Make your business more profitable

Is making your business more profitable at the top of your business goals this year?

Achieving significant profit is not an overnight feat. It requires a steadfast commitment, a clear focus, and a meticulously crafted strategy aimed at enhancing profitability.

This entails a comprehensive review of your business model and an examination of every operational area to identify opportunities to reduce costs, increase margins, and ultimately maximise revenue.

Understanding Profitability

Profitability is the ability of a business to earn a profit.

A profit results when the total income generated by the business exceeds the total expenses incurred. However, simply generating revenue is not enough; effective management of costs and strategic pricing are crucial to realising a substantial profit.

Strategic Review of Your Business Model

The first step in boosting your profitability is to conduct a thorough review of your existing business model.

This analysis should cover all aspects of the business, from supply chain management to customer relationship handling.

By understanding the nuances of each component, you can pinpoint inefficiencies and areas for cost savings that directly contribute to the bottom line.

Focus on your key drivers

Having surplus cash at the end of the year allows you to invest back into the business, fund your growth plans and increase the size of your own dividends and drawings as the owner.

To achieve these profits, it’s important to focus on the key financial drivers in your business.

To drive profits:

Boost Sales

Enhancing sales volume is a direct path to increasing net revenue. This can be achieved by investing in marketing, amplifying sales activities, and expanding business development efforts. Each of these initiatives should be tailored to meet the unique needs and preferences of your target market.

Increase Prices

Setting a higher price point can significantly enhance your profit margins, especially if you manage to keep the cost of goods sold low. This strategy needs to be balanced with market demand and customer value perception to avoid any negative impacts on sales volume.

Cut Costs

Operational costs and overhead expenses can diminish your profit potential. Implementing effective spend management and cost reduction strategies are crucial for maintaining a lean operational model. Regularly reviewing supplier contracts, reducing waste, and optimizing workflows are practical steps towards cost efficiency.

Reduce Taxes

Tax liabilities often represent a significant expense for businesses. Engaging in sensible tax planning and taking advantage of available tax reliefs can substantially lower your tax burden and increase your profitability. Consulting with tax professionals can provide insights into new tax saving opportunities and compliance strategies.

Talk to us about boosting your profits

At First Class Accounts Ovens & Murray and Busy01 Consulting, we help businesses like yours optimise their profit margins.

If you'd like to make your business more profitable, we're here to help:

• review your business model
• identify your key financial drivers
• proactively drive your profit performance.

Get in touch and let’s start boosting your profits.

7 ways to save time and money in your business

We all know that time is money. And the quest to find balance between quality and speed can often feel like a never-ending battle.

With this in mind, the emphasis on strategies to save time and money has never been more critical. The good news is, technology offers a variety of solutions designed to streamline operations, reduce costs, and boost productivity.

Below, are 7 ways to help your business save time and money. These insights are not just theoretical; they're actionable strategies that have proven effective across various sectors.

How can technology help?

Here are 7 ways to save time (and money) in your business.

1. Automate your invoicing

While invoicing is a vital part of running your business, it can take up a significant amount of your time. Using a digital/cloud accounting system to extract data from supplier emails and auto-populate your invoices can save hours each week. You can also use cloud accounting systems to set up recurring invoices and timely payment reminders, saving your more time.

2. Simplify your expense claims

If you have a manual expense claims process, implementing a digital automated process means your team will save time submitting receipts, approving expenses and dealing with any mistakes.

3. Reduce human error

It’s well known that manual data entry brings a high risk of error. You can eliminate this risk by automating key manual data entry tasks. And that allows you to spend more time on data analysis so you can make better decisions.

4. Automate approvals

Streamlining your bank reconciliation with an automated platform means you don’t waste time manually approving individual transactions.

5. Up to date payroll

Keep staff details up to date and calculate tax contributions within your accounting software. You’ll save significant chunks of time and you’ll avoid mistakes.

6. Accurate information for tax

Instead of Excel spreadsheets, receipts and physical documents, by using cloud accounting software. the information needed for your accountant to complete your tax is accessible through your software.

7. Better access to business data

With smart software and cloud based apps and add-ons, you get accurate business data wherever and whenever you need it. No more going back to the office to check a number, getting back to clients with final details, or reworking quotes because the numbers were wrong.

Harness the power of technology

At First Class Accounts Ovens & Murray and Busy01 Consulting, we specialise in implementing smart, effective apps and solutions that save time and money. Whether you're looking to automate your invoicing, streamline your expense claims, or gain better access to business data, our team is here to guide you through the process. 

So, if you want to save time(and money) in your business talk to us about setting you up with the right systems.

5 ways to increase profit and improve cashflow

The dual goals of increasing profit and improving cash flow are usually at the forefront of every entrepreneur's mind, as both are essential for sustaining and growing your business. 

However, the path to profitability and strong cashflow is not always straight forward. 

Here, we explore 5 ways to increase profit and improve cashflow, offering actionable strategies that can improve the financial health of your business.

These insights are particularly beneficial for businesses navigating the complexities of the current economic landscape.

1. Sales

Profit increases when you increase sales; cash increases when you collect the money from customers. To increase both your profit and cash from sales:

• Delight your customers
• Generate more leads and referrals
• Convert a higher number of quotes or proposals
• Increase transaction frequency
• Increase transaction value

2. Invoicing

Profit increases when you send an invoice to a customer; cash increases when you collect the invoiced amount. To increase both your profit and cash:

• Set clear Terms of Trade
• Offer a small discount for early payment
• Agree the price in advance
• Stick to your payment terms
• Don’t do work for people who have overdue payments

3. Margins

Increasing your margins will increase your profit; collecting the increased margin will increase your cash. To increase both your profit and cash:

• Increase your prices
• Invoice faster
• Negotiate better payment terms with suppliers
• Reduce errors and rework
• Train and empower your team
• Increase your efficiency

4. Financing

Reduce your finance costs to increase your profit; borrow money for assets to increase your cash. To increase your profit and cash through financing:

• Spread the costs of assets over 3-5 years instead of buying them outright (e.g. vehicles)
• Borrow from a bank instead of a finance company
• Secure the asset purchases over ‘bricks and mortar’ (if possible)

5. Overheads

Reducing your overheads will increase both your profit and cash. To reduce your overheads:

• Negotiate with suppliers
• Measure your return on your spend (e.g. advertising, accounting fees, etc.)
• Review your subscriptions
• Go paperless

This is not an exhaustive list of ways to increase your profit and cash. We can help you identify specific areas of improvement in your business to increase both profit and cash. Contact us to find out how. 

"Never take your eyes off the cashflow because it’s the lifeblood of the business."

Sir Richard Branson

Seek support

Implementing these strategies requires a meticulous approach and an understanding of your unique business context.

At First Class Accounts Ovens & Murray and Busy01 Consulting, we provide bookkeeping and business consulting services that are tailored to your specific needs. We can identify areas of potential financial improvement and help you implement strategic solutions to enhance both profit and cash flow.

Don’t let the complexities of financial management hold your business back. Contact us today to learn how we can assist you implement these 5 ways to increase profit and improve cashflow.

Meeting the environmental expectations of your customers

As environmental consciousness rises, small businesses in 2023 face increasing pressure to adopt sustainable practices and reduce their carbon footprint.

But going green means being able to balance your desire to run a sustainable, environmentally conscious business with the pressing need to remain economically and strategically viable.

Meeting the environmental expectations of your core customer base

Globally, 85% of consumers have become ‘greener’ in their purchasing  in recent years, driving a green sea-change in how companies large and small run their business operations.

Most consumers want to buy sustainable products and packaging. It’s a change that will take a concerted effort and strategy, but the end results will be better for the planet and your customers.

To become more sustainable:

Carry out a company-wide environmental audit

Do you know what your environmental impact is as a business? Carrying out an [environmental audit] (https://blog.viibe.co/measure-company-environmental-impact/) helps you identify the areas where you can improve your energy consumption and waste reduction.

Look out for green partnerships

There will be plenty of other business owners wanting to become more green. So, why not collaborate with eco-friendly suppliers, vendors and partners to align your business with green, sustainable values.

Offer eco-friendly products/services

Offering environmentally responsible products or services helps you attract environmentally conscious consumers. It’s good for your brand and drives a greener reputation for your company in the marketplace.

Be more transparent about your eco credentials

Talking about sustainability and green values is important. By communicating your sustainability efforts, and being seen to drive change, you build trust and loyalty with environmentally aware customers.

Tie sustainable choices into cost-effective solutions

Choosing to implement sustainable practices can also lead to cost savings, by reducing waste and operating in a more lean way. So, the planet wins, and so does the company’s cashflow. It’s a win-win scenario.

Incorporating Apps into your business model

This is an effective way to enhance your environmental sustainability. Here’s how technology can make your operations greener:

• Digital Efficiency: By adopting digital bookkeeping and document management apps, businesses can significantly reduce paper usage, leading to less waste and deforestation.
• Remote Work Facilitation: Apps that enable remote working reduce carbon emissions by minimising the need for commuting. Project management and collaboration tools allow teams to work effectively from various locations, decreasing transportation-related emissions.
• Resource Optimisation: Inventory management apps ensure that resources are utilised efficiently, cutting down on waste and improving operational efficiency.

With climate change ever more visible, there’s a real imperative for businesses of all sizes to play their part and become better, greener and more sustainable enterprises.

We’ll help you review your operational practices to find the best opportunities for choosing appropriate apps to help you cut back unnecessary waste and reduce your carbon footprint.

Get in touch to talk about your integrating Apps to support your green strategy.

Digital Transformation

Technology is changing how we do business. But how do you start this digital transformation?

We’ve highlighted five of the big challenges to plan for and overcome.

The rapid technological advancements we're seeing are a double-edged sword for many business owners, presenting both great opportunities and potential challenges.

Adopting and integrating these new technologies is essential if you want to remain competitive, but it requires careful navigation and a clear strategic plan for your tech stack.

5 key steps for transforming your use of business tech

There are solutions for enhancing your bookkeeping, accounting, forecasting, inventory management, project management and a host of other key operational areas. These apps slot perfectly into a custom tech stack that can be tailored and integrated to meet the exact needs of both your industry and your individual business.

But if you’re at a loss as to where to start, it’s a good idea to step back and think in more detail about your digital strategy – and the best ways for you to grab the best tech opportunities.

Here are five important steps to help you start your tech transformation

1. Assess your need for the right technologies 

It’s important to think about the relevance and impact of emerging technologies on your business operations. Choose software solutions that meet a genuine need within your business model, and don’t be tempted to jump onto a tech bandwagon just because it’s ‘the latest thing’.

At First Class Accounts Ovens & Murray and Busy01 Consulting, we specialise in business Apps, offering implementation of various Apps across a range industries to improve efficiencies and transform your business. Talk to us about implementing Apps for your specific needs.

2. Train and upskill your staff

You’ll only get the best from new software if your team knows how to use it. Invest in upskilling your employees so they feel comfortable with these new tools and can use them effectively. It’s about reducing any 'tech fear' that some employees may feel and showing them how it makes their job easier.

3. Tighten your cybersecurity and reduce risk

The more software tools you use, the more data you’ll hold in the business. Because of this, it’s vital to protect your sensitive customer data and information from cyber threats. This means putting robust security measures in place and keeping up with all the latest security protocols.

4. Scale up your IT infrastructure 

It’s crucial to check that your proposed tech infrastructure can grow with the business. Any apps you use must be able to scale up as the business expands and volume and demand ramp up. With a properly thought-out tech stack, your systems can grow and scale with you as the business expands.

5. Focus on the customer experience (CX)

One of the biggest benefits of going digital is the positive impact this can have on your customer experience. Digital tools help you to personalise the customer journey, interact seamlessly with your customers and use highly targeted marketing and promotional activity to reach the right audience.

Most digital transformations don’t take place overnight. It takes time to switch each area of the business over to a software solution, and this can be an organic process as you find the right tools for the job. However, it does pay to have a sound strategy behind this transformation.

We can help you review your planned tech strategy and implement the appropriate Apps and tools to combine into your ideal business tech stack.

Finding and retaining key talent for your business

The job market has been through plenty of ups and downs in recent years. But in 2024, the real challenge is attracting and retaining the top talent you need to grow the business.

Finding the skilled employees you need, and keeping them in the business, is vital for driving innovation and growth over the coming years. So, how do you locate the best talent?

Nearly 4 in 5 employers, globally, report difficulty finding the skilled talent they need, according to statistics from Manpower Group. This scarcity of talent can be a real stumbling block when your growth strategy relies on expanding your workforce and bringing the brightest minds into the business.

So, how do you overcome the current talent problem?

Here are six ways to find the talent you need:

1. Work on your branding as an employer

Employees are attracted to a company that looks like a great place to work. So, there’s value in developing a compelling employer brand that highlights your company culture, values and employee ratings.

2. Offer competitive salaries, rewards and benefits

A job is about more than just the salary, but offering a competitive salary and reward package goes a long way to attracting the skilled workers and professionals you need in your team.

3. Make professional development a core value

Offering the best opportunities for growth and advancement is a great way to retain your existing staff. By working staff development into your company’s DNA, your team can grow along with the business.

4. Get on board with remote and hybrid working

Many employees have enjoyed the benefits of remote and hybrid working. Embracing flexible working arrangements is one way to appeal to new and existing talent, helping you build an agile, hybrid team.

5. Recognise the star talent in the business

Acknowledging and rewarding your employees' contributions is an excellent way to boost morale and job satisfaction. Happy employees are far more likely to remain in the business, keeping your team more stable.

6. Utilise Up-to-Date Technology

The transition to remote work has necessitated the adoption of technology that not only supports but enhances the remote working experience. For businesses looking to attract top talent, offering a tech-savvy, flexible work environment can be a major draw.

By integrating these technologies into your business operations, you can create an environment that not only supports remote work but also enhances productivity and collaboration. This approach not only positions your company as a forward-thinking and flexible employer but also attracts professionals who value innovation and autonomy in their work environment.

Having the best people, talent and skills gives your business the foundations it needs to evolve, grow and diversify. So, overcoming the talent shortage isn’t just a ‘nice to have’. It’s actually fundamental to resourcing your plans and hitting your goals for the year ahead.

If you need support implementing appropriate apps to improve your business operations, let's talk.

Business Exit Strategy

Starting and growing a business is a journey filled with passion and perseverance, yet many entrepreneurs overlook the crucial aspect of planning their exit. 

A well-thought-out business exit strategy is essential for ensuring the sustainability of your venture, the welfare of your employees, and the preservation of your legacy. 

The Importance of a Business Exit Strategy

A business exit strategy is not just about ending your entrepreneurial journey; it's about setting the stage for the next chapter of your business and your life. It's a plan that outlines how you will transition out of your business, whether through selling, passing it on to a successor, or another method. 

Planning your exit strategy early can significantly impact your personal and professional satisfaction and ensure a smooth transition when the time comes.

Key Components of an Effective Business Exit Strategy

Succession Planning

This involves identifying potential successors within your family, your employee pool, or your franchisees. It's about finding individuals who share your passion for the business and have the potential to drive it forward. 

Succession planning is a strategic process that includes identifying, training, and eventually transitioning leadership to the chosen successors.

Alternative Exit Strategies

For those not interested in traditional retirement, retaining a stake in the business can be an appealing alternative. This allows you to stay connected to your business without the day-to-day responsibilities, offering a balance between involvement and leisure.

Preparing for Sale

If selling your business is your preferred exit strategy, it's crucial to make your business as attractive as possible to potential buyers. This means optimising business operations, ensuring clear documentation of processes, and addressing any areas that could detract from the business's value.

The Role of Professional Support for Your Exit Strategy

Navigating the complexities of a business exit strategy requires expertise. 

This is where a bookkeeping firm with expertise in business planning and strategy can be invaluable. At First Class Accounts Ovens & Murray, and Busy01 Consulting, we can assist in evaluating the financial health of your business, optimising operations for maximum efficiency, and preparing detailed documentation that is crucial for succession or sale. 

We can also offer insights into market trends and valuation strategies to ensure you receive fair compensation for your life's work.

Whether you're considering succession, partial involvement, or selling, professional guidance can help you maximise the value of your business and achieve a successful exit.

Initiating the Exit Planning Process

The process of planning your business exit strategy should start well before you intend to step away. It's a forward-looking approach that requires careful consideration of your personal and business goals. 

Engaging with professionals early in the process can provide you with the insights and support you need to develop a comprehensive and effective exit plan.

So, while starting a business is often driven by immediate goals and the excitement of bringing a new idea to market, planning for the future is equally critical. 

An effective business exit strategy ensures that when the time comes to transition away from your business, you can do so in a way that maximises your personal and financial rewards, secures the legacy of your hard work, and provides for the continued success of the business under new leadership. 

Starting the conversation about your exit strategy today can pave the way for a smoother and more rewarding transition tomorrow.

Talk to us about how we can assist you in developing a tailored business exit strategy that aligns with your goals and aspirations.

Data regulation and ticking the right compliance boxes

Your business faces an increasingly complex regulatory landscape when it comes to data privacy, consumer protection and industry-specific compliance requirements.

Keeping on top of these compliance requirements is a complex task. Failing to meet your requirements can have serious implications, with non-compliance (whether intentional or accidental) resulting in legal repercussions and possible reputational damage for the company.

Taking excellent care of your customer data

We live in a digital world, where your organisation collects huge amounts of data from your customers. This includes contact details, financial information, credit card details and detailed breakdowns of their spending habits and buying preferences.

In an effort to protect this data and preserve customer privacy, there are various data regulations that you must comply with.

A sample of these global data privacy laws include:

• General Data Protection Regulation (GDPR) in the EU 
• The Data Protection Act 2018 in the UK
• The Privacy Act 2020 in Australia
• The Privacy Act 2020 in New Zealand
• The Federal Trade Commission (FTC) Act in the USA

Depending on your organisation's home territory, and where you trade, there may well be international, national and local data regulations to comply with. That’s a lot to get your head around, especially if you’re new to business and not familiar with the legal framework.

So, what can you do to make your compliance journey simpler and as effective as possible?

Here are five simple steps to enhance your compliance:

Work closely with legal advisers

Navigating compliance can be complex without legal expertise. Consulting legal professionals provides clarity on specific obligations relevant to your industry and region. They can guide you through the intricacies of laws such as GDPR, ensuring you understand how these regulations affect your business operations.

Run regular compliance audits

It’s important to conduct regular risk assessments of your in-house data compliance. These audits help your organisation stay in line with all relevant regulations and industry standards. They also keep you abreast of any changes in compliance laws. By regularly reviewing your processes, you can identify potential risks and take steps to mitigate them before they become issues.

Protect your customer data

Your customers expect you to take good care of their data, both personal and financial. Secure your customer and business data through end-to-end encryption and use of the best data privacy practices. Implementing robust security measures like end-to-end encryption and following best data privacy practices is crucial. This involves more than just securing data against external threats; it also includes internal policies to prevent data misuse.

Deliver regular training and keep your employees up to speed

Your team needs to know the latest rules around compliance and what’s required of them. This means running frequent compliance training, so there’s a culture of compliance awareness. By keeping your employees updated, you minimise the risk of inadvertent non-compliance and empower your staff to handle data responsibly.

Use the latest data storage solutions

With so much customer data being generated, it’s important to use up-to-date documentation management and data storage software. These solutions keep your records and data secure, organised, and readily accessible. They also facilitate compliance by ensuring data is stored and managed according to legal requirements.

A team effort

Getting a grip on data compliance is a team effort. It’s important to work with legal, IT and data security professionals to ensure your organisation is ticking all the correct compliance boxes.

By following these steps, your business is more likely to not only comply with current regulations but is also prepared for future changes in the legal landscape. It's about safeguarding your business from legal repercussions and strengthening your reputation as a trustworthy and responsible operator in the eyes of your customers and industry peers.

As your bookkeeper and payroll service providers we can connect you with experts in all the relevant compliance areas, so you get the advice, support and training you need as an organisation. Get in touch. 

Setting Goals for 2024

The new year is a new beginning. If you are a business owner, this is often the time of year when you reflect on where you are at and think about your business goals for the year ahead.

Setting goals is an essential part of personal and professional growth. These could be lofty goals, or even setting out a plan to achieve some more mundane (but equally important) projects. Whether that is getting paid faster, reassessing expenses or bigger things like automation of processes and new markets. You may be looking to expand your business or create more time for yourself.

Having a clear vision and actionable goals can help you achieve your long-term plans.

Here are some tips to get you started

Envision your future

Reflect on what you truly want from your life and how your business can help you achieve those aspirations. Consider where you want your business to be in the next five or ten years. Having a clear endpoint in mind will make it easier to set goals that align with your vision.

Set measurable goals

Vague goals can be challenging to track and evaluate. Instead, focus on setting goals that are measurable. Think about the key metrics you already monitor in your business and how you would like to see them improve. For example, aim for a 3% increase in net profit year-on-year, a 2% reduction in expenses, or acquiring two new customers per month or grow your prospect database by 50%. If you set specific targets, you can easily track your progress and make adjustments as needed.

Develop a plan for each goal

Once you have identified your goals, it's crucial to create a plan of action to achieve them. This can be as simple as jotting down your ideas or engaging in a brainstorming session with your team or advisors. Having a well-defined plan in place will help you stay focused and motivated to follow through.

Monitor your progress regularly

It's essential to regularly check in on your progress towards your goals. Set reminders on your calendar or align your monitoring process with your invoicing cycle. By consistently evaluating your progress, you can identify any areas that need improvement or come up with fresh ideas to help you reach your targets.

Celebrate your achievements

Celebrating milestones along the way is crucial for maintaining motivation and momentum. Plan a reward for yourself when you achieve a significant goal. It could be treating the team to a morning tea, having a day out of the office together or planning an event for the end of the year. Choose something that brings you joy without breaking the bank.

Not sure how to get started?

We can help you with the strategy and identifying the information you’ll need to track, so you can monitor your progress. So, let's talk. 

Setting goals is just the first step. By implementing these tips and staying committed to your vision, you can turn your long-term plans into reality.