S & H Tax Accountants

Tag: NSW COVID-19 Business Grant

  • When to raise your prices

    When to raise your prices

    It’s an inevitability in every business – you have to raise your prices to continue making a profit. There are many factors that go into deciding how much to charge, all of which are dynamic. The rising cost of goods, inflation, and a changing market are just a few reasons why any small business has to reevaluate its rates regularly to stay competitive (and to stay in business).

    While it may seem like you just set your prices or recently adjusted them, this is a task that should be done once a year at minimum – preferably more. Read on for some signs your business is ready to charge more.

    1. You have a loyal customer base

    Once you’ve been in business for a while, it’s likely that you’ve built up a loyal base. People will return to you when they know they will get a quality product. They’re also more likely to return when they get to know you personally.

    If your business has a lot of customers who bargain shop because you offer rock-bottom prices, choosing to raise your rates likely won’t go well. Wait until you’ve established a base of loyal customers who will be happily willing to pay more knowing they’ll get fantastic, personal service from you.

    People buy from those they know, like, and trust, so once they get to know, like, and trust you, they’re likely to keep coming back. Build relationships to foster that customer base.

    2. It’s been a while since you raised your rates

    The rate of inflation is reason enough to raise your prices, otherwise you’re operating at a loss. Keep track of the rate of inflation each year and adjust accordingly. People generally understand raising prices in times of high inflation–even if they don’t like it–since every business on earth must either keep up, or accept the loss to their bottom line. It’s just good business sense.

    For decades, the average rate of inflation has hovered somewhere around the 3% mark, with some years worse than others. If you’ve paid attention to the news lately, you’ll know that things are a little different in 2022. Take into account what’s going on in the bigger picture, and then adjust your rates accordingly to avoid absorbing the hit.

    3. You’ve added value

    This doesn’t necessarily mean that you’re offering more literal services for the same price. Value can also come in the form of increased experience or new skills. When you and your staff have added value to what they’re able to offer, that can and should be passed along to your customer base. People are almost always willing to pay more for a superior product or service.

    4. Your competitors are charging more than you

    Be sure to take a look around to see what your direct competitors are charging. As your business evolves and becomes better with time, check to make sure that you’re comparing yourself against other businesses of the same class.

    If you don’t keep up with regular rate increases, you may be surprised to find that competitors you initially considered to be equal to you have raised their rates significantly. You will then find yourself in a position where you have to raise your rates significantly in one go just to keep up. Keep on track by regularly checking what they’re doing.

    5. Your close rate is over 80%

    Some people like hard and fast numbers, so this is a good rule of thumb. You want to aim for your close rate to be between 75-80%. If it’s lower than that, you likely have an issue with perceived value. If it’s higher than that, you’re probably overworked and also attracting mostly bargain hunters – not a true loyal customer base.

    If everyone is saying yes to your prices, you probably aren’t charging enough.

    Final Thoughts

    There is a lot to consider when raising your rates, and you don’t want to do too much too fast. Make a point to reevaluate your rates every six months, and you’ll find that you can keep your customer base while also keeping up with the increased cost of doing business.

    If you need advice, on how setting new prices may effect your accounts and how this would then effect your costs, please contact S & H Tax Accountants. We have qualified staff that can help you in the best possible way. Book a consultation with one of our accountants today, call us at 03 8759 5532 or emails us at info@sahtax.com.au.

  • How to Scale Your Business with Minimal Effort

    If you want your business to grow, at some point you’ll have to think about scaling it. Scaling it isn’t exactly the same as growing it, though they are often used interchangeably. Growth refers to adding resources and increasing your revenue in a linear fashion. You double your number of offices to double your number of customers, for example. Scaling means increasing your revenue without a substantial increase in the resources used.

    For example, email marketing is a great way to scale. You write one marketing email and it can be seen by 100 people or 100,000 people, without any extra effort from you. Scaling is a way of efficiently using your resources to increase revenue, without incurring additional costs—or only incremental costs.

    Here are some tips to effectively scale your business with minimal effort.

    1. Keep it simple

    Processes that are overly complex take more time and energy. They also come with a higher risk of errors. Scaling your business doesn’t have to be complex—in fact, complexity can often slow progress and waste your time.

    Keep your processes simple. That will help you not only maintain control of your business, but enable your employees and your customers to understand what you do and to buy in.
    If it seems too complicated, avoid it.

    2. Use scalable administrative processes

    Scalable processes allow you to operate efficiently because they enable you to take action quickly, with less effort and input. Technology makes it easier for companies to access software that increases productivity and revenues while decreasing time spent on administrative tasks.

    For example, having an online invoicing tool helps you scale because you can quickly create invoices, follow up with clients and track project management, without having to do so manually. That saves you time and energy that can be better spent in other areas. Meanwhile, marketing automation tools can bring in an additional $50,000 a year but only cost around $5,000 a year.

    Examine the activities you perform regularly and explore whether there’s a tool that could automate them.

    3. Focus on data

    Don’t speculate about what is and isn’t working in your business, use data to determine where you should spend money, and where you should stop. Business owners have access to a wealth of data-driving metrics, everything from how customers interact with your website to which marketing initiatives are working, to how long it takes to convert customers.
    Use that information to make effective spending and operational decisions, rather than guessing at what is and isn’t working.

    4. Scale your offerings

    Chances are, you can scale your offerings to encourage repeat customers. Automatic renewals or subscriptions can increase customer retention rates without you putting in the effort of chasing people down. Rewards programs nurture customer loyalty.

    Explore whether you can offer repeatable pricing packages as well. Even if you offer professional services, selling packages saves you from manually quoting on every individual project. There is likely a way that you can implement subscriptions or service packages to save you time and hassle.

    Final thoughts

    Scaling your business is an important way to increase revenue without significantly increasing your expenses. If you automate your processes, scale your offerings, focus on data and keep your systems simple, you can scale your business effectively and efficiently.

  • Business Update – 14 July 2021

    Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.

    NSW Lockdown Extended for 2 Weeks

    Lockdown measures in Greater Sydney have been extended by at least another two weeks from Monday. At this stage it will last until 11:59pm on Friday July 30. We’re thinking of everyone affected and encourage you to get in touch with us if you have any questions about your business.

    New NSW COVID-19 Support Package Announced

    Under a combined NSW and Federal Government support package, the COVID-19 Disaster Payment will be expanded and increased. The payment will increase to $600 if a person has lost 20 or more hours of work a week or $375 if a person has lost between 8 and less than 20 hours of work a week.

    From 18 July 2021, the Disaster Payment will be available to those outside the Commonwealth declared hotspots in NSW that meet the criteria for the payment. It will be offered to any other state or territory that experiences an extended lockdown.

    Covid

    Also, a new business support payment will be available for those with an annual turnover between $75,000 and $50 million who can demonstrate a 30% decline in turnover. Eligible entities, including not-for-profits, will receive $1,500 to $10,000 per week based on the level of their payroll.

    For sole traders, payment will be set at $1,000 per week.

    More information will be on the Service NSW website later this week and we will keep you updated.

    NSW COVID-19 Business Grant

    If you’re a business, sole trader or not-for-profit organisation impacted by the current Greater Sydney COVID-19 restrictions, you may be able to apply for a grant of up to $15,000 from 19 July 2021.

    Victoria Closes Border to NSW

    Victorian authorities have closed the state’s border with New South Wales on Sunday. The border is closed to NSW and the ACT, except for Victorian residents returning on a red zone permit for 14 days of quarantine and those with exemptions.

    NZ Resumes Travel Bubble with QLD as restrictions ease

    NZ has resumed its quarantine-free travel arrangement with QLD from 11:59 pm on Monday. QLD health authorities announced reduced restrictions on social gatherings and mask wearing starting this Friday, prompting the NZ government to bring back the travel bubble. Queenslanders will still need a pre-departure test to enter NZ.

    Kiwis Stranded in NSW Start to Come Home

    Managed return flights will start bringing New Zealanders stranded in NSW home to NZ on Tuesday. There are as many as 2,500 Kiwis in NSW, but there are only about 1,000 rooms available in the MIQ facilities over the next two weeks. Returning travellers will be required to quarantine for 14 days upon return.

    Singapore-Australia Travel Bubble More Likely in the End of 2021

    A planned travel bubble between Singapore and Australia is more likely to happen towards the end of the year, according to Australian Minister for Trade, Tourism and Investment Dan Tehan. Plans have been on hold due to a third wave of COVID-19 in Australia.

    At present, around 40% of Singapore’s population have been fully vaccinated, while 11% of Australian adult population (20.5 million) have received both shots of an approved vaccine.

    Western Australians Exposed to Victoria, SA Hotspots Must Get Tested

    Western Australians who have been to recently announced exposure sites in Victoria and South Australia are required to be tested immediately and to quarantine for 14 days regardless of the result.

    This comes after a group of COVID-infected removalists from Sydney visited a Melbourne apartment complex and a South Australian petrol station. The entire apartment building in Maribyrnong has been placed into lockdown after the removalists dropped furniture using the building’s lift.

    Australian Business Activity Fell From Record Highs

    National Australia Bank’s index of business conditions dropped 12 points to +24 in June, after climbing 5 points in May. Meanwhile, its measure of confidence slipped 9 points to +11, though that was still above the long-term average.

    This comes as the COVID-19 lockdowns in New South Wales and Victoria curbed sales and undermined confidence.

    Job Maker Hiring Credit’s Second Claim Period

    The second claim period of the JobMaker Hiring Credit is now open. So if you’ve taken on additional young employees between 7 January and 6 April 2021, you may claim the following payments:

    • up to $10,400 over a year for each additional eligible employee aged 16 to 29 years
    • up to $5,200 over a year for each additional eligible employee aged 30 to 35 years

    Register any time until the scheme ends.

    Wage Subsidy Scheme for Apprentices and Trainees

    The government has announced the expansion of the wage subsidy scheme for apprentices and trainees. Under the scheme, the government will pay half the wages of apprentices up to a maximum of $7,000 each quarter for 12 months. Ask us if you have any questions.

    Income Statements can be found in myGov in July

    Since Single Touch Payroll (STP) came into place in 2019, payment summaries (previously called Group Certificates) now known as Income Statements can be accessed through myGov. These are no longer directly provided by employers. This will be prepared and ready for employees by 14 July if your or 31 July, depending on if the employer has 20+ employees or 19 or less respectively.

    Eight Tips to Calmly Handle Company Crises

    Running a business has its own ups and downs. Sometimes, ideas fail and things go out of hand, leading to a crisis within the business. In this Forbes article, members of the Young Entrepreneur Council share eight tips to manage company crises calmly and competently.

    • Take a moment to sit and think, without distractions. It’s through clarity that you can make the best decisions and take the right actions.
    • Ask senior leaders to help address the crisis. Catch up with leaders, explain the current situation, and ask them to help you address the crisis.
    • Respond in a calculated manner instead of reacting. Responding requires you to take a moment, gather all relevant information, and make a plan to move forward.
    • Encourage employees to stick to their daily routines. This keeps a sense of normalcy and prevents placing unnecessary stress on employees.
    • Take ownership of successes and failures. Resist the urge to shift blame as this will only cause more problems and worsen the crisis.
    • Remember your company’s purpose and vision. Re-centre everything to your true north in order to stay calm and manage the crisis.
    • Quantify the issue to put it into perspective. Being able to quantify the issue as a one-dollar problem or a thousand-dollar problem, for instance, can help you approach the crisis from a composed viewpoint.
    • Create a plan of action with detailed steps. Proactively define priorities and then communicate the three or five most important steps. Having a plan will not only help address financial concerns and preserve operational continuity, but will also make your team feel secure.

    Need more focused business advice? Get in touch with us today and let us talk about your specific situation and how we can help you.

    Get in touch

    Contact us if you have any questions or want to discuss the next steps for your business.