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Business Tips for Mining Contracting

 

Starting a mining contracting or subcontractor business in Australia can be challenging but rewarding. As a miner or associated with the industry, you will be potentially working alongside large & registered mining companies (Tier 1, 2 or 3 Businesses) or even listing companies here in Australia or foreign-owned businesses.

To set your business up successfully, it’s essential to research the local market, determine the legal structure of your business, secure initial & ongoing financing (working capital), and build a strong team.

 It’s also crucial to have a Xero, MYOB or Quickbooks bookkeeping system in place; in Australia, we are now required to have a system that is compatible & approved by the ATO for Single Touch Payroll, Superannuation & Payroll compliance.

Understanding your ATO obligations and, implementing effective risk management and safety procedures & holding appropriate insurance are not only critical but mandatory. 

In addition, an effective marketing strategy is key to reaching your target audience and promoting your services. 

Here are 40 tips to help you successfully set up, operate and market your mining contracting business in Australia.

10 x Tips for Setting up a Mining Contracting business in Australia:

  • Research the local market and competition to identify opportunities and challenges
  • Determine the legal structure of your business (e.g. sole proprietorship, partnership, corporation) and register the business with the appropriate government agencies
  • Obtain any necessary licenses and permits, such as a mining license or occupational health and safety certification
  • Obtain secure finance for your business, such as a business loan or investment from shareholders
  • Develop a business plan outlining your goals, target market, and strategies for achieving success
  • Build a strong team of experienced professionals to help manage and grow the business
  • Establish relationships with suppliers and industry partners
  • Invest in high-quality equipment and technology to help you efficiently and effectively meet the needs of your clients
  • Implement effective risk management and safety protocols to protect your business and your employees
  • Consider seeking guidance from a business coach or mentor to help you navigate the challenges of starting and growing a successful mining contracting business.

10 x Tips Setting up the Xero bookkeeping system for your business:

  • Please familiarize yourself with the Xero platform and its feature
  • Set up your:
    • Chart of accounts to reflect the way you classify your financial transactions
    • Bank feed to import your banking transactions automatically
    • Tax rates and preferences, such as the default sales tax rate for your business
    • Invoice and payment preferences, such as the payment terms you offer to your customers
    • Inventory and purchase order systems, if applicable
    • Payroll and employee information, if applicable
    • Integrations with other business tools you use, such as your CRM or project management software
  • Use Xero’s built-in reports and analytics to track your business’s financial performance
  • Please review and update your Xero system regularly to ensure it is accurate and up-to-date.

10 x Tax tips for your mining contracting business:

  • Understand your tax obligations and the tax implications of your business activities
  • Keep accurate and detailed records of your income and expenses to help you accurately report your business’s profits and losses.
  • Determine the best tax structure for your business, such as a sole proprietorship, partnership, or corporation, and register for the appropriate taxes
  • Set aside funds to pay your tax liabilities regularly, rather than trying to come up with a large lump sum at tax time
  • Take advantage of tax deductions and credits that are available to your business, such as deductions for business-related travel and training.
  • Consider hiring a tax professional, such as an accountant or tax lawyer, to help you navigate the complex tax laws and regulations that apply to your business.
  • Understand the tax implications of any business transactions, such as selling assets or hiring employees
  • Stay up-to-date on tax law changes that may affect your business.
  • Please keep in mind the deadlines for filing tax returns and paying tax liabilities.
  • Consider setting up a tax planning strategy to help you minimise your tax burden and maximise your business’s profits.

10 x Marketing Tips for your mining contracting business:

  • Identify your target market and understand their needs and preferences.
  • Develop a marketing plan outlining your goals, budget, and strategies for reaching your target market
  • Use a variety of marketing channels to reach your audiences, such as social media, email marketing, content marketing, and traditional advertising.
  • Create a professional website to showcase your services and provide information about your business
  • Use search engine optimisation (SEO) techniques to help improve the visibility of your website in search results.
  • Network with other industry professionals and attend industry events to build relationships and promote your business
  • Offer promotions or discounts to attract new customers.
  • You can use customer testimonials and case studies to showcase the value and effectiveness of your services.
  • Collaborate with other businesses or organisations to cross-promote each other’s services
  • Invest in professional branding and design to create a consistent and cohesive image for your business
  • You can monitor your marketing efforts and track your results to see what’s working and what can be improved upon.

If you have any questions or need advice as you set up and grow your mining contracting business in Australia, consider reaching out to Gavin Bottrell at Bottrell Business Consultants.

With locations in Maitland and Newcastle, Bottrell Business Consultants can provide expert guidance on all aspects of business development, from market research and legal issues to bookkeeping and tax compliance.

Contact Bottrell Business Consultants at either of their offices – 93 Lawes Street in East Maitland or 45 Hunter Street in Newcastle – to learn more about how they can help your mining contracting business succeed. Phone 02 49336888 or office@bottrellaccounting.com.au

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