Stress in the Workplace

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It’s been a stressful time for everyone transitioning into the new normal of business. Whether working from home, remotely or trying to get used to a whole new working environment, employees are under more pressure and stress than ever before.

How to know if your stress is impacting you:

  • Feeling ‘burned out’ at work
  • Feeling anxious or depressed more frequently
  • Lack of sleep or poor sleep quality leaves you fatigued and tired.
  • Feeling angry or emotional at coworkers

Simple ways to reduce stress at work:

  • Creating a positive working environment
  • Open communication between employees and employers
  • Healthy work-life balance (leave the office at the office!)
  • Taking mental health days
  • Update workplace procedures with Wellness programs
  • More flexible working arrangements (work from home, alternative days etc.)

It’s more important than ever for employers and employees to communicate with each other when it comes to mental health. With more people suffering from added stress, an open and honest dialogue is the first step in addressing the issues. By raising concerns about your workplace’s impacts on stress and mental health, plans and procedures can be introduced to help alleviate the causes of stress.

https://insideretail.com.au/business/stress-levels-among-aussie-workers-on-the-rise-202101

Strategising Your Risk Levels Of Super Fund Investments Could Pay Off

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When it comes to investing, there is always a certain amount of risk involved. The key to a great investment strategy is to discern how much risk you are willing to take.

The risk profile of your superannuation investment strategy should be determined by combining your financial goals and the time frame in which you want to achieve them.

As you get closer to retirement, you may care to reduce the risk profile of your investments.

Younger people are better positioned to deal with market fluctuations because they have more time to compensate for losses.

The returns you receive on investments are based on the income those investments can generate and the capital growth that the investments will experience. Investments can be broadly categorised into defensive and growth assets.

Growth assets typically have a better potential for high returns but carry short-term risks. Shares and property are examples of growth assets. Defensive assets, such as cash and term deposits, generally have a very low level of associated risk but will also yield lower returns.

By diversifying your superannuation investments between growth and defensive assets, you can fine-tune your portfolio to suit your circumstances.

Individuals running a self-managed superannuation fund should already have a robust understanding of their risk profile. However, if you are a member of a public fund it can still be possible to retain a high degree of control over your risk profile.

Some public funds offer broad investment categories that you can select (usually between five and ten). Others offer members a much higher degree of control over their portfolios, even going so far as to allow you to select specific companies to buy shares from.

Individuals interested in gaining a higher degree of control over their superannuation risk profile may wish to look at joining one of these more precise funds.

However, the downside is that these funds usually have much higher fees, potentially eroding the benefits of more control. Involved investors with an active interest in determining their risk profile may wish to investigate self-managed superannuation.

Before making any major decisions, consulting with a professional is advised.

Strategies to increase profit

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Whether you are struggling to keep up a steady income or wanting to grow your business, increasing sales revenue is often a central goal for businesses. Here are some strategies you can consider when looking to improve profit:

Redesign operations for maximum efficiency:
If you really look at the operation processes of your business, you’ll often find that there are certain systems and routines in place that may not be necessary. Try to eliminate the tasks and activities that do not make valuable contributions to the business. Look for any operation processes that can be streamlined to maximise efficiency and save time.

Increase marketing efforts:
Oftentimes, you’re going to have to spend money to make money. Many businesses benefit from investing in a strong marketing campaign or even looking for cost-effective marketing opportunities on social media. Giving your business an instant presence through online networks such as Facebook, Instagram, LinkedIn, or Twitter does not have to cost a fortune. Sharing regular updates on your business, pictures of your products or interesting content your followers will like is a great way to keep your business in people’s minds and build a rapport with your customers.

Get your staff more involved:
Your employees may be inclined to stick to the tasks they have been assigned and leave the business promotion to whoever has that job. Your employees are often the ones directly dealing with customers, engaging in meetings, and making phone calls. Therefore, it is important that you encourage the salesperson in your employees and motivate them to invest in the process of maximising sales revenue. Think about inspiring staff in meetings, providing them with commissions or benefits that will make them want to give back, training them on how to close a sale and how to deal with customers effectively.

Take care of existing customers:
While it is easy to get carried away with getting as many new customers and followers as you can, don’t forget that it is often easier and cheaper to make a sale to an existing customer than a new customer who you have not developed a relationship with yet. Existing customers will have more trust in your products or services if they have already had a positive experience with your business. Put effort into maintaining a good relationship with existing customers and focus on cross-selling and upselling products and services to them.

Strategies For Creating A Business (And Growing From There)

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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.

Strategies for achieving your financial goals

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Setting financial goals can be a great way to ensure that you’re always in control of your money. However, we all have frivolous spending habits that can derail us from achieving these goals. With perseverance and dedication, many of these habits can be changed over time. Whether you are saving for a house, that big overseas holiday or setting up your retirement savings, here are some strategies that you can implement to set your plans in place and help to achieve these financial goals.

Use your budget:
Building a basic budget can provide you with a snapshot of your current financial situation, your financial health and your spending habits. It’s difficult to know how you will reach your financial goals if you don’t understand where you stand financially. By using a budget, you can work out how much is required to save each month for your goal. It can allow you to monitor your spending habits and have a better picture of whether your goal is attainable.

Sacrifice:
By gaining an understanding of where you stand financially through the help of a budget, you can then identify areas where you may spend more than you’d like to. Incorporate some frugal spending habits by avoiding that daily takeaway coffee, cutting back on your paid subscriptions or any other unnecessary expenses. You may challenge yourself to stop spending money in specific categories for a small period to work out where it will be feasible to cut costs.

Reduce your debt:
Debt can be one of the major obstacles when it comes to your savings. Your debt can come from credit card payments, car loans, student loans, or other monthly repayments. Don’t let your debt overwhelm you, but identify where it is and implement strategies to help pay it off faster. These tactics may be to cut expenses or to shift higher-interest loans to a single lower-interest loan if possible. You may also look for ways to boost your income to get out of debt faster, such as taking up a second job or asking for more hours.

Stay on top of your credit cards

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The following are some tips which will make it easier for you to stay on top of your credit card payments so that you can worry less and save more. 

Pay on time

Check when your credit card due date is and plan your spending so that you can always pay before the date. By paying before the due date, you will avoid paying interest or late payment fees but also keep your credit card score healthy. 

When you have so much going on in life, it can be difficult to remember a date. To ensure that you’re always paying on the due date set a monthly reminder on your phone.

Pay as much as you can each month

Pay the most amount of money you can for each repayment so that you pay the debt faster and save money on interest and late fees – this means paying more than the minimum amount. If you are struggling to pay the minimum amount, contact your bank or credit provider to see if you can renegotiate. You should also consider talking to a financial counsellor. 

Taking action earlier rather than later will save you money and prevent your debt from growing. 

Cut back on your credit cards

Multiple credit cards can get overwhelming and result in you paying a lot more than you actually need to. Aim to reduce the number of cards you have one at a time. You might choose to prioritise by:

  • Smallest debt: Pay off the card with the least debt first and then move onto the next smallest debt.
  • Highest interest rate: Pay off the card that charges the highest interest and then the one after. 

Regardless of which option you choose, continue to pay minimum amounts for all cards and only continue using one card. Once you pay off each card, remember to cancel it!

Reduce your credit card limit

The easiest way to avoid the temptation of overspending is by placing a limit on your credit card. You can do this by contacting the branch remotely or visiting in person and it takes at most, 2 business days. 

Remember that you don’t have to settle on a bad credit card deal. If you realise that your bank is being unfair, or charging too much compared to other banks, make sure you get in touch with them to try and get the best deal for you.

Starting A New Business In The New Year?

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The coming new year of 2023 may be bringing you a fresh start regarding your business adventures. You may even be looking to start your next adventure on your own terms.

Why not make the coming year your year to start a business?

Understandably, you may have concerns and trepidation about the process (particularly amidst current economic uncertainty). However, an excellent start to a business should consider strategising, planning and development.

Starting a successful business requires three things:

  • A good idea,
  • The right amount of capital you’ll need, and
  • Creativity.

However, with the challenges many businesses faced over the last few years, particularly those who were finding their feet and starting up, having just those three things to face 2023’s business environment might be a little daunting.

That’s why having a strategy in place for your business and a plan for its path in the future is of paramount importance.

Think Through Every Element Of Your Startup (From Top To Bottom)

An idea for your business is a great starting point, but articulating that idea to your investors with a solid foundation is even more critical.

Think about the questions that your investors might ask you about critical elements of your business, including your target audience, the competition in the field, your company’s goals and your potential marketing strategies, as well as potential questions investors might ask you about each of those aspects of your business.

Having solid answers in place will give your investors (and you) a better picture of the idea and your potential as a business innovator.

Draft A Business Plan 

Having a physical business plan that includes all the elements you brought forward to your investors or partners will help you as you move forward on your business trajectory, but also gives a map of your business goals.

Creating a business plan should be fairly easy as it is simply putting in writing what you have already discussed ahead of time with your investors.

You may also be able to speak with us about creating business plans at the beginning of your business and throughout your business’s lifetime.

Put Your Money Into The Resources You Need (Not The Ones You Want)

It might be tempting to shell out for the best and the flashiest equipment that your business could have a use for all at once, but it’s best to plan out your expenses. Determine your needs upfront and invest in them. Are you planning to have a physical space for your business, or can operations be conducted remotely? Putting the extra money into the critical resources and equipment that your business needs at the start may help you to produce a quality product and earmark your business

Don’t Skimp On The Marketing

Marketing is one of the most important business growth strategies but is often neglected or overlooked by new businesses. Use social media, create a website, set up a blog or create email campaigns to bring awareness to your business.

Hire An Accountant

An accountant is specially trained to manage your finances and keep them in good order.

While you might be able to keep track of your finances in the early stages of the business’s growth, we’re equipped to help when things start to pick up speed.

Start a conversation to find out how we can help your business today.

Start saving for the Christmas period early

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If shopping centres aren’t even putting up their Christmas decorations yet, then the holiday period may seem to be a concern of the distant future. However, the season has a tendency to creep up on people and can often come with financial burdens. Planning your holiday expenses early can cut out one of the biggest stresses of the season and allow you to focus on enjoying the festivities and spending time with your loved ones.

Less than 20% of Australians start saving for the Christmas period two to three months in advance. Those who don’t set aside enough time to save often turn to using a credit card. Over a quarter of Australians rely on credit cards to cover the costs of the holiday season, which can result in post-Christmas debt. If you need to use a credit card, consider setting a spending cap to help you stick to your budget and reduce the risk of debt.

On average, Australians are spending $1325 each during the festive season. This includes gifts, decorations, travel, parties, food and drinks. In 2018, the average Australian spent $573 on Christmas gifts alone, with 15% of millennials splurging over $1000 on gifts. Despite this, 56% of Aussies start their shopping without a budget, and 39% do not keep track of their expenses.

If you’re worried you’re going to be tempted to dip into your savings, it can be a good idea to set up a Christmas saver account. This is typically done at the start of the year and is offered by some banks. You can make deposits throughout the year, but can only withdraw from the account when the festive season arrives, usually around 1 December. While interest is offered on these account savings, it should be noted that you can generally find better interest rates with other savings accounts such as a bonus saver or online savings account.

Alternatively, you can manually set aside an amount weekly or fortnightly in the months leading up to the holiday period. Setting up an excel sheet can help keep track of this, and can also be used to categorise different budgets for various needs (gifts, travel, food etc.). This can help you plan ahead and estimate how much you will need to cover the cost of the holidays, saving you from the bite of unexpected expenses and keeping you in control of your finances.

If you’ve left things a little late, it can help to cut out a few luxuries to save some extra money. Whether it’s having a cheap night in, or skipping a coffee run every now and then, a little can go a long way.

Stamp Duty Tax – The Invisible Cost To Purchases

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When you’re buying a property, there’s a high likelihood that you’re going to need to pay a tax known as stamp duty on top of the price originally agreed on for that property. Stamp duty is a tax levied by all Australian states and territories on property purchases. It is considered one of the most expensive costs you will encounter when buying a property in Australia. It may also be incurred for motor vehicle registrations, insurance policies, leases and mortgages, hire purchase agreements and transfers of property.

The amount that a buyer pays for stamp duty when it comes to a property, for example, is based on the property purchase price, location and loan purpose and can vary in rate depending on which state the property is purchased in.

As a rule of thumb, the more expensive the property is when buying, the higher the amount of stamp duty to be paid.  What you pay for stamp duty may vary depending on the state, as it depends on factors such as first home buyer benefits and concessions that some states may not currently have in place.

A property that is worth $500,000 for example may incur an estimated stamp duty tax of over $11,000 in the ACT. Still, in South Australia, a property priced the same may have to pay an estimated $25,000 in stamp duty tax instead.

The revenue from the stamp duty tax is added to the state government’s budget, and then redirected to other government sectors to finance further improvements.

Under certain circumstances, concessions or exemptions from paying stamp duty may be available to you.

In NSW for example, there is a stamp duty concession for first home buyers where they are exempt from paying stamp duty on new and existing homes valued up to $650,000.

Buyers of first homes that were used as a residential property and which are worth between $650,000 and $800,000 could be eligible for stamp duty discounts of several thousand dollars.

These rules vary depending on the state or territory, so it’s crucial to find out what applies to you to save you money. We may assist you with finding out whether or not you may be eligible for concessions or exemptions, so come speak with us.

Spring clean your finances

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When it comes to your money, whether it be loans, insurance, savings or superannuation, having a ‘set and forget’ attitude can be detrimental to your long term finances. Checking in on the different aspects that make up your finances every now and then to see if they need freshening up is a good way to ensure you are getting the most out of your money.

Your budget:
Since a person’s income and expenses will change over time, making sure your budget is up to date can help keep track of your spending and calculate how long it will take to reach your savings goal. This is also impacted more by day to day and surprise expenses you may incur so regular assessment will better your planning.

Your mortgage:
With interest rates constantly changing, checking to see if you are still receiving a competitive rate can end up saving you money; the lower the interest rate, the quicker you can pay off your loan. By finding out your current interest rate and comparing it to other loans on the market, you may find there is a better deal out there for you.

Your savings:
Spring is the perfect time to reconsider the type of savings product you currently have and whether the return you receive on your savings is at the best rate out there. For those with a term deposit that is about to mature, consider whether there is another savings account that pays higher interest or if another term deposit is a better option.

Your superannuation:
To get to know your superannuation better this Spring, find your latest super statement and check the following:

  • If you have multiple super accounts: consolidating all of your super accounts to just one will save you fees and make it easier to keep track of.
  • Investment options: consider the best investment option for each stage of life when choosing super investments. Those who are more than ten years away from retirement may be more suited to an aggressive investment strategy which is likely to deliver higher returns. Those who are closer to retirement may want to use more conservative options to protect their wealth.
  • Contributions: consider how much you are currently contributing to your super; the sooner you start contributing extra, the less you have to give up each week to make a difference in the long-term. Lower income earners may also be entitled to a government co-contribution and mid-high income earners may be able to save tax.