Know About The Cost of Starting a Civil Engineering Business Here.
How Much Money is Required to Start a Civil Engineering Business?
Australia may be one of the many developed countries of the world, but the scale of development is only increasing with each passing day. The country offers lucrative opportunities to start both residential and commercial construction projects thanks to its superior-tech environment and highly skilled workforce. Since the country welcomes people from across the globe, civil engineering projects are commonplace for providing the necessary infrastructure to the incoming population.
The rising demand for construction projects has paved a way for civil engineers to set a strong footing in the market. If you wish to start a civil engineering business in Australia, then you should know that the journey won’t be as easy as it seems. You will have to undertake a lot of risks and face a number of challenges during the course. It’s natural for anybody to feel intimidated by the prospect of starting a civil engineering business, but with time and effort, you can certainly create a thriving enterprise in the country.
One of the most important factors to consider while starting a civil engineering business in Australia is cost. Finance is the lifeblood of any business enterprise, and you will have to be extremely diligent while channelling it into your business. If you are wondering how much it costs to set up a civil engineering business, then here’s a quick guide for you to follow:
- Registration cost
This is the cost that you have to incur initially to register your civil engineering business with the concerned authorities. There are registration mandates in place that make it necessary for civil engineers to follow before starting business operations. Australian Business Number or ABN is compulsory for all new business owners in the country because this number is crucial for taxation purposes.
Obtaining this number of filing a TFN application does not involve any fee, but you will have to pay something to register your company and get a business name. Generally, the registration fee for a proprietorship company in the country is $506. Also, you will have to pay $37 for a year or $87 for three years to get a business name.
- Salaries of employees
Running a civil engineering business all alone is quite unfeasible. It’s not possible to handle all the affairs of the company all by yourself. This is why you will have to recruit experts to extend a helping hand towards you—something that calls for prudent decisions regarding salaries on the part of business owners.
The minimum wage that Australian companies must pay to employees is $19.84 per hour. To cite the weekly figure (38 hours), it’s $753.80. However, the amount of salaries will differ according to the roles you are hiring for. To attract the best talent in the market, you will have to pay a lucrative sum for sure.
- Rent for office space
Besides the salaries of employees, you will have to factor in the cost of renting an office space. It’s not always possible for civil engineers to run a business from home, just to save on rent. Having an office space will create a positive impression before your clients and give you an edge over your competitors in the market. So, you should consider renting a decent office space that allows you to conduct your operations smoothly.
In Australia, the average rent amount for commercial spaces will differ depending on the location of your business. It’s about $1025 per square meter annually in Sydney, while it’s about $380 per square meter annually on the Gold Coast. So, you should take the location of your business into careful consideration if you are planning to rent an office space.
- Professional fee payments
Running a civil engineering business in Australia is challenging in the sense that you need experts to back you in certain situations. Just like anything else, professional services don’t come for free. The performance of certain critical functions in your business will call for outsourcing services—something that involves money.
Accountancy and legal fees are critical payments that civil engineers will have to pay when outsourcing these functions to a third-party service provider. You should know that these services aren’t always cheap. The more professional the outsourcing company is, the higher the cost will be. So, you will have to set aside a budget to meet these costs.
The above are some of the costs that you will have to incur while setting up a civil engineering business in Australia. However, you might also need to consider getting Professional indemnity insurance, Product Liability insurance and Public liability insurance—all of which can add significantly to your start-up costs. The amount that you will have to pay depends on several factors. To know more about these different types of business insurance, you can visit this website.
*As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.
GoCardless, How much does it cost to start a business in Australia?, Avl at: https://gocardless.com/en-au/guides/posts/business-start-up-costs-australia/
Evzone, Published on April 15, 2020, Author: Hazel Nguyen, Operating Expenses: Estimating Cost to Start an Engineering Firm, Avl at: https://www.envzone.com/small-business/operating-expenses-estimating-cost-to-start-an-engineering-firm/
Business.gov.au, Last Updated: 19 August 2020, Calculate the start-up costs of your business, Avl at: https://business.gov.au/Planning/New-businesses/Calculate-the-start-up-costs-of-your-business