Building a business in Melbourne: 6 things you should keep in mind

Melbourne is Australia’s cultural and economic hub, home to a thriving startup scene and strong state and federal-level support networks for entrepreneurs.

Building a business here offers opportunities unique to the city, but also comes with its own set of challenges that founders must navigate to succeed.

Understanding local regulations comes first, then businesses can start to think about tapping into the diverse market available in Melbourne’s multicultural environment. Whether you’re looking to sell cellular phone accessories wholesale, open up a corner cafe, or throw your hat in the ring as a publican, the six tips in this article should guide you to building a successful business in Victoria’s capital city.

Choose the right business structure for your goals

Structure is the first thing you should think about when you’re starting a business. In Australia, you have a few distinct options available to you, all with their pros and cons: sole tradership, partnership, company, and trust.

Generally, the most significant difference is the difference in liability - sole traders and partners have what is referred to as ‘unlimited’ liability, meaning they are indistinguishable as individuals from their business.

Sole traders can use their own tax file number to lodge tax returns, and it is a very low-cost structure across the board, as well as quite simple to set up and operate.

As a result, many businesses in Melbourne opt for the sole trader structure if they’re on the smaller end, or company if they’re looking to scale up.

 Larger businesses will register as a company with the Australian Securities and Investments Commission (ASIC) to limit their liability and increase their flexibility in raising funds to grow their business.

All of these businesses will have registered an Australian Business Number (ABN) - don’t forget this step!

Understand Melbourne’s licensing and regulatory requirements

Australia has strict regulatory frameworks in place to make sure that businesses operate safely and ethically.

In Melbourne, you’ll have to be familiar with both state, local, and federal government regulations, and these can vary greatly depending on what industry you’re looking to operate your business in.

For example, if you’re a budding restaurateur, you’re compelled to follow food safety regulations set by Food Standards Australia New Zealand (FSANZ) and local council health standards.

If you’re in the retail space, then you must follow the Australian Consumer Law, which is enforced at a federal level by the Australian Competition and Consumer Commission (ACCC).

Service Victoria has a License and Permit finder available if you’re interested in knowing what you’ll need based on your business type and where you’re looking to start up.

Of course, you can also get in contact with the Melbourne City Council or your local council to verify the results of this search - it’s never a bad idea to check twice.

Leverage Melbourne’s startup and innovation ecosystem

Coworking spaces and accelerator programs are just the tip of the iceberg of what the city provides when it comes to opportunities to connect with other entrepreneurs and potential investors.

If you capitalise on these resources, you could find your growth reaching new levels and your chances of succeeding in a busy market improving.

Both LaunchVic and StartMate are places that can help you tap into Melbourne’s wide support network and provide valuable mentoring opportunities to help you put your best foot forward.

Navigate Melbourne’s competitive talent market

Melbourne is a big city. Its population is now estimated at just over 5.3 million, so you’re looking at a wide, diverse, and skilled workforce to match.

However, attracting and retaining top talent isn’t always easy, especially with competition from companies that are well-established in the city and can offer opportunities that a startup cannot.

As a new business, though, you have a distinct advantage - flexibility.

Melbournites love work-life balance, so if you can offer flexible working arrangements, this could be a massive drawcard that could give you an edge over your corporate competition.

You can also look at implementing some Melbourne-focused values, like incorporating a sustainability plan or Reconciliation Action Plan (RAP) into your operations to show that you’re a business that cares.

Plan for a diverse market

Part of Melbourne’s size is its diversity. It has a large immigrant population and a broad spread of age demographics, and as a result, has an exciting market with potential customers from all sorts of backgrounds and cultures.

However, this means that marketing strategies need thoughtful approaches and careful consultation.

In retail, this could mean offering products that resonate with people from different backgrounds, like a range of scents that echo different parts of the world.

In the hospitality industry, fusion cuisine has been popular in Melbourne for many years due to its diversity, so consider tailoring a menu that speaks to different communities.

Familiarise yourself with Melbourne’s transport and logistics landscape

Melbourne’s infrastructure, and understanding how it can work for your business, can be a key driver for foot traffic and getting customers through the door.

For example, the CBD is often congested and busy, which can delay delivery times if you’re planning on offering same-day delivery services from a city-based location.

If you’re outside of the city, how close are you to public transport? Tram lines and trains are great ways to attract customers, especially since many inner-city dwellers opt for a mix of walking, cycling, and public transport to get them from A to B.

Make sure you’ve considered all of these factors before you sign a lease on an office or retail location - it can also make a big difference to your employees who’ll have to get there every day!

Starting a business in Melbourne means entering a dynamic marketplace with a well-connected transport system, access to some of Australia’s best talent, and a startup ecosystem that will give you the support you need as an entrepreneur.

If you’re able to conquer local regulations and find your niche in a busy market, then you’re sure to become one of many thriving businesses within the bounds of this Victorian gem.

Keep these tips in mind and you’ll be well on your way to building a successful business in Melbourne!