Month: February 2023

Strategies For Creating A Business (And Growing From There)

Posted on by Adam_Admin

Creating a business is not an easy avenue to explore. It requires commitment, frequent planning, substantial financing and good business sense. However, not only do you have to think about the beginning of your new venture, but you also have to think about the company’s continued growth.

To be a successful business, growth is the standard measurement of progress. Several criteria can be used to gauge this in a commercial enterprise, including:

  • Sales revenue – Value of business generated by the company in a given period
  • Market capitalisation – Value of equity to investors or owners
  • Profitability – Net profit after taxes and operational expenses
  • Customer retention – Size of the existing market
  • Customer acquisition – Number of potential customers from the total market share
  • Company assets – Assets legally owned by the company after subtracting liabilities

Generally, several strategies can be followed to develop and sustain business growth (depending on your preferred approach towards increasing your business activities).

Market Penetration

Even the smallest start-up company needs to have a way to break into the market and stand out from its competitors. Several techniques can be combined with other ideas to distinguish your company. These include:

  • Offering lower prices
  • Being more willing to bend to market demands through availability/logistics.
  • Adding value-added services while maintaining an acceptable quality standard
  • Exceeding customer expectations.

Market Development

Using careful planning and precise execution to generate business in a new market is another strategy for your business to further its reach. Understanding the business conditions of a market allows companies, big or small, to sell existing products in new markets that can develop new sales opportunities.

It could also mean reaching out to other areas of opportunity such as classifying the market according to age, income class, spending personas or other distinctive conventions. Depending on the industry, you can also redevelop a new product/service line based on the overall demand.

Product Development

Know what your customers require/ are looking for and become their solution. Answer the market demand (if possible) with a new product or service that addresses this need.

Companies can use different ways to develop products in an existing market; they could be based on the following:

  • pricing
  • development of new features
  • product positioning
  • other deciding factors could push customers towards choosing what your business can offer.

Business Diversification

While this is a high-risk strategy, it may lead to high rewards. To mitigate the risks, you can lead your business by approaching new ventures with calculated risks and weighing the potential rewards if it succeeds. Additionally, some diversification strategies allow some flexibility for pivoting from the initial business plan to allow a safer way that can lead to growth.

If you are considering the next step for your business, why not consult with us? As business advisers, we can assist you with strategies to help develop your business to its fullest potential.

Super Fund Fees – Are Yours High, Medium Or Low?

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No matter the kind of super fund you opt for, or how it has been performing, you will be subject to super fees. Understanding how these fees work and the difference they can make to your nest egg is vital.

When it comes to super fund fees, there are two factors you need to get your head around; the kinds of fees you are being charged and the rate of fees you pay. Opting for a super fund based on these two factors can see you retire with hundreds of thousands of more money.

You should be aware of the various types of fees you are being charged. If you would like to find out the fees you are being charged, you should do two things.

Firstly, Google your fund’s product disclosure statement and scroll through to the fees section. You should see a list of different types of fees, explaining what they are, how they are applied, and how often they will be incurred. Secondly, you should log in to your super fund account and note all the fees being charged to you. Investigate how closely these correspond and correlate with the product disclosure statement.

If you feel there are discrepancies, do not hesitate to contact your super fund or financial advisor and ask for clarification. It is worthwhile researching and comparing the fees you are being charged against other super funds and what they charge. Being complacent and not paying attention to your super is extremely irresponsible; the dividends you will receive later in life for being diligent now outweigh the burden of taking time to be informed today.

Some standard fees across the board include:

–        Administration fees: fees covering the costs of operating and managing your super fund account.

–        Exit fees: fees incurred for leaving or switching super funds. While this is a common fee, not all funds charge it.

–        Investment fees: fees incurred due to the cost of managing where your money is invested. These fees can fluctuate, depending on where your money is invested.

–        Activity-based fees: fees incurred for any activity you require your super fund to perform outside of the ordinary management of your account, such as a family law split fee.

Another major factor contributing to how much you accumulate in your super account throughout your working life is the rate of fees you pay. Plain and simple, some funds offer much lower fees than others, creating a difference of hundreds of thousands of dollars when it comes time to retire.

Generally, funds are categorised into three groups; low super fees, medium super fees and high super fees. You will need to weigh up your options and decide whether you want a fund that charges low, medium or high super fees. While it seems like the best option to choose a fund with low super fees, these funds do not necessarily perform as well as medium or high-fee super funds, meaning you will not get as good of a return on your investment.

5 Tax Resolutions This Year You’ll Be Keeping

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Get a gym membership, start a diet, drink less, and travel more. Every year we make plenty of new year’s resolutions that we try valiantly to uphold.

Why not make one about keeping on top of your tax obligations in 2023?

Are You In Business? 

Know if you’re in business or not! Are you earning an increasing income from a hobby? You might already be in business for tax purposes. To work out if you’re in a business, identify all relevant, related activities you may be conducting already.

Examples of these can include:

  • keeping records
  • obtaining and maintaining licences and permits
  • if you rent out premises or goods, everything you do to rent out those premises or goods
  • if your activity is providing goods or services, everything you do in providing them.

Then, determine whether or not the activities are considered a business by answering the following questions.

The more of the following questions you answer yes to, the more likely it is your activities are a business:

  • Do you intend to be in business?
  • Do you intend and have a prospect of making a profit from your activities?
  • Is the size or scale of your activity enough to make a profit?
  • Are the activities repeated and continuous?
  • Are your activities planned, organised and carried out in a business-like manner? For example, do you:
    • keep business records and have a separate business bank account?
    • advertise and sell your goods and services to the public, rather than just to family or friends?
    • operate from business premises?
    • maintain required licences or qualifications?
    • have a formal business plan or budget?
    • have a business name or an ABN?

Keep Business Details & Registrations Up To Date

If you’re the director of an Aussie company, you need to apply for a director ID. Keep your ABN details up to date as emergency services and government agencies use this information to support businesses during disasters. Also, if you’re going to earn over $75,000 this financial year, you’ll need to register for GST.

Keep Accurate And Complete Records

Good record-keeping helps you manage your business and its cash flow.

Do Personal Services Income (PSI) Rules Apply To You? 

PSI is income produced mainly (more than half) from your skills or efforts as an individual. If you’re earning PSI, you’ll need to work out if you’re a personal services business to determine whether the PSI rules apply to your income. The rules affect how you report your income and the deductions you can claim.

Take Care Of You AND Your Business

The last few years have thrown some curve balls at small businesses, so it’s good to be prepared. Consult with your advisers, take heed of the advice given and if necessary, look into grants and programs that can assist your endeavours.

We wish you all the best and hope you’re on track to thrive in 2023. When the fireworks have faded, know that we’re always available to support businesses just like yours.

Have You Made Your Business’s New Year Resolution?

Posted on by Adam_Admin

Coming out of the holiday period is usually a slow time for businesses but there’s never been a better time to get on top of things.

A new year brings business owners great motivation and opportunities to bring their businesses to greater heights. Whether you want to get on top of your business’ finances, relationships, and policies or to finalise your business plan for the year, setting your 2023 business resolutions allows for greater organisation, clarity, and a sense of direction. Many studies show that identifying goals increases the likelihood of achieving them.

Why not consider adopting the following business resolutions?

Review Your Supplier Relationships

While you review your budget for the year, consider if your suppliers are the most competitively priced for their quality of service. Take the time to research alternatives against your performance indicators. If you don’t have any already, establish a system to track and evaluate the performance of your supplier as it is crucial to the efficiency and profitability of your business.

While it is important to cut underperforming suppliers, it is just as essential to maintain good relationships with your suppliers. This includes actively involving your supplier in strategic meetings which involve them in helping with any negotiations further down the track.

Improve Your Branding

Developing and protecting your brand is essential to differentiate yourself in a competitive market. Start by reviewing your marketing strategy and get to know your market by gathering consumer data and conducting customer surveys. Make an effort to consistently improve and update your website regularly and strategically utilise social media channels for a strong digital presence. Consider hiring a marketing consultant that can help guide your brand.

Take A Look At The Books

No matter how well your business has performed in the past year, there is always room for growth and improvement. Alternatively, if your business didn’t perform as expected, look at where things might be stagnating. Revisit where the business spends money and create strategies to lower these costs. For example, if the internet bill for the business is X amount, consider shopping around and looking for a cheaper deal. Small changes in multiple areas could see you make an extra 10 per cent annually without feeling like you are making large sacrifices.

Revamp Social Media Marketing Strategies

Technology is ever-evolving, meaning the way it can be used as a business and marketing tool is too. The start of the year is the ideal time to do your research; investigate emerging trends for social media marketing and try to analyse the direction in which these trends are travelling. Research may tell you, hypothetically, that successful businesses in your industry are steering away from Facebook and are predominantly using Instagram and Tiktok. In this instance, you should be analysing how you can adapt and transform your current marketing strategy to stay current.

Professional and Personal Development

There is always something new to learn; whether that be related directly to your business and the industry it is in or whether it relates to personal skills that will make you a better business person and a better leader. Take some time to look at the courses available to you that will fit into your schedule or that you can adjust your schedule to fit them in.

There are many organisations online that provide courses in a large array of areas, such as developing your technology-based skills, learning how to use specific software and programs, business refresher courses, etc. You may have wanted to learn a new personal skill, such as yoga, rock climbing or a new language; make that a priority in 2022.

Developing your personal skills will help you to become a better leader and all-around entrepreneur. Some businesses may implement personal/professional development days for their employees to boost the business as a whole.

Update Your Business Goals Regularly

Setting your goals is one matter, but following them through requires commitment. For example, make your goals and plans by the quarter instead of the year. By reviewing your business plan, budget, and goals regularly with your team, your goals will be more specific and relevant to the business and will give you greater motivation to achieve them. Another tip for staying motivated with your goals is to build an emotional attachment with them. Motivation to ‘make more money’ could be increased when you consider how that will affect your family and loved ones.