- The customer problem your new product or service will solve
- How you will build the solution to the problem
- Your understanding of the competition, and if this solution already exists
- Be prepared to sacrifice work / life balance
- Know you are personally and legally responsible for your business
- Plan and manage your cash flows ahead
- Identify your risks
- Create a risk management plan
- Reduce and control your risks with insurance
- Use Sole’s Tax Estimator to forecast your tax payments throughout the year.
- You may not be required to pay yourself any super, but do some research to see what works for you.
- Make sure that you are putting aside sufficient cash in order to make payments before the end of the year.
- Set up a website for your business.
- Create and tailor your brand in order to distinguish your business from the rest
- Build a strong social media presence.
- Jira Software and Confluence – Altassian (Jira and Confluence) use these tools to manage tasks, plan you deliverables and formalise your documentation
- Google Workspace – Formerly Google suite (Gmail, Meet, Sheets and more) is free for individuals and easily scalable over time.
the idea
know the challenges
RESOURCES:
Document your strategy
register your business
create and manage your budget
understand laws and regulations
Check out the following government guidance:
Legal essentials for business | business.gov.au
Fair trading laws | business.gov.au
Understand contracts | business.gov.au
manage your risks
RESOURCES:
Business insurance | business.gov.au
Business Insurance For Sole Traders | Compare the Market
Sole Traders Guide to Public Liability Insurance | BizCover
get ready for tax time
RESOURCES:
Talk about tax | Sole App
manage your marketing
Resources:
Free website creator | blog.hubspot.com
Free design tools | zapier.com
Social media 101 | business.gov.au
build, manage and learn
Keen to get started?
You can download a pdf version of this guide here.
Frequently asked questions
- Public Liability: Protects you if a third party is injured or their property is damaged because of your work.
- Professional Indemnity: Essential for consultants and creatives; it protects you against claims of negligence or mistakes in your advice.
- Income Protection: Since you don’t have “sick leave,” this ensures you still have money coming in if you are unable to work due to illness or injury.
- Financials: Use Sole’s Free Tier for simple invoicing and expense tracking.
- Communication: Google Workspace (Gmail, Drive) or Slack for messaging.
- Marketing: Canva for free design and Mailchimp for basic email marketing.
- Organization:Trello or Jira for managing your daily to-do list.
What is the very first legal step I need to take?
The most critical step is registering for an Australian Business Number (ABN). This unique 11-digit number identifies your business to the government and other businesses. It is free to apply through the Australian Business Register (ABR). Once you have an ABN, you can also register a Business Name if you want to trade as something other than your own legal name.
How is being a sole trader different from a company?
As a sole trader, you are the business. There is no legal separation between you and your business assets or liabilities. This makes it the simplest and cheapest structure to set up. In a company structure, the business is a separate legal entity, which offers more protection but comes with significantly higher setup costs and reporting requirements.
Do I need to pay myself superannuation?
As a sole trader, you are not legally required to pay yourself super. However, it is highly recommended to make voluntary contributions to ensure you are building a retirement fund. In 2026, voluntary super contributions may also be tax-deductible, helping you reduce your taxable income while saving for the future.
What insurances are essential for a new sole trader?
This depends on your industry, but the “Big Three” are usually:
How do I manage my taxes if I don’t have an employer?
You are responsible for your own tax. The best way to manage this is to use Sole’s Tax Estimator. A good rule of thumb is to set aside 20% to 30% of every invoice into a separate high-interest savings account. This ensures that when you lodge your tax return or pay your quarterly BAS, you already have the cash ready.
What free tools can I use to keep my start-up costs low?
In 2026, you can run a very professional operation on a tiny budget:
Why is a “Plan on a Page” better than a long business plan?
For a sole trader, a 40-page business plan often becomes a “dust collector.” A Plan on a Page forces you to be specific about who your customer is, what problem you are solving, and how you will make money. It is a living document that you can update every month as you learn more about your market.
