Joel Thompson has a stark warning for anyone considering taking over a business: do your due diligence and seek advice from other First Nations business owners.

The proud Ngiyampaa man, who took over a Registered Training Organisation (RTO) 18 months ago and rebranded it as YAKKA, said the business almost collapsed in the first six months because he trusted the wrong people.

His company comprises Yakka Training and Yakka Careers which is now focused on traineeships and apprenticeships.

"I would say do your due diligence on who you work with, who you partner with, and who you talk to, because there are a lot of frauds out there, to be totally honest," he told the Indigenous Business Review.

"It was a very tough period of sleepless nights and stress, and no one came along to give you cash or help drag you out of it."

Since overcoming those challenges in the early days, he said the business has grown significantly with the right people involved.

The 36-year-old said one of his motivations for starting the company, which provides training, mentoring, and support services to help people develop skills and secure employment, was to give back to First Nations communities.

After spending time in the construction industry, he noticed that many young Indigenous and non-Indigenous people lacked the skills needed to succeed.

"These young people are expected to be successful in the workplace, but they often lack financial literacy, workplace resilience, and other soft skills," he said. "Once they have that education, they turn into superstars."

"I just wanted to improve how training is delivered. Some students need extra education and support to be successful. By building careers, you can truly influence people's lives and change them forever."

The former rugby league champion, who played 234 NRL games and captained the Indigenous All-Stars in 2020, said he drew on the skills he learnt during his playing days to help him in business.

However, as managing director of YAKKA Training and YAKKA Careers, he is also inspired by his family and community.

"I've seen the barriers people face, and I've never forgotten where I came from or what I saw in the community," he said.

"I remember seeing my uncle, who worked in rail with ARTC (Australian Rail Track Corporation). He supported his family and changed their lives, which always stuck with me. I share that story all the time as a reminder that others can do the same—they can change their lives with training and a career."

While his Gold Coast-based company faced significant initial setbacks, Mr Thompson has no regrets about getting into business.

He encourages young First Nations people to take the plunge and start their own companies. His advice: surround yourself with good people and work smarter, not harder.

"You can't just bring people in blindly; there are a lot of people who aren't who they say they are," he said.

"I want anyone reading this to back themselves - don't let anyone or anything get in your way. Things will go wrong, and you'll make mistakes, but those experiences are some of the best lessons in business and life."

Corporate lawyer and former Kinaway Chamber of Commerce chief executive Donald Betts said any First Nations person looking at buying a business needed to do some serious due diligence.

"The last thing potential buyers want to discover is that their intended business has reputational issues or serious litigation issues or owes taxes," he said.

"So, you must be aware of that and do your due diligence and ask for reports, conducting corporate and personal searches, outlining directorships and who owns the company.

"Look at the different subscriptions and public databases and ask if they're insolvent or if they have any civic civil litigation issues.

"And you also need to conduct media searches on social media - look them up, and really dig into their business."

Mr Betts said it was crucial for any potential business owners to engage a lawyer to navigate all the bureaucratic red tape.

He also warned any budding entrepreneurs to be wary of red flags.

"Sit down with a lawyer and say, 'I need to instruct you to do a full due diligence on this company that I'm getting ready to buy'," he said.

"If you can't afford to pay a lawyer to help you with your due diligence, you don't need to be buying a business in the first place.

"I mean some folks are anxious, forcing you to hurry up and sign so that's a red flag.

"So, there's security even in asking someone else to look after you."