and MYOB are the top choices—they integrate well with Australian banks and make bookkeeping and tax reporting much easier.
For payments and invoicing, Square is a fantastic all-in-one option, especially for businesses that sell in person as well as online. If you’re focused on digital products or online services, Stripe is a seamless and reliable payment processor. For marketing and social media, I like the ease of Mailchimp for email marketing, while Meta Business Suite is fantastic for managing Facebook and Instagram ads efficiently.
I always advise business owners to start lean, don’t get caught up signing up for every tool right away. Focus on the ones that solve your biggest challenge first, then add more as your business grows.
Final Thoughts
Starting a business doesn’t have to be complicated, but it does require the right approach. As David Connolly pointed out, the key to success isn’t in having the perfect branding, the most expensive tools, or a business plan that takes months to create. It’s about validating your idea, focusing on sales early, and using the right tools to stay efficient without overcomplicating things.
The biggest takeaway? Start lean, test fast, and don’t waste time on things that don’t drive revenue. The sooner you put your offer in front of real customers, the sooner you’ll know what works (and what doesn’t).
If you’re thinking about starting a business, take action today—even if it’s just talking to potential customers or setting up a simple payment system. And remember, success comes from momentum, not perfection.