How to Plan for Success: The 3 Key Questions Every Startup Must Answer

May 10, 2024
minutes to read
Ben Winford
Table of Contents

Starting a small business can be an incredibly rewarding and challenging experience. Not only do entrepreneurs have to come up with business ideas, but they must also develop a clear plan to execute those ideas successfully. Small businesses are critical to the Australian economy, accounting for around 97% of all businesses and employing over 40% of the workforce. Therefore, starting a small business is not only beneficial for the individual entrepreneur but also for the country as a whole. In this article, we will discuss the three fundamental questions that every small business must answer to succeed, and how Thriday's accounting software can help you manage your business finances.

Why Small Businesses Matter 

Small businesses play a vital role in the Australian economy, contributing to job creation, innovation, and economic growth. According to the Australian Bureau of Statistics, there are more than 2.5 million small businesses in Australia, accounting for over 97% of all businesses and employing over 7 million people, representing 44% of the workforce. 

Starting a small business offers several advantages, including being your own boss, pursuing your passions, and controlling your financial future. Small business owners have the flexibility to make their own decisions, experiment with new ideas, and tailor their products or services to meet the needs of their customers. Additionally, small businesses can positively impact local communities by creating jobs, contributing to local economies, and fostering a sense of community spirit.

Australian small business

The Three Questions Every Business Must Answer 

When starting a business, you need to be able to answer three fundamental questions:

1. What problem does your business solve? 

Every successful business addresses a specific problem or need in the market. Your business idea should provide a unique, innovative, and valuable solution to your potential customers. Conduct market research to identify your target audience and their pain points, and develop a value proposition that clearly articulates how your business will solve its problems.   

2. Who is your target audience? 

Understanding your target audience is crucial to the success of your business. Identify your potential customers' demographics, interests, and behaviours, and tailor your marketing and sales strategies to reach them effectively. Knowing your target audience will also help you design products or services that meet their needs and preferences.  To help you confirm your target clientele, take the Thriday target market quiz. By answering a few questions, you'll be able to narrow down which customers to focus your attention on.

3. How will you make money? 

To be successful, your business needs to generate revenue. Develop a revenue model that outlines how your business will make money and achieve profitability. Consider factors such as pricing, distribution channels, and customer acquisition costs. By developing a clear revenue model, you can make informed decisions to help your business grow and succeed. Take this business model quiz if you need help confirming how you will make money.

Answering these three fundamental questions is crucial for any entrepreneur starting a small business. By understanding the problem your business solves, identifying your target audience, and developing a revenue model, you can create a clear plan for success. 

Thriday all-in-one financial management platform
Thriday's all-in-one financial management software

How Thriday Can Help You Manage Your Business Finances 

Thriday is an innovative accounting software that can help small business owners manage their finances more efficiently. Here are some of the key features and benefits of using Thriday: 

Automated Accounting 

Thriday uses automated accounting processes that save you time and reduce the risk of human error. By automating tasks such as data entry, receipt reconciliations, and invoice creation, Thriday helps you stay on top of your finances and focus on growing your business.   

Real-Time Financial Information 

With Thriday, you can access real-time financial information to help you make informed decisions. Thriday's dashboard provides a comprehensive view of your business's financial health, allowing you to track income and expenses, monitor cash flow, and generate reports. 

Streamlined Tax Preparation 

Thriday simplifies tax preparation by automating GST tracking and generating tax reports. Thriday also ensures compliance with tax regulations by allowing you to lodge your BAS on time, reducing the risk of penalties and fines.   

Scalable and Customisable 

Thriday is scalable and customisable, making it ideal for small businesses of all sizes and industries. Thriday's modular design allows you to add features as your business grows, and you can customise the software to meet your specific needs. 

Thriday is a powerful accounting software that can help small business owners manage their finances more efficiently. With automated accounting, real-time financial information, streamlined tax preparation, and scalability, Thriday is a valuable tool for any entrepreneur starting a small business. Take this tax quiz, to find out how much time you can save by using Thriday.

Starting a Business FAQs 

Starting a small business can be daunting, but you can increase your chances of success with the correct information. Here are some frequently asked questions about starting a business in Australia: 

What are the legal requirements for starting a business in Australia? 

To start a business in Australia, you must register with the Australian Securities and Investments Commission (ASIC). You must also obtain any necessary permits and licenses and comply with tax and employment laws.   

How do I finance my business? 

There are several options for financing your business, including bank loans, government grants, and crowdfunding. You can also bootstrap your business using personal savings or borrowing from friends and family. 

How do I come up with a business idea? 

To develop a business idea, start by identifying a problem you or others are experiencing. Brainstorm possible solutions and assess the market demand for your idea. You can also research industry trends and competitor offerings for inspiration. 

How do I create a business plan? 

A business plan outlines your business goals, strategies, and financial projections. To create a business plan, define your business concept, target market, and competitive advantage. Then, identify your funding and operational needs and develop a marketing and sales plan. 

How can Thriday help me with my business finances? 

Thriday can help you manage your business finances more efficiently with automated accounting, real-time financial information, streamlined tax preparation, and scalability. Thriday can also provide insights into your business performance, allowing you to make informed decisions and grow your business. 

Thriday tax estimate
Thriday Tax Estimate


Key Takeaways 

Starting a small business can be challenging, but it can also be rewarding both personally and financially. By answering the three key questions discussed in this article, you can increase your chances of success and build a thriving business. Remember to focus on your target market, differentiate yourself from the competition, and ensure your finances are in order. 

One of the most important aspects of running a successful small business is keeping track of your finances. Thriday can help you with automated accounting, real-time financial information, and streamlined tax preparation. With Thriday, you can save time and money and focus on growing your business. 

We hope this article has helped provide you with valuable information and insights into starting a small business in Australia. Good luck on your entrepreneurial journey! 

DISCLAIMER: Team Thrive Pty Ltd ABN 15 637 676 496 (Thriday) is an authorised representative (No.1297601) of Regional Australia Bank ABN 21 087 650 360  AFSL 241167 (Regional Australia Bank).  Regional Australia Bank is the issuer of the transaction account and debit card available through Thriday. Any information provided by Thriday is general in nature and does not take into account your personal situation. You should consider whether Thriday is appropriate for you.

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