Good to Great: How to Scale With an Outsourced CFO

If you’re considering setting up business in Australia, you have lots of important decisions to make. You’ll need to choose your business structure, apply for an Australian Business Number (ABN), register for a website name and obtain the appropriate licences to start your operations. 

You’ll also need to register your business name and trademark, and develop systems for managing Australian taxes. But before you do any of that, it’s important that you choose your company’s location. 

Which Australian city is the right fit for you? 

In this post, we’ll look at some factors to consider when choosing a strategic location for your business in Australia.

 

Office Space

If office space is critical to your company’s success in Australia, choose a city where quality commercial real estate is plentiful and affordable. The office you choose should also be accessible to employees and clients, and it should reflect your company’s values and brand. 

Demand for office space in Australia’s largest cities remains high, so prices are at a premium, especially in Sydney and Melbourne. You’ll find lower commercial rents in Perth, Hobart and Adelaide, and if the industries in these cities match your company’s focus, these locations can be a strategic selection.

 

Work Force

What kinds of employees will you need to hire for your business in Australia? The location of your operations can either help or hinder your ability to hire the right kind of talent. 

Overall, Australia has a highly educated population, but some areas have a deeper talent pool than others. If your business relies upon employees with university degrees, you might want to consider establishing your business so you have access to this skilled work force. For instance,  Sydney has a large population of 4.029 Million (with a large proportion of finance and professional service workers). Local businesses can benefit from having access to skilled workers, but also tapping into a market that has significant level of disposable income.

 

Cost of Doing Business

The cost of doing business varies from city to city in Australia. According to the KPMG Competitive Alternatives Report in 2016, Brisbane and Sydney both have higher-than-average costs of doing business, and Melbourne and Adelaide have lower-than-average costs.

 

 

Of course, your costs will vary depending on your industry, your business structure and many other factors. Do your research to learn about the costs for your specific business in different cities in Australia.

 

Infrastructure

Solid infrastructure is a huge asset to businesses, making it easier to communicate with clients and customers, move products from place to place and attract a competitive labour force. 

In recent years, many areas of Australia have focused on infrastructure projects, from updating airports to building roads and bridges. Some current initiatives include mass transit options for Parramatta to the Sydney CBD via the WestConnex toll road, upgrades to the Brisbane to Gold Coast Transport Corridor and the Wellington Dam water infrastructure project in Western Australia.

Victoria has committed $500 Million to a regional passenger rail project and $30 Million for a rail link to Tullamarine Airport. In Queensland, Bruce Highway is receiving upgrades to the Pine River to Caloundra section. Urban rail plans for the five largest capital cities are underway as well.

 

Climate and Atmosphere

Even the weather can be a factor when you’re choosing a location for your business in Australia. Depending on your industry, climate can make a difference. Sydney has hot summers and mild, dry winters while Perth residents experience mild, wet winters. 

Most of Australia’s big cities are located on the coasts. Melbourne boasts world-class shopping and cultural activities and festivals. It has lower housing prices than other major cities and lower crime rates as well. Perth is one of the world’s most isolated cities, several hours away from other Australian cities via plane. Adelaide is Australia’s most affordable big city, and sees a significant number of overseas migrations each year. Sydney’s sunny climate and attractive harbour city make it a coveted, but expensive, place to live. 

For more information about choosing the right location for your business in Australia, reach out to us at Altus Financial.

To learn more about setting up a business in Australia, download our free eGuide below: