business planning

Business Tips, Ideas & Support Articles

Small business owners - time's running out for Director IDs
Advisory

Time’s Running Out on Director IDs

If you were a Director before 31 October 2021, you have until 30 November to apply for your Director ID. Time’s running out. And if you’re becoming a Director, you need an ID before you’re appointed.

Accounting

Three ways to help your small business become profitable

From tech unicorns to online retail stores that have gone global, we all hear about the businesses that have managed to make millions or even billions within a few short years of launching. Yet, for most of the 2.3 million small businesses in Australia, the reality is very different. In fact, for many businesses, it actually takes years before they turn a profit. Profitability According to IBISWorld the most profitable industries in Australia in 2022 are Superannuation Funds with $137.7 billion total profit and Iron Ore Mining with $56.1 billion total profit. Profitability is just one way to measure success. There are thousands of small businesses that are growing rapidly but are not yet turning over a profit. While this is considered acceptable, it’s important to note that no business can survive in the long-term without profitability. The main ways to boost profitability is to increase sales, improve gross profit (by either increasing prices or reducing input costs) and/or minimise expenses by improving efficiency. So how can we do this? Here are some top tips: Examine and understand your financial situation To find ways to increase profitability, you must first understand your business’s financial situation – and this means looking at the numbers closely. At Inline Partners, we take the time to gather financial data and examine a range of metrics to help determine the financial position of your business. These include revenue growth (%), gross margin (%), operating profit (%), revenue to overhead expenses (%), average sales per customer, return on assets and breakeven point. Once we understand these key metrics, we can implement an action plan to help your business improve its efficiency and productivity, which will lead to higher profitability. Develop a business plan and roadmap for the future There’s a common saying; “businesses don’t plan to fail, they fail to plan”. It’s an accurate catchphrase. Many small business owners create a business plan when they first launch but never come back to it. However, business planning should be a continuous activity for all leaders and business owners. Your business roadmap, which includes how you plan to make a profit and a budget, needs to be reviewed and tweaked regularly to ensure you stay on track. Simple factors such as high staff wages or rent and very low prices can have significant impacts on your business’s bottom line. At Inline Partners, we can identify these financial problems and help you find ways to start improving your profit ratio immediately. Implement systems so you can focus on the big picture It’s easy to get caught up in the day-to-day operations of running a business. We often hear of business owners getting bogged down with menial tasks because they don’t have the right systems in place that will allow them to focus on the big picture. Utilise business software tools that will do all the hard lifting for you and minimise errors that can cost time and money. Streamlining processes will free up your time to be more strategic and allow you to concentrate on the overall goals of the business. Do you need help with your small business? We can help you with accounting, budgeting and structuring your business to improve your profitability. Contact us.  

Sherzod Norboev - Inline People
Accounting

Small Business Failure

There are 3 key reasons for small business failure and all are preventable. Set yourself up for success right from the beginning.

Budgeting

How Benchmarking Improves Budgeting for Small Business

As the new year begins, How Benchmarking improves Budgeting for Small Business is the perfect start for success in FY22.  It is best practice for every business owner to review their financial budget at least annually. Budgeting is a daunting task, especially for small businesses, but it doesn’t have to be difficult! There are plenty of ways to make the process more streamlined, and benchmarking is one of the best ways to do that. If you’re looking for some clarity among the mayhem that comes with budgeting, this blog will give you some insight into the benefits of benchmarking for small businesses! What is Benchmarking? According to the NSW Chamber of Commerce, “benchmarking is the standard by which all inputs and outputs of a business are compared and measured. It allows you to compare your business to similar businesses in the same sector. It can enable you to identify and resolve excessive costs, inefficiencies and wastage.” The Australian Taxation Office (ATO) provides a benchmarking tool that makes budgeting easier for the busiest of business owners! This tool allows you to quickly compare your business performance to your competitors without the pain of having to do market research on your own. How Benchmarking improves budgeting for small business as discussed here provides other benefits to using this tool.  Focusing on your competitors shouldn’t be at the forefront of your mind every single day, but an occasional competitive analysis can reveal things that you didn’t realise you were missing in your business. The ATO small business benchmarking tool also allows you to check you are abiding by industry standards. No one wants to get caught red-handed during an audit!  Most business owners who violate the ATO standards aren’t doing it on purpose. It’s usually a lack of knowledge and direction. Get ahead of the crowd and take full advantage of the ATO benchmarking tool! While the benchmarking tool is pretty simple to use, I highly recommend you book a free consultation with our team so you can get everything you need out of it and keep the ATO out of your hair. The Benefit of Benchmarking in Budgeting for small business Budgeting for Small Business can be a daunting process. Benchmarking is an important tool that can assist this process and can help your small business succeed and stay on course. If you veer a little off course, it’s not the end of the world.  Everyone struggles with sticking to their budget sometimes, but benchmarking has been proven to help you achieve your ultimate business goals. Studies have shown that regular benchmarking improves overall business operation and goal achievement, and there are even more benefits of benchmarking in budgeting! Maintain a Competitive Edge Benchmarking allows you to have an edge over your competitors. 45% of business executives reported having zero plans to benchmark their performance. Choose to be a part of the 55% that realises what benchmarking can do for their business and reap the benefits! Budgeting is an essential factor for any successful business. Small businesses without a unique strategy and budget risk being lost among the rest of the competition. Ask yourself these important questions about your competitors: What services do they have to offer? How much do they offer for their services? What can you offer that your competitors don’t already offer? You know what your products or services are worth. Market your business in a way that potential clients can’t resist choosing you over their other options.  Improve Cost Efficiency Since benchmarking improves your overall business outlook, this allows you to simplify your expenses. Benchmarking can help you realise if a certain investment is worth it based on the target you have to meet.  Take a look at how much your competitors are spending on lead generation and marketing and see if it will be profitable for your business way before you have to take out your business card! Focus all of your energy on reducing costs, improving profit margins, and skillfully growing your business. Increase Productivity Spend more time working instead of worrying about your budget! Using the ATO benchmarking tool helps you identify the main problems in your small business so you can solve them and improve your efficiency. Increased efficiency results in increased productivity! When you increase your productivity, you can drastically decrease the time and effort it takes you to complete a project. You will have less brain fog, increased concentration, and better decision-making skills! Improve the Quality of Your Team Benchmarking allows you to improve your team members’ skills. It can give you an idea of the type of training you should invest in for your team. You might also think of some new ideas you’ve never thought of before! Gather feedback from your team members. There’s no reason why you should have to run your business on your own! This can ultimately improve the quality of your team. No matter how awesome your team is, there will always be room for improvement.  Develop More Effective Strategies Benchmarks are exactly what they say they are. They are simply guidelines and standards to follow. You don’t have to copy everything that your competitors do. In fact, we strongly encourage you not to do that. Please don’t spend X amount of dollars on ads when you know it isn’t within your budget! If you can figure out a cheaper and more effective way to market to your audience, do that instead. Don’t forget the power of organic reach. All you have to do is market yourself correctly, and it’s completely free. Benchmarks are an invaluable tool for small businesses looking to improve their budgets, but like all things, they have their limitations.  Our team of qualified bookkeepers, accountants, and consultants here at Inline Partners understand that your time is precious, and we are devoted to helping you achieve your business goals. We are experienced in how benchmarking improves budgeting for small business. For a more in-depth, personalised benchmark analysis, please book a free consultation