S & H Tax Accountants

Category: Firm News

  • More JobKeeper changes expected

    7 August 2020

    You may have heard the news that Treasurer Josh Frydenberg has announced the government will expand the JobKeeper scheme again. This comes a few weeks after announcements of JobKeeper 2.0 to start at the end of September.

    Below is a roundup of what has been announced and what we expect to see, but please note that this is not legislated yet and is still subject to change. Again, we appreciate your patience as we work through the changes and what it will mean for your business.

    Two significant changes to JobKeeper have been announced: one is to the business turnover requirements and one to the eligible employees requirements.

    Business Turnover Test

    Previously:

    Previously a business would need to have experienced a decline (by the requisite amount in their turnover) in both the June and the September quarters to be eligible for JobKeeper in the December quarter.

    The change:

    Now the government is saying businesses only need to be down in the September quarter. This takes into account that some businesses did okay in April to June, but have suffered in recent months. This is welcome news for those in Victoria who may be struggling in July, August, and September given the Stage 4 lockdowns.

    Eligible Employees Test Changes

    Previously:

    In the past, an employee had to be on the books as of the 1st of March in order to be eligible for the JobKeeper wage subsidy.

    The change:

    Now, the government will change the eligibility to also qualify employees that were hired as of the 1st of July.

    This is to allow for businesses that started opening up and taking on new employees after March. Those employees will now join the JobKeeper program over the September quarter.

    Payment amounts

    There has been no new changes announced to the payment amounts for JobKeeper 2.0. As it stands, the next phase of JobKeeper will start at the end of September at a reduced rate. The subsidy will be reduced from $1500 per fortnight to $1200 per fortnight for full time workers and those working more than 20 hours per week. For those working less than 20 hours per week, they will receive $750 per fortnight.

    From 4th January 2021, these payments will fall to $1000 per fortnight for full time employees and to $650 per fortnight for those working less than 20 hours per week.

    Thank you

    Thanks for your patience as we work through these changes. We will continue to keep you updated as we have more news.

    As always, we appreciate your ongoing support.

    If you need help call us on 1300 724 829

    We are here to support you in this hard time if your business need help.

  • COVID-19 Business Update – 15 July 2020

    Welcome back to our Weekly Digest. We hope you and your family are safe and doing well. Read on for this week’s update.

    Tightening restrictions as COVID-19 cases top 10,000

    Restrictions have tightened back up in some states in an attempt to contain a fresh outbreak of COVID-19 in the country’s southeast, which pushed the total number of cases in the country beyond 10,000. While Australia has avoided the high number of COVID-19 casualties of other nations through strict measures, an increase in community-transmitted cases in Victoria and new cases in New South Wales is a cause for action.

    South Australia cancelled plans to reopen its border to New South Wales on July 20, while Queensland introduced a mandatory two-week quarantine for those who have visited two areas in Sydney’s western suburbs.

    COVID-19 Restrictions Guide for Each State

    Since the government announced a three-stage plan in May to ease restrictions across the country, Australians have been slowly emerging from COVID-19 lockdowns. However, from midnight on 8 July, the Melbourne and Mitchell shire returned to stage three lockdown for six weeks.

    As COVID-19 restrictions vary across the different parts of Australia, it can get confusing for some. This guide will help you navigate through lockdown rules, including how far you can travel, what types of businesses are open, and guidelines on social gatherings for each state.

    Australian Made and eBay Partner Up to Grow Aussie Brands Online

    Australian Made and eBay have partnered to support local manufacturers grow their online business through a dedicated ‘Australian Made on eBay’ hub. This will allow eBay Australian small- and medium-sized businesses the opportunity to be discovered by 174 million international customers. The hub will feature accredited products across a range of categories, including fashion, health, beauty, automotive, and home and garden.

    With the return to lockdown conditions in some parts of Australia, online sales will likely continue to be increasingly important throughout the remainder of 2020. If you want to re-evaluate your business model and strategy, don’t hesitate to get in touch with us for more personalised business advice.

    Payment summaries have changed

    Last year’s introduction of Single Touch Payroll (STP) means that tax time this year will be a little different.

    Employers are now required to report pays, taxes and superannuation information directly to the ATO each payday through STP.

    Employers that do report this way will not have to give you a payment summary as they usually would at this time of year. Instead, employees will get an end-of-year income statement in ATO online services through myGov.

    All employers will eventually report in this manner.

    Employers that do not report to the ATO in this way will still need to provide a payment summary at the end of financial year.

    ATO Tax Time Toolkit

    The ATO’s Tax Time Toolkit has some useful guides for small businesses on topics such as: home-based business expenses, motor vehicle expenses, travel expenses and pausing or permanently closing your business due to Coronavirus. Ask us if you have any questions.

    Boosting Your Digital Capabilities

    Small businesses across Australia can access individual support to grow their digital capabilities through the Australian Small Business Advisory Services Digital Solutions. This program offers small businesses with fewer than 20 full-time employees and sole traders with high quality advice on a range of digital solutions to meet their business needs at a subsidised rate. More information can be found here.

    Running a business in a post-pandemic world

    They say the worst of times can bring out the best in people– and this is also true for businesses. Last week, we put businesses showing resilience in the face of adversity in the spotlight, and shared the creative ways they serve their customers and communities amid the COVID-19 crisis.

    This week, we talk about the hallmarks of an organisation designed for speed, as outlined by McKinsey & Company (see page 40). Below is a list of characteristics of operating models they’ve identified that result in faster speed to market, increased customer responsiveness, greater efficiency, and enhanced employee satisfaction. These characteristics will help companies stay competitive in the post-pandemic business environment:

    • Flatter organisations with less hierarchy and streamlined decision rights
    • Faster information flows and decision-making, powered by embedded data and analytics
      • As number-crunchers – we love this one!
    • Cross-functional teams collaborating to tackle common missions through test-and-learn approach
    • Flexible ways of working, including affinity for hybrid remote/ in-person teams
    • Dynamic allocation of talent deployed against mission-critical priorities
    • Agile, resilient talent able to move fast, adapt to change, and continuously learn

    This Forbes article also shares tips on how to future-proof your business for a post-pandemic workplace, including:

    • Making flexibility as a core benefit
    • Upgrading equipment and investing in technology
    • Prioritising employee health and wellness
    • Increasing communication
    • Investing in management development
    • Creating a sustainable company culture

    The future of businesses will no longer be determined by what has worked, but instead, what will work in the post-pandemic world. While the “when” and “how” of the end of the pandemic remain unknown, reimagining your organisation and re-evaluating the way you work can help you rise to the occasion and lead your business as the “new normal” we hear so much about takes shape.

    If you want to talk about your specific situation, please get in touch with us and we’ll help you work out a strategic plan.

    Second Round of Cash Flow Boosts

    If your business has received initial cash flow boosts, you’ll automatically receive additional cash flow boosts when you lodge your activity statements for each monthly or quarterly period from June to September 2020. The amount will be equal to the total amount of initial cash flow boosts you received and will be split in either two or four installments, depending on your reporting period.

    If you lodge:

    • quarterly – you will receive 50% of your total initial cash flow boosts for each activity statement
    • monthly – you will receive 25% of your total initial cash flow boosts for each activity statement

    You can find more information here, or alternatively, you may contact us if you have a question.

    State grants and support programs

    Along with national assistance, each state and territory has announced various grants and assistance packages which you may be eligible for. You can find a roundup of these grants on the Government’s Business website. Alternatively, you can also contact us so we can discuss which options are most suitable for your business.

    Minimum Wage Increase

    The Fair Work Commission has announced a 1.75% increase to minimum wages. This will apply to all award wages and the increase will start on 3 different dates for different groups.

    You can find the complete list of awards in each group here.

    For those not covered by an award, the new national minimum wage will be $753.80 per week or $19.84 per hour. This applies from the first full pay period starting on or after 1 July 2020. If you’re not sure which award applies or if you have any questions, get in touch with us.

    Instant Asset Write-Off Expanded

    The Instant Asset Write-off has been extended to 31 December 2020, which means Australian businesses with less than $500 million annual turnover will have more time to take advantage of the write-off and invest in assets to support their business. This government initiative is designed to help the economy reopen and boost economic growth. The instant asset write-off applies on a per asset basis, so eligible businesses can immediately write-off multiple assets provided they each cost less than $150,000.

    Contact us so we can walk you through the different thresholds, exclusions, and limits.

    COVID-19 Safety Guidelines

    SafeWork Australia has put together useful guidelines for a range of industries. The guidelines provide clarification on WHS laws, workers’ rights, risk assessments, hygiene, emergency plans and more.

    What’s next?

    We’ll keep you updated if anything changes but now we’ll shift to helping you get a plan in place for the future. Please get in touch to discuss what’s next for your business.

  • Looking to grow your business? We can help!

    Growing a business is one of the most fundamental goals for all small business owners. Successful businesses are those that are always looking for opportunities to grow and making the most of them.

    What is scalable growth?

    Scalable growth involves balancing the increase of your profits against the increasing costs of manufacturing your products or delivering your service.

    If you can ensure the most efficient systems and processes for what you’re selling, the more profits you’ll see and the more scalable your business will be.

    Can you scale what you already have?

    If you can improve your business’s ability to do more internally, such as speeding up production and increasing the efficiency of your systems and processes, you’re going to reap the rewards in terms of manageable growth.

    Conduct a review of your current operation and decide how you’re going to improve it. Think about:

    • Contractors – getting a third party on board can increase your capacity in the short term.
    • Equipment – can you extend the operational hours of existing equipment by running double shifts?
    • Staff – make sure your employees are working efficiently. If they don’t have the necessary skills they’ll need for upcoming growth, look at training.
    • Pricing – if you’re seeing an increased demand for what you’re selling, can you scale profits by increasing prices where appropriate?

    Increasing your capacity, while improving the efficiency of your systems and processes, means you’re successfully scaling your business for growth – and you’re going to notice it in your profit margins.

    How can you increase capacity?

    While it’s important to maximize your internal resources, scaling your business for growth almost always involves adding to your operations in terms of staff, equipment, facilities and finance.

    The right staff

    Making sure you have the right staff is critical for the growth of any business. If there are vital skills missing amongst your staff, look at upskilling them through training, or hiring someone with the knowledge and experience you need.

    It’s also crucial to have the staff you need to meet increased demand. If you’re manufacturing coffee tables and your orders are increasing to the point where your current staff can’t keep up, then it’s worth hiring another staff member.

    Equipment and facilities

    You don’t want your business growth to be hampered by not having the right equipment on hand to do the job or the facilities to do it in.

    If you’re looking to increase production of 50 coffee tables per week to 500, it’s likely that the location you’re in and the facilities you’re using won’t be adequate to meet the new demand. Consider:

    • Location – look at moving to a new, larger location, or opening another branch of your business.
    • More equipment – to increase production on a scalable level, you’ll need the equipment. It’s worth investing in newer machinery to increase output.
    • Suppliers – if you’re going to need more raw materials to produce what you’re selling, make sure suppliers can meet the increased demand. If not, find one that can.

    Tracking customers, building relationships

    Your customer experience must also be able to scale. Doubling sales will double customer queries, complaints, calls, web traffic, and demands on your time.

    Review your customer relationship system, possibly upgrading so you can track buying patterns and preferences, maintain contact, and develop customer loyalty programs.

    Remember, your customers are the most vital component of your business and to its growth, so engaging with them, listening to them and rewarding them is essential, no matter how large your business grows.

    Funding for scalable growth

    When it comes to increasing capacity for scalable business growth, you’ll almost always need additional financing.

    Even if your business is enjoying a healthy cash flow, financing options for expansion are worthwhile to explore if you don’t want to use up all your working capital on long-term assets.

    A smart idea is to get advice from a financial expert – one who’s had a lot of experience in business growth and expansion and will help you decide what funding options would suit your business best.

    It comes down to two main points:

    • What you can do with what you’ve already got.
    • What you’ll need to add to achieve scalable business growth.

    Don’t forget that ‘scalable’ means increasing all parts of your business to cope with extra demand, and ideally, it’s ‘manageable’ growth.

    Reviewing your internal system and processes to ensure maximum efficiency is important, but even more, so is making sure you have what you need in terms of staff, facilities, equipment and capital to achieve that growth.

    If you’re planning to increase output or offer expanded services, then making sure you have the capacity to deliver is essential.

    Sign up to our free course here

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  • Payment Summaries have changed

    Last year’s introduction of Single Touch Payroll (STP) means that tax time this year will be a little different.

    Employers are now required to report pays, taxes and superannuation information directly to the ATO each payday through STP.

    Employers that do report this way will not have to give you a payment summary as they usually would at this time of year. Instead, employees will get an end-of-year income statement in ATO online services through myGov.

    All employers will eventually report in this manner.

    Employers that do not report to the ATO in this way will still need to provide a payment summary at the end of financial year.

    Employers and BAS agents have until 14 July 2020 to complete all STP finalisations so please give them time to work through this process. You may be eager to get your tax sorted but this year it may pay to wait.

    As always, please contact us if you have any questions.

  • COVID-19 Business Update – 24 June 2020

    Welcome back to our Weekly Digest. We hope you and your family are safe and doing well. Read on for this week’s update.

    Second Round of Cash Flow Boosts

    If you received initial cash flow boosts, you’ll automatically receive additional cash flow boosts when you lodge your activity statements for each monthly or quarterly period from June to September 2020. The amount will be equal to the total amount of initial cash flow boosts you received and will be split in either two or four installments, depending on your reporting period.

    If you lodge:

    • quarterly – you will receive 50% of your total initial cash flow boosts for each activity statement
    • monthly – you will receive 25% of your total initial cash flow boosts for each activity statement

    You can find more information here, or alternatively, you may contact us so we can discuss your concerns.

    Minimum Wage Increase

    The Fair Work Commission has announced a 1.75% increase to minimum wages. This will apply to all award wages and the increase will start on 3 different dates for different groups.

    Group 1 Awards – from 1 July 2020

    • Frontline Heath Care & Social Assistance Workers
    • Teachers and Child Care
    • Other Essential Services

    Group 2 Awards – from 1 November 2020

    • Construction
    • Manufacturing
    • A range of other industries

    Group 3 Awards – from 1 February 2021

    • Accommodation and Food Services
    • Arts and Recreation Services
    • Aviation
    • Retail
    • Tourism

    You can find the complete list of awards in each group here.

    For those not covered by an award, the new national minimum wage will be $753.80 per week or $19.84 per hour. This applies from the first full pay period starting on or after 1 July 2020. If you’re not sure which award applies or if you have any questions, get in touch with us.

    Is now a good time to hire new staff?

    Unfortunately, many companies have had to lay off staff and downsize because of COVID-19. That means there is actually a window of opportunity for businesses looking to hire. There is a wealth of exceptional talent out there now that might normally be snapped up. It might not be this way for long so it could be the perfect time to hire. You need to do what’s best for you and your business and we’re happy to chat to help you make the best choice.

    Here are some ways to make the most of a growing talent pool according to an article by the Harvard Business Review:

    • Ask your top leaders to list three to five great players they would have liked to have hired over the past five years and then check in with those people.
    • Set up a task force to source potential candidates from target sectors and companies who may now be either jobless or open to change.
    • Interview and check references remotely with the same rigour you would in person.
    • Go out of your way to motivate the best candidates.
    • Don’t ignore the sourcing, retaining, and development of in-house talent.

    Instant Asset Write-Off Expansion

    The Instant Asset Write-off has been extended for six months to 31 December 2020, which means Australian businesses with less than $500 million annual turnover will have more time to take advantage of the write-off and invest in assets to support their business. This government initiative is designed to help the economy reopen and boost economic growth. The instant asset write-off applies on a per asset basis, so eligible businesses can immediately write-off multiple assets provided they each cost less than $150,000.

    You can find more information on which assets can you claim as an immediate deduction here, but feel free to contact us so we can walk you through the different thresholds, exclusions, and limits.

    Company Tax Rate Reduction

    Starting 1 July 2020, the company tax rate will be reduced to 26% for small- and medium-sized businesses, as part of a larger progressive plan to reduce the company tax rate to 25% from 1 July 2021. This applies to all base rate entities (BRE) – companies, corporate unit trusts, and public trading trusts – which have an aggregated turnover of less than $50 million where 80% or less of the entity’s turnover for the year is classified as base rate entity passive income. More details can be found here.

    If you need a registered agent to assist you, drop us a message.

    COVID-19 Relief and Recovery Fund

    The Australian Government has set aside $1 billion to support regions and communities disproportionately affected by the economic impacts of coronavirus. Support is extended to these industries:

    • tourism
    • aviation and transport
    • agriculture and fisheries
    • education
    • the arts

    You can find more details here but feel free to chat to us and we can find the right support for you.

    Free Financial Counselling for regional businesses

    The Government has committed $4.7 million to provide small regional businesses affected by COVID-19 with access to free financial counselling. You can learn more about the assistance for affected regions, communities and industries here. If you need more personalised and focused financial advice, you can also get in touch with us so we can guide you through the current economic downturn.

    COVID-19 Safety Guidelines

    SafeWork Australia has put together useful guidelines for a range of industries. The guidelines provide clarification on WHS laws, workers’ rights, risk assessments, hygiene, emergency plans and more.

    What’s next?

    We’ll keep you updated if anything changes but now we’ll shift to helping you get a plan in place for the future. Please get in touch to discuss what’s next for your business.

  • COVID-19 Business Update – 17 June 2020

    Welcome back to our Weekly Digest. We hope you and your family are safe and doing well. Read on for this week’s update.

    Instant Asset Write-Off Extended

    Last week, it was announced that the Instant Asset Write-off has been extended for six months to 31 December 2020. Australian businesses with less than $500 million annual turnover will be able to take advantage of the write-off and invest in assets to support their business. This government initiative is designed to help the economy reopen and boost economic growth. The instant asset write-off applies on a per asset basis, so eligible businesses can immediately write-off multiple assets provided they each cost less than $150,000.

    You can find more information on which assets can you claim as an immediate deduction here, or contact us so we can walk you through the different thresholds, exclusions, and limits.

    Grant checker

    The business.gov.au website has a useful tool for finding grants, funding and support programs that you might be eligible for. Check out the tool online.

    COVID-19 Relief and Recovery Fund

    The Australian Government has set aside $1 billion to support regions and communities disproportionately affected by the economic impacts of coronavirus. Support is extended to these industries:

    • tourism
    • aviation and transport
    • agriculture and fisheries
    • education
    • the arts

    You can find more details here but feel free to chat to us and we can find the right support for you.

    Free Financial Counselling for regional businesses

    The Government has committed $4.7 million to provide small regional businesses affected by COVID-19 with access to free financial counselling. You can learn more about the assistance for affected regions, communities and industries here.

    COVID-19 Safety Guidelines

    SafeWork Australia has put together useful guidelines for a range of industries. The guidelines provide clarification on WHS laws, workers’ rights, risk assessments, hygiene, emergency plans and more.

    HomeBuilder Grant

    The Australian Government has recently announced the new HomeBuilder initiative, which is a time-limited, tax-free grant program to support the residential construction industry get through the pandemic. The $25,000 grant is available to eligible owner-occupiers (including first home buyers) to build a new home or substantially renovate an existing home. You will be able to apply for the HomeBuilder when your state or territory government signs the agreement. Further information will be announced in due course.

    Updates on JobKeeper Payments and Declarations

    JobKeeper payments will cease from 20 July for employees of a child care subsidy approved service and for sole traders operating a child care service. You can check the media release here.

    Also, monthly JobKeeper declarations now need to be completed before the 14th of the month, which gives you a little more time to lodge.

    What’s your Break-Even Point?

    Whatever type of business you have, calculating your break-even point is important. It tells you the amount of revenue you need to generate to cover your fixed and variable expenses. If you are not a finance or math person, don’t stress! This FREE Break-even Calculator we created will make your analysis fast and easy.

    If you need expert advice on the financial aspects of your business, especially on how you can become more profitable, please get in touch so we can help you plan your next big steps.

    What’s next?

    Over the last few weeks we’ve brought you updates on various government initiatives and cashflow schemes to help businesses impacted by COVID-19. We’ll keep you updated if anything changes but now we’ll shift to helping you get a plan in place for the future. Please get in touch to discuss what’s next for your business. S & H Tax accountants offer small business advice to business owners around Cranbourne and srounding suburbs.

  • Instant Asset Write-Off Extended

    Good news!

    This week the government announced that the Instant Asset Write-off has been extended for six months, taking the initiative to 31 December 2020. Australian businesses with less than $500 million annual turnover will be able to take advantage of the write-off and invest in assets to support their business. This government initiative is designed to help the economy reopen and boost economic growth. The instant asset write-off applies on a per asset basis, so eligible businesses can immediately write-off multiple assets provided they each cost less than $150,000.

    The instant asset write-off can be used for:

    • multiple assets as long as the cost of each individual asset is less than the relevant threshold
    • new and second-hand assets.

    Changes this year

    From 12 March 2020 now through to 31 December 2020 the instant asset write-off details are below.

    • threshold amount for each asset is $150,000 (up from $30,000)
    • eligibility has been expanded to cover businesses with an aggregated turnover of less than $500 million (up from $50 million).

    Eligibility

    Your eligibility for the write-off depends on:

    • your aggregated turnover
    • the date you purchased the asset
    • when it was first used or installed ready for use
    • the cost of the asset being less than the threshold ($150,000)

    You can find more information on which assets can you claim as an immediate deduction here. Feel free to contact us so we can walk you through the different thresholds, exclusions, and limits.

    Got a question?

    Please don’t hesitate to get in touch. S & H Tax accountants serve small business in Melbourne. Call us for free consultation now on 1300 724 829

  • How cash flow forecasts can help you

    Cash, Flow

    Managing cash flow is a vital part of running a successful business. Some business owners think managing cash flow simply means keeping track of how much money enters and leaves their business, but there’s actually more that goes into it.

    Cash flow forecasting, for example, is an incredibly valuable tool that helps you anticipate cash flow issues, plan for days when your cash flow is limited, and show the bank that you are prepared.

    It’s an important process that you shouldn’t ignore. Here are some ways cash flow forecasts help entrepreneurs.

    They help identify cash flow issues before they happen

    Most businesses go through slow periods. Sometimes, those periods are obvious. A seasonal business, for example, will have decreased income during the off-season than during the on-season. There can be less obvious peaks and valleys in your income, though, that you have to prepare for.

    Your cash flow forecast can help you monitor your day-to-day cash flow and anticipate when times will be slow before they hit. By anticipating when cash coming into your business might be light—or when you might have to spend more than you’re accustomed to—you can avoid a cash crisis.

    By examining your cash flow over the previous years and forecasting your future cash flow, you can better anticipate financial cycles and how they affect your bottom line.

    They help plan for tougher times

    It’s tempting to spend money when you have a lot coming in. Your business may need new equipment or maybe you want to give all your employees a raise or a bonus.
    That’s a great thing to do, but it’s only helpful if it doesn’t put your business in jeopardy financially.

    Cash flow forecasting is a great reminder about how your bank accounts will look during tougher times, so you can make important decisions about when to spend your money and when to save it.

    If you know a slow period is coming up, it might be better to save your money for now and give out smaller bonuses. If you can anticipate your slow period, you can plan major purchases and bill payments around it, to stretch your cash further.

    At least by conducting cash flow forecasts you’re less likely to be surprised by a sudden cash flow crisis.

    They show banks you can plan ahead

    Banks prefer to give their money to entrepreneurs who show they are capable of planning ahead. Financial institutions prefer business owners who are realistic with their financial projections and show they have a means of addressing cash flow issues.

    Final thoughts

    Forecasting your cash flow gives you a clearer picture overall about your business and how the money moves into and out of it. It provides important insight into your company’s financial health.

    If you haven’t conducted cash flow forecasting so far, it’s a good idea to get started now so you have a better understanding of your company’s finances and so you can prepare for the future.

    Want help to improve your cashflow? Contact us today. We are happy to chat with you about the future of your business. Please get in touch if you would like to chat. S &H Tax Accountants offer Accounting and taxation services in Cranbourne and surrounding suburbs.

  • Working out an effective marketing budget

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    “How much should I spend on marketing?” Most small business people ask me this question at some stage. Many small business people find working out how much to spend on marketing a tricky exercise to calculate.

    Generally there are five ways to work out a marketing budget for the year. Remember that these are marketing budgets, not advertising budgets. Marketing covers everything you do in your business that creates awareness, including such activities as advertising, brochures, competitions, free tastings, demonstrations, trade shows, travel, personal selling, direct mail, sponsorships, etc.

     

    1. No idea at all method

    Some businesses don’t have any budgets, and just advertise either when they feel that sales have slipped and they need extra business, or when they get duped into advertising by some advertising salesperson (“Buy now and we will give you 50% extra free!”). Ever wondered why they offer you the freebies? Usually because it’s such a dumb time to advertise that all their regular clients are holding back and the sales rep is desperate.

    I see many businesses that are just too busy during certain times of the year to think of advertising, and if they did, it would be a waste as they would not be able to handle the work anyway. Suddenly, however, sales fall (perhaps due to seasonality) and then the business starts advertising. However, this could be a waste of money as often you’re advertising at the wrong time, or advertising to get instant sales, which is unlikely to happen. So the problem is that the advertising money is spent during slow times (this hurts), and that it is spent to fix a problem instead of to create new opportunities.

    2. Whatever you can afford method

    Here you just spend spare cash (yes, spare cash may exist!) on advertising. So the advertising is dependent on cash flow. During the good times you advertise more, during the bad times you cut the advertising. The danger here is that if business falls, and you cut advertising, then the situation is likely to spiral out of control. How can you climb out of the situation when there is no money for marketing?

    3. The percentage of sales method

    This is a popular method. Typically, you work out at the start of the year what percentage of sales you want to spend on advertising. For example, if sales last year were $200,000 and you decided to spend 5% of sales on advertising, then you’d have a budget of $10,000 ($200,000 x 5%).

    The problem with this method is you may not actually need $10,000 worth of advertising to achieve your sales target. What if you can only do so much? If $4,000 spent on marketing creates enough work for you to be flat out, then the other $6,000 is just being wasted. And what percentage should you use? I’ve learned that 3 – 6% of sales is an average, but the figure obviously depends on what industry you are in. For example, here are some advertising-to-sales percentages researched in the USA for marketing budgets:

    • Couriers 2.1%
    • Rental car companies 2.9%
    • Computers 5.1%
    • Games and toys 18.4%
    • Cafes 5.6%
    • Hotels/motels 3.8%
    • Sporting goods 5.0%

    So what percentage you use all depends on your activity. If you are a retailer, then you will spend more on advertising than a manufacturer who concentrates on personal selling to suppliers.

    4. The ‘whatever the competition are doing’ method

    This is the cheat’s way. Find out what the competition is doing and then spend a similar amount on similar promotions. This approach has an obvious problem: what if the competition has been using method number one—the ‘no idea’ method? For example, a well-known retailer went into receivership after spending large amounts of money on TV and radio advertising. Now if you had copied that business, you might have found yourself down the gurgler as well.

    Never think that the competition or the larger businesses know what they are doing, as often they do not. I know of many large companies that spend thousands of dollars on wasted promotions. Just watch TV adverts every night to spot the ads that really represent a waste of money. Then again, copying the competition is basically a poor strategy anyway. You should always strive to be one jump ahead of the opposition.

    5. The objective and task method

    Now this is the one I recommend—I had to like one of them! At the start of the year select the targets you’ll be aiming at over the next 12 months. Work out what you want from each of these targets (such as 100 new customers, or each existing customer to spend another $100, or an increase in the average sale, or whatever). Then specifically state what you want to do to achieve this, estimating how much it will cost (common sense will give you guidelines, for example, a small business will not be spending $100,000 on TV advertising).

    Complete this exercise for each of your targets, then add up all the costs, and this will be your marketing budget for the year. Points to note include:

    • Always have a cash reserve for marketing, so you can take advantage of any opportunities that may arise during the year. Remember, not only can you not predict what may happen (for example, some action by your competitors), but the whole point of being in a small business is having the flexibility to adapt to market forces.
    • Your objectives must be specific, so that when you’ve reached them, you can choose to stop any further marketing expenditure if you wish to remove any wastage. Of course, you could continue and look for more growth. The point is, you—not someone else—make that conscious decision to spend your whole budget.
    • Conduct a break-even analysis. For example, if you’re spending $1,000 to get 50 new customers to spend on average $50, then sales will be $2,500. Will $2,500 in sales generate enough profit to cover the $1,000 spent on marketing?
    • You may have a number of methods that you have used in the past, which you know work. Fine, just include them in your plan.
    • You may have to spend a certain amount of money just to keep your existing customers and maintain market share. Fine, but again make sure this is in your plan, and you review the effectiveness of what you’ve always done.

    Remember to monitor results

    Finally, always have a method of monitoring if your marketing is working or not—otherwise you’ll fall into the ‘no idea’ category that far too many small business owners belong to. You can’t refine and improve your marketing spend unless you measure the results

    If you need help please call Business Accountant Cranbourne and surrounding suburbs call us on 0387595532

  • COVID-19 Business Update – 27 May 2020

    Welcome back to our Weekly Digest. We hope you and your family are doing well. Read on for this week’s update.

    JobKeeper Key Dates

    The ATO’s website has a list of key dates relevant to JobKeeper which you might find handy. Not-for-profits and charities can find some JobKeeper information here also.

    If you are still wondering if you are eligible, or what schemes apply to you and your business, get in touch with us and we can arrange a chat.

    Cashflow

    If you’re not having cashflow problems right now, that’s great, you’re one of the lucky ones. Plenty of businesses across the country are struggling with cashflow right now. There are a few ways to relieve the cashflow pressure from finance through to restructuring options. Don’t stick your head in the sand – we can help.

    Here are some options that might be suitable for your business:

    • Borrow money – Businesses can access finance quite quickly through the Government’s SME Guarantee Scheme. Under this scheme the Government will guarantee 50% of new loans issued by eligible lenders. Chat to us to find out if this is the best way forward for your business. In addition to lending options, most states are offering business grants which could be worthwhile for you to investigate.
    • Restructure expenses and commitments – You can implement various measures to restructure your expenses and financial commitments. There are a range of programs aimed at providing temporary relief to debtors affected by COVID-19. We can help you work out your existing debt with your banks and creditors to improve your cashflow, so please get in touch.
    • Sell more – Consider new sales possibilities, expand your market, refine your marketing strategy– it may be difficult to increase your sales right now, but we’re sure you’re doing all you can. We can help you get your plan together for the next few months of business.

    JobMaker

    Earlier this week Scott Morrison outlined some preliminary steps in a “JobMaker” plan. The PM’s main point in his address this week was that opening up the economy is much harder than closing it down, and recovery could take years.

    While we have no details of the JobMaker plan yet, the goal is to get Australian businesses out of crisis. The focus will be on industrial relations reform as well as improving the skills and training sector. We’ll keep you updated as more details are announced.

    What’s next?

    Over the last few weeks we’ve brought you updates on various government initiatives and cashflow schemes to help businesses impacted by COVID-19. We’ll keep you updated if anything changes, but please feel free to get in touch to discuss what these schemes mean for your business.

    Get in touch

    We are happy to chat with you about the future of your business. Please get in touch if you would like to chat. S &H Tax Accountants offer Accounting and taxation services in Cranbourne and surrounding suburbs.

  • Tax tips for new Cafe or Restaurant business owners

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    Want to avoid paying more than you should come tax time? Or a frantic last minute search for missing financial records?

    New business owners have a lot on their plate, and can easily lose track of an approaching tax deadline or financial data needed to submit their return.

    Organization is key when preparing for tax time. As is taking advantage of the many tools and resources out there to support new entrepreneurs.

    Set yourself up for success by following these four pillars of painless tax prep.

    1. Commit to clean bookkeeping from day one

    Year-round, effective bookkeeping is the best way new business owners can minimize tax season stress. With the wide range of accounting software out there, there’s no reason to rely on time consuming manual methods that leave room for error.

    All-in-one options like Xero, KashFlow and QuickBooks automate your most important bookkeeping processes, including:

    • Tracking expenses;
    • Tracking sales and income;
    • Creating and sending invoices and
    • Managing inventory.

    With your financial records all in one place and up-to-date, you’re better positioned to maximize your refund, while avoiding penalties associated with incorrect or incomplete tax returns.

    2. Capture every business expense

    Each year, 21% of small business owners claim less than half of their business expenses, largely because they don’t have a reliable system for documenting expenditures while on the go.

    Without carefully logged receipts, entrepreneurs must forfeit valuable tax deductions, sacrificing cash they could be funneling back into their business.

    Cash in on claimable expenses by using a mobile app to record receipt data, track mileage and generate expense reports. As an added bonus, many of these tools sync with your all-in-one accounting software.

    3. Separate business from personal

    Right from day one, small business owners should clearly divide their personal and business expenses. Differentiating between the two will make it much easier to claim deductions on your tax return – and support those claims in case of an audit.

    Recommended steps to separate your business and personal finances include:

    • Create a separate bank account for your business, and designate a credit card solely for business purposes (this will help you track expenditures while building up your credit and borrowing power);
    • Never combine business and personal expenses (for example, if you buy printer ink for your home and your business at the same time, ask for two separate receipts);
    • Pay yourself a set salary from your business checking account each month (this will help you determine how your income, as well as the business, will be taxed).

    4. Always consult with an accountant

    Not sure exactly what you can claim as a business expense? Wondering which accounting software to use or how to interpret local tax regulations?

    Consult with an accounting professional to put your mind at ease – well before the filing deadline! In addition to managing the nuts and bolts of tax preparation, regular meetings with an accountant will help you continuously improve bookkeeping practices and better understand the financial workings of your small business.

    Those organizational strategies you commit to now will promote positive relations with your local tax authorities – and the long-term financial health of your company.

    Contact S & H Tax Accountants for help if you need. We are highly experienced team of accountants. we are specialist in Cafe or Restaurant business. Contact us today on 0387595532 forobligation free appointment.

  • How to find a good niche

    How to find a good niche

    In business, finding a niche that can supply enough revenue is important. More entrepreneurs than ever are realizing the importance of finding a narrow set of customers and catering their products or service to them. This allows you to focus your efforts on being great at a few things, rather than mediocre at many. But how do you find your ideal target market? This article will get you started by telling you how to find a good niche.

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    Research

    This stage is probably the most important and most overlooked part of finding a good niche. Many entrepreneurs try to take a shortcut by spending very little time on this part of the process. Some don’t do any research at all. Don’t make the same mistake. Instead, use the amazing (and free) tools available to conduct market research. For example, Google’s Keyword Planner allows you to enter a set of keywords and see the search volume for those terms. By analyzing traffic and then searching the web for competitors, you can see if a given keyword is worth pursuing. Instead of wandering around in the dark, save yourself countless hours by conducting great research upfront.

    Track Behavior

    Once you’ve found a niche that looks attractive and created a website and brand for your product or service, you will hopefully get your first customers. It’s important to be prepared for visitors and customers by installing tracking software on your website. Luckily, Google has a free service for this as well called Google Analytics. It only takes a few clicks to set up, and it allows you to see where visitors are from, how much time they spent on your site, and at what point they left your site. With this newfound information, you can tweak your product or service to align with the behavior of your visitors. This way, you can adapt to new sub-niches that may be more profitable than your original idea.

    Evolve Your Idea

    Now that you’ve done research upfront, created a site for your product, and analyzed the behavior of the visitors, you’re ready to pivot. You can now evolve your original niche into a better niche based on what your customers click on, read, and buy. Using the above-mentioned tools, you can craft a customized experience for an even more specific set of customers. This is where the real success is. Improving on your first idea allows you to use its strengths without any of the weaknesses. With your new product serving your newfound niche, you’ll be ready to turn on the thrusters and watch the sales come flooding in.

    Gone are the days of trying to appeal to everybody. By focusing on these principles and taking action, you can find the perfect niche and create all the income you need to be successful in your online business.

     

  • Using KPIs to monitor and improve business performance

    Using KPIs to monitor and improve business performance

    The key performance indicators (KPIs) for one company will invariably be different from the KPIs of another firm.  What both hypothetical companies share, however, is the challenge of selecting which KPIs are best suited for measuring the goals and progress of their particular business model.

    Front View Businessman With Colorful Cones Representing Growth 23 2148780634

    Indeed, entrepreneurs have a vast array of reports and data sets from which to choose and select, but that data needs to target those specific areas that are most critical to answering the questions that managers need to make cogent business decisions.  As such, effective managers are able to distill down the essential information that is hidden deep within the mounds of data that emerges from an improperly targeted search.

    What Are Key Performance Indicators?

    Key performance indicators are the tools business organizations use to define their goals and establish quantitative measurements designed to determine whether any progress is being made towards those goals.  They provide data that can be used to spotlight performance characteristics across a variety of matrixes such as financial performance, customer relations, marketing efforts, and even employee productivity.

    Financial Performance

    At the end of the day, the bottom line is why we are all in business, and understanding how well your financials are doing is the equivalent of knowing what is going on in the center of your car’s engine when it’s rolling down the road.

    For instance, if you are losing sleep at night over whether or not your latest marketing plan was worth the check you signed at the bank on Monday, you will want to explore your Return-on-Investments (ROI) with a detailed ROI KPI.  Conversely, a KPI can highlight underperforming net profit margins or lackluster revenue growth rates, and the information obtained can present valuable information to ensure the meeting of the company’s original financial goals.

    Customer Relations

    As noted, a profitable bottom line is the ultimate goal of businesses, and customers are the key to achieving enviable sales numbers.  As such, understanding what motivates your clients provides inestimable advantages to the entrepreneur who knows what they are looking for.  Utilizing customer relation-focused KPIs, merchants can track levels of customer engagement and subsequent retention rates.  If customer satisfaction scores are sagging or turnover rates are high, the worried business owner can target their reports to help develop meaningful responses to address these lapses.

    Marketing Efforts

    Without a viable marketing plan, few businesses can expect to prosper.  With KPIs designed to highlight marketing performance, you can break down your cost per lead, brand equity positions, conversion rates, social networking footprint, and more.  Get the most of every marketing dollar by discovering what is working and what is not moving you towards your sales goals.

    Employee Productivity

    While your marketing functions are designed to drive in the customers that you are hoping will add to your bottom line, your employees are typically tasked with closing the deal.  Indeed, when you are tallying up your operating expenses, locating, screening, hiring, and training new employees looms large in any budgetary considerations, so using KPIs to measure employee performance just makes sense.  Savvy entrepreneurs use KPI to monitor the average revenue per employee, engagement level, and average employee tenure to name just a few of the reports that can be tailored to get a feeling for the pulse of your workforce.

  • How to Create a Personal Brand

    How to Create a Personal Brand

    The words ‘personal brand’ is still somewhat controversial, and carry an unfortunate cast of self-promotion and vanity. The truth is that personal branding is more important than ever in the job market, and those without a clear personal brand or mission to create one are lagging behind the competition.

    Business

    What is a personal brand?

    How you present yourself has always been important in the workplace. In the corporate heyday, it was established that to get a good job and be considered for promotion, you had to dress, speak and act appropriately for the company with which you were employed. Consider this the forerunner of the personal brand; now you simply are creating an impression of yourself that companies want to hire.

    Though companies are growing ever larger, there is more competition for fewer jobs; yet rarely does someone stay in a job for more than a few years. This makes it vital to ensure you always look employable to other companies and remain visible within your own organization. You must update your personal brand and create an image of yourself that showcases not only your proficiency in your current job but your transferable skills and achievements.

    Personality versus personal brand

    Do not mistake your personality for what constitutes an attractive personal brand. In the age of social media, everyone is Googling prospective employees and personal information is available at their fingertips. If there are unattractive photographs of you on Facebook, personal details about your family, or complaints about your work, delete them or make them private. Now would be a good time to set up work-only accounts and separate your social and corporate friends lists.

    Promote yourself professionally on the Internet. When creating a profile or website, what photographs are you using? What typefaces and colors do you use? What are you saying? The handwriting font may appeal to you, your favorite color may be baby pink or that picture of you wearing a Halloween costume may show your best side, but ask yourself: would you hire you based on your personal tastes?

    Remember, this is not about changing who you are, but highlighting your best assets.

    Present yourself in your best light

    First, determine what brand you wish to project. Are you an excellent communicator, or highly organized? Highlight successes in these areas and build your reputation by constantly seeking tasks in your workplace that allow you to demonstrate these skills. If you’re not so good at time management or do not work in a team well, work on these valuable skills or convert them to assets by saying you “use a spontaneous approach to problem-solving” or “are independently motivated.”

    Curate a professional image

    Now that you have decided how you will present yourself, translate that into the nuts and bolts of branding. Give your website a makeover, overhaul your social media accounts and even change the way you dress in the workplace. Even small changes like using a different font for emails can present a radically different version of you. Refresh your CV, and focus on the skills you want to use to advance your career.

    Remember that branding is just another word for marketing. You are selling yourself in the workplace every day by making yourself available and preferable for different responsibilities. Do not be afraid to ask for others’ input. Ask managers why they chose you for certain tasks, or ask your co-workers what word jumps into their minds when they hear your name. Reliability? Professionalism? Authority? Or is it something negative? Ask for honesty, and receive criticism with grace.

    You can use personal branding to advance in your current workplace, look for a similar job elsewhere or instigate a complete career change. If you have been working as an office temp and would rather work for a start-up selling ethical cosmetics or alternative clothing, consider your personal brand.

    Communicate the hard skills you learned in your office and do not be afraid to incorporate your hobbies and volunteering experience; if it is relevant to the job you wish to acquire, your personal brand should reflect it. Bold, illustrated CVs and outspoken opinions on social media have their place if they align with the company’s image and goals.

    Personal branding is a powerful tool ­– you can use it to your advantage or to your detriment. Use it wisely, and it might be the most important thing you ever did for your career.

  • How to Attract and Retain Top Talent

    How to Attract and Retain Top Talent

    The best companies attract and retain top talent. Finding the best people takes time, but it is an investment that can save you money over the long haul. The more effort you put into finding the right people, the less likely that they will move on when another opportunity arises. Here are some strategies for attracting and retaining top talent.

    Give Yourself Time

    A senior manager has quit, leaving a gaping hole in your business. It is a hole that you desperately want to fill and you will make every effort to fill that position as soon as possible.

    Hiring anyone under trying circumstances can be stressful. You cannot afford to take shortcuts, otherwise, you risk hiring someone who is not a good fit for the position.

    You need to employ your regular hiring procedures when replacing a key individual. That means carefully reviewing applications, speaking with other managers, setting up interviews, and going through the entire screening process. References must be checked, background checks performed and a salary package carefully put together. Rush the process and you may have a wrong hire on your hands.

    Cv On The Table

    Offer Competitive Remuneration

    You are more likely to keep an employee around if you offer them a competitive package from the start. It is nearly impossible to make up a salary deficiency down the road. And by that time a key employee may leave for greener pastures.

    You should understand what a competitive salary represents for the position. Government data can provide details about thousands of positions. You can generate localized reports too, which will give you a good indication of how much a job prospect should be paid.

    Beyond salary, there may be a list of benefits that can make a difference in attracting top talent. Consider offering health and dental benefits and other perks.

    Job Hiring Vacancy Team Interview Career Recruiting

    Skills and Profiling

    It simply isn’t sufficient to interview potential employees. You need to have your managers meet with them too. You must assess their skills to determine whether they have what it takes to perform their job. You may need to work with a third-party agency to have those skills assessed.

    Another area of concern is their personal temperament. This individual may be smart and able to get the job done, but she could be impossible for some people to work with. This deficiency may not show up through normal interviewing means. Again, you may need to call upon a third-party service to help you vet this candidate.

    Elicit Feedback

    Once a new hire has been put into a position it can be easy to overlook how they are doing apart from their workplace performance. It is important that you maintain an open-door policy with your best employees to ensure that they feel comfortable bringing whatever troubles or concerns that they have directly to you.

    If an employee feels overworked or otherwise overburdened, he may begin to look for work elsewhere. The cost of losing top talent can be large. So it might be worth your while to hire a temporary individual or a part-time person to provide some relief.

    Feedback is also a two-way street. You may commonly provide annual reviews, but with top talent, you should offer your feedback much more frequently. You want to help these individuals grow and succeed – make a point to stay involved to help them be most effective.

    Top Talent Considerations

    Employees who feel that they contribute to a company are much more likely to stay put. Even so, you will always lose top talent no matter what you do.

    It is important that when your best workers leave, you also perform exit interviews. You want to uncover the reasons why they are leaving, including problems that were not addressed earlier. From there, you can make changes to reduce your turnover rate going forward.

  • 17 ways to get repeat business

    17 ways to get repeat business

    Q. I am finding it tough. Sales are slowing but I can’t figure out exactly why. No one seems to be unhappy with what we do, and no competitor has entered the market.  People seem to be buying less often and in lower numbers.

     

    Your existing customers are your most valuable asset. This is because it’s easier and far less expensive to get an existing customer to buy off you again than to find new customers. So here are 17 ways to gain repeat business from existing customers, or to get your customers to think more positively about your business. The golden rule for success in business is to get your customers to believe that they are more important to you than anyone else.

    Because small businesses are very diverse, not all these tactics will be relevant to your particular business. But many will be, so make a commitment NOW to try at least one, if not more, of these tactics.

    Please also note that most of these ideas involve using your database of customers so make sure that you comply with the Privacy Act. (Check out the provisions of the Act at the Privacy Commissioner’s website www.privacy.org.nz where you can download the ‘Guidelines for Business’ file).

    Celebration Card Writing Concept

    1. Send a thank-you letter within two days of the customer buying off you. If at all possible, send a note the next day. It only has to be a handwritten note on a standard card—though a professionally typed letter is better. Other variations include sending a cartoon with your caricature to say thank you, or even a cartoon card (depending on who the customer is and how much they have spent).
    2. Send an offer of a product or service that’s related to what they bought, usually after one month. Offer a discount or special deal. If you don’t have any complementary products or services, then find a business that does and offers its products. Then get that business to do something similar with their customers, but this time with your products or services as the offer.
    3. If you sell products (such as printers) that use consumables, use your database date-of-sale records to predict when they might be ready to buy these consumables so that you can send them a ‘special offer’. Use the same technique for products that have a definite use-by date (such as timing the letter for when a lease arrangement on equipment is about to expire and newer technology is available).
    4. Send out a questionnaire once every three to six months to see what your customers now want, and to see if your market has changed. Use the feedback to update your database and refine your product and services mix.
    5. If you have a small number of highly loyal customers, then continue to acknowledge their customers with simple ideas like sending birthday and Christmas cards to them.
    6. Try a telemarketing exercise. Ring up the customer with a brief message about a special or new product they may like to try. If possible make the offer free, or offer some incentive that provides a genuine saving or deal for existing customers only.
    7. Send out a regular or email newsletter to your customers (even once every six months). Inform them about what is happening in your industry, community, or area. Give tips relating to whatever business you are in. If you run out of ideas, then contact another business to share the newsletter (you can also share costs). Note: an email newsletter costs only a fraction of a conventionally printed and posted newsletter and the Internet offers a huge resource of useful information.
    8. Run a customer contest that only existing customers can enter. This rewards them for being your customer — not the competition.
    9. Inappropriate instances you may be able to ask for referrals. Something along the lines of: ‘If you thought that we did a great job, then we’d really appreciate it if you could send us the names of three people who could also benefit from our product/service’. Or you could simply ask for your name to be passed on to any people the customer may see as needing your help. Sometimes you can also include a special deal for their friends. Be careful here, though: don’t make this deal better than the one the original customer received!
    10. If you have a new product or new technology just about to be released, then hold a ‘customer-only’ preview. Supply refreshments. This could even relate to someone else’s technology. For example, if you have just bought a new color printer, invite your customers to see what it can do. Get them to bring in some printing so you can demonstrate their work. You can also the supplier of the equipment to share the costs – it’s a promotion for the supplier too.
    11. Have a sale that is available only to exist customers. Send them an invitation that selects them as special and points out that the public will be excluded.
    12. A variation on the above is to offer existing customers the first choice at your sale for a certain period (such as a few days or a week) before the sale is opened to the public.
    13. Try sending a letter or card or email that does not try and sell anything, but just keeps them informed of interesting facts or information for their use. This way, they don’t always associate hearing from you with a hard sell. Instead, they come to look forward to receiving helpful information from you.
    14. If your customers spend lots of money, and the profit per item is large, then send your customers relevant CDs or videos. For instance, if you sell to other businesses, you could send them CDs or videos on selling or marketing, or motivation. Or even in the case of especially good customers a video on their interests: find out from the survey you sent them what sports they follow, and then send them the corresponding videotape of rugby’s greatest tries, soccer’s best goals, highlights of the netball series or whatever. Stick your business name on the video.
    15. Send customers a catalog of all your products, and offer to direct mail to them anything they need.
    16. A variation on this if you have a website is to offer preferred customers a special PIN number or password that allows them to log in to sections of your website (special discounts, sales, etc.) that others can’t access.
    17. Come up with a special anniversary offer one year exactly after the customer first bought off you. If the offer is taken up, repeat the idea every year.

    There must be something for every business on this list. The whole idea is to keep in contact with your existing customers, to build goodwill and positive word of mouth. By making them feel privileged and special you’re preventing the possibility that YOUR customer will be lured away by the competition. They couldn’t be possible after the way you look after them!

  • 10 quick growth tips for your small business

    10 quick growth tips for your small business

    Small businesses can grow in boom times as well as periods of difficulty by working smarter and taking advantage of opportunities. Put these following effective tips into practice to help grow your business.

    Business

    1. Utilise new technology

    Modern technology can save you time, improve productivity and reduce your operational costs. Make use of Facebook, Twitter, Google+ and other social media tools to market your business.

    Dropbox is a cloud-based service that can be used for document creation and sharing, while Skype is commonly used for calling or video conferencing.

    2. Communicate better

    Always take a friendly but professional approach to any form of customer interaction including written invoices, quotes and emails. Create guidelines for dealing with customers in writing and over the phone. Reply to messages as soon as possible. If you take too long to return a call or email, you may lose a potential customer to a competitor.

    Try writing a blog or column about your chosen industry. Think about sponsoring an event or gifting your products or services to a local sports team, community group or school.

    3. Become more innovative

    Even if your products and services are selling well, always look out for new ways to refine your business. Organise regular brainstorming sessions and invite staff to share their ideas on ways to improve products or services.

    4. Tighten up your credit policies

    For any orders, make sure your customer completes a credit application and that they understand your terms of trade. Encourage your customers to clear payments quickly by emailing or posting invoices and giving clients a clear time frame to pay. Revisit your terms of trade and make any necessary changes if need be.

    5. Improve your record keeping

    If you’re selling products, keep a record of every product sold and ensure you’re aware of how much stock you have. There are free or low-cost point-of-sale (POS) computer programs that can manage stock inventories and provide a record of each product sold. Create a database for future follow-ups by recording clients’ names.

    6. Join business associations and organisations

    Business associations and organisations give you access to industry leaders about current innovations and developments within your chosen market for an annual membership fee. They hold regular events, seminars, short courses and networking evenings which can be incredibly valuable for meeting business owners, identifying investors, and learning more about your industry.

    7. Develop a website

    If you’re a well-established business, potential customers will be searching for you on the Internet – often before they pick up the phone or walk through your door. An effective website needs to be functional, communicating what you offer and your point of difference.

    8. Manage your time more effectively

    Take note of where your time is going each day. Some tasks could be consolidated, or completed at a dedicated time each week. There are free or low-cost time management tools such as Toggl and Google Drive that monitor your daily workload and can generate weekly reports.

    9. Buy good quality business cards and use them

    Take any opportunity to hand out your business card when you meet new people – even outside of work.

    10. Generate referrals

    There are many ways to create referrals and grow your business. For example, you could pay for them per lead, write a blog, attend trade shows, or simply advertise through various media.

    Your small business will need to harness a variety of methods for it can grow sustainably, so take the time to plan ahead and try some new approaches.

    Good luck and let me know how you get on.

  • Getting the work–life balance right

    Getting the work–life balance right

    As a small business owner it’s hard to juggle your work and outside responsibilities. It’s important to run your business effectively and still have a life outside the office.

    You need a good balance between work and play for your health and well-being. Small business owners often fall into the trap of working too hard, ending up exhausted from the constant work demands associated with self-employment.

    Man With Daughter Raking Leaves And Woman With Child

    Why you need balance

    Working too much without taking time out for yourself and your family can quickly become counterproductive. You’ll be tired, stressed, and irritable, leaving you unable to perform optimally. As a result, you’ll be more likely to make mistakes and snap at people who are important to you and your business.

    Some dangers of overworking include:

    • Missing opportunities because you’re too busy
    • Being short-tempered with your staff affects their attitude and performance
    • Treating your family poorly results in an uncomfortable home life
    • Working to the point of burnout or illness
    • Losing the passion that prompted you to start your business.

    Avoid burn out

    There are a number of things you can do to scale down your workload and regain a sense of balance.

    Start delegating

    Delegating will take some of the pressure off you and free up time for more urgent and important tasks, allowing you some leisure time to relax.

    Create good systems

    Develop a clear operations manual for each process in your business. This lets you and key staff take a break, and speeds up training when someone new comes into the business.

    Stretch and walk

    Take a few minutes every so often to get up from your desk and stretch. It’s good for your body and will help you stay focused.

    Talk to your family

    Ask for suggestions and input – they’ll see things that you can’t.

    Network with other business owners

    Chat to fellow business owners who seem to be working normal hours. You’ll stop feeling so isolated and you might get some valuable advice.

    Take mini-breaks

    Put mini-breaks into your diary. Schedule a day off once a month, a week off every 12 weeks, or perhaps take every second Friday off.

    Person Taking Break From Working Office

    Re-evaluate your client base

    Do you have customers that take up far too much of your time for very little gain? Find a polite way to stop doing business with them or pass them on to staff members to deal with.

    Stay motivated

    Staying passionate about your business and motivated to do your best is important. If you find you just don’t have the energy you once had, your staff and business will suffer. Take action before you start to enter a negative spiral.

    You could try the following:

    • Set exciting and challenging new goals.
    • Share your goals with your staff so everyone understands what you want to achieve.
    • Set measurable ‘stepping stones’ to the main goals and celebrate each achievement.
    • Refresh your daily routine. Allocate blocks in your diary for key daily activities, such as checking emails, meetings, and visiting clients.

    By staying motivated and avoiding burn out you’ll have the foundations in place to enjoy running your business again, while also retaining a fulfilling life outside work.

  • 3 easy and inexpensive ways to look more professional when you’re starting out

    3 easy and inexpensive ways to look more professional when you’re starting out

    For bootstrapping young businesses, making a professional first impression as you build your brand is key.

    Although hiring a branding expert may be too large an expense in the early days, you can still help your business stand out in the best possible way without breaking the bank.

    Just follow these simple marketing moves that will help people to know, like, and trust you.

    1. Build credibility with your own email address

    A custom email account isn’t costly but is well worth the effort. Sending company emails from a Gmail or Hotmail account will raise questions about the legitimacy of your business (if they ever make it past your customers’ spam filters.)

    If you’ve already registered your company’s domain name for your website it’s a snap to set up a custom email address. Many web hosting services such as Bluehost include a free custom email account with their service packages.

    If you’ve never registered a domain name, search what’s available at GoDaddy.com or NameCheap.com. Most companies can help you find a memorable domain name with SEO keywords.

    2. Build your brand with a customized logo

    An effective eye-catching logo will attract new customers, help you stand apart from competitors, build trust in your brand and, ideally, inspire customer loyalty.

    Should you have the funds to hire a logo designer, you’ll save time and get a unique, professional result—but best be prepared.

    A professional designer will want to discuss your company’s brand identity with you. Being clear on your brand before your first consult will streamline the process, ensuring you get exactly what you want.

    This article from LeanLabs helps you pin down your unique brand identity with twenty questions. You might also find this free downloadable brand character workbook useful.

    And if budget is a concern, try one of these free graphic design tools that help you combine visual elements to quickly create your own logo:

    3. Build trust with a professional photo

    Before strangers will buy from you, they need to get to know you.

    A high-quality photo for your website and social media accounts, in addition to professional web content and engaging social media posts, is a must. Nothing makes a business appear more “fly by night” than a faceless LinkedIn avatar—or less professional than a grainy, out-of-focus selfie.

    Expect to pay in the ballpark of $100 for a headshot (or more, depending on the photographer’s hourly rate and the length of your shoot). You can also do it yourself if you’re on a budget following these quick headshot tips from HubSpot.

    Next steps

    Marketing is an ongoing commitment for every business, and as your business and bottom line grow you can invest in new strategies to maintain a profitable company.

    In the meantime, these simple “must do’s” will help you make that positive first impression with your customers and with would-be investors, potential partners, and lenders.

  • How to license your business ideas

    How to license your business ideas

    Looking for a cost-effective means to create another income stream? Consider this: ambitious companies are always on the lookout for the next lucrative business idea.

    Business Ideas

    Licensing your intellectual property to another company can be a win-win when both parties see eye to see, and result in a worthwhile payout for all concerned.

    Wondering how to get started licensing your bright business ideas? Read on.

    Intellectual property 101

    If you’re running a successful small business, you already own valuable intellectual property (IP)—some of which could be licensed to another party for a profit (e.g. your logo, brand, trade secrets, or unique business processes).

    Each of these “intangibles” is a valid financial asset that can be legally protected or licensed to another party.

    In fact, any creative work—ideas, designs, and products—that have value for a business are IP. A licensing agreement ensures your intellectual property is recognized and you are fairly compensated for their use.

    Generating million dollar ideas

    Now that you understand how licensing works, you can begin to brainstorm some original, unpatented money-making ideas.

    A good place to start is with a review of your industry and market. Take note of any gaps that could be filled, and problems you’d like to see solved. A great advantage of looking within your own industry is you might already know an interested licensee within your existing network—or just a quick phone call away.

    Come up with an extensive list and then research your top ten promising ideas. Before you get too far (and to avoid disappointment) make sure someone else hasn’t already registered your ideas with a patent office via Google’s patent search.

    The business of licensing

    To learn more about licensing agreements, it’s best to get in touch with your government’s intellectual property (IP) office. Rules can vary in different jurisdictions so seek advice from an officer who can best advise on next steps to apply for a patent, file a trademark application, or draft a legally binding licensing agreement—as well as any costs for doing so.

    Be sure to visit the World Intellectual Property Organization website, too, for a wealth of information on how to license intellectual property internationally.

    Building credibility with potential licensees

    Stephen Key, entrepreneur, and IP strategist, calls success with licensing a “numbers game”—contact a long enough list of prospective licensees with enough good ideas and eventually, you’ll hit pay dirt.

    However, you’ll make a better first impression—and protect your valuable IP in the process—by demonstrating you are already running a successful, legitimate business in your own right.

    If you haven’t yet, register:

    • your company name
    • a unique URL for your company website and
    • your intellectual assets

    By demonstrating you are credible and IP savvy, you’ll put yourself in the best possible light—someone an interested licensee could easily picture themselves doing business with.

    Registering your business, domain name, and intellectual assets will also put your business in a much better financial position if you ever decide to sell.

    Final thoughts

    If you hate cold calling, get discouraged easily, and can’t stand rejection, promoting your business ideas to potential licensees may not be the right fit for you. The good news is, there are a host of other ways to generate more income for your small business—and there’s nothing wrong with keeping your best ideas for yourself.