To maximize your profit is not that hard. It would be best if you focused on a few changes in your business. Running a business allows your creativity to thrive. You are in charge and can make decisions that push you out of your comfort zone. Making a profit is one of the most important business operations.

When you make more than you spend, you are technically making a profit. Even a small profit is worth celebrating, so look at our short guide on maximizing your profit when running a business.

How to maximize your profit and run a successful business Four Points to maximize your profit.

Cost-effective decisions

Always ensure your decisions are cost-effective. Consider whether your decisions will increase your income or overall expenditure.

● For example, if you want to sell artwork and make a living in the creative industry, it will be worth considering whether you could make more money selling your wares online or in a shop.

● A shop has overhead to consider, but an online space is entirely digital and may mean you ultimately make more money.

Overhead that eats into your profit!

Remove unnecessary overhead. If you aren’t making money on a specific product or service yet still spending money to source, stock, or create, you may be making an unnecessary loss. Focus on removing any unnecessary overheads.

● Consider ways to cut back on expenses and save money. For example, if you are selling goods, ensure you shop around to get the best deal from the wholesaler.

Water and nurture will help your business grow!

Start small and grow gradually. When you are working to turn a profit, make sure you keep an eye on the services or products that sell.
● Avoid spending significant amounts of money on stock if it repeatedly fails to sell. Stick to your popular services and products and maximize profit by always selling what people will buy.

● Keep an eye on the specific services and products you have and make a list of the most popular sellers. Consider creating promotional tools and making those items or services as prominent as possible to catch attention.

Promote

Concentrate on your marketing. Remember, potential customers need to be aware that your business exists.

● Consider how you can market your business for free or as little expense as possible. Remember, you are trying to profit, so keep your expenditures low.

● Social media can be a powerful free tool. Consider using it to promote your business and enlist the help of your friends and family to get them to spread the word.

● Spend time pushing the products that sell well and develop innovative marketing campaigns for struggling stock. If customers know a particular item or service exists, it might pique their interest and make you an unexpected sale.

● Ask customers to leave you reviews and allow everyone who uses your business to offer feedback. You’ll build up a trusted customer base and be seen as more reliable than other businesses. It’s a great way to stand out from the crowd!

Tip – watch what you spend!

The most important thing to do is to keep your expenditures low. Once you’ve made enough to cover your outgoings, you’ll find everything else is a profit. Ongoing profit reporting is a must. Knowing your profit or loss every month means you are reviewing every opportunity to maximize profit.

Be bold and ensure people have a positive experience working with your business. Be creative and adventurous, and stand out for all the right reasons.

Profit Margin vs Markup can be calculated and result in different outcomes 

Profit margin and markup are separate accounting terms that use the same inputs and analyze the same transaction yet show different information.

 Both profit margin and markup use Revenue and costs as part of their calculations. The main difference between the two is that a profit margin refers to sales minus the fee of goods sold, while markup is the amount by which the cost of good increases to get to the final selling price.

Profit Margin needs to be healthy

Understanding these two terms can help ensure that price setting is done to get the best profit for your product or service.

 If the price setting is too low or too high, it can result in lost sales or profits. Over time, a company’s price setting can also have an inadvertent impact on market share since the price may fall far outside of the prices charged by competitors.

KEY TAKEAWAYS to generate profits from your profit margin

• Profit margin and markup are separate accounting terms that use the same inputs and analyze the same transaction, yet they deliver different results
• ion.
• Profit margin refers to the Revenue a company makes after paying the cost of goods sold (COGS).
• Markup is the retail price for a product minus its cost.

Understand your profit terms

An understanding of the terms revenue, cost of goods sold (COGS), and gross profit are important.

Your Revenue refers to the income earned by a business for selling its goods and services.

COGS refers to the expenses incurred by manufacturing or providing goods and services.

GROSS PROFIT profit refers to any revenue left over after covering the expenses of providing a good or service.

Making sure your cost of goods to Revenue is important

Monitoring the gross profit margin is essential for several reasons, as it provides critical insights into your business’s financial health and operational efficiency. Here are the key reasons why:

A higher margin suggests that the company is selling products at a higher markup over its costs, signifying better profitability.

It’s important to monitor profitability

Monitoring gross profit margin helps you as the business owner identify trends in cost structures and take action to manage costs more effectively. If the margin is declining, it could signal rising production costs or pricing pressure, prompting a review of suppliers, costs, or production processes.

Your product’s gross profit margin can influence pricing strategies. Understanding the margin allows businesses to adjust prices without dipping below profitability thresholds. It’s crucial Businesses can identify the most and least profitable by monitoring gross profit margins for different products or services. This information can guide resource allocation, product development, and marketing strategies to focus on the most lucrative areas.

Yes, increasing your markup can potentially lead to better gross profit margins, but it’s important to approach this strategy carefully to ensure it doesn’t negatively impact sales

Here are some considerations and strategies for increasing your markup:

Before raising prices, it’s crucial to understand your market’s price sensitivity. If your customers are price-sensitive, a higher markup could lead them to competitors. Market research and testing can help you assess how price changes might impact demand.

After adjusting your markup, closely monitor sales data and customer feedback. This will help you understand the impact of price changes on demand and customer satisfaction. Be prepared to adjust your strategy if you see adverse effects on sales volume.

While focusing on increasing markup, look for ways to reduce costs without compromising quality. Improved cost efficiency can enhance your profit margins without needing to rely solely on price increases.

Consider implementing price increases gradually. Sudden, significant increases can shock customers and drive them away. Smaller, incremental increases might be more palatable and less likely to cause a negative reaction.

Profit Margin and examples

Profit margin refers to the Revenue a company makes after paying COGS. The profit margin is calculated by taking Revenue minus the cost of goods sold.

The difference is shown as a percentage of gross Revenue.

For example, if a company sells a product for $100 and it costs $30 to manufacture the product, its margin is $70 or 70% gross margin

Profit margin is sales minus the cost of goods sold. Markup is the percentage amount by which the cost of a product is increased to arrive at the selling price.

Markup

Markup shows how much more a company’s selling price is than the amount the item costs the company.

Therefore the greater the markup, the more revenue a company makes. Markup is the retail price for a product minus its cost, but the margin percentage is calculated differently. In our earlier example, the markup is the same as gross profit (or $30) because the Revenue was $100 and costs were $70. However, the markup percentage is shown as a percentage of costs as opposed to a percentage of Revenue.

However, using the same numbers as above, the markup percentage would be 42.9%, or ($100 in Revenue – $70 in costs) / $70 costs.

Profit margin and markup show two aspects of the same transaction. Profit margin shows profit as it relates to a product’s sales price or Revenue generated. Markup shows profit as it relates to costs.

Markup usually determines how much money is being made on a specific item relative to its direct cost, whereas profit margin considers total Revenue and total costs from various sources and various products.

The holiday season brings joy and celebration, but for small businesses, it can also bring challenges when it comes to cashflow planning

Cashflow, the lifeblood of any business. Cashflow is even more crucial during this period. Small businesses are starting to experience delayed payments, reduced sales, and increased expenses due to safety measures and additional costs associated with remote work or implementing safety protocols. The holiday season brings slow down and couple with higher interest rates the economy is changing
To address these challenges, small business owners must adopt proactive cash flow management strategies.

Between now and the 15th of January 2024 can be a cashflow bumpy ride for many small business. Its time to implement cashflow planning and effective strategies to manage cashflow. You can as a small businesses navigate through the Christmas season with aim of maintaining a healthy cash flow.
Here are our tips to make you get through the crazy festive season

Forecast and Cashflow Planning for Irregular Expenses for better cashflow planning

The festive season often comes with additional expenses that are not part of the regular operating costs of a business. These can include staff parties, client entertainment, and Christmas gifts. To ensure you have sufficient cash flow to cover these expenses, it is crucial to forecast and plan ahead.
Take into account the estimated costs of these irregular expenses and incorporate them into your overall budget. By doing so, you can avoid any unexpected financial strain and ensure you have enough cash on hand to cover these festive expenditures.

Additionally, it is important to consider any potential price increases during the holiday season.

Extend Accounts Payable and Optimize Cash Inflows

Maintaining positive cash flow during the holiday season can be a delicate balancing act for small businesses. One effective strategy is to extend your accounts payable, which involves delaying payment to your creditors for as long as possible. By doing so, you can reduce cash outflows and preserve more cash on hand.

Consider negotiating longer payment terms with your suppliers or vendors, and take advantage of any discounts they may offer for early payments. This is an old trick used in cashflow planning but be careful you don’t starve your suppliers who may in turn not supply you moving forward if you are a reliable payer . It’s a balancing act!

On the other side of the cash flow equation, it is crucial to optimize cash inflows. Actively communicate with your customers about changes to payment cycles and important cut-off dates. Issue invoices promptly and follow up on payment to ensure timely receipt of funds. Offering options such as partial payments or early payment discounts can incentivize customers to pay sooner, improving cash inflows during the Christmas season.

Maintain Active Control of Invoicing

Send our regularly – remind and follow up those not adhering to your payment terms , this is crucial for cashflow management.

Invoicing is a critical aspect of cashflow planning, especially during the holiday season. To maximize your chances of getting paid on time, it is important to maintain active control of your invoicing process. Send out invoices as soon as possible to avoid any delays in payment. Consider implementing automated reminders to gently nudge customers about upcoming payment deadlines.

In addition, proactively communicate with your customers about your payment terms and any changes that may occur during the holiday season. By keeping the lines of communication open, you can address any potential issues or disputes promptly, ensuring a smoother cash flow and minimizing the risk of late payments.

Utilize Credit Cards for Deferred Payments

For small businesses looking for a flexible cash flow solution during the Christmas season, utilizing credit cards can provide a much-needed buffer. When you pay your business expenses with a credit card, you can defer the payment until your next billing cycle. This can provide you with additional breathing room, allowing you to collect revenue from holiday sales before having to pay off your current balance.
Paying with credit cards also offers the opportunity to earn rewards, such as points or cashback, on your business expenses. These rewards can provide additional value and help offset some of the costs associated with the holiday season.

The downside however is important to use credit cards responsibly and ensure that you have a plan in place to pay off the balances in a timely manner to avoid accumulating excessive debt.

Explore Backup Finance Facilities , helps in cashflow planning

Even with careful planning and effective cash flow strategies, unexpected challenges can arise during the Christmas season. To safeguard your small business against cash flow shortages, it is wise to explore backup finance facilities. These facilities can provide you with additional funding when needed, helping you bridge any temporary gaps in cash flow. For some Invoice finance is one such option worth considering. But it will take time to set up and remember it’s a lag effect and must be repaid
With invoice finance, you can access funds owed to you in outstanding invoices before they are paid by your customers. This allows you to maintain a healthy cash flow by advancing the funds you need to cover upfront costs, overheads, and unexpected expenses. By leveraging your accounts receivable, you can access working capital quickly and flexibly, ensuring your business can navigate through the Christmas season smoothly. y to earn rewards and benefits associated with credit card spending.

Plan for Post-Holiday CashFlow management!

While the focus of cashflow planning during the Christmas season is primarily on generating sufficient cash flow to cover expenses, it is equally important to plan for the post-holiday period. Many businesses experience a lull in sales and cash inflows immediately after the holiday rush. To mitigate any potential cash flow challenges during this period, it is crucial to plan and budget accordingly.
Review your financial statements and cash flow forecasts to identify any potential gaps in cash flow post-holiday season. Consider adjusting your budget and expenditures to align with the anticipated decrease in cash inflows. This can include reducing discretionary spending, negotiating payment terms with suppliers, and exploring cost-saving measures to maintain a healthy cash flow during the quieter months.

Managing cash flow during the Christmas season is crucial for the success and sustainability of small businesses. By implementing effective strategies such as forecasting and planning for irregular expenses, extending accounts payable, maintaining active control of invoicing, and exploring backup finance facilities, small businesses can navigate through the holiday season with a healthy cash flow.
Remember to maintain strong vendor relationships, utilize credit cards for deferred payments, and seek professional advice when needed. With careful planning and proactive cash flow management, small businesses can thrive during the Christmas season and beyond.

5 Startup Mindset Shifts You Must Make as you launch your New Business.

Starting out. Grab that winning mindset from day one to conquer challenges and thrive in the competitive business world.

Starting a new business is an exhilarating experience requiring a unique mindset.
Business owners are like modern-day supermen/women, equipped with the determination and courage to face any challenge head-on. The excitement of embarking on a new small business venture is unparalleled, as the possibilities are endless, and the potential for success is immense.

Get the right startup mindset from day one!

With the right startup mindset, you as a small business owner, can conquer any obstacle that comes your way. When starting out in a new business, having the right mindset is crucial for success.
It is important to approach every task with a positive attitude and unwavering belief in oneself. A business owner must be confident to take risks and make bold decisions, even in the face of uncertainty.
This mindset of fearlessness and optimism sets entrepreneurs apart from the rest and fuels their drive to succeed.

The mindset of a business owner starting out in a new venture is akin to that of a superhero. Like Superman, they possess extraordinary powers to overcome challenges and achieve greatness.
Don’t be afraid to step out of your comfort zone and push the boundaries of what is possible. Their unwavering determination and resilience will enable you to navigate the ups and downs of business.
Starting out in a new business requires a mindset that embraces failure as a stepping stone towards success. Every setback becomes an opportunity to learn and grow, allowing business owners to improve their strategies and approaches continuously. With this mindset, entrepreneurs can turn obstacles into stepping stones towards achieving their goals.

Most people assume starting a successful business requires a great idea and a substantial cash injection. Both are correct, but to truly make your dreams a reality, the truth is your transition to being a business owner begins with a new mindset.
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If you really want to be a successful business owner, you need to shift how you think about yourself, the world, and your business!

So, where do you get started to get your startup mindset mojo?

Here are some of the most valuable mindset shifts you should make before you begin your small business journey

1. Embrace The “Growth” Startup Mindset

If you’re thinking of starting your own company, do yourself a favor and read the book Mindset by Dr. Carol Dweck. Dr. Dweck has inspired countless business leaders and entrepreneurs because she teaches what it means to abandon the “fixed” mindset.

Premiership winning Coach at Collingwood, Craig Mc Crae, recommended it, and so do I. It helps keep you in the mindset zone.

Most of us have a “fixed” mindset. This is the belief that there’s a limit to your skills, what you can do, and what you can achieve at any given time. While that might seem like a humble position, it can be detrimental. Why it place limitations on you and your company from day one?

Shifting to a “growth” mindset means embracing the belief that you can improve anything, including your company, skills, and future, whenever you choose.

Focusing on constant growth ensures you’ll always work to make your business bigger and better.

2. Stop Prioritizing Quantity Over Quality

We’ve all heard that quality matters more than quantity, but many of us are still hardwired to seek out volume instead of value.

Prioritising quality over quantity means using your resources and people as effectively as possible to generate the best results. In the same way, prioritising quality over quantity as a business owner means you’re more cautious about which projects you take on and which clients you work with.

This can save you from making expensive mistakes. Don’t take on a contract or a sale if it leaves you potentially out of pocket to get work in the door.

3. Learn to Value Yourself

You may find that being a business owner brings a fair share of impostor syndrome. This is the belief that you’ve come to a place where you don’t deserve to be.

Without delay you need to remove that thought if you want to thrive.

Above all ,everyone feels this way occasionally, but never undervalue yourself,

You need to understand what your value is and be confident in yourself.

As can be seen take the time to regularly remind yourself what you’re good at and what you’ve accomplished so far. Tell yourself you deserve to be where you are and act like a small business champion.

4. Commit to Being a Lifelong Learner

There will always be new trends and technology to understand. Learn, embrace and grow you and the productivity of your business.

You need to be willing to keep up with the changes. Committing to a mindset of lifelong learning can help with that.

If you cultivate a constant curiosity and development attitude, you’ll be more likely to seek ways to improve your business. Being a lifelong learner makes you more agile, adaptable, and willing to evolve as your business grows.

A learning startup mindset requires shifting from seeing failure as an opportunity to learn. Take your mistakes as the lessons they are and use them to help you grow.

5. Have the tools and the fan club to support you

Confidence in yourself is a big mindset tool. With this in mind, your Mindset is best when you have the tools and people behind you to make it a success when you launch. This includes people who will provide direction, support, encouragement, and objectivity.

Without delay the tools are in the form of your documented plan, the 90-day launch and the financial targets to hit need to be implemented.

The most compelling evidence is that mindset medicine helps keep you focused.

Start Shifting Your Startup Mindset

Without a doubt any great business owner will tell you passion and money will only get you so far.

Take your, mindset, attitude and mental framework to keep pushing forward and achieving your goals. Shifting your mindset in the five ways mentioned above will prepare you to thrive.
Business owners possess the superhuman qualities of determination, fearlessness, and resilience. With the right mindset, you can overcome any challenge that comes their way and achieve phenomenal success. So gear up, put on your entrepreneurial cape, and embrace the adventure of starting your own business!

Identifying and recording obsolete trading stock write-offs for a small business involves several steps.

Its that time of year, when you should undertake you annual stock take. We suggest to be practical in your approach. Use scales and estimates for small items such as screws , widgets and small items.

A practical approach – obsolete items.

Here’s a general guide on how to approach this process:

1. Identify the stock items: Begin by reviewing your inventory records and identifying any old trading stock that needs to be written off. Look for items that are damaged, expired, obsolete, or unsellable due to other reasons.
2. When doing a stocktake, use round stickers (i.e. red dots) or straws to identify those items that you have counted.
3. Assess the value: Determine the value of the stock items that need to be written off. This can be done by assessing their original purchase cost, current market value (if applicable), or any other relevant valuation method.
4. Document the write-off: Maintain proper documentation for the write-off. This should include details such as the date, description, quantity, unit cost, and total value of the stock items being written off. Store this information for future reference, especially for tax and audit purposes.
5. Update inventory records: Adjust your inventory records to reflect the write-off. This helps ensure accurate reporting and tracking of your remaining stock items.
6. Tax considerations: See Geoff and his team

Remember, if need help contact us .

You should combine your stocktake with a sales budget that should be done for coming year

Once you have undertaken your list let us know and we will help you record it in your accounting system. Happy new financial year.

Sabotaging your business can happen in several ways. It’s a silent killer of businesses for growth and success. It’s like wood termites that infiltrates behind the framework of your home as a result when finally uncovered it results disastrously.

Where on the surface, a business can look amazing. Sillly things people do can turn a business into a disaster. So are you quietly sabotaging your business?

The other day I visited a modern-looking café. At the cafe the staff allocated me a table. However they failed to clean it resulting in us having to move the dirty dishes of ourselves. Only a small thing but bad service. Then after we finally ordered a coffee, it came in paper cups . The staff apologized, stating they had run out of cups. Though more likely lack of cups probably they weren’t clearing the tables and understaffed was the main reason for poor service and delivery.

Well, the outcome was a big nar. Next time we will go somewhere else; the poor service sabotaged customer service and what had the hallmarks of an excellent place for a coffee.

How and why people sabotage their business !

While it is unfortunate, there are several ways in which a business owner may sabotage their own small business. As a result here are a few common examples of what we see as pure an unecessary self sabotage of a business

Poor financial management is a killer for a small business . Failing to keep track of finances, not budgeting properly, or mishandling funds can quickly lead to financial problems and the downfall of a small business. Disregarding the ATO debt and even following up with your own debtors will as result lead to a cashflow disaster.

Fail to plan and lack of strategy. Not having a clear business plan, neglecting market research, or failing to adapt to changing trends can hinder growth and sustainability. Without proper planning and strategy, businesses may struggle to compete and survive. This includes exit planning.

Ineffective marketing and branding marketing efforts or a lack of brand development can make it difficult for a business to attract customers. Neglecting to promote the business effectively or failing to build a strong brand identity can lead to limited visibility and diminished customer interest. Unable to project your vision means you may not be attracting the right customers.

The big killer and one that can be easily fixed!

Poor customer service is a massive sabotage for a small business. Failing to prioritize customer satisfaction can damage a business’s reputation and result in lost customers. Ignoring customer feedback, providing subpar service, or not addressing customer concerns promptly can lead to negative word-of-mouth and a decline in sales.

The final one that impacts a business is Internal conflicts and mismanagement: Disagreements among business partners, ineffective leadership, or a toxic work environment can create internal conflicts that distract from the company’s goals. Poor communication, lack of accountability, or an unproductive work culture can impact by undermining employee morale and overall business performance. A toxic environment is a bad business.

A strategy for you to build growth.

Developing your growth and exit plan needs careful planning. A business owner’s reluctance to adapt and lack of resilience can unknowingly sabotage the business. A business owner must adapt rapidly to a changing business landscape. Sometimes the inability to adjust to market trends, consumer demands, or industry disruptions can lead to business failure.

Resilience, flexibility, and a willingness to embrace change are essential for long-term success.
Part of what we do for our clients is help them plan. For growth Growth, prepare for change and plan for an eventual exit.

As a Chartered Accountant and business adviser, we help you through the journey. Ask these questions if you are at a fork in your business journey pathway.

• Am I happy with my business and my lifestyle?
• Is it time to consider if the business still lights my passion or am i over it?
• If your business faces change or uncertainty, are you prepared for it or ignoring it will sabotage the business.
• What are my options now and into the future concerning my role and ownership in the business?

Any decision about business direction needs to be quietly evaluated. Sometimes not stopping and assessing you and your business as a package is a sure way to sabotage the business. Move forward with confidence by having a plan that works for you with a clear direction that make your business a winner.

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Dividend vs keeping the profits in retained earnings

Should I pay a dividend from my company? When it comes to running a successful business, one of the most important decisions you’ll have to make is what to do with your profits. Should you pay a dividend to yourself as the business owner, or reinvest the money back into the company? It’s a question that many business owners struggle with, and there’s no one-size-fits-all answer.

We argue that paying dividends is a great way to reward the owners.

Others believe that reinvesting profits is the key to long-term growth and success. In this article, we’ll explore the pros and cons of both options, so you can make an informed decision that’s right for your business.

Understanding Dividends and How They Work

First, let’s define what a dividend is. A dividend is a payment made by a company to its shareholders, usually in the form of cash or additional shares or allocated to the loan account. Dividends are paid out of a company’s profits and are distributed on a regular basis, such as quarterly or annually.

There are different types of dividends, such as regular dividends, and special dividends.

Regular dividends are the most common type and are paid out on a regular basis. Special dividends are a one-time payment made by the company, usually when the company has extra profits. Stock dividends are paid in the form of additional shares of stock instead of cash.

Pros and Cons of Paying Dividends to Shareholders

Now that we know what dividends are, let’s explore the advantages and disadvantages of paying dividends to shareholders.

Advantages of Paying Dividends

One of the main advantages of paying dividends is that it can be a great way to reward you as the owner. Shareholders receive a share of the company’s profits, and this can help to attract new investors and retain existing ones.

Importantly paying dividends reduces Retained Earnings. This reduction in retained earnings for a small business helps :

• The flow of profits for tax purposes
• The impact of holding too much capital that exposed if there is a legal claim against the company.

Disadvantages of Paying Dividends

One of the main disadvantages of paying dividends is that it can limit the company’s ability to reinvest in the business. When a company pays a dividend, it’s taking money out of the company that could be used to fund growth initiatives or invest in new projects. If the company doesn’t have enough cash to fund these initiatives, it may need to raise additional capital through debt or the owners lending money back

Another disadvantage of paying dividends is that it can create expectations among shareholders. If a company pays a dividend, shareholders may expect the company to continue paying dividends in the future.

Advantages and Disadvantages of Keeping Profits in the Company

Now, let’s explore the advantages and disadvantages of keeping profits in the company, rather than paying dividends.

Advantages of Keeping Profits in the Company

One of the main advantages of keeping profits in the company is that it allows the company to reinvest in the business. By reinvesting profits, the company can fund growth initiatives, invest in new projects, and improve its products or services. This can help to increase the value of the company over time and attract new investors.

Keeping profits in the company can also help to reduce the company’s reliance on external financing. If the company has enough cash to fund its growth initiatives, it may not need to raise additional capital through debt or equity financing. This can help to reduce the company’s debt load and improve its financial health.

Disadvantages of Keeping Profits in the Company

One of the main disadvantages of keeping profits in the company is that it can inhibit profit reward and extraction. If the company doesn’t pay a dividend, shareholders won’t receive a share of the profits in the short term.

As the owner this has 2 serious disadvantages

• NO reward in short term for your hard work
• Taxation – distributing in a regular method allow better tax planning
• Not declaring a divided but still taking the money may create a DIV 7a loan – not advisable

Another disadvantage of keeping profits in the company is that it can create excess cash that isn’t being used effectively. A business owner should have a clear plan for how to reinvest its profits. If not, it may be better to distribute the profits to shareholders in the form of a dividend.

Finally take profits as you go and dont leave it for someone else if something goes wrong ie liquidation or legal action . Paying out dividends is like passing the gate way of no return. Be careful though as declaring a dividend with poor trading can lead to insolvent trading!

Criteria for Deciding Whether to Pay Dividends or Keep Profits

Let’s look at some criteria for deciding which option is best for your business.

Analyzing the Financial Health of the Company

One important criterion for deciding whether to pay dividends or keep profits in the company is the financial health of the business. If the company is financially stable and has excess cash, it may be a good idea to pay a dividend. However, if the company is in a growth phase and needs to reinvest profits to fund growth initiatives, it may be better to keep the profits in the company.

Considering the Company’s Growth Potential

Another important criterion is the company’s growth potential. If the company has a high growth potential, it may be better to reinvest profits in the business. Thereby funding growth. However, if the company doesn’t have many growth opportunities, it may be better to pay a dividend . Reward shareholders and extract the excess cash from the business.

Evaluating the Shareholder’s Preferences

Finally, it’s important to consider the preferences of the company’s shareholders. Some shareholders may prefer to receive a dividend, yet the other business owner may prefer to see the company reinvest profits in the business. It’s important to understand the preferences of the company’s shareholders and make a decision that’s in their best interests.

Look at the Franking account as a small business and see how this may impact your future tax liability personally. Remember declaring a franked dividend have credits attached. However, while tax is paid with the lowering of the company tax rate there may be top-up tax payable

Top-up tax is effectively the shortfall of tax that may be incurred in the event that a shareholder is on a higher tax rate ie tax credits typically for small business is @ 25% but you may have taxpayers on higher rates such as 32.5% and beyond

Conclusion and Final Thoughts on the Dividend vs. Profit Debate

In conclusion, the decision to pay a dividend or keep profits in the company is a complex one that requires careful consideration of the company’s financial health, growth potential, and shareholder preferences. While paying dividends can be a great way to reward shareholders and attract new investors, reinvesting profits can be the key to long-term growth and success. Ultimately, the decision will depend on the unique circumstances of each business. By weighing the pros and cons of each option and considering the criteria outlined in this article, business owners can make an informed decision that’s right for their company.

Unveiling the Power of a simple Business Plan for small business is Your Blueprint to Success

A Simple business plan for small business helps you dream big! Are you an entrepreneur or business owner aiming to achieve success in your ventures?

Do you find yourself constantly facing setbacks and challenges that just make it a little harder hinder your growth? The solution is in the power of a well-crafted simple business plan that kicks goals. A small business action plan is a blueprint that outlines your goals, strategies, and tactics to achieve success. It is your roadmap to success and helps you stay on track towards achieving your objectives.

A well-written and EXECUTED business plan not only helps you secure funding but also provides clarity and direction for your team.

So, let’s dive in and discover how a business plan can be your key to unlocking success in your business.

4 reasons Why every small business needs a simple business plan

A simple business plan is essential for every business, no matter how big or small. It provides a clear understanding of your business goals and objectives, outlines the strategies you will use to achieve them, and helps you identify potential obstacles and solutions. Without a plan, you risk losing focus and direction, making it difficult to achieve your goals.
You need a business plan for several reasons:

1. Setting goals and objectives: A business plan allows a small business to establish clear goals and objectives for the company, including financial targets, growth milestones, and other key performance indicators. This helps the business owner to focus on what needs to be achieved and how to get there.
2. Attracting funding: If a small business needs external funding, such as a loan or investment, a business plan is essential. It provides potential investors or lenders with a clear understanding of the business’s goals, strategies, and financial projections, which helps them determine whether or not to invest in the company.
3. Identifying potential challenges: A business plan forces the business owner to think about potential challenges that the company may face and how to address them. This helps the business owner to be prepared and to have contingency plans in place.
4. Making informed decisions: A business plan helps the business owner to make informed decisions about how to allocate resources, such as time and money. By having a clear understanding of the company’s goals and objectives, the business owner can prioritize tasks and investments more effectively.

You plan is a communication tool that helps share the your vision, mission, and values with employees, customers, suppliers, and other stakeholders.

Its your roadmap for the business future and helps everyone involved to understand their role in achieving the your set goals

The process of planning will help you identify your target audience! For you to know your competition, and develop a comprehensive marketing strategy. It is a tool that provides a roadmap for your team to follow. Action by setting realistic goals, measure your progress, and make adjustments as needed to ensure your success.

In short, a business plan is the foundation of your business. It provides a clear understanding of your business goals, identifies potential obstacles, and outlines the strategies you will use to achieve success.

Different types of business plans

There are several different types of business plans, each with its own purpose and audience.

Traditional Business Plan
A traditional business plan is a comprehensive document that outlines every aspect of your business, from your mission statement to your financial projections. It is typically used to secure funding, but it can also be used as a tool to guide your business operations.

Lean Startup Plan – recommended – keep it simple but actionable
A lean startup plan is a simplified version of a traditional business plan. It focuses on the essential elements of your business, such as your target market, value proposition, and key metrics. It is typically used by startups that are looking to test their business concept quickly and efficiently.

Internal Business Plan
An internal business plan is a document that is used to guide the operations of your business. It is typically not shared with external stakeholders and is used to keep your team focused and aligned with your business goals.

Strategic Business Plan
A strategic business plan is a long-term plan that outlines your business goals and objectives over a period of several years. It is typically used by established businesses that are looking to grow and expand their operations.

Key components of a business plan:

Executive Summary
The executive summary is the first section of your business plan and provides an overview of your business. It should be concise and compelling, outlining your business concept, target market, and competitive advantage.

Company Description
The company description provides a detailed overview of your business, including your mission statement, history, and ownership structure.

Market Analysis
The market analysis section outlines your target market and identifies potential opportunities and challenges. It should include information on your competitors, market size, and trends.

Products and Services
The products and services section provides a detailed description of your offerings, including their features, benefits, and pricing.

Marketing and Sales Strategy
The marketing and sales strategy outlines how you plan to reach and sell to your target market. It should include information on your advertising, sales, and distribution channels.

Financial Projections
The financial projections section provides an overview of your projected revenue, expenses, and profits over a period of several years. It should also include information on your funding needs and sources.

Management and Operations
The management and operations section provides an overview of your team and their roles, as well as your business operations and processes.

Including these key components in your business plan can help you create a comprehensive and effective document that will guide your business towards success.

YOUR marketing plan

A marketing plan is essential for small business It outlines how to reach and sell to your target market,. It provides a roadmap for your marketing activities. A well-crafted marketing plan can help you to identify your target audience, develop compelling messaging, and choose the right marketing channels to reach your audience.

To create a marketing plan start by identifying your target market. This should include a detailed description of your ideal customer, including their demographics, psychographics, and buying behavior.

Developing financial projections and budgets

Financial projections and budgets are essential. They provide an overview of your projected revenue, expenses, and profits over a period of several years, as well as your funding needs and sources.

To develop financial projections and budgets, start by estimating your revenue and expenses for the coming year. This should include a detailed breakdown of your costs, including fixed and variable expenses.

Next, project your revenue growth over a period of several years. This should be based on your market analysis and sales projections.

Finally, identify your funding needs and sources. This may include loans, investments, or crowdfunding.
By developing financial projections and budgets, you can ensure that your business is financially sustainable and that you have the resources you need to achieve your goals.

We help local businesses in surrounding areas of Ormond, Bentleigh and Brighton to action their projections

Common mistakes to avoid when creating a simple business plan

Creating a business plan can be a daunting task, and it’s easy to make mistakes along the way. Some common mistakes to avoid include:

Focusing too much on the product or service

While your product or service is important, it’s not the only factor that will determine your success. Be sure to focus on other key components of your business plan, such as your target market, marketing strategy, and financial projections.

Ignoring your competition

Understanding your competition is essential to developing a successful business. Be sure to include a detailed analysis of your competitors in your market analysis section.

Overestimating your revenue projections

While it’s important to be optimistic about your business’s potential, it’s also important to be realistic. Be sure to base your revenue projections on market research and sales data, rather than wishful thinking

Neglecting to update your business plan

Your business plan should be a living document that evolves and changes as your business grows. Be sure to update it regularly to reflect changes in your market, competition, and business operations.
Avoid common mistakes, you can create a comprehensive and effective business plan that will guide your business towards success.

Resources and tools to help you on your way

Here are some useful resources and tools include:

Small Business Administration (SBA)
The SBA provides a wealth of resources and tools for small business owners, including business plan templates, financial calculators, and market research tools.

SCORE
SCORE is a nonprofit organization that provides free mentoring and coaching services to small business owners. They offer a variety of resources and tools, including business plan templates and financial planning tools.

LivePlan
LivePlan is a cloud-based business planning software that provides a variety of tools and resources to help you create a comprehensive and effective business plan.

By utilizing these resources and tools, you can streamline the process of creating ensuring that your plan is comprehensive and effective. Get out there and follow your dreams

Cost reduction by reducing expenses means great profits, right or wrong?

What is Cost Reduction & Why Is It Important for Business Owners?

Cost reduction is one of the most important aspects of running a successful business. It can help businesses save money and increase their profits. But doing it correctly will achieve great results for your bottom line. Expenses slashed for the sake of it may be detrimental. As a business owner, you need to be aware of different cost reduction strategies and how they can help you achieve your goals. By understanding the basics of cost reduction, you will be able to make better decisions when it comes to managing your finances. So let’s look at cost reduction and why it is essential for business owners.

Cost reduction must be done systematically. As the saying goes, you need to spend money to make money. Therefore, cost reduction should be evaluated with what the end game is to achieve profit improvement and efficiency.

Easy ways to Reduce Costs in Your Business

Are you looking for ways to reduce costs in your business? Well, look no further! From taking advantage of new technologies and automation to cutting unnecessary expenses! First of all, a cash budget is an important tool to use. This helps you monitor expenses against actual.

Our latest Value Builder email that we have engaged with our business clients this month looked at a simple way to help work out which costs could be reduced. (if you want to join this email list call our office on 95979966)

Let me introduce you to Derek Morin.

Morin founded Tabarnapp to create after-market sales applications for Shopify website owners.

The business was a success, but when his partner, who handled the company finances, left the company, Morin was forced to look closely at his profit & loss (P&L) statement. Morin saw potential improvements, so he made notes in the margin next to each line item he wanted to change as part of his cost reduction strategy.

To save time, he started using a single letter beside each entry to represent the action he wanted to take:

P stood for “Plus,” something profitable, and he wanted more.

U stood for “Unnecessary,” an expense he could eliminate.

R stood for “Replaceable,” a cost that could be replaced with a better or cheaper option.

E = equal no change required

Simply known as the “PURE.” method!

Morin treated the PURE method like a game.

Every month he scrutinized his P&L with the same four-letter system. Morin engaged his team to act on each item that needed improvement. He became obsessed with squeezing out a few more dollars of profit every month.

Tools & Services That Can Help You Reduce Costs

Are you looking for ways to reduce costs without sacrificing quality? Cash budgets and reviewing the cost drivers in your business are essential. Typically wage costs are high ticket cost items. Look how you can get the most out of this resource by increasing productivity.

Look for Profit leaks that are a reality for many small businesses and can significantly impact their bottom line. Therefore, it is crucial to identify and repair these leaks as soon as possible to maximize profits.

Profit leaks can occur from both Revenue and Expenses.

Common Causes of Profit Leaks in Small Businesses, so start reducing unnecessary costs.

Small businesses often face a lot of challenges when it comes to managing their finances. For example, profit leaks can be a huge source of lost income and can cause severe damage to the company’s bottom line.

Cost reduction strategies are essential for small businesses to remain competitive and increase their profits. Implementing cost-saving measures can help companies reduce expenses, increase efficiency, and maximize profits. In this article, we will discuss various strategies that can be used to reduce costs and increase profits for small businesses. These strategies include streamlining processes, lowering overhead costs, outsourcing non-core activities, leveraging technology and automation, improving employee productivity, and taking advantage of tax incentives.

As the economy faces a potential recession or, at the very least, interest rates bite, now is the time to take proactive action on those costs that may now not be adding value to the bottom line.

If you are a business in Victoria, you may be eligible for the newly opened Small Business Specialist Advice Pathways Program.

This grants $2,000 to “employing small businesses to access professional advice and services to help them make informed business decisions and plan for the future.”

Eligible projects include:

a) Advice and analysis regarding the management of cash flow, preparation of cash flow budgets and projections,

b) Profitability analysis and formulation of financial management and/or operational business strategies,

c) Strategic analysis to revise business planning and/or governance arrangements,

d) Advice regarding the management of debts and liabilities, or

e) Advice and/or representation regarding commercial agreement contract terms (i.e. commercial leases or commercial supply contracts).

Applications close on 30th September so jump on this offer fast.

It’s a great time to join our Valuebuilder business program and plan your business for the future.

Contact Michelle on 9597 9966, and we can send you the link to apply for the grant and tell you more about how you can join the short-track Valuebuilder program.

Our Valuebuilder program will identify areas where we can help your business improve cash flow and growth and strategically plan your future.

In the meantime, if you would like to get your value builder score, follow the link here:

https://score.valuebuildersystem.com/gartly-advisory-pty-ltd/geoff-gartly

The last 2 years have highlighted major issues for small businesses and cash flow is one on top of the list.

Small businesses have been plagued by closures and staff absenteeism due to Covid. This can account for why some businesses’ cash flow is facing an uphill battle in recovery. But there is also a fundament lack of planning by some small businesses. Not knowing where you going is like a hose that you turn on it flicks and turns and you have no control.

Cash flow when it trickles it is painful!

Typically when cash flow impacts things blow out. Our friendly ATO becomes the bank of last resort. Changes in Debt reporting on CRA reports of tax debt may make it harder for some small businesses to recover. It’s a tool the ATO now can use to be recognised as a Creditor in the public domain like any other supplier. Don’t ignore the ATO as they won’t don’t like taxpayers that don’t engage with them. Better to open up to them about your situation than ignore them and shovel your way out of a hole later on.

Nether the less positive cash flow is an opportunity that every business can undertake.

Don’t be like an emu with its head in the sand. Take a positive stand. Start with predicting when the cash will come in. Fundamentally 80% of the hard work is done if you know that the cash is coming in the door. Struggling to predict cash in the door . Start with Sales Budget . Look at last year’s monthly turnover and then replicate that into the coming year. Then don’t forget to invoice your customer. It’s surprising how many people forget or delay the invoicing process

Slash costs but make sure it is for the right reason

When it comes to costs, slash where appropriate but don’t slash costs that are fundamental to the business or costs that help you make money. As a small business accountant Gartly Advisory can help you.

When you’ve worked out your budget put it straight into your cloud software and each month see if the actuals are close to or better than what you predicted. So when the cash starts rolling in remember the golden goose 10% for the ATO, 10% for investment and 10% for you.

Local manufacturing businesses based in the South East area in Melbourne such as Moorabbin and areas such as Currum Downes and Seaford can take advantage of bringing forward tax incentives to help their manufacturing business.

Helping local manufacturing businesses

Gartly Advisory are Melbourne Accountants based in Ormond. We love servicing manufacturing businesses. Our advice to the manufacturing businesses is that we help is to take advantage of these incentives. Modernise your systems and save tax!

Manufacturing, like every business experiences growth and also tough times. We have seen that those businesses that chose to invest in new equipment and technology thrive ahead of those that don’t.

Technology can save labour costs and also the accuracy of delivery of the product. One of our small businesses was able to almost replace one staff member by investing in the latest machine that delivers quicker and more accurate production of materials.

We work in interesting times but in saying that we encourage our clients to stick to their goals and vision.

As small business accountants, we work with our clients to strategically plan their futures. A successful manufacturing business will understand its metrics. They know how many widgets to produce that result in a healthy gross profit result.

Understand your numbers

Understand your numbers, your capacity and your opportunities. Knowing this data allows for careful planning as your business grows.

Over the next month take the time to analyse three key products that you make and sell. Understand the costs and time components. The next step is to look at your Gross Profit margin and see how this impacts the bottom line? Are you making enough from manufacturing

Understanding your market and pricing gives you a competitive advantage when it comes to growing your customer base. Businesses will be forced to look at price increases moving forward. The cost of manufacturing will increase and therefore price rises will need to be factored in to maintain profits. Make sure you have the data to do so.

Gartly Advisory are Chartered Accountants in Ormond. We love helping manufacturing businesses. Reach out and see if we can help you to make your manufacturing business shine in the local Melbourne market.

Motel Occupancy rates are a good indication of the profitability of your accommodation business. What brings back your customers? Why do some accommodation providers have high occupancy rates and some don’t?

In the seventies, it was “free colour tv ” now it is “free wifi” to add that little extra to attract the customer.

All small businesses need a point of difference to attract customers and retain their competitive edge. With the advent of online reviews and social media, it’s important to keep your accommodation business inviting at all times. A bad review impacts your online chances of securing a customer.

Your higher Motel Occupancy rates are driven by customer satisfaction

The occupancy rate should be monitored weekly. Its is an indication of how space is generating revenue

Traveller surveys show that customers want:

• Cleanliness
• Value for money
• Happy welcome
• Facilities that work
• Quite and restful
• Comfortable beds

It is not a lot to ask for but often one or two of these just doesn’t happen will make repeat business hard to sustain.

To see how Melbourne fairs when it comes to occupancy rates follow this link

Treat travellers how you would like to be treated

How often have you experienced a situation after a long drive and you are greeted with the owner is grumpy or unaccommodating of travellers needs? Rooms, where lights are broken or are so harsh with the lighting as they have inserted those energy-saving globes in that, save money but makes a dull night lighting.

It’s often the little things that can make or break an accommodation business. I was at a meeting in country SA and a fellow meeting attendee complained about her motel. Her story was one of amusement but handled badly by the owner.

She proceeded to tell us after a big day she retired to her room and bed only to find a pair of men’s pj’s under the pillow. It was late so she decided to sleep on top of the bed thinking the sheets had not been changed. She informed the owner the next day and he laughed saying it was probably the old guy who was going to stay before her but changed his mind moved on. The motel owner showed no empathy to the customer and hence she proceeded to warn others not to stay there.

Of course, not all motel owners are the same and many go out of their way to help you. In fact, if you are a regular many add that extra something to keep you coming back.

Look after your customers, keep your lodgings clean and tidy and customers will continue to make your hotel accommodation of choice. A low vacancy percentage is good. This means more revenue to your business and ultimately a higher value upon sale of the business leasehold or freehold, depending on how your business is structured.

Online Reviews help customers decide if your place is where to rest their head!

Always ask and seek online reviews. Reply glowingly when someone leaves a great review and reply empathetically when a review isn’t satisfied.

Always be aware of the reviewer that pays out after the event without having confronted you first hand. Having told someone that you have fixed the problem for next time is better than ignoring it completely.

Running a motel or air BnB takes effort and you need to be a people person which ensures success. Occupancy rate is something that takes time to maintain but ultimately is what drives profitability and value in your business

Making job profit on every job is important to make a profit and cover your business overheads and administration.

In the world of Building and Construction, there are many types of tradespersons who operate small businesses in Australia.

Some people are great trades person but not always running a business.

Amongst the construction industry, there are those who can run a successful business, those that can make a living but not much else and those that lose money and should not be self-employed!

Making a profit is an art and takes some understanding of your trade, what the market will bear and the cost of the ingredients it takes to make the end service product or project. Might at this stage also throw in mess ups where you have to fix a problem caused by not doing things right!

Yet many don’t take the time to get it right. They rely on their gut and this leads to losses and cash flow problems.

Good habits help makes job profit

Get into the habit of examining every job and take the time to understand costs vs profit. Understand what work you should continue you win and which jobs you should work away. Look at the labour on job and was it efficient or were there defects that required additional time and loss of resources that could have been spent elsewhere?

There are tradies out there that use the back of enveloping approach For them this works only because the price quoted is well above the odds. Often it also leads to low margins and has the reverse impact on profit.

There is no excuse these days with the sophistication of accounting software that you cannot monitor these jobs properly.

Cloud accounting software

 Accounting software such as XERO and MYOB can help you track jobs. A good accounting system can tell you the result or ongoing costs of a job.

There is also specific job costing software that is functional and affordable for smaller trades.

A final tip that many trade businesses neglect to do is while they measure their results on a job to job basis they forget to keep the score of the annual year to date result. This is where you may make a profit in a job but with insufficient margin, your administrative overhead can dilute your profit quickly with undesired effects of cashflow and taxes being unpaid. 

Don’t fall into the habit of not looking at the big picture not just on a job to job basis. Practical ways that some tradies ensure that they make a profit on a job is to :

1. Add 10% to cover for incidentals
2. Throw in a couple of thousand to make it worth while
3. Use a professional quanity quote service
4. Compare othe jobs you have done
5. Ask other tradies as to what they quote

Plan your quotes, do the job and review the outcome. A good business will make nice profits and when you get the taste for profit it becomes something you strive for do better and this is a nice feeling to enjoy

Starting out in a new business and being your small business startup journey

I remember many years ago how exciting it was to begin the small business journey.

It has been a journey twenty years later that’s is full of ups and downs, fun and pain and plenty of laughs.

Twenty years in and I have no regrets. In fact, anyone that can do it, should. Yes like all of us I have made some dumb decisions but I don’t have any regrets? No way, in fact, I have also made some good decisions too.

There have been a lot of characters I have met in my business career over the last twenty year’s. Some shady ones, some terrific ones and some that have become lifelong friends. Yes, I have been used, abused and ripped off but I have also been supported, encouraged and led to opportunities.

Starting out needs support

Your business startup relies on lots of support from friends family and associates. You really know who are your friends and where your support comes from. For me, it was my wife and kids who have driven me to success. There have also been many friend’s who have looked out for me along the way.

You see as an accountant many don’t see you as a small business person but there to help others. It took me a long while to accept that I too am a small business owner with the same pain, enjoyment and problems that you too have in small business.

Tips for business startups

So what advice can I give you as a new budding small business owner :

1. Just go for it! Have no regrets and enjoy the ride. Believe in yourself! Destroy the non-believers and the dream stealers. If you make strategic decisions based on evaluation then your business will grow.

2. Set goals. Set a road map don’t amble along in business with no direction. A person who knows his direction might get lost along the way but will always find the way to their final goal or destination.

3. Celebrate success, acknowledge others and enjoy the ride. Failure will happen but pick yourself up learn to understand what went wrong. Remember the sun shines tomorrow and you can do it all again. Don’t give up and follow the plan.

No matter at what stage you are in business a big congratulations It’s not easy to run a small business and the statistics say many don’t succeed in the first three years.

Live life to the fullest and grab every opportunity with no regrets. All the best.

Many of us launch a new business based on an idea or a need to sell our professional or trade expertise.

Business startups offer challenges

Starting a new business will provide you with new challenges and opportunities! It’s fun, it’s exciting and it will be rewarding.

Whatever your reason for starting your new business, your future will be an exciting time. However, it requires careful planning, lots of energy and the ability to follow through with the journey during times of toughness.

Geoff and his experienced team of professionals can guide and advise you on launching your new business and making it successful from day one!

Whether you are yet to start or are in the early stages of launching your new business, we can help you to work through the logistics and questions that everyone has.

Practical startup tips

Here are some practical tips that can help you start your new business:

• Talk with us so we can gain an understanding of what you are trying to achieve, your dreams and business aspirations.
• If you are buying an existing business, we can help make sure it’s the right one for
• We will discuss and explain the different structures available (sole trader, partnership or company).
• We can set up your company or family trust if that is the right structure for you.
• We can clarify what you need to do to meet ATO regulations when getting started and applying for an ABN.
• We will help you establish a practical business plan, cash flow projections, budgets and trading forecasts. We will help you set a 90-day action plan.
• We can help you present your program to your Bank manager if you’re looking for finance.
• We can also advise on the best sources of finance.
• We can work with you to ensure that you set up the right accounting systems in place to manage the financial paperwork.

We have helped lots of small businesses start out. We know you will have lots of questions such as dealing with government red tape and other businesses as this may be something you haven’t done before. We can help you determine what are the essential tasks in the first few months to get your business off to a flying start.

We welcome you to contact us for a FREE initial consultation. Please call us on 03) 9597 9966.

Are you taking a giant step to make a difference or falling into a black hole? The fear of failure has killed more dreams than all other fears combined.

The fear of failure is insidious because it’s mainly in your imagination.

It can also prevent you from trying new ideas, growing and trying something new. Fear guarantees failure.

Interestingly, young children have no concept of failure. They couldn’t care less if they failed to do something. They just try again. There are no negative thoughts or emotions involved. They just keep on going.

Having hesitations is essential, which leads to calculated risks. But, give it a go, and in most cases, success will outweigh failure most times.

Consider these facts:

The fear of failure doesn’t have to impact your life significantly.

1. Failure is temporary – unless you quit. Failure isn’t final unless you give up. Successful people experience failures too. But they ended up being successful precisely because they didn’t stop. So failure is just a temporary state that means nothing because it’s only temporary.
   
   
2. Failure will occur with everyone. You’ve failed thousands of times and managed to survive. Consider how many times you were unable to walk or to talk well. Babies have constant failure.
   
   
3. Successful people fail all of the time. It’s a massive part of how human beings learn. We realized that our approach didn’t work; we adjusted and tried again.
   
   
4. Failure allows you to learn. You can learn something from every single one of your failures. Failure makes you more knowledgeable and capable. The more you fail, the stronger you become.
   
   

Why it’s in your imagination

1. Others are far less concerned about your failure than you think. A few people might notice your disappointment, but they quickly turn their attention back to themselves and their own challenges.
   
   There’s nothing to worry about. Feel free to fail as much as necessary. Fail enough, and you’ll quickly see that no one relevant cares.
   
   
2. Focus on how great it will be when you succeed. Don’t look at possible failure; consider possible success. Make yourself feel excited and optimistic about taking action.
   
   With high enough expectations, you’ll do just about anything without worrying about failure.
   
   

3. Redirect your thoughts. Put your attention on what you’re doing. Forget about the outcome. Stay focused on your actions or something positive. Thinking about failing will freeze you in your tracks. Take risks but put stop gap measures in so that failure is only a small chance in scheme of what you want to achieve.
   
   
4. Consider the cost of doing nothing. Taking action might be a little scary, but what will happen if you do nothing?
   
   
   • What will you feel about failing to take action?
   • What if you’re stuck in your current life for the nextfew years or more?
   • Maybe taking a risk is far more attractive than remaining where you are.
     We’ve all allowed the fear of failure to influence our decisions. We’ve allowed this fear to stop us from trying new things or taking risks. As a result, we all have more minor lives than we could because we’re too concerned with what others think.

Rejecting the fear of failure is one of the most incredible things you can do for your future! Your small business , your team and your family will be incredibly proud if you achieve your goals.

Plan to succeed!

 Bite off what’s going to give you joy. Go where no one has gone!

In business, we have all failed, but many also succeed.

Personally, I have failed at things that looked right. Ultimately I have used my failures to move forward and help myself and others. Failure to me is if I do the same dumb thing again and don’t learn from past mistakes

When it comes to inspiration you need to read what others have achieved and make your own list.

Not sure where to focus on in your business then check out our business value score and within 15 minutes receive your free score.

In 2022 to succeed, start an action plan. Focus on those things you are passionate about that will make a difference in your business. Many of us have a long list of formal and informal goals. Some of us don’t start then for fear of failure. Others find excuses, and others try to do everything at once. Don’t over commit but start by actioning small runs that you can get on the board.

You can start today. What are you going to do today that you’ve been afraid to try? What small step can you take that may make a difference? Sometimes 1 per cent changes can result in extraordinary outcomes. Conquer your fear of failure and just do it