Month: August 2020

What to consider when developing a sales strategy plan

Posted on by Adam_Admin

A successful sales strategy plan will provide your business with clear priorities, goals, and outcomes that can help you increase sales.

Outline your mission and goals
What’s your business’ mission statement? What are the goals and objectives that will help you achieve this? Your mission statement should define what your business stands for and what it aims to achieve, while your goals and objectives should be aimed at executing your mission. Consider using the S.M.A.R.T. framework when developing your goals to ensure that they are specific, measurable, achievable, relevant, and time based.

Identify your ideal customer
Knowing your ideal customer persona is crucial as it will be the basis of your marketing strategy. Assess your ideal audience by researching their demographics, needs and wants while thinking about how your products or services have to offer them. Don’t limit your demographic research to age, location, and gender, but also consider their attitudes, aspirations, and lifestyle.

Conduct a SWOT analysis
Assessing your business by using a SWOT analysis can help you identify areas to consider when developing a sales strategy plan, by addressing:

Strengths:

  • What are your strongest assets?
  • How skilled is your sales and marketing team?
  • What advantages does your business have over competitors?
  • What resources are available to you?

Weaknesses:

  • What are your areas of improvement?
  • What types of complaints do your customers have?
  • Where do you fall behind from your competitors?
  • Are you working with limitations on resources or skills?

Opportunities:

  • Are there changes in the business environment you can benefit from?
  • Have there been changes in the market that could present an opportunity?
  • Do your competitors have weaknesses or gaps you can fill?

Threats:

  • Are your competitors expanding or getting stronger?
  • How satisfied are your customers?
  • Are there changes in the economy, consumer behaviours, or government regulations that could affect your sales?

How to make your website accessible

Posted on by Adam_Admin

The key goal for all business websites is to attract as many visitors as possible. However, not many business owners remember to cater their website to those with special needs and disabilities. To make sure your website is accessible for everyone on the internet, here are a few tips to consider.

Be mindful of your colour choices

Colour is often viewed as a major contributor to making a website visually appealing. However, not all people have the privilege to distinguish between colours, or may find it difficult to read texts over certain colours. It is therefore important to be mindful of the colours you choose to use on your website as well as the contrast levels between your text and background colours. For example, red-green colour deficiency is most common among individuals experiencing colour blindness so it is best to avoid using such colours on your website altogether. Using visual cues such as asterisks and question marks can also be helpful in separating content otherwise divided by colour.

Ensure your website is keyboard and mobile-friendly

Not all of your website’s visitors are going to be on a computer, so it is important to make sure your website is both keyboard and mobile friendly. Keyboard-only navigation means that all of the content, links and pages on your website can be accessed without a mouse, often using the ‘tab’ key. It is also important to accommodate mobile users and make sure your website can shrink down to the vertical, zooming and pinching format while also retaining its functionality.

Include alternative text for images

Visitors may prefer to read text over viewing images on your website due to a number of reasons, such as slow internet connection, image-blocking browsers or users who are sight-impaired. To satisfy such audiences, consider providing descriptive alternative texts in place of images to convey the same message to those who cannot see them. Alternative text is especially important in cases where your image acts as a page link or is integral to the content on your website.

Make sure your content is structured

A clean and uniform structure is integral to making your website accessible and this can be achieved by using headings to correctly organise your content. Headings can be used to help visitors easily navigate between your content, but it is also important to make sure your headings are visually uniform to prevent confusion between different content pages on your website.

Buying property through your SMSF

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Using SMSFs to buy property has become increasingly popular among Australians in recent years, particularly since it became possible for SMSFs to borrow money to fund a direct property purchase.

Residential property

A residential property owned by an SMSF has some limitations as to who it can be leased to.

To buy property through your SMSF, the property must meet the following requirements:

  • It meets the ‘sole purpose test’ of solely providing retirement benefits to members of the fund.
  • It is not acquired from a related party of a fund member.
  • It is not to be lived in or rented by a fund member or a party related to a fund member.

Commercial property

A commercial property owned by an SMSF can be leased to a wider range of tenants than residential properties. Commercial property purchased for business purposes can be purchased from a member of the SMSF or a related entity. This allows small business owners to use their SMSF to purchase the premises from which their own business is run, enabling them to pay rent directly to their fund. This can be preferable to paying rent to an alternate landlord. However, keep in mind that rent must be at market rate and be paid promptly and in full at each due date.

SMSF borrowing

SMSFs can borrow money to purchase a property, however, the borrowing criteria for an SMSF is generally much stricter than regular property loans taken out by individuals. All loans must be undertaken through a limited recourse borrowing arrangement (LRBA). An LRBA involves an SMSF trustee taking out a loan to purchase a single asset, such as a residential or commercial property. Under the Superannuation Industry (Supervision) Act 1993, super fund trustees can use borrowed money to pay for regular repairs and maintenance. However, borrowed money under the LRBA cannot be used for property improvements or renovations that result in the acquirable asset becoming a different asset. This may include adding additional rooms to the property or completely renovating a room.

Tax consequences

Buying and renting property through an SMSF also comes with tax consequences. SMSF funds are required to pay 15% tax on rental income from properties purchased through the fund. However, properties held for over 12 months receive a one third discount on any capital gains made upon the sale, bringing any CGT liability down to 10%.

Expenses such as interest from loans, council rates, maintenance and insurance can be claimed as tax deductions by the SMSF.

As well as this, once SMSF members reach pension phase, any rental income or capital gains arising in the fund will be tax-free.

SMSF property costs

SMSF property sales often attract higher fees that can end up reducing your super balance. Fees and charges can include:

  • legal fees,
  • property management fees,
  • bank fees,
  • advice fees, and
  • stamp duty.

What is a TPAR and do you need to lodge one?

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The Taxable Payments Annual Report (TPAR) is an industry-specific report through which businesses inform the ATO of the total payments made to contractors for services in that financial year. This information is then used by the ATO to match the contractors’ income declarations to improve their compliance efforts.

A TPAR is generally required by businesses that have an Australian Business Number (ABN), have supplied a relevant service and have made payments to contractors for services completed on your behalf. Contractors can be operating as sole traders, partnerships, companies or trusts. The following services are considered relevant:

  • Building and construction services
  • Courier or Road freight services
  • Cleaning services
  • Information Technology services
  • Investigation or surveillance services

If your business provides these services, regardless of whether it is only a part of the services you offer, or if it is a federal, state, territory or local government entity, you are obligated to report the payments made to third parties through a TPAR.

It is important to remember that not all payments need to be reported. Your taxable payments annual report does not require details of:

  • Payments for exclusively materials
  • PAYG withholding payments
  • Contractors who do not provide an ABN
  • Incidental labour costs
  • Invoices that are unpaid as of 30 June
  • Payments within consolidated groups
  • Payments for private and domestic projects.

Only payments made to contractors for work that is relevant to carrying on your business needs to be reported. Your TPAR is due by 28 August each year, and fines may apply for not lodging the report by the specified deadline.

If your business does not need to lodge a TPAR for a particular financial year, consider submitting an optional non-lodgement advice through the ATO business portal to avoid unnecessary follow-up about TPAR lodgements.

Applying for small business income tax concessions

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Businesses looking to save on tax for the financial year may consider applying for income tax concessions.

Businesses classified as a small business entity are eligible for income tax concessions. Since 1 July 2016, businesses are considered small business entities in the case that they:

  • are a sole trader, partnership or trust,
  • operate as a business for all or part of the income year, and
  • have an aggregated turnover of less than $10 million.

In the event that you meet the above requirements as a small business entity, here are the income tax concessions available to you.

Small business structure rollover

Small business entities can change the legal structure of their business and transfer active assets from one entity to another without incurring any income tax liability. Assets such as capital gains tax assets, trading stock, revenue assets and depreciating assets are eligible in this rollover. The rollover is also only available in the case that it is part of a genuine restructure and there is no change to ultimate economic ownership.

Simplified trading stock rules

Under the simplified trading stock rules concession, you can estimate the value of your trading stock at the end of the financial year when reporting in your tax return. However, small businesses will also need to show how they calculated their estimated trading stock value. Businesses which choose not to use an estimate will need to account for value changes in their stock and conduct a stocktake. Stocktakes do not need to be conducted if there is a difference of $5,000 or less between the value of your stock at the start of the income year.

Immediate deductions for prepaid expenses

Payments which cover a period of 12 months or less that are ending in the next income year are eligible for immediate deductions. Prepaid expenditure is also immediately deductible when the period ends no later than the last day of the income year following the year in which the expenditure was incurred.

Two-year amendment period

Small businesses receiving a notice of assessment from the ATO have a two-year time limit for reviewing an assessment.

How to select a default fund for your business

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Business owners might be required to select a default fund for employees when they do not want to nominate their own superannuation funds. Funds should meet specific requirements that are stated as per super law, so it is important to select a complying fund. However, there are other factors that you may have to think about before selecting a default fund to make sure that you and your employees get the most out of it.

Pricing

Naturally, one of the main considerations while selecting a super fund should be pricing. Funds that have a lower fee may not cover extras, and this requires careful analysis to see what extras have been left out. Coverage for extras like being able to track down missing super is a key feature that employees will prefer your default fund has.

Employee preferences

Employees are likely to prefer funds that allow flexibility with their investment options, and have essential features like insurance policies covering death, total and permanent disability (TPD), and income protection. You may want to consider options that give your employees a comprehensive cover while keeping an eye out for any exclusions that might affect you.

Industry fund

Checking industry funds may help reveal awards that are particularly applicable to employees from your industry. It is a requirement that your default fund is a MySuper product. All listings under Industry SuperFunds are MySuper products, so this can simplify the process of finding an affordable super fund for your employees.

Fund management

Finally, consider taking a closer look at the fund’s insurance offerings. Past performance of the fund doesn’t guarantee high returns in the future. But it is important to be aware of the returns on the fund’s investments to compare how their options have performed against their return objectives. This can increase the chances that the selected super fund will be beneficial to you and your employees.

Growing your business with referrals

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‘Word-of-mouth’ referrals may seem like an outdated concept in today’s digital age of online reviews, but a few credible and positive opinions can still go a long way when it comes to attracting new clients. Customer referrals are never guaranteed, but here are a few methods you can use to increase the number of people who will remember and improve the chances of a client recommending your business to another.

Remind customers you exist

Maintain high levels of brand awareness and make sure your customers can easily remember your business and products. Use a mailing list database and keep in touch with your clients regularly through email or social media. Make sure to update your clients (personally whenever possible) when you have special offers and new products to keep them engaged with your business.

Join communities

From professional organisations to online community groups, getting involved in different activities will give you new contacts, boost your business profile and increase your brand awareness. For example, using community hashtags on your social media posts when promoting a product will direct interested audiences to your business. Simply remaining active in such community spaces can go a long way in indirectly advertising your products and services.

Exhibit at industry events

Industry-relevant exhibits and events are a good way to increase your business’ brand awareness and meet a lot of new potential customers at once. Being active at these kinds of events (through sponsorships or networking) will keep your name in front of your current customers as well.

Use testimonials

Similar to reviews, testimonials from your existing customers can help improve your brand’s reliability and encourage loyalty and trust with your new customers. The fact that a client allows you to use their name adds credibility and serves as another kind of referral.

Ask customers for feedback regularly

Constant improvement and clear communication is key to impressing clients and increasing the chances of referrals. By soliciting suggestions from your existing clients, responding to them personally, and providing high-quality service, you can let customers know that you care about them and want to meet their needs. Establishing such a caring relationship with your customers will improve your business’ reputation as well.

How to avoid hiring the wrong person

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There is a growing demand for new employees as businesses open their doors again. However, a bad hire can damage the reputation of your business, impact the work environment and may force you to restart the recruitment process. Small businesses can be especially impacted by the significant expenses involved in hiring new employees. Business owners may want to consider using the following tips to avoid employing a bad hire.

Developing a culture fit

You may find that your business has a unique corporate culture that your employees thrive in. The best way to assess this is to have your team members meet the potential hire to allow both parties to understand the kind of culture that exists in your workspace.

Using this information to screen potential employees during interview stages improves your chances of finding a candidate who is likely to fit well into your team.

Role definition

While a culture fit is more likely to screen candidates who fit within your business’ values, it is key that your new hire is able to succeed in their actual responsibilities. Consider reviewing your job posting to make it more specific, relevant and gives the candidate a clear idea of what they can expect from this role. The job description should ideally include more specific key technical competencies, necessary soft skills, expected deliverables and revenue targets that the hire is expected to meet in that role. Detailed job expectations can also help in evaluating the employee’s performance in the future.

Effective on-boarding

If a new hire seemed like a good fit, but is not performing well, employers may want to examine the on-boarding process within the company. Failures in the on-boarding stages can include a lack of communication or expectations from the employee to work independently and without guidance within the first few weeks of employment. Consider communicating clear deliverables and establishing a point of contact for the employee for any support. Your new hires can also be a valuable source of feedback on your on-boarding process and help you identify gaps in your hiring stages.

Handling mis-hires

Finally, some businesses may still find that they ended up with the wrong person for the job. Hiring managers often have a large responsibility in hiring the wrong person, so treat termination as your last resort. Before immediately removing a poor fit from your business, consider having a conversation with the employee about their issues with meeting their deliverables. Some issues can be solved with appropriate skill training and workshop sessions, or simply moving them to a more suited role within your company.