Keeping Small Australian Businesses Up To Date
I came across this video that is a great free training session on how to obtain more Facebook fans for business. It goes into the details of how to set up your Facebook page, creating funnels for your business page, getting into the social media mind set and more
Click to read more Triple Your Facebook Fans
Ensuring that you retain your customers should be a primary concern, Improve your business with these simple suggestions
To only source business from new prospects without a deliberate focus on customer retention, is like rowing a boat with only one oar. The result is wasted time with no ability to move your business forward.
To grow your business through improved customer retention, take a look at these suggestions.
Ask and Listen
To improve your customer loyalty you need to learn how your customers feel about doing business with you.
To read more click the link:
Guest Author wrote:
“We have found that a large number of companies allow unfulfilled leads to fall into a great abyss, never to be contacted again,” writes Mike Neumeier at the Arketi Group blog. He suggests that companies take another approach—and apply the principles of nurture marketing to lost leads and “recapture unfulfilled sales … Read the full article at MarketingProfs
Its that time of year again. We approach the end of the financial year tomorrow. Tiffany Hutton has compiled a detailed list of thing to check and remember before the new year ticks in.
New and small business owners are normally in a catch 22 situation: Do everything you can yourself and don’t pay for anything until you have really have to. It’s especially difficult to justify hiring financial help like a bookkeeper.
To read more click on link
Experts on makeshift innovation held court at the first DIY Business Association Conference in Brooklyn. They share their unconventional wisdom with Inc.com.
The riverfront DUMBO neighborhood of Brooklyn is dubbed “Silicon Beach” for its concentration of some of New York City’s hottest tech start-ups. But along with the tech revolution, the neighborhood has become a bastion for DIY businesses and savvy entrepreneurship thanks in no small part to the headquarters of Etsy—home to regular free workshops and skillshares—and a neighborhood-wide collaborative atmosphere that made DUMBO New York City’s first neighborhood to offer free wireless Internet.
So it’s no surprise the Brooklyn DIY Business Association picked the neighborhood to host its first conference to bring together freelancers, innovators of art and craft, Internet and tech gurus, and business specialists for a day of panels and incubator groups to help foster new ideas and breed success. The panels brought together diverse viewpoints including an Emmy-winning cartoonist, a T-shirt maker, comedians, publishers, and even Todd P., the king of Brooklyn’s underground DIY music scene.
But throughout the day, the participants were presented with a few key themes over and over again that panelists say are the key to doing-your-own success.
1. Collaborate at Any Opportunity.
Jessica Lawrence, managing director of the New York Tech Meetup, made the argument that cubicle culture was cutting off creativity and starving it of needed social mingling.
“Ideas need to have sex with each other,” she said, a quote that immediately sent the amused crowd members into updating their Twitter feeds. “An idea sitting by itself really isn’t much yet. A cubicle is basically a container that keeps those ideas in place.”
DIY business owners, freelancers, and independent contractors are perfectly positioned to break this habit. Lawrence says they need to collaborate and lean on each other in order to get out of their ideas out of the bedroom office and in to the public eye. She’s an advocate of co-working spaces, where people with different goals sitting next to each other often find common ground. In fact, according to research, 80 percent of people who join a coworking space end up starting a business with their co-coworkers, Lawrence said.
Amber Rae, creator of revolution.is and The Passion Experiment, who is also chief evangelist of Seth Godin’s Domino Project, said people need to create good business karma by being liberal with sharing information.
“I’m just going to put it out there because I know it’s going to come back to me,” she said.
Dean Haspiel, a comic author and Emmy-winning illustrator for HBO’s Bored To Death, said he wouldn’t have had his level of success without a willingness to work with others.
“Ideas need to have sex,” he said. “So do people.”
2. Don’t Be Shy.
Successful DIY businesses have an advantage over big corporations: the ability to show off the face behind the project. You should never be shy about promoting yourself anywhere and everywhere you can, especially when it comes to interacting directly with your fan base or customers.
“I’m really interested in the people who are interested in me,” said B., the anonymous creator of the website STFUParents, which documents parental oversharing on social networks. “Any product-oriented business, you really have to be interested in your audience and show it.”
Hapsiel—whose website boasts of his collaborations with Jonathan Ames and Harvey Pekar—said anyone trying to build up a brand is foolish to not “abuse the internet to show your wares” across every available channel.
“Showing up is half the game,” Haspiel said. “It acts as a resume for you 24/7. You could be wooing people in your sleep.”
But how do you offer a different brand experience across the myriad social networking and updating sites? Grace Bonney, founder and editor-in-chief of seven-year-old home design and DIY blog Design*Sponge, said she plays to each medium’s strengths: while Facebook is better for image-heavy posting, her Twitter feed lets her personality shine through.
“Set up what each sphere is going to be and play that sphere,” she says. “Figure out which aspect of your business you’re going to break up into those places.”
What advertisers look for now even more than audience size is dialogue with an audience, Bonney says, which puts small companies at an advantage.
“What people want is community interaction,” she says. “Engagement is the key.”
3. Create Abundant Content.
Panelists said you can turn your business from just a company into a resource by keeping an editorial calendar and ensuring a stream of fresh content.
“Your content is going to create your digital footprint for you,” said Mary Butler, senior content strategist for interactive marketing firm Razorfish. “You need to do it well and you need to have it serve you well.”
Ryan Davis, a Huffington Post blogger, political pundit on The Hill, and social media director for Blue State Digital, agreed.
“There’s nothing worse than going to a blog that hasn’t been written on in three weeks,” he said.
Seth Kushner, photographer and author of The Brooklynites, said he originally enraged his publisher by putting content online for free. But the free stuff helped build up a paying audience.
“The internet is great for beta testing,” he says. “It’s the way to reach the most amount of people without any effort.”
4. Don’t Undervalue Yourself.
Freelancers, independent contractors, and new entrepreneurs have an unfortunate tendency to not put the right price tag on their work. K. Tighe, executive editor of Splashlife, which she described as the “AARP for the millennial generation,” said she fell into this habit after years working in journalism at newspapers and ‘zines, “cobbling together magazines in duct tape and tears.”
But underselling yourself, panelists said, is a quick way for people to not take you seriously.
“If the numbers don’t land where you want them to land, that’s OK, it’s a jumping off point for negotiations,” Tighe said. “Asking for what your worth, you’re immediately in a stronger position.”
Tighe advises freelancers or others to closely read contracts and offer changes.
“Even if tiniest change, make them know you’re paying attention,” she said.
For Rae, the trick is to use your passion to build up success stories so you can understand your value.
“Grow your confidence by actually helping people,” she said.
5. Above All Else, Keep the Passion.
The panels were composed of varied personalities—from the comedic dirty ditties from songstress Jessica Delfino to the handmade insights of Danielle Maveal, Etsy’s education coordinator. But one message united the advice from one DIYer to another: Passion needs to be paramount.
Andrew Wagner said he learned corporations and big businesses will cut passion projects in a flash if the revenue they want isn’t there. Wagner got a hard lesson in this recently: he was editor of DIY magazine ReadyMade until it folded for economic reasons two weeks ago.
“You really need to be your harshest critic,” he said. “Look at what you did and you need to rip it apart. People are attracted to someone who is really passionate and really knowledgeable about what they do.”
That could mean churning out new content or blog posts about your business every day just to stay busy, Kushner says. Both of his books involved three to four years of working every day with no promise of money.
“It’s very important to create your own projects even if no one’s paying you for them,” he said. That leads to the high-paying jobs. It’s part of branding yourself that you can’t just wait for someone to call you.”
If you’re struggling looking for paid work, Tighe says to step out and teach or take part in a skillshare, even if it’s just teaching people on Craiglist how to knit for a small fee.
“If you are infectious, if you wear it on your sleeve, people are going to want to help you,” she said. “And eventually they’re going to want to give you money.”
My biggest tax blunder was receiving a bill for $30,000 worth of unexpected payroll tax. My accountant and I had not discussed payroll tax before. I was going through a period of hiring new staff and growing fast and no-one had mentioned payroll tax. To someone as organised as me, and an ardent budgeter, it was a terrible shock. Tax blunder number 1!
I thought I had my tax affairs in order. This very nasty surprise was not budgeted for and instantly changed again my approach to taxes.
Tax is just one of those things. You earn more, you pay more. The country has to run and we pay for it. It’s not easy, it’s not fun, it doesn’t seem fair and unfortunately, it’s not going to go away. My earliest business mentor said to me if you earn it, you shouldn’t worry about paying taxes. It’s part of life. Just get on and deal with it – properly!
I learnt quickly from my mistakes and encourage you to sit down early with your accountant and learn about tax. Respect tax, whether you like it or not. It is here to stay. Whatever you do, don’t ignore it and don’t hide from it. Learn and get on top of it. It makes tax time far less daunting and frightening and keeps you protected from any hidden surprises.
After 16 years in business, I have learnt a lot from personal experience. Small business is tough enough, we don’t need unexpected surprises. Here are some tips to shine some light on the world of business tax.
1. Make your accountant your friend and get the dummies guide to tax
My first tip is to do your research and then do some more. In the end your business is your responsibility. Pleading ignorance doesn’t save us from penalties should errors be made with tax. Get on the internet, speak to the ATO, your accountant or a business mentor and become comfortable with tax and tax terms. My mantra is to find people who have done it before and learn the fast way – from them.
A tax year runs from 1 July to 30 June so your files need to be sorted accordingly and easy to find. What is more, if taxes need to be paid on a date in a lump sum, you need to recognise the impact on cashflow of being able to pay tax.
2. Protect yourself from shocks
Protect yourself from nasty surprises and speak to your accountant regularly. I meet with my accountant once a month and have him on speed dial. Keep your accountant up to date with your business and ask them to keep you up to date with your finances and tax planning and requirements. Your accountant should not be someone you touch base with every June.
When I meet with my accountant monthly for lunch, we run through a planned agenda and plan my tax bill. Find out from your accountant how she/he best likes to receive your information and the best way to keep it stored.
3. File appropriately to save headaches
Being able to find paper – possibly one or two years later – can be a nightmare, so keep your papers filed well. It may be as simple as putting receipts in white envelopes with the month labelled! Inefficient filing can result in big headaches. Small, disciplined actions through the year make a big difference, and make a world of difference come tax time. You will thank yourself for the discipline.
4. Failure to prepare is being prepared to fail
Tax days come throughout the year, so you need to be prepared. The best way to prepare is to create a separate savings account where you can deposit your ‘tax’ money monthly ready to give to the Government. Your taxes are then being accumulated ready to pay and it makes budgeting easier. My first advisor told me to do this and it was one of the best tips I received. Of course the financial crisis put small business under pressure to do this with payment cycles pushing out. Once this money is placed into the account, see it as untouchable and not as money to be used. By the end of the financial year, you will be glad to have your taxes ready saved.
5. Tax terms
Part of your research is getting to know the different types of tax payments required. Become familiar with different reports and statements at the beginning of the year to help you understand your financial obligations and you are better prepared in assisting your accountant. The BAS (business activity statement) is a quarterly statement businesses use to report and pay tax obligations, including pay as you go (PAYG) instalments, PAYG withholding and GST.
Payroll tax is a tax on employing staff, creating jobs – crazy, I know. From 1 July 2010 to 30 June 2011 the threshold for being eligible to pay payroll tax is $658,000, so if your business is growing towards that you need to be prepared.
6. Know the reports you need
Finally, get to know your financial reports – year to date figures, accounts receivable, accounts payable, cashflow planning, Profit and Loss, balance sheet, lending and credit cards. Few people like figures. They are essential to understand.
Being disciplined with your taxes is good advice. Putting off taxes until the last minute or not having it as a priority can lead to mistakes, cash shortages and needless panic. Be strict in keeping your records, receipts and making payments. Pay your suppliers quickly and practice foresight and common sense about looking after people.
One of my frequent quotes is ‘routine sets you free’. Get into the routine of making tax a part of your monthly agenda. This way you can work to prevent surprise bills. Make your accountant your friend. In addition to our many responsibilities and roles, we as business owners need to take tax head on, stay ahead of the game and save ourselves from nasty surprises.
And if concerned, ring the tax office. They are motivated, on the whole, to keep small business going. If you need help, ask.
–Sharon Williams is founder and CEO of Taurus Marketing
Federal Budgets often bring changes to superannuation arrangements and tax and the Treasurer’s 2011-12 speech was no different.
It’s in every business owner’s interests to stay up to speed on super and preparing for Tax Time is a good catalyst to seek professional advice.
Many people consider contributing greater amounts into superannuation before the end of the financial year to get the most out of their savings.
If you do, it is crucial to make sure you don’t exceed the contributions caps under any circumstances.
Just a few extra dollars can result in a substantial tax liability for excess super contributions tax.
The concessional contribution cap is currently $25,000 per income year generally, and $50,000 per income year for taxpayers aged 50 years old and over.
From 1 July 2012, the concessional cap will be $25,000 per income year for almost everyone.
The exception will be individuals aged over 50 who have total superannuation balances of less than $500,000.
Taxpayers falling into this category will retain the higher concessional contributions cap of $50,000.
The non-concessional contributions cap – meaning contributions made out of your post-tax income – is $150,000.
You may like to consider making additional contributions before the end of the income year to take full advantage of these caps. However, care needs to be taken to ensure you have accurately calculated the contributions you have made so far in the year, because tripping the cap can lead to incurring excess contributions tax, which can be levied at rates up to 93%.
The Government has announced it will be giving some relief for first-time excess contribution tax offenders, but it does not apply for the current income year.
From 1 July 2011, provided their excess contributions are less than $10,000, they’ll have the option of the money being taken out of their superannuation fund and assessed as income at their marginal rate of tax.
This move will make the system fairer for those who inadvertently breach the contribution cap, but not until the 2012 income year. In the meantime, it would be wise to talk to your tax professional to make sure you don’t end up with an unexpected tax bill.
Make sure your telecommuters are part of the team just like regular employees.
According to research from the Telework Research Network, 20 to 30 million people currently work from home at least one day a week. Another 15 to 20 million are road warriors / mobile workers. An additional 10 to 15 million are home businesses, while another 15 to 20 million work at home part time. Maybe one or two of these millions of people do work for your small business. Maybe your entire staff works outside the office.
Either way, harmony needs to be maintained between you and each telecommuters in order to ensure that these folks are comfortable with doing their work and productive enough to do it well and on deadline.
Here at Smallbiztechnology.com, many of our writers telecommute, so we’ve learned a thing or two along the way to make sure that our writers contribute timely and quality work. To have this happen consistently, no matter the writer, here are a few tips and tricks on working with your telecommuters.
1. Set Up Goals
Ensure your teleworkers have a clear understanding of what needs to be done. Create a task list or set up milestones with dates. The due dates allow teleworkers to manage their time in light of other work commitments. Using a project management tool, like Basecamp or Huddle, also allows you to be updated on progress. Elance, a popular online employment platform, allows employers to set up milestones for each worker and each project.
2. Introduce Them to the Team
If your teleworkers will be collaborating with other team members, use an email or conference call to formally introduce them. This courtesy helps them feel welcomed, and prevents any awkwardness when they have to communicate with your team. oDesk, another popular online employment platform, allows for employers to set up groups or teams, so every worker knows every other worker.
3. Provide Proper Tools and Resources
Grant your teleworkers access to necessary applications, files and documents so they can complete their job properly. If you’re worried about security, set them up with temporary and limited access to your intranet, collaboration platform or file repository. Keeping everything in the cloud is an effective way to work with teleworkers.
4. Communicate Regularly
Good communication is especially invaluable in a telecommute relationship. Be available to your teleworkers for their questions and concerns. If they’re staying quiet, it’s alright to check in occasionally to ensure there are no obstacles and everything is on track. This is also a key point with per-project telecommuters. Keep in mind the possibility that you are not this worker’s only client or employer. Good communication would ensure that you understand that their time isn’t entirely yours, and that this worker may not necessarily be able to take on a last minute project.
5. Keep Them in the Loop
This complements the previous tip. Temporary teleworkers can be made to feel like they’re at the bottom of the rung, the last to hear about important company news. Put yourself in their shoes—it’s no fun finding out at 5 p.m. that, oh by the way, no one’s working tomorrow. If it’s relevant information, keep them abreast. This also involves your workers in the company, gets them invest, and improves work quality because your virtual employees are now more likely to care about your company.
6. Build Human Relationships
Remember, teleworkers are not worker-bots. Alex Yoon, Director of Marketing and Social Media at freelance site Elance, explains, “It’s easy to forget that those on the other side of the network are human just like you. Be sure to spend some time building a more human relationship with those that you work, online or off. It doesn’t hurt to add a friendly greeting or ask how the other is feeling for the day.”
7. Again, Trust Your Worker
If you did your hiring process correctly—checked their references, maybe had them complete a trial project—you should be confident about their abilities. Yoon suggests employers give teleworkers the space and freedom to complete their assignments in whatever way works best for them. They may not wake up till noon, but if the work gets done, let them be. If a night owl telecommuter is going to bother you, make sure you specify availability requirements before handing him or her the position.
simon.sharwood@commstrat.com.au (Nita Arora-Parkes) wrote:
Most businesses, at some point, are faced with the question of whether to lease or purchase their business space. To help you make an informed decision, below is a list of both the advantages and disadvantages of leasing versus purchasing. As there is no ‘right’ answer, each business needs to consider its own specific needs before making a decision. Careful thought should be given to financial, tax, and business-specific elements. Part of this decision would be to choose the option that will provide the required space at the least net cost. Some believe that leasing is cheaper than purchasing, but this is not always the case, as the obligations on a lease can sometimes be similar to those when you are buying Nita_big
In addition to this guide, you should seek out the advice of a solicitor and accountant to advise you on what is best for your particular business.
Use the following points to help weigh up your options.
Purchasing Business Space
The advantages of purchasing business property include:
Fixed Costs: Having a fixed long term commercial mortgage can give your business clear, fixed costs.
Tax Advantages and Deductions: As an owner you can claim tax deductions for all costs associated with owning, running and maintaining business space, including interest on the mortgage and property taxes. There are some depreciation differences which you will need to check with your accountant.
Financing: A mortgage loan can be used to finance your purchase, so that the actual monthly amount required may end up being similar to that of a lease.
Access to Equity: You may be able to use the property as a guarantee in business dealings with your clients, suppliers or partners.
Additional Income: If you have additional space, you have the opportunity of renting out a portion of it to another tenant to generate some additional income. If you completely outgrow your premises, you have an option to rent out the entire space while moving into larger premises yourself, or to sell.
Capital Growth: If the building/space you own is in an area of appreciating land values, the prospect of selling it for a profit eventually is a positive one. However this now puts you in the property investment business, which can be profitable depending on the market. In times of inflation, real estate is a good investment. Rising rents suddenly become an asset as an owner.
Control: Owning your business property gives you more control. Having your own premises can give you increased security and freedom in which to run your business. Whereas lease agreements may have restraining features that give you limited control over the property. In addition, any improvements to the premises become the owner’s property, and add to the value of the owner’s investment.
There are also some disadvantages, namely:
Lack of Flexibility: Most businesses especially new, do not know what the future holds: If your business continues growing, your owned office space may become inadequate, forcing a premature sale of the property. But if your circumstances change, so too can the level of income your business generates.
Upfront Costs: Buying business space will initially cost far more upfront. There are property, appraisal and maintenance costs as well as a deposit and potentially property improvement costs.
Agility: If your requirements change, or the area changes then you may find that you are not able to move quickly and easily, especially if the demand in that area is low when you are looking to sell. The average time on the market for a commercial property for sale in Sydney is between 9 -18 months. The average time on the market for commercial property for lease is 6-12 months.
Capital Required: A significant amount of capital is tied up in upfront costs and maintenance, this deprives you from making better use of that money for other parts of the business and may impact cash flow.
Capital Loss: If you have to prematurely sell the property and it is sold for less than what it you purchased it for originally, this will mean a capital loss for the business.
Maintenance and Improvements: As the owner, you are solely responsible for maintaining the property and making any improvements.
Leasing Business Space
Here are the upsides of leasing business property:
Prime Location and Property: The option to lease provides a business with the opportunity to rent a greater choice of properties with a good location and create a better image, which you may not otherwise be able to afford to do if you buy. If like a retailer your business is dependent on location and image,, the leasing option provides a more affordable solution.
Available Capital: If your capital is not tied up in real estate, you could use that money elsewhere in the business, this would allow you to respond to opportunities in the market faster. The deposit for a commercial property investment loan is usually 30% of the purchase price (unlike residential, where you can sometimes loan 100%).
More Time: Leasing provides you with the ability to focus fully on running your business not managing your commercial investment
Faster response to business needs: If the business grows quicker than you expected, a decision to move to larger premises can be executed faster if you do not have to worry about selling first, which can take time. If on the other hand, the business is terminated, the ability to sublet may minimize the financial loss.
Risk: Leasing is not necessarily a long-term financial commitment, which is beneficial if you are just starting out. Whilst you are entering into a lease agreement which will have a fixed time frame, once the lease expires you can leave the property.
Of course there are some disadvantages too:
Variable Costs: With a leasing option you are usually subject to annual rent increases (generally in line with the Consumer Price Index, etc.) and increased costs when you renew the lease.
Limited Control: You have little or limited control over what the owner of the property decides to do. If he/she sells you may have to relocate, which causes disruption as well as being an expensive exercise. This can result in a loss of “goodwill” that has been gained and potentially a loss customer base..
Lack of Equity: If the business has no equity in the property, the lease repayments essentially build the property owners equity.
Obligations: There can be many obligations and hidden costs in a lease which can be onerous on the tenant if they are not aware of them and can leave them out of pocket
Conclusion
If you can get the property at a below-market price, it may be worth buying. If you are well established and looking to stay in the same location for over 10 years, and have the financial resources to make a real estate investment, it is worth considering buying the property. Additionally, if you are a specialised industry like manufacturing, which has unique fit-out and machinery requirements, you may want to own those improvements to the premises.
If however you are using general warehousing and distribution facilities, which are easy to replace, then leasing may be a more cost-effective solution. Generally, leasing will be preferable to businesses that do not want to use their capital on real estate investment, and those who are not quite sure yet how much space they will eventually need especially new businesses..
As you can see above, the answer to lease or buy a business space is not a simple one. Your decision will depend on financial, tax, legal and business-specific situations. Before you decide which way you should go, make sure you consult with your solicitor and accountant about the legal and financial considerations of your decision.
