Articles

Lying or economical with the truth….

By mike | January 13, 2015 | Improve business

We are often asked to help clients negotiate with their banks whether it be to fund a startup or expansion, renegotiate an existing facility or a short term overdraft. It can be frustrating with the need for banks to require security in the form of real estate and the constant change of business managers (no bank is immune from this). I thought I would share this article with you, concerning a now large and very successful brewing company in the UK, BrewDog. Whilst we don’t advocate being dishonest, there are negotiating tactics available – just ask a friend who is in the real estate business!

What this article says more than how to deal with banks is the absolute belief that you need to have in your product – don’t believe in it because you think you need to – you must have 100% belief in your idea – backed up with research and business plan. Don’t be scared of large businesses taking away all of your opportunities – we are great believers that when that happens it merely creates openings. As BrewDog found in the attached  article, not everyone wanted to taste the same bland beer that was being put out by the larger breweries.

 

Finding a balance when the buck stops!

By mike | January 6, 2015 | Improve business

I am often asked when a new start-up is formed between two investors – who should be in charge? There are two polarizing arguments, and both are put succinctly in this recent article in The New York Times – coincidentally about Australian co owners of Appster.

Josiah Humphrey and Mark McDonald work happily as co-chief executives of Appster. They have found an extremely efficient way of working together, without the whole decision making process becoming slow and cumbersome. Boundaries have been set for each persons role and important decisions are made jointly. The problem that can (and probably will) arise is that one person will want control. When outside investors become involved, the whole area of business politics rears its ugly head again – one of the over riding reasons many businesses are started – to escape that!

The opposite approach – not wrong but different – relies on one person being responsible for the company  – one strategy, one vision and one decision maker. Decisions (if the correct person is in the role) can be made quickly and dynamically.

There is no correct approach – as in all of these matters, it will depend on the individuals – and how successful or not the business start up is!

If you would like to discuss your business start up get in touch with Mike Harding at Harding & Co, Chartered Accountants, Mona Vale – 0401 631 904

Are you charging the correct price?

By mike | December 16, 2014 | Improve business

There are many ways to calculate the price your charge your customers and clients. I recently came across this guy who has a good approach to pricing. He runs a print shop and tries to be fair!

Pricing products and services

  • Understand your cost structure (cost of materials, labour, rent)
  • Understand you market – are you planning a sell them cheap / large quantity approach or high value/ low volume?
  • What is a fair price?
  • Make sure the customer is aware of additional services – are they included or extra?
  • Don’t Underprice – Most small businesses set their prices too low!
  • What are your customers charging?
  • Be aware of the changing market place – most accountants such as Harding & Co are giving fixed price quotes now – If we are efficient we want the profiot – if we are inefficient we dont expect our clients to pay! Lawyers are now following this approach such as Marque Lawyers

If you want a review of your pricing structure, call the team at Harding & Co – 02 9986 0472

 

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