I didn’t make any resolutions this year, but I have made some choices. When a you make a choice, it is different – its about making that choice happen! Achieving any kind of growth, personally or professionally requires a commitment – and that can take many forms:

• Investing in people, products and technology
• Investment in marketing
• Making time to execute your marketing and sales plans
• Embracing new ideas
• Hiring someone to help you achieve your growth

Growth doesn’t happen by sitting back and waiting for it to fall on your doorstep – it happens only by doing. Here are 5 ideas I havbe found work for me:

1. Commit X hours a week towards your goal and block it in your calendar
2. Create a way of measuring your effectiveness in achieving your goals. If it is not working, review and revise your approach.
3. Write out how you will achieve your goals
4. Keep your commitment posted where you can see it every day
5. Persevere – you will have good weeks and bad weeks – continually review and find out what is working.

Mike Harding is a Chartered Accountant who specialises in Owner Managed Businesses on Sydney’s Northern Beaches – although I can be persuaded to travel!

Call me on 0401 631 904

1. Everything is cheaper – IT Equipment, office or retail space!
2. You can hire more and better qualified staff – As the job market tightens up, there is a greater pool of workers to choose from.
3. People are looking to change suppliers – This is often the greatest advantage start-ups have in times of a downturn – Businesses will look to protect their own business and when times are tight, they will look at alternate suppliers not only for a better price, but for better service. This is where a Start Up businesses can succeed.
4. Business owenership offers a variety of tax benefits that aren’t available to employees
5. You can get great PR in quieter times – Start ups are fresh and offer something new!

And finally – If you’ve lost your job – you have to do something. But, you have got to want to do it and have a passion for it – otherwise you wont be a success!

If you are thinking of setting up in business, give Mike a call on 0401 631 904.

But, what about all the ones that follow – customers that is? All businesses, especially start up businesses need to have a method of collecting customer data. We all know how difficult it can be to allocate our time in a busy growing (or not growing) business, but remember the majority of your business will come from existing clients. Look after your clients and they will look after you!

We need to know what customers bought what product from us and when (do they need a new product or restock of consumables?). Keep in touch with your customers and show that you are interested. If you don’t, a competitor will be…

To keep track of who your customers are and what they are interested in, set up a CRM (customers relationships management) system. There is no excuse not to have one given the cost reductions in recent times. Consider a cloud based system that you can access wherever you are…and other staff can access at the same time. This ensures you are all working form the same data base.

Mike Harding

0401 631 904

The employer v contractor issue has long been on the ATO hitlist, and they believe that when times are getting tough, businesses may be tempted to cut corners to stay afloat or prop up their cashflow. Employers enjoy the flexibility of having a contractor rather than an employee both in terms of hours worked to be in line with the business requirements.

The ATO’s strategy for tackling non compliance in this area focuses on businesses that do not withhold payments from workers as required and fail to make superannuation guarantee contributions. This can be done by payment of cash wages or by the ‘employee’ operating with an ABN.

In an effort to help businesses, the ATO has developed an online decision support system to assist businesses making the correct decision as to whether a worker should be treated as an employee or contractor for tax and superannuation purposes – http://www.ato.gov.au/businesses/content.asp?doc=/content/00095062.htm

If you are unsure, give Mike  a call on 0401 631 904

Australia currently has over 80,000 franchised outlets, employing 413,000 people! That’s a lot of Hamburger Bars, Mowing Operators and Pizza restaurants! You only need to have a look at a franchise directory to see the huge range of businesses you can buy into.

There is no doubting the benefits that can be gained  from entering into a franchise arrangement, but there may be alternatives. To be fair, the franchising sector has boomed by giving consumers what they want: better value and standardised products. Consumers know that if they go to Starbucks in Melbourne they will get exactly the same product as if they went to Starbucks in Brisbane.

I would argue however that there is now room for individualism – for something that is not standardised. One only has to look at the success of the website NotOnTheHighStreet to understand that people want something different. This website specialises in giving a marketing advantage to those businesses who are different and who want to reach a larger target market.

From my year s of experience, there are only two thing that I am certain of – after a boom comes a bust and after a bust comes a boom! It may be that we are over franchised now and that it is time to think for ourselves again. It is true that franchised outlets have a lower failure rate than independently owned small enterprises – but the assistance of good advisers can help you through those dangerous early years .

Take care of paying big prices for a franchise – do your due diligence and search for value. No one ever made money by paying top price at the top of a boom!

If you would like to discuss this article or anything else about accounting, tax and business life, call Mike on 0401 631 904

For the 2011 financial year, the Federal Government will match contributions that individuals make to their super fund, as long as that individual meets the income test.

From 1st July 2010, an individual must earn less than $31,920 to qualify for the maximum co – contribution of $1,000. For every dollar earned over this threshold, the co-contribution reduces by 3.35 cents until it cuts out completely at the upper income threshold of $61,920.

What has changed is that reportable employer super contributions (ie those contributions above 9%) are included in earnings for the co-contribution benefit as is fringe benefits.

Small business owners need to consider their total income, as defined by the co-contribution benefit – when looking at the tax efficient way to extract money form their private businesses.

If you need to discuss these changes, please call Mike on 0401 631 904

For Accounting advice, call Mike Harding on 0401 631 904

• stand out from the crowd – if you are a plumber what is going to make you different from all of the other plumbers. You need to think outside the square. Not all ideas will be good ones…but some will be.
• Website. All businesses these days need a website. Think about your own way of doing business – If you want to buy a new piece of equipment, do you research it on the web? Of course you do and your customers will be no different. The Website is your brochure. If you don’t have one, speak with Mighty Media (you’ll find them through Google!)
• Sometimes you need a hook to get your potential client to contact you. If you are a plumber it may be something along the lines of a free 1/2 hour – where most plumbers may charge a $100 call out fee you will immediately get customers to call you. When you are running at full capacity, then will be the time to reappraise that offer.
• Honesty – In business, honesty goes a long long way. Be honest when you are starting out, and say you are just setting up. New businesses are hungry, and people know you will go that extra mile. Provide as good a service for a small leaking tap fix as you do for a new house plumbing job.
• Value for money. If you give value for money, people will recommend you. If you don’t, they will tell people not to use you. Price for the value of the job – don’t blindly follow how much time you spent!

At Harding & Co we charge by value of the job. Clients do not pay if I am inefficient and spend more time than it should normally take!

Call Mike on 0401 631 904 to discuss your accounting needs.

Where does this leave you?

If you have a debt with the ATO contact them now to take advantage of the offer by the ATO to not charge interest on the debt outstanding – See http://www.ato.gov.au/businesses/content.asp?doc=/content/00196536.htm for further information. This offer expires on 30th June 2010.

If you have a debt with your bankers talk to them – but be prepared! Show them your business plan – including cash flows – and explain how the business will progress over the next twelve months. If they agree to a proposal, keep them informed on a monthly basis  as to how you are travelling against your forecast that you provided – irrespective of good or bad monthly results.

Cash-flow is critical as we come out of a downturn – update your cash-flow forecast at least monthly – if cash flow is critical you need to do this for a rolling 7 day period.

If you need assistance call Mike Harding now on 0401 63 904. As an elderly partner once said to me a few weeks after I started my accountancy training with one of the big 4 practices – ‘Don’t kick a client when he is down…..He may well get up again!’ We are here to help.

An accountant was overheard in a pub dressing down one of his employees about his inability to complete tax returns and financial accounts efficiently and without errors.

‘But he has been qualified for 3 years and is still making mistakes – you just can’t get newly qualified staff these days to do the job’ he was heard to say…….

Another accountant who had known him for a number of years pointed out that he has 30 years of experience……and his member of staff has 3 years…….experience is not something you can buy….you have to earn it!

Why am I telling you this story, about the inefficiency of newly qualified staff you may wonder. For two reasons:

1. Use your own experience in your business the best way you can. Guide and mentor your staff, whilst at the same time give them enough room to learn – pass on your experience where you are able. Point out to your customers that you have experience in your industry and that you understand their needs.
2. I have over 25 years experience in dealing with SMB’s – not just as an adviser but at the coal face in industry as CFO. I understand what it is like for an accountant to tell you that you have missed to claim $10 extra gst – does it matter? Experience teaches you to focus on the key points that matter – if you want to discuss how Mike can help you in your business call me now on 0401 631 904 and I will give you a free copy of ‘The E Myth’ – a must read book for all entrepreneurs!