Abstract
With the advent of communication gadgets that help in enhancing communication for individuals, mobile business is growing in Australia. Those without mobile phones strive to get them while those with mobile phones strive to get new smart phones which have advanced communication features. This shows one thing: the mobile phone market is growing by the say. This is even enhanced by eth growing number of Internet users in the world. People are appreciating the use of the Internet. It is a business which is found to grow every day. This paper will analyze the requirements that are needed for the creation of a mobile shop in Australia. The paper will look at the cost and the prerequisites before a mobile shop is created in Australia.
1. Introduction
Starting any business undergoes a long process. There will be need to have all the requirements that will be needed to have a running business. There is a need to have a projection of long time so that the business will run and have cushion to go on smoothly. A phone shop will require a higher starting capital. Although this is the case, it is worth the investment. If well managed, there are good returns from the business. A phone shop is a good idea and that one will never go wrong. There is, however, a need to have good financial base for the business to start and run well. Starting a phone shop is one direction to venture into business. Alternative business chances exist for the mobile phone traders. Starting a mobile phone shop is a continued market share opportunity and with many clients striving to upgrade from a low level cell phone to a higher level Smartphone, the future looks great for this business. The sections that follow will give the requirement that is needed for creation of a phone shop.
1.1 Regulation Requirements
All new businesses in Australia will need to undergo the registration process. These are the legal requirements that are needed in this process. The most necessary requirements are:
1.1.1 Registering a Company
To build or start a phone shop, must register with the Australian Securities and Investment Commission. On registration you will be given an Australian Company Number. There is also an online platform that has been created to enable www.asic.gov.au.
1.1.2 Registering a business name
There will also be a need to register the company with the State or Territory in which you will operate under. Before choosing a name of your phone shop, you should consider existing trademarks and also a similar name in the domain, because it can be so expensive to change these once you have established your business. The name should be unique, like, XYZ phones shop); if your proposed name that that is already there in the registry of the Australian State database, then your application may be discarded. This can be done by searching the Australian Securities and Investment Commission National Names Index to confirm if the name exists: www.search.asic.gov.au.
One can also search the Australian Business Number lookup website at www.abn.business.gov.au to find if the proposed name is listed with a registered ABN. The process of business name registration is done at Australian State Government level. You will be required to have a registration of the company that you are trying to build or even set your business. You can access online forms at www.transactions.business.gov.au. A list of the State contact details is found at www.business.gov.au.
1.1.3 Registering for an Australian Business Number (ABN)
An Australian Business Number (ABN) is a distinct unique identifier used for dealings with a variety of Australian Government departments and agencies, including the Australian Tax Office and Customs, as well as with other companies. Australian businesses are generally required to deduct 48.5% withholding tax from payments where no ABN is included on the invoice. The exceptions include payments made to a non-resident who is not carrying on an enterprise in Australia. To apply for an Australian Business Number (ABN) you will need to have registered your business name; you can register online at Australian Business Register: www.abr.gov.au.
1.1.4 Registering for a Tax File Number (TFN)
This enables you to pay and claim back any Australian taxes. Tax File Number can be applied online at the Australian Taxation Office website: www.ato.gov.au.
1.1.5 Registering a trademark or applying for patent protection
A registered trademark gives you the right to use your trademark as a means of differentiating and the services that are offered by other business people. A registered trademark helps you lawfully stop imitators from making use of your brand in the future.
You should contemplate applying for a patent if. In Australia the IP is the entity that is tasked with administration of patents, trademarks and designs: www.ipaustralia.gov.au.
1.1.6 Licenses and permits
Australian Federal, State and Local Governments are responsible for different business licenses, certificates, registrations and permits. These include: Industry and product licenses such as retail and wholesale, agriculture, building and construction and import licenses , Initial business licenses, such as business and partnership registrations, patents, trademarks and designs , Professional and occupational licenses, such as building and construction, accounting, legal and investment licenses, Public safety and environmental licenses such as dangerous goods, restricted goods and trade waste licenses. To find out which licenses may apply to you, one will search the Business License Information Service whereby a list of State and Territory contact details can be found at www.business.gov.au.
2. Material needed
2.1 House
A business premise is the starting point of every business it hosts goods and services and is the central point of asses to your customers. A phone shop house would definitely have to be strategically placed to a place accessible to potential clients, it should also be save from intrusion and may be have a good transport network.
2.2 Capital
Capital is the Backbone of success in all businesses a phone shop would too require some money to kick start purchasing of the major supplies. If a shop has easy access to capital then the shop will have great advantage in the business world. The most eminent way to obtain capital in Australia would be through banks which generally provide good terms for its clients. The only restriction to this is that it’s almost unrealistic to obtain a bank loan if your business credit is impeccable
2.3 Marketers
All businesses definitely requiremarketing but then the marketing magnitude required for various businesses varies. We can have best phones in the market and the best staff but still founder financially if customers cannot find the products. It’s almost impossible to put out smart phones and expect financial rewards. It is always said that it takes money to make rewards marketing investment is equally important as the investment that makes your staff and inventory. Marketers show out people to your products hence a phone shop will require a number of good quality marketers to ensure that new phones penetrate the market and also face out competition.
2.4 Phone display rack
For customers to be able to purchase phone from a phone shop they must be able to select their products of choice hence all products should be place in display racks visible to customers. A phone display rack should be flexible due to daily movement by cleanness staff it should also be stable since in an event that it falls it will lead to massive losses.
3. Phone shop set-up costs
Setting up a business shop in Australia can be expensive. Below is discussion of fees that one will incur when building a phone shop? Requirements (discussed above) costs include the following:
Reserving a business name - A$40, Applying to use the name - over A$1000, Registering a foreign or share capital company - over A$800 and finally registering annual return statements - over A$1,000. The best phone display rack available in Australia would be Everki free standing display rack black eka 709 which goes for $85.00 each for a phone shop we would need atleast five of them which would total up to $425.00. I have preferred the rack because of it eloquent features which include free standing display rack, weighted die-cast base for added stability, removable arms designed to fit slat wall display, attractive POP to signage and 3 level revolving arm assembly. For basic launching and phone start up in Australia one would require at least $150000 this include cost for getting a house registration, licenses and a startup amount to pay employees while the shop grows. For a phone shop in Australia it would require that we have at least three rooms hence a large amount of house space the rooms would actually serve as store, office and sales space respectively this cost has already been factored in in the capital.At least 10 marketers would be needed for the different phone models though this might be subject to change as the shop grows. The marketers cost has also been factored in in the capital amount. The shops employees would of course vary from high skilled semi skilled to non skilled hence their cost would vary respectively, on average one employee would earn $ 1,730 per month and the shop would require at least 10 permanent employees.
4.0. Advertising your phone shop
Advertising is an important part of any phone shopmarketing strategy. The aim is to promote your phone shop and tell the information you want to send to your customers, often with the desire to increase the sales and increase the number of customers aware of your products or services.
Advertising can surely attract new customers if it is done properly. Otherwise it can daunt potential customers.
4.1. Customer focus
Understanding your customer developing a customer profile through market research Demographic and social research : You should understand who your customers are, where are they located, what associations they are affiliated with, what magazines they subscribe to, trade fairs they attend, likes and dislikes, etc.
Understanding purchase patterns: You should understand why your customers buy, when they buy, how often, how much, where they go to purchase, how they locate a supplier, criteria for supplying, current suppliers and why, etc.
4.2. Building a brand and profile
When entering a new market, survival depends on being able to build a brand and being recognizable. Some ways to achieve this include:
Participating in relevant trade and consumer shows, investing in packaging and point of sale material (if relevant), Sponsoring events and activities that have relevance to either your product (brand building) or customers (raising your business profile) Think local or regional with these events, Advertising (can be prohibitively expensive, so this will depend on your budget but you could consider local/regional newspapers and industry magazines),Investing in PR and marketing advice ,Making sure you’re contactable (on the list of all your key bodies, associations, suppliers, directories etc.).The best marketing option in Australia would be web advertising which would require that a website for the phone shop be developed. Since technology is ever-growing in Australia most potential customers can get access to the internet making it easy to trace the website. Advertising could also be by means of posters on strategic places since many people can see it would be an important tool to advertise. We could also use rewards for to customers when they bring new customers to the shop.
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