How to Run a Service Business Australia: 8 Real Questions Answered
Starting a service business in Australia is simpler than most people make it out to be. The running part is what catches people out. The early questions sound basic. The answers shape your next two years.
This post answers the questions new owners actually ask. Not the polished ones. The real ones you Google at 11pm on a Tuesday.
Do I need an ABN before I take my first job?
Yes. Get an ABN before you invoice anyone. It is free and takes about 15 minutes online.
You apply at the Australian Business Register on business.gov.au. You will need your tax file number and a bit of personal info. Without an ABN, your customers must hold back tax from your payment. That looks dodgy and slows you down.
Do I have to register a business name too?
Only if you trade under anything other than your own legal name. So Jake Smith Plumbing needs a registered name. Plain Jake Smith does not.
Registering a business name costs about $44 for one year or $102 for three years. You do it through ASIC after your ABN is sorted. Pick a name you can still use in five years.
What licences do I actually need?
It depends on your trade and your state. Most trades like plumbing, electrical, gas, and building need a state licence. Cleaning, mowing, and handyman work often do not.
Use the licence finder tool to check before you start. Working without the right licence can void your insurance and land you a fine. Do this step on day one, not month six.
What insurance should I get on day one?
Public liability is the bare minimum. Most clients will not let you on site without it. Aim for at least $10 million in cover.
If you have tools, add tool insurance. If you give advice, add professional indemnity. If you hire anyone, you also need workers compensation. Get quotes from two or three brokers. Prices vary more than you would think.
How do I get my first customers without spending a fortune?
Start with the people who already know you. Tell every mate, family member, and old workmate that you are open for business. Ask them to share your number.
Then set up a free Google Business Profile. This is the single biggest free lead source for local trades. Add real photos, your service area, and your phone number. Ask your first ten happy customers for a Google review. After that, a simple website and some basic Facebook posts will start pulling jobs in. If you want a faster start, our digital marketing services can build the whole front end for you.
How much should I spend on marketing in year one?
A safe starting point is 5 to 10 percent of your revenue goal. So if you want to do $200,000 in year one, plan for $10,000 to $20,000 on marketing. That covers a basic website, Google Business Profile setup, paid ads, and review tools.
Spend the first $1,000 on the basics. A clean website. A Google profile. A simple way to capture leads. Only scale ad spend once you can answer every call and follow up every lead.
How do I stay on top of admin without losing my weekends?
Pick one tool that handles leads, quotes, jobs, and follow-ups in one place. Do not run a different app for each job. That is how things slip through the cracks.
A good system sends quotes from your phone, books jobs into your calendar, and chases unpaid invoices for you. Our Light Leads CRM is built for service businesses that want one place for all of it. Most of our clients save five to ten hours a week once they switch.
When should I hire my first team member?
Hire when you have turned away paid work for three months in a row. Not before. Most owners hire too early and burn cash on wages they cannot cover.
Your first hire is usually a part-time admin person or a subbie tradie. Admin help frees you up to quote more jobs. A subbie lets you take on bigger work without the wage commitment. Try a subbie first. It is the lower risk move.
Common mistakes new owners make
Here are the slip-ups we see again and again with new service businesses.
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Pricing too low to win the first jobs. It feels safe. It traps you in low-margin work for years.
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No follow-up system for quotes. Most jobs are won on the second or third touch. If you quote and forget, you lose them.
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Spending big on a logo and brand before getting any leads. A logo does not pay the bills. Customers do.
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Mixing personal and business money. Open a separate business bank account from day one. Your accountant will thank you.
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Trying to be on every social platform at once. Pick one. Get good at it. Add another when the first is humming.
The bottom line
Running a service business in Australia is a series of small smart calls made early. Get your ABN. Get insured. Spend on leads before you spend on logos. Pick one system to run your admin.
Get the basics right and the rest gets a lot easier.
Want a real plan for your first year? Get a free growth plan with our team.
