The mining industry may soon become one of the most significant drivers of the Australian economy. While Australia was not among the most severely affected countries by the global financial crisis. It has been suffering from a recession in recent years. The unemployment rate in Australia is currently 6.2%. Many believe that starting a mining company could be one of the best ways to solve this problem.
Creating a mining company can be pretty challenging. In addition to raising capital and hiring staff, you need to understand where to start with your business plan. Are you stranded on starting a mining company in Australia?
The business of mining is way too different from Car Insurance, Real Estate, or running a Restaurant business. You need not worry; we have created a guide for you that will help you start the company.
Steps for Starting a Mining Company in Australia
Starting a mining business is profitable, but a lot of work has to be put into it. Take the time to do your research, make the right decisions, and have a successful business. Here are the steps of starting a mining company in Australia:
To start a mining business, you must create a plan. During this phase, employees and contractors will build upon their ideas from the brainstorming sessions and create more detailed plans for how the company will operate. You must make sure that everyone understands what needs to be done during this phase and works together towards the same goals. Once your mining business has been successfully created, it’s time to get started on planning its operations.
Decide the business structure
You will have to decide on your new company’s type of business structure. The most popular forms are sole proprietorship, partnership, corporation, and limited liability company (LLC). You will have to decide which one is best for your mining business.
Suppose you want to start a mining business; doing so as a limited liability company (LLC) or a corporation will give you legal protections. And this would keep your tax obligations simple. This means that if something goes wrong with your business or someone sues you, your assets, like your home or car, are safe because they can’t be used to pay off business debts or judgments against your company.
If your mining company is an LLC, you have to register it with the state where you are based. You also have to apply for an EIN if you will be employing other workers in your mining business. If you are going to be operating as a corporation, you will have to register your business. And get a business tax ID or say Business TFN.
Open a Business Bank account & credit card
To keep your personal and business finances separate, open up a business bank account and a credit card. All the expenses related to the running of the mining company would be paid through it.
To help track how much money is coming into your mining company and how much has been spent. How much profit has been made at any particular period? You need accounting software such as QuickBooks or any other software. This will help you keep the business operation incomes and expenses to account for the profits or losses realized.
If you want to start a mining company in Australia, you must apply for permits and licenses. For the business which is a partnership or a limited liability company, you need an Australian Business Number (ABN). And if it is a sole proprietorship, you need an Australian Company Number (ACN).
Get mining business insurance
As a mining business owner, one of the most important things you must do first is get insured. Insurance will help you with any mishap that may occur in the future or any accident that comes along while doing your business. It will help you with all the problems in case of an accident during the working of your business. You need insurance so that there is no problem in the future, and if something terrible happens, you won’t suffer because of it.
To build a strong presence in the industry, you need to define your brand and establish it in the market. Your brand will help you stand out from your competitors in the market. Your brand is one of the most critical aspects of your business, which is why it’s essential to define it early on. When determining your brand identity, think about how you want people to perceive your business, what makes your business unique from others like it, and what you want people to associate with your business.
A significant part of starting a mine is promoting it to potential customers and investors. Website marketing has become the most potent form of marketing today. The easiest way to market your business is via the internet; creating your Mining Business Website can boost your business tremendously.
Setting up a phone system for your business is one of the first things you should do as a new mining company. Your phone number is the first thing people see when searching for a mining company online. You must have a unique and catchy number so people will remember it and use it in their search queries.
You will need to find suppliers for most of the services you will be offering. There are many different types of suppliers that you can choose from depending on what kind of service you want to provide. Some suppliers will only offer their services in certain areas, while others may offer them all over Australia.
Before running any business, you must calculate all your overheads before beginning to ensure that everything runs smoothly once the company is up and running.
Your startup cost may vary depending on the size of your operations and the nature of your product. Even if you are operating a small-scale operation, you will still need some capital to start up and keep things running smoothly.
Choose a location for Starting a Mining Company
The location of your mining company should be the next step. You will want to find a place where there is demand for your product or service and where it is legal to mine for that product or service. It would help if you also looked for areas with a good infrastructure surrounding them because once your company gets started, you’ll need to transport your products elsewhere where they can be sold at a profit and used by consumers.
As much as investors can quickly provide the finance you need to start your mining company, one thing you should keep in mind is that there are several other business opportunities available for investors, so you have to convince them that yours is better. When you can do this, getting financed will not be a problem.
To determine if it is worth starting a mining company, you have to test-run it. This will help you know if indeed you will be making money from it or not. You can test run by finding out what people want and selling it at an affordable price.
Get your equipment, tools, and employees ready
Once you are registered, you will need to get all the mining equipment and tools ready before starting a mining operation. You must also hire employees that are dedicated to working on the site. The number of employees required will depend upon the size of your mining site and the amount of work that needs to be done on it.
Start marketing your mining company
You cannot run a successful business without marketing your products or services. Therefore, you must create a strong marketing team to help promote and sell your products. Some of the marketing strategies you should consider include creating an informative website, using social media platforms, and advertising your products on relevant forums and blogs.
Consider risk factors involved in the business
The truth is that working and operating a mining company can be risky considering the various hazards such as collapsing mine shafts, explosives, and accidents that may occur while doing business. Therefore, you should take time and consider the different risks involved with this type of business before investing your money in it. You must consult with insurance experts to help you find appropriate insurance coverage for your mining company.
Look for a lawyer willing to give you a flat fee quote, so you don’t get surprises later. In addition to charging hourly rates or flat fees, some lawyers also work on contingency, which means they take a percentage of any proceeds or settlements you receive. Choose someone who is easily accessible and responsive when you need it. Please find out your lawyer’s communication style and make sure it suits you well.