A Guide to Starting a Business
The key considerations, common pitfalls, and practical tips for getting your new business off the ground — whether it's a franchise or your own venture.
Tell most finance companies you're just starting and watch them run a mile. Well, not CFI. At CFI Finance we've helped thousands of Australians to start, acquire, and grow their business. As an independent finance company, we have the flexibility to learn more about our customers and to say yes more often.
Whether you're buying into a franchise or launching your own independent venture, here's a practical guide to getting it right — and how CFI can help fund your start.
Before you begin: key considerations
Starting a business is exciting, but it pays to do your homework first. These questions will set you up for a stronger start — and make the finance process smoother.
Why this business?
Your "why" is the foundation of everything. When you choose the right business, it should align with your skills, your interests, and your values. Starting a business is hard work — there will be long hours and challenges along the way. A strong sense of purpose will carry you through.
Who are your customers?
No matter what industry you're in, understanding your customers is critical. Where will you find them? What drives their buying decisions? A clearly defined target market helps you answer the question: "Will I have enough customers to make this work?"
How will you compete?
Understanding your competitors — their strengths, their weaknesses, and what makes you different — is one of the earliest things you should look at. Being able to explain clearly why a customer should choose you is powerful, and it's one of the things lenders look for too.
Do your numbers stack up?
Errors in financial forecasts can cause serious problems before your doors even open. Are customer numbers realistic? Is rent accurate? Remember that profit and cash aren't the same thing — you need both a profit & loss forecast and a cashflow forecast. Build in a worst-case scenario, not just the best case.
What to watch out for
Starting a business isn't risk-free. Here are the things that catch people out most often.
Underestimating costs
It almost always costs more than you expect. Rent bonds, fit-out overruns, insurance, stock, signage, legal fees — the list adds up fast. Map out every cost before you commit, and build in a buffer for the unexpected.
Cash flow in the early days
Even profitable businesses can run out of cash. Revenue takes time to build, but expenses start from day one. Make sure you've planned for how you'll cover the gap between opening and reaching break-even.
Wearing every hat
As a new business owner, you'll be the salesperson, the bookkeeper, the cleaner, and the boss — all at once. It's exhausting. Plan for it, and know when to get help or outsource tasks that are outside your strengths.
Unrealistic revenue expectations
It's very common to overestimate how quickly revenue will ramp up. Be conservative with your projections — lenders have access to industry data and will know if your numbers don't add up.
Neglecting the legal setup
Business structure, ABN registration, insurance, licences, lease agreements — get these right from the start. Mistakes here can be expensive to fix later. Invest in professional advice early.
No business plan
A business plan isn't just a box to tick for a finance application — it's your personal blueprint for success. It forces you to think through the critical details and gives you something to measure progress against.
Tips for getting started right
Write a business plan
It doesn't need to be a novel — it needs to be clear, honest, and useful. A good business plan explains the critical functions of your business, communicates your objectives, and becomes a reference point for measuring progress. We've written a practical guide to help: How to Write a Business Plan.
Map out every cost
List all your setup costs on one side and your funding sources on the other. Include everything — franchise fees, equipment, fitout, rent bonds, stock, legal fees, insurance, and working capital. The gap between costs and funding is what you'll need to borrow. Download our free business templates to help.
Build a cash buffer
Don't plan to spend every last dollar on setup. Keep a reserve for unexpected costs and slow early trading. Running out of cash in the first few months is one of the most common reasons new businesses fail.
Get professional advice
An accountant can help with your financial forecasts and business structure. A lawyer can review your lease or franchise agreement. These are small costs relative to the risk of getting it wrong.
Talk to a lender early
You don't need to have everything finalised. An early conversation helps you understand your borrowing capacity and what you'll need to prepare. It can actually save you time and help you focus on opportunities that are within reach.
How CFI can help
We back start-ups
Most banks won't touch a new business. CFI has helped thousands of Australians get their start — in franchises, independent ventures, and everything in between. We assess the whole picture, not just your business history.
Fast decisions
We make lending decisions in-house — not through a committee. Most applications are assessed within 4 to 48 hours, and many on the same day.
Preserve your capital
Don't consume all your savings getting started. CFI can finance your equipment, fitout, and setup costs — preserving the capital you need to run the business from day one.
Common questions
How much can I borrow to start a business?
CFI offers business loans from $25,000 to $500,000, with terms up to 5 years. Equipment finance is available from $5,000 to $500,000. How much you can borrow depends on what you're funding, your financial position, and how much of your own money you're contributing.
Do I need a deposit or savings?
In most cases, yes — lenders want to see that you're contributing some of your own funds. This doesn't always have to be cash; it could include equity in property or other assets. The amount depends on your situation, but having genuine skin in the game is important.
Can I get finance if I've never owned a business before?
Yes. CFI has helped thousands of Australians get their start in business. We assess the whole picture — your experience, your plan, and the opportunity — not just your business history. Relevant industry experience and a genuine financial contribution go a long way.
How long does approval take?
CFI makes lending decisions in-house, which means faster turnaround. Many applications are assessed within 4 to 48 hours. The key is having your documents ready: identification, details of what you're funding, a financial forecast, and evidence of your contribution.
What's the difference between starting a franchise and an independent business?
A franchise gives you a proven system, brand recognition, training, and ongoing support — but comes with franchise fees and operational requirements. An independent business gives you complete freedom but requires you to build everything from scratch. Both are viable paths, and CFI finances both.
Should I talk to a lender before I commit?
Absolutely. An early conversation helps you understand your borrowing capacity and what you'll need to prepare. We're happy to chat before you've signed anything — it can save you time and help you focus on opportunities that are within reach.
More questions? See our full FAQ or get in touch.
Where to next?
Buying a Business
Thinking about buying an established business instead? Here's a practical guide covering the benefits, risks, and tips.
Franchise Finance
Buying into a franchise? CFI are the franchise finance experts. See our guide to starting your first franchise.
Start a Business Pathway
Learn more about how CFI structures finance for new businesses in their first 6 months.
Thinking about starting a business?
Talk to a CFI Finance Specialist — we can help you figure out the finance before you commit.