Startup Costs: How Much Does it Cost to Open a Business?

Since making the switch to Zeller, Decoy Cafe has resolved its biggest frustration. Coffee is a family affair for the Spathis’. Brothers Bill and Chris have been perfecting the art of brewing for more than 30 years, ever since their first summer holiday job working in the family’s coffee lounge. These days, the coffee connoisseurs can be found on Melbourne’s busy Exhibition Street. Every morning, Bill fires up the roaster and Chris gets to work preparing the kitchen for the busy day ahead. The smell of fresh coffee wafts out into the street, welcoming Decoy’s loyal customers in for their morning cup. But Decoy had a persistent problem. Their EFTPOS terminal, provided by one of the big four banks, would frequently drop out during rush hour — forcing them to rely on an I-owe-you honesty system. We sat down with Bill to understand more about the Melbourne coffee scene, what makes Decoy unique, and how Zeller is helping business run as normal. How did you get started in the coffee business? We’ve always been involved in coffee, it’s in our blood. As kids, we didn’t get school holidays. We would jump on a train and head for the city, to dad’s coffee lounge. We’d arrive early in the morning and help dad take orders, serve customers and make coffees. Then, when my brother and I went to Sydney for a period in the early 90s, we continued the family legacy. We established and ran Retro Cafe for about 15 years, which was next door to Sydney’s State Theatre. It became a bit of an institution. We hadn’t started roasting our own coffee yet, though. Eventually, we came back to Melbourne and landed in Flinders Lane. This is when the cafe scene became very competitive — you had to do something different to stand out from the crowd. So, we decided to roast our own coffee. It’s difficult to roast beans in the middle of the CBD, due to council restrictions, so we ended up finding the site at 303 Exhibition Street. We’ve been roasting here for 14 years now. What’s changed in the three decades since? Back in the 70s, people ordered their coffee so hot it was sacrilegious — but that’s the way most people liked it. There was also far less diversity. At one stage, most people were buying coffee from the supermarket. People are more discerning now. Most are buying their coffees from local roasters. Single origins are our specialty, and we do it well. We roast single origins from Colombia, Costa Rica, Brazil, Tanzania, Ethiopia, Rwanda, Kenya, El Salvador, and beyond. All our beans are roasted in small batches, which helps us to make sure every roast highlights the beans’ unique characteristics and gives more consistency within each batch. The cafe industry has changed dramatically from the 70s to now, and it’s still constantly changing. You’ve got to keep up, whether that’s with a new offering like beans, better service, great staff, or new equipment. Last year, we renovated the cafe and installed a Modbar under-counter coffee machine for a streamlined coffee service. We also recently upgraded our EFTPOS terminals to Zeller. What made you decide to switch EFTPOS terminal providers? We were with one of the big four banks, and we were very unhappy with the number of dropouts. Our EFTPOS terminal would stop processing transactions at peak periods. Our upstairs area would be packed with diners eating breakfast, while downstairs would be busy with takeaway coffee orders and there would be a queue out the door. But the terminals would go down, so none of the customers could pay — they’re not carrying cash these days. We’ve built up a strong customer base. About 95% of our customers are regulars. So, when the terminals were down, we’d take a customer's name and they’d come back the next day to pay us. We don’t have any of those issues with Zeller, so I’m happy to say we don’t need to do that anymore. Our terminal has 4G and WiFi. If the 4G network goes down, WiFi takes over — business continues, as normal. "Taking payment from a customer is simple, as it should be." How did the outbreak of the pandemic affect the business? It's been tough, I won't deny it. We have a great product and a loyal customer base and that's allowed us to keep going. The COVID-19 pandemic and lockdowns impacted sales, as we lost all our corporate customers when offices emptied out in Melbourne's CBD. What's kept us going is essential workers and tradespeople from nearby building sites and an increase in the number of  “home barista” customers — people buying their coffee beans from us to make their own coffee, while working from home. Tell us about working with family. We believe that being a family business has helped us succeed and stay resilient even in these challenging times. Chris and l have worked together from the very beginning, starting in our late father’s restaurant as young boys. We work well as a team and I think it’s part of what makes Decoy a success. A lot of cafe owners these days will hire a manager, but we’re owner-operators, and there’s always one of us here. We do that because we really love working with customers. We give 100% when it comes to quality, service and staff. Chris and I share those values. We rely on each other. Decoy Cafe is located at 303 Exhibition Street, in Melbourne's Central Business District. Drop by for your morning coffee, a quick snack, or lunch, or pick up a bag of fresh coffee roasted on-site (also available on the newly-launched Dark Horse Coffee Roasters website).

Here's what you need to know about finding the right EFTPOS terminal. Searching for a next-gen EFTPOS machine that accepts modern payment methods, processes payments quickly, settle funds into your business account as fast as possible, and looks good on your countertop? Finding the right terminal for your business is important – you’ll rely on it for secure, fast cashless payments that keep your cash flow looking healthy. Some terminal providers will lock you into long contracts, with expensive termination fees, so knowing what to look out for is key. How much is it to have an EFTPOS machine? The EFTPOS machine you choose will depend on variables such as your budget, sales volumes, Point of Sale (POS) software, and fees associated with your merchant account. It costs $259 to own a Zeller Terminal outright. There are no hidden fees or charges, and no lock-in contracts. When you sign up for Zeller, you also receive a free Zeller Transaction Account (into which funds accepted via Zeller Terminal are settled nightly) and a free Zeller Debit Card — so you can pay suppliers and make business purchases with ease. Keep reading to discover the nine questions you should keep in mind when comparing EFTPOS terminals. 1. Do I understand the fees? Many business owners don’t realise they are agreeing to pay hidden fees, such as expensive terminal fees, until it’s too late. Sign the dotted line and you could be agreeing to pay a lot more than anticipated for your EFTPOS machine — and lock-in contracts usually come with hefty fees for early cancellation. Otherwise cautious business owners fall victim to hidden EFTPOS terminal fees time and time again. However, these fees are required by law to be disclosed somewhere – you just need to know where to look. Make sure to go through the terms and conditions with a fine-tooth comb; never solely rely on a verbal quote. If you’re already using an EFTPOS machine, check your merchant statement as this will tell you the processing fees and other fees you’re currently paying. It’s also important to remember that, in most cases, if you decide to rent your EFTPOS terminal you won’t own it at the end of the payment period. You’re simply paying for the privilege of using it, and will be left empty-handed when the contract ends. Although renting may look like an affordable option at first, it’s a tactic designed to get business owners to pay far more than what the terminal is actually worth. Zeller Terminal is yours to own for one low payment of $259. There’s no lock-in contract or hidden fees; we know you’ll keep using your Zeller Terminal because you love it, not because you have to. Learn more about Zeller Terminal and whether it’s the right solution for your business. 2. Will it be easy to use? Taking payment is usually the last interaction a member of your staff has with a customer. However, time wasted teaching staff the intricacies of a confusing system is time that could be better spent on other parts of the business. The ease with which staff process a payment affects the customer experience at every business. Your EFTPOS payments terminal needs to be easy for all staff to use, with minimal training. This is especially important if you run a retail store that hires casual staff during peak holiday and sales periods, or in another business that regularly hires new workers. When shopping for an EFTPOS terminal, consider whether it has been designed by a team that understands your business. Are the prompts straightforward? Is the user flow intuitive? Your terminal should feel natural and simple to use. If it is, your staff will save time with every transaction – and you’ll save time training them how to use it. 3. Can I customise it to suit my business? Some EFTPOS payment terminal providers will force your business to work their way. This is related to the point above: if you choose a provider who understands your business, you’ll likely find there’s no need to change your internal workflows. An EFTPOS terminal should fit the way you want your business to work. When selecting a terminal provider, consider how well it fits with your established processes. For example, you might want the ability to: restrict the ability to provide a customer with a refund to a small pool of staff, such as managers charge your customers a surcharge enable tipping customise your receipts Choose a provider that gives you the power to customise the way you accept and manage your payments and you’ll save yourself from needing to retrofit your processes to fit the tool. 4. What happens if my internet cuts out? Your business needs to be able to continue processing cashless payments even during periods of internet outage. You don’t want to have to send your customers to the closest ATM, or have them scrambling for cash. Occasionally, small periods of service downtime will be unavoidable. Your internet provider might be down for routine maintenance or there may be a power cut to your area, or another technological issue may impact how your EFTPOS terminal connects to the internet. However, any period of downtime has the potential to negatively affect your business — the impacted customer may never return. That’s why, when you choose Zeller Terminal, you have the option to switch to another network. If you’re experiencing issues with your Wi-Fi provider, it’s simple to connect via 3G to another network and continue processing payments using your SIM card. 5. How often will I need to charge it? These days, many businesses are run on the go — so a mobile EFTPOS terminal is a must. Cafes and restaurants that take payment from the table depend upon a long-lasting battery to get through the day. For a retail store, a long-lasting battery provides the flexibility to take payments from wherever is convenient for the customer. For mobile services such as trades and beauty technicians, having the ability to take payment on the go saves you the hassle of returning to your computer, sending an invoice, then following up until payment is finalised. It’s essential that the EFTPOS terminal you choose has enough battery life to give you peace of mind that you’ll never miss out on crucial transactions. 6. How fast can I put my funds to work? Depending on which payment services provider you choose to use, you could access your funds the same day you earn them – or you could be waiting upwards of three business days. The speed of settlement can have a big impact on your cash flow. Choose a provider that’s slow to settle, and you may find yourself in the frustrating situation of needing a business loan to tide you over until your funds are released. When you use your Zeller Terminal in combination with your free Zeller Transaction Account , you’ll get same-day settlement for your funds so you can spend using your Zeller Debit Card . Or, if you want to use your existing business bank account , your funds will settle the next business day. 7. Is there setup and ongoing support? Painful setup, hard-to-follow instructions, and uncontactable customer service representatives are headaches you simply don’t need. Some EFTPOS terminal providers are intuitive enough to use out of the box, whereas others come with a booklet of instructions you’ll need to follow. Or, you may be asked to book a technician to manage the setup on-site. Once you’re up and running, having multiple ways to ask for help – whenever you need it — is important. If your business operates in the evening and on weekends, look for a provider that offers extended support hours. If something goes wrong and you need answers fast, you need to feel confident that someone will pick up the phone on the other end. 8. Will it protect my business? Fraud is a risk for businesses of any size. Recurring chargeback fraud , in particular, can be costly for a business. When considering any financial services provider, it’s important to check whether it's backed by a team of security experts. You’re trusting this business to handle your money. Zeller’s Support team monitors transactions round the clock — 24 hours, 7 days a week — to prevent fraud before it happens. Backed up by intelligent machine monitoring, our team works to identify and respond to fraudulent attacks in real-time. 9. How soon can I get it? If you’re ready to start selling your products or services now, choosing an EFTPOS terminal that takes weeks to be delivered is an unnecessary setback. Why eat into valuable time you could be turning a profit? Ideally, your EFTPOS terminal will be available for delivery quickly. Even if you’re not ready to start accepting payments at your business, getting your EFTPOS payment terminal as soon as possible will give you extra time to get up to speed with its features and options for customisation. We offer fast, free shipping anywhere in Australia, for all Zeller purchases. Sign up for Zeller in minutes. Zeller Terminal and accessories can be purchased online from the Zeller Shop with free express shipping and same-day dispatch. Once you’ve considered these 9 questions, you should have a good idea of the non-negotiables you need from your EFTPOS terminal provider. Remember to always read the fine print and understand what you’re really paying for when you sign the dotted line.

There are 11 critical elements of a successful business plan. No two business plans will look exactly the same. The information you choose to include — and the way you communicate it — depends on your audience and business goals. Yet there are a number of critical elements that every business plan should contain. Before you start writing your business plan, make sure you understand the preparatory work involved. Follow our six preparatory steps and you should have all the information you need to put together a blueprint for success — whether your goal is to start a new business, secure funding, or grow an already established business. Then, follow the below template to ensure your document includes the 11 essential sections of a successful business plan. 1. Executive summary Write this part last. It’s the first section your audience will read, which means it needs to provide a clear and compelling summary of your entire business plan. After completing the following 10 sections of your business plan, summarise the main points here. Include: your customers’ need how your business will address that need an estimation of growth potential projected sales figures any key dates and milestones financial information, including current capital 2. Business overview This is where you provide key information about: the industry your business model Start by providing an overview of your business and its background. Introduce the industry, as well as the categories and any relevant sub-categories your business falls into. For example, a hospitality business may be a fine dining restaurant, hole-in-the-wall takeaway joint, family diner, food truck, or something in between. You should also explain the business model you’re using to turn a profit. Perhaps you’re leasing goods, or selling products over the counter. You could be running a subscription-based service, or providing a service for a fixed rate or hourly fee. Will you deviate from the typical model used by similar businesses? Highlight any plans you have to improve it, perhaps by cutting certain costs or streamlining standard processes. 3. Goals Draw upon your mission statement to extrapolate your business goals at a high level, and then get specific. Break your goals down into both short-term (6 to 12 months) and long-term (5 years). What do you want to achieve, and when will you achieve it? This may include: opening another location breaking even at a certain point in time expanding into another industry Carefully consider your target dates and be realistic with what you can achieve. A vision or mission statement might be inspirational, outlining the changes you hope to effect in five years or so, but this is the section where you seriously consider what’s achievable and make a commitment to achieving these goals. Remember that the budget and financial projection outlined in this document are closely tied to the goals you outline here. 4. Products or services Provide a high-level explanation of the product or service you’re selling, before drilling down into the specific need(s) that offering meets. Start with a straightforward description, avoiding any jargon that might confuse the reader. What will a customer receive from your business? Then, explain your customer’s needs. What’s available to them today? Where is the gap? What is needed? What could be improved? Consider things like price, quality, convenience, choice, speed, and service. Write down how your business will improve the current state of play and meet those needs. However, don’t go into too much detail here — you’ll cover that in the next section when you analyse the market. 5. Market analysis This is where you get specific about the current state of the market and deep dive into your customers’ needs, as well as your competitors’ businesses. There are a few things you should consider here. 1. The market The current market structure, and where your business fits within it The market opportunity, in terms of potential revenue value Future markets, whether local, national or beyond How your business will respond to potential changes in market conditions 2. Your competitors Their strengths and weaknesses The share of market each holds What sets your business apart 3. Your customer Your target market’s purchasing habits Factors that might influence those habits in future Consider how best to communicate this information, as there’s quite a lot to think about. Visuals such as graphs and charts can help you communicate paragraphs of text succinctly, and allow for key insights to be gleaned at a glance. 6. Risk assessment Who would’ve guessed that in 2020, businesses across the nation would be shuttered for months on end? These days, any sound business plan must include a pandemic-proof contingency strategy. However, that’s not the only risk your business may face. Think of all the things that could potentially go wrong. Then, consider what each might mean for your business. For example, consider how these risks might affect: your supply chain your customers’ experience staff cash flow Then, detail how you would mitigate the risk itself. You should also talk to a professional about which insurance product is best suited to your particular risks. 7. Marketing and sales strategy Your budget and projections must align to a goal. It could be a specific number of sales, but it will likely be total revenue. This is the section where you explain how your business will achieve that goal. Marketing Outline your launch activities. Keep in mind that most, if not all, marketing tactics will cost money and need to be accounted for in your forecast cash flow. Depending on the size and type of your new business, as well as your growth goals, you might like to consider local PR, giveaways, a launch party, local community event sponsorship, or something out-of-the-box. Then, consider what ongoing marketing efforts will look like. How will your business engage with potential customers on Instagram? Do you need a purpose-built website? Will you run seasonal offers, and if so how will you let customers know? Sales If your staff will need to actively “sell” the product or service, consider how many steps each sale will take and what that means for your projections. Tradespeople, for example, will need to learn how to answer the phone, provide a quote, and follow up to get the quote accepted. High-end shop assistants may need to learn how to upsell a customer, and suggest alternate items or accessories. This will not be relevant for every business, however it’s integral for those businesses dependent on a sales process. By mapping it out here, you’re more easily able to identify potential bottlenecks to driving revenue. 8. Your team Remember who may be looking at your business plan: potential new partners and investors. Even if your business plan is just for you, it’s important to introduce who’s who, and who’s responsible for what. Start with: business ownership structure management structure key roles each individual’s expertise and qualifications Remember to include any mentors or business support resources that you’ll be relying on. For businesses anticipating a quick scale-up, it might be a good idea to also include any recruitment and retention policies for staff that will be key to growth. 9. Budget There are a few things every business needs to be successful: a budget and cash flow are two of them. Your budget should include a projection of profits and losses, and a balance sheet — as well as an explanation of how cash flow will work. Profits and losses Itemise your costs on one side, and predict your income on the other. When putting this together, consider: costs necessary to keep the lights on, such as rent and electricity the base cost of your product or service staff costs the appropriate level of insurance your business needs tools required to operate, such as EFTPOS machines Don’t forget to factor in a contingency cost. Balance sheet Outline what your business owns versus what it owes. For example, the business may own equipment, real estate, or patents and rights. It may owe a specific amount of money, as a loan. Cash flow Show how and when money will flow in and out of the business, and how this aligns with the businesses’ outgoings. Stick to the main figures, and use graphs or other visual cues where possible. Present a few scenarios to show you understand these costs may fluctuate, and remember to add further detail as an appendix to your business plan. 10. Finance After taking a deep dive into your business’s budget, the costs required to get up and running should become clear. You’ll also know roughly when income will start flowing back into the business. If you will need some additional funding to bridge the gap between those dates, explain here where it will come from — perhaps you’ll rely upon savings, family and friends, an investor, or a business loan. Consider also where you will store business funds. Zeller Terminal comes with a fee-free business bank account , giving you fast access to your funds. 11. Compliance Outline what both the business and yourself, as a business owner, are legally required to do. This will depend on whether the business is operating as a sole proprietorship, partnership, company, trust, association, or something else. For example, you might need to: apply for an Australian Business Number or Australian Company Number register for GST register your business name register your website’s domain name trademark your business name register for PAYG apply for any permits or licenses necessary Make sure you seek professional advice regarding what’s required of you as a business owner. Every business is different, so your business plan might look nothing like the examples available online. However, if you follow the above, your business plan will include all the most important elements.