Category Archives for "Business Tips"

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.

Writing a business plan?

Read our guide

Your business plan is the sat-nav that keeps the company moving in the right direction.

Having that guidance can be a massive benefit to your success as a business. But what elements should you include, and...

What are the main considerations to think about

A detailed business plan will generally include:

A clear direction for the business

A well-crafted business plan gives you a defined path to follow, outlining the company’s purpose, goals and strategies. This helps everyone understand the business's mission, so you’re pulling in the same direction.

An overview of your financial strategy

Your plan will include revenue projections, expense forecasts and funding requirements. This financial guidance gives you the foundations for mapping out your budgeting, cashflow and securing investments.

An overview of threats and opportunities

A robust plan will identify the potential challenges and risks faced by the business. This helps you develop contingency plans for overcoming these challenges, reducing your risk and keeping the company on track.

A summary of your sales and marketing strategy

Outlining your sales and marketing strategy helps you target the right audience and differentiate your business in the market. This is vital for winning customers and driving your sales revenue.

Attract the right investors and lenders

A solid business plan enhances your credibility when you’re approaching investors or lenders. A good plan will demonstrate your commitment to the business, your understanding of the market and your ability to achieve long-term success. This is essential for securing investment and funding.

7 steps to creating a plan for your business

There’s no ‘one size fits all’ business plan. Your business plan should clearly outline your goals and how you intend to reach them. As a starting point, this should include how you intend to set up, finance, manage and run your business.

Use the following seven headings to kick-start your planning process. We can help you work through the numbers and strategic thinking to support your goals:

Describe your business idea

What’s the idea and how does it work? Try to have an ‘elevator pitch’ that quickly and simply describes the potential of your idea.

Set out your business goals

What are your objectives for the business? Set out your vision for the business and what your core mission will be.

Outline your ideal customer

Do the research to provide an overview of your target market (the people or organisations you’ll sell to).

Do some competitive analysis

Who are your competitors? Consider all the possibilities. They may not be in your precise sector but still compete for the same consumer dollar. What is your competitive advantage (the reason they pick you over your competition)?

Perform a business financial analysis

How will you fund your business and can you demonstrate the financial viability of the business idea?

Sketch out your sales and marketing plans

Show how you’ll win customers and generate revenue. Consider the 4 Ps of marketing (Product, Price, Place, Promotion). Plan your budget and work out what your return on investment (ROI) will be.

Outline your business structure

Give an overview of your organisational structure and your strategic and operational roles as directors.

A Business Plan is essential

A well-structured business plan is an essential document, whether you’re a new founder that’s just starting out, or a seasoned business owner looking to grow and diversify.

Your business plan is never written in stone. It’s a dynamic and evolving document that changes as the business progresses. Revising your business plan on a regular basis helps you improve your goals, refine your strategy and adapt to meet changing circumstances and markets.

How can Busy01 Consulting and First Class Accounts Ovens & Murray help you with your business plan?

Having a solid business plan is what gives your company direction, structure and meaningful objectives as an enterprise. We’ll help you understand your business goals and vision, and will help you translate this into a watertight business plan. We’ll also help you track your performance against this plan, and will work with you to update the strategy as the business evolves.

If you’d like to know more about business planning, we’ll be happy to explain. Get in touch to discuss your business plan.

Preparing your business for a sale

Selling your business is a big move for any owner. You’ve built this company up, scaled it and put years of hard work into making the business a success story. So, when the time comes to sell, you’ll want to know that you’re getting the best price, and the best future for your legacy.

We’ve outlined five ways to maximise the value of your business, with practical steps for making your company the most attractive prospect on the market.

5 steps to prepare you for a sale

The first thing to underline is that selling a business is rarely a fast process. Most owners will begin planning their sale years in advance, working to an exit strategy that sets out all the key milestones. Your aim is to leave the business in great shape, with stable finances, a solid team and a customer base that will continue to provide solid revenues for years to come.

So, how do you achieve these goals?

1. Assess your reasons for selling and your desired timeline

What’s the key motivation for selling your business? Are you retiring, looking to move on to other opportunities or hoping to unlock your equity? Once you know your reasons, you can decide on some core goals for the sale, and set a realistic timeline for the sale.

2. Get your financial house in order

'Doing your financial housekeeping’ will mean preparing financial statements, submitting outstanding tax returns and making sure you have access to any other documentation that potential buyers will want to see. You may also want to work with an M&A expert to discover the company’s true market value.

3. Make your business attractive to buyers

Any buyer wants to know they’re taking on an attractive business proposition. Making the business feel more attractive means improving your marketing and sales strategies, beefing up your operations and ensuring you have a positive cashflow position. You should also think about creating a transition plan for the buyer, so the handover is as smooth as possible .

4. Find the right buyer

It’s important to feel like you’re handing your legacy over to the right owner – and getting the price you need. This may involve working with a business broker or marketing your business yourself. Make sure you vet potential buyers carefully to ensure that they are a good fit for your business and your existing team.

5. Negotiate the sale terms

Achieving your desired price could involve a fair amount of negotiation. You’ll need to sit down with your buyer to discuss purchase price, payment terms and other conditions of the sale. Be prepared to compromise and be willing to walk away from a deal if the terms are not right for you.

Talk to us about getting your business ready for a sale

If you’re intending to sell your business in the next five years, it’s important to start planning now.

Coming up with a sale plan and a robust exit strategy takes time. As does sorting out the business housekeeping and finding the best possible buyer for the company.

As experienced bookkeepers, we’ll help you:

• Get organised, locate the relevant documents and improve your record-keeping
• Clean up your business to identify any financial issues
• Expand your business network, to help find the best buyer for the company

Following these steps will greatly increase the market value and price of your business.

Get in touch to talk about your sale plan.

10 questions to ask yourself as a business owner

Running a busy and successful business means you often don’t have the time to step back and work ON the business. This can be a challenge if your aim is to grow and scale the company.

As experienced professional bookkeepers and business advisers, we know the value of taking the time to ask yourself some pertinent questions.

Holding yourself and the business to account is something we can help with. And there's never a bad time to pose a few questions and gauge where you're at with your planning, strategy, financial management and personal goals as an entrepreneur.

We've pulled together 10 questions to ask yourself as a business owner.

1. Can you explain why a customer should choose your brand over another?

Knowing your value to a customer is vital if you’re going to market your offering in the most effective way. Think about why your brand stands out in the marketplace, and what opportunities and threats exist. This is the fastest way to tailor your brand to meet customer expectations.

We can help you by running a SWOT-based analysis of your business.

2. How happy is your workforce?

Your people are such a vital asset, but they won’t work well if they’re dissatisfied and disengaged from your business values.

Ask yourself, are your employees motivated and engaged by your mission? Is there anything you can do to boost this engagement?

We can review your people strategy and the staff benefits you offer to your employees.

3. Are you meeting your cashflow goals?

Are there specific costs or inefficiencies that are holding you back from achieving a positive cashflow position?

Ask yourself if your financial management is up to scratch. Identify your failings and tighten up your cash process.

We can review your cash management and look for efficiencies and cost-saving opportunities.

4. What keeps you awake at night?

It’s a stressful role being the boss, and there’s likely to be a lot playing on your mind.

Consider whether there are any recurring business issues that are holding you back, or unexpected pitfalls that have appeared along the course of the business journey.

We can offer you seasoned advice whatever the issue, with resolutions to ease your worries.

5. Are you embracing everything that tech and AI has to offer?

Technology is moving fast with AI solutions and digital systems now an integral part of many business models. But are you doing enough to bring your business into the digital age?

Are there tasks could you automate, or processes you could streamline?

We can integrate a suite of apps such as Xero, Dext, Futurli, and other platforms to boost your business.

6. Is growth part of your business strategy?

Not all businesses are focused on growth, but outlining your key goals around growth is an essential part of your business strategy.

Ask yourself whether you want to scale at speed, or grow organically. Or whether you’re happy to be a boutique business that keeps things small.

We’ll help you define your growth goals and build a strategy that aims for success.

7. Do you have the numbers you need at your fingertips?

So much of what you do as a business is driven by data. But are you getting the overview you need of your important business metrics and key financial numbers?

Think about where you need detailed data and metrics, and how this could put you in better control of the company.

We can help you expand your reporting and management information, so you have a better eye on performance, spending, cashflow and sales targets etc.

8. Have you identified your ideal customer?

Identifying your ideal customer is something every business should do. But when was the last time you updated your ideal customer outline?

Think about who you’re selling to, how this audience has evolved and whether they are still the right customer to target.

We can run detailed customer profiles to help you pinpoint the best customers to target.

9. Have you thought about where your business will be in five years?

When the business is busy, the temptation is to focus on the now and to put your energy into fighting the most pressing fires. But without a forward-looking focus, you can lack direction.

Ask yourself where you want to be in five years and how you plan to achieve these goals.

We'll help you create a detailed five-year plan, to give your journey more impetus and direction.

10. Are you planning for your own financial future?

You obviously spend a lot of your time thinking about your business – but how much time have you spent considering your personal financial future?

Think about your life goals and how you plan to fund them, and where this money is likely to come from.

We can advise you on planning and the advantages of good all-year-round financial management.

Talk to us about running a health check for your business

Ideally, these 10 questions to ask yourself as a business owner will have got you thinking more strategically about your business. If you’d like to take this process further, we’d advise running a detailed health check for your business and personal finances.

Book a meeting with us to talk through your goals, aspirations, challenges and strategy, so we can help you take the next step in your journey to entrepreneurial success.

Get in touch to book a health check.

The ATO agent nomination process

To protect the security of your tax and super information, the ATO is introducing a new process to ensure that only your authorised tax agent, BAS agent or Payroll service provider can access your account and act on your behalf.

This process does not currently apply to individual taxpayers or sole traders. And only applies when you engage or change an agent or change the authorisations you give your existing agent.

What does the new process mean

The ATO Agent Nomination Process protects your business and means only your nominated registered agent will:

• have access to your information
• perform tasks on your behalf, such as lodging your tax return.

Nominating your official agent allows access to your account and to act on your behalf for matters relating to:

• companies including strata title bodies
• partnerships
• trusts
• not-for-profits
• joint ventures
• cooperatives
• self-managed super funds (SMSFs)
• APRA-regulated superannuation funds.

We can efficiently manage your tax affairs, providing you with expert guidance and support throughout the process.

We can help and guide you through the steps to nominate us as your official agent.

The following guide has easy steps to follow. (If you have not already set up access to Online Services for business, you’ll need to do this first).

We cannot do this on your behalf but we can assist you through the process if needed - or contact the ATO for technical help with your myGov account.

Client-Agent Linking Steps - The ATO Guide

If you have any questions or need assistance with the nomination process, or anything else, please get in touch. We are here to help and will ensure your affairs are handled with expertise and care.

How much should you pay yourself?

Being the boss means you get to make all the big decisions about your business – including how much to pay yourself in wages, salary or drawings.

As the owner, you might need to underpay yourself in the early stages of building your business, so you can reinvest the profits. But your time is valuable – and you need enough money to pay the bills.

So how can you find the right level of pay? It has to be enough to keep the mortgage paid, while also building a thriving business.

If you’re trying to decide how much to pay yourself, here are a few questions to ask yourself:

What can the business afford?

You need to leave enough cash in the business to keep it ticking along, pay your basic costs, and meet your tax obligations.

Once you’ve considered all those outgoings, how much does that leave you as a potential salary?

We can help you work out what that number is, so you can establish a sustainable rate of pay.

What’s the market rate for your role?

What would you have to pay someone to do the work you’re undertaking in this business?

Maybe you wouldn’t actually be able to find anyone to work the same long hours, but if you were hiring someone with your experience, to do the same sort of work for 40 hours a week, what would they expect to be paid?

That number is a good starting point for thinking about your own salary or drawings.

If you’re being underpaid, it’s time to think about ways to grow your profits. If you’re being overpaid, congratulations on building a highly profitable business.

Could reinvesting profits grow your income faster?

You can take all the profits out of your business, which should give you a strong and sustainable income.

Or, could you reinvest your profits and grow the business faster, leading to a higher income in the long-term? You might choose to spend some of your profits on advertising, a better website, or developing a new offering, for example.

Or you could pay for assistance in some area of the business. If the investment leads to higher growth, it might be well worthwhile.

We’ll help you run the numbers.

We can help you figure out how much your business can afford to pay you, analyse the potential gains of a business investment, or weigh up the pros and cons of hiring someone to help you.

Get in touch, we’d love to hear from you.