Australian Business News and Times

Business News ,Reports and Times of Australia

WA

Ready for a Starter Home? 5 Things you Must Keep in Mind

by Leave a Comment

start a home and costs involved

Homeownership rates in Australia are touted to reach 64% by 2021.

Undeniably, having a place to call your own is an incredible achievement, regardless of whether you are purchasing a starter home or a forever home.

This achievement is, however, a substantial financial undertaking that calls for preparation, foresight and a lot of diligence.

Are you in the market for your first home? If yes, here are five things to keep in mind.

1. Your Credit Score Will Matter Greatly

Your credit score is among the most significant determinants of what your loan’s terms are going to be.

It’s therefore advisable to know what it is, way in advance. If it’s less than pleasant, you will have some time to try and improve it before you actually make a loan application.

Australia scores individuals on a 0 to 1200 scale, with 500 to 700 considered as average. While you might still get a financier with a below-average score, this will likely be on higher interest terms.

A good score, by and large, gets you a better offer.

2. There Will be Additional Expenses

There are several other chargeable fees over and above the actual cost of the home. Some of these include insurance, repair costs, property taxes, association fees and so on.

You should, therefore, have the budget or income to cover not just these costs, but also to cover emergency costs that might arise.

Think ahead to how you intend to furnish your home and how much house leaves you with enough to do that.

If you’re on a shoestring budget, it’s advisable to start with the basics such as living room furniture, beds and bedding and basic kitchen utensils and appliances. But don’t rush to the shop if your old stuff is still usable.

However, don’t drag dilapidated belongings into your new home. If you live in the capital, and want to throw away your mattress, consider mattress recycling in Canberra instead of sending it to a landfill.

3. A Good Realtor is Key

Each neighbourhood has unique qualities and peculiarities you should be well aware of before making a purchase.

A credible agent will have a firm handle on what these are, as well as an array of properties with different features and a wide range of budgets.

As you shop for an agent, look for one with extensive experience and coverage in the area you are looking to settle in.

4. You Need a Reputable Home Inspector

A home inspection is done to identify any problems with a house that might require repairs or overhauls.

Without a reputable home inspector, you run the risk of missing some of these issues. The last thing you need is an inspector that overlooks problem areas just to help a seller or a realtor to make a sale.

If you are referred to a tried and tested agent, you can ask them to refer an inspector to you. If not, then you’re better off finding and vetting an inspector or an inspection company by yourself.

If you buy a house with major damage, you will find yourself in a pinch months or years after the purchase as repair and labour costs can get quite high.

5. You Need to Protect Your Financial Standing

Your pre-approval will be solely set within the information given at the time you make an application.

Any amendments like a job with a different salary, additional loans or job loss can result in your loan being denied when you begin the purchase process.

As much as possible, try to hold your financial position constant so as not to jeopardize your homeownership dream.

Easy Does It

Finding and buying a house is not a process that should be rushed. When you finally decide to take the steps towards homeownership, allow yourself the gift of time.

This should enable you to shop around for a great house in an enviable neighbourhood and at a good price.

It should also allow you the time to vet agents, inspectors and lenders. Ultimately, you deserve not only the home of your dreams, but you also deserve to get a good deal on the home of your dreams.

World’s Best Boss – 5 Tips For Keeping Employee Morale Up During The Coronavirus Pandemic

by Leave a Comment

Photo: Andrea Piacquadio / Pexels

As the coronavirus pandemic continues to wreak havoc on the world’s economy, many people are worried about their current and future state of employment. While workers deemed “essential” are still fortifying the work front, many laid-off workers wonder if and when they will return to their jobs.

Although times are uncertain right now, employers can do a lot to boost morale and ease the minds of their employees. If you’re an employer, take a look at the suggestions below to keep your workers’ spirits up as this worldwide crisis continues.

1. Give the Gift of Appreciation

COVID-19 has separated and isolated the public at large. As such, workers may feel disconnected at home and taken for granted in the workplace. As an employer, you can help your workers, both at home and in-office, feel connected and valued by giving corporate gifts of appreciation.

You’d be surprised at how much small gifts can help during this trying time. It will remind your employees that they are part of a larger group and that they are still valued as a member of the team.

2. Keep the Lines of Communication Open

Because times are uncertain right now, it’s important to keep the lines of communication open. Whether your employees are working from home, working in-person, or laid off during this time, you must keep them apprised of any and all changes taking place. By adopting an “open-door” policy, your employees still feel connected and able to discuss their concerns about work, family, and health with you.

3. Embrace Virtual Technology

As the coronavirus spreads, many people are forced to work from home. Aside from the traditional phone call or email, employers should adopt other forms of virtual tech to help employees feel less disconnected. Facetime, Skype, Zoom, and other online technologies make it possible to conduct one-on-one video calls as well as group video conferences over a wi-fi signal. As an employer, you should use as many virtual enhancements as possible to help your workers feel as if it’s business as usual, even if they’re quarantined at home.

4. Give Working Parents a Break

The rapid spread of the coronavirus has led to the mandatory closing of schools as well as some childcare centers. This leaves working parents struggling to balance their jobs with childcare. As the boss, it’s up to you to recognize this struggle and give your working parents a break when you can.

If their job isn’t one that needs to be done during normal business hours, you can allow them to work when it’s convenient for them. Alternately, you could relax project deadlines to give them more time to complete their work.

5. Make Sure Your Network Can Handle Remote Work

Despite the many reasons to be feeling down about COVID-19, many people are still motivated to do their jobs well. As such, your company’s network must be able to handle the influx of remote work that’s taking place. If it can’t, your workers may begin to feel dejected with an attitude of “why bother?”

If you notice that your IT infrastructure isn’t keeping up with the demand, you should get the expert help it takes to get things running smoothly for your employees. If you don’t have the funds for in-house IT workers, small business IT support services can save you in these difficult times.

No one knows just how long the coronavirus is going to continue to wreak havoc on the world. Until it’s all over, though, employers can help boost the morale of their employees by adopting some or all the suggestions listed above.

How to buy stocks in the Australian stock market

by Leave a Comment

stock market crash with covid and stock picks recovery

The current stock market is in turmoil with a lot of volatility in share prices here in Australia, however there is a growing number of people who think getting in now could be profitable for them in the long term. So how do you get into the stock market ? How do you buy shares to take advantage of the current stock market tumble.

There are two different ways that you can get into the stock market  and buy and sell shares

1. Sign up with bank share trading account that allows you to buy and sells shares

2. Sign up with a stock broker that specifically allows you to buy and sell shares.

There are other ways to buy shares like buying a bunch of blue-chip stocks or buying an ETF (which is also buying a bunch of shares) – but we will come to that later.

Banks as a stock trading buy and sell platform

Most big banks allow you to sign up with them for a stock trading account so that you can buy and sell shares. If you are already signed up with one of them, just enquire with them. Here is a list of banks that facilitate stock trading

1. Commonwealth bank ( Comsec – their share trading platform)

comsec trading australia

2. National Australia Bank ( Nabtrade – their share trading platform)

nabtrade

Below we give you further details about brokerage fees these bank charge and also prices for some popular dedicated share trading platforms.

How much money do I need to start trading the stock market?

Technically, there’s no minimum amount of money needed to start investing in stocks. But you probably need at least $500 — $2,000 to really get started right.

How do I make money in the stock market?

There are many ways to make money in the stock market, however the most simple method to understand this is when you buy a share today that cost you $500 , but its worth tomorrow is $600 and so you sold it – then you just made $100

To break that into much more realistic detail and give you an example

Eg. Say you got $500 to invest

Westpac bank shares are $15 each today, so you bought 32 Westpac shares

32 Westpac shares X $15= $480 + (add $10 bank fees for buying)

Total cost is $490 to buy the shares

Three days later (or six months later), there is a bit of recovery and Westpac share price rises and is $20 each share.

You had bought $32 shares earlier; you sell it today for $20 (that’s a $5 increase in the share price)

32 shares x $20 =$640 – $10 bank fees

You have $630 from your sell

Sell price $630 – Bought price $490 = Your profit $140

The bank does not charge you anything for holding the shares, but charge you for each buy and sell, which bring us to our next point -broker fees.

Now say if that investment was $5000 instead of $500 your profit could be $740 in one trade

How much does it cost me to buy and sell shares?

stocks to check

Every broker and every bank have different set of prices for buying and selling shares. It really comes down to ease of use, broker fees and availability of stocks to trade on each platform. Here is short comparison of some top bank and broker fees

Share trading fees – Banks

Commonwealth Bank – Comsec Fees:

For shares under $1000 in value – $10 each transaction

For trades between $1,000 and $10,000 – $19.95 each transaction

This is called the brokerage fee

Website https://www.commsec.com.au/support/rates-and-fees.html

National Australia Bank – Nabtrade Fees:

Up to and including $5,000 – $14.95 each transaction

From trades between $5,000.01 – $20,000 – $19.95 each transaction

Website https://www.nabtrade.com.au/investor/pricing

Share trading fees – Brokers

Two popular brokers apart from Banks are Self wealth and Ig markets. They both allow trading in Australian stocks as well as international stocks and CFD.

Self-wealth trading fees:

Brokerage fee for every trade, regardless of size – flat $9.50 (Only Australian Shares)

self wealth trading

Website https://www.selfwealth.com.au/online-trading/


IG markets Trading fees:

Trading Australian shares – $8 per trade or 0.1% whichever is higher

For US markets – US$10, or 2 cents per share

ig markets australia

Website:https://www.ig.com/au/charges

With IG markets you can do Australian and US stock market trading and also trade in CFD’s for which you have to sign up separately with them.

Other share trading platforms worth mentioning are ANZ share trading, Bell Direct and CMC markets.

Most banks and stock trading brokers provide additional data and tools for company and stock analysis, creating watchlists, setting price alerts, creating specific set price buys and more. Features offered can differ from platform to platform.

With Comsec and Self wealth – All trades are CHESS sponsored

There are two ways for shares to be held:

CHESS Sponsored Shares – Shares that are registered with a stock broker (CommSec or another broker). CHESS Sponsored Shares are allocated a Holder Identification Number (HIN) by the broker.

Issuer Sponsored Shares – Shares that are managed by the issuer of those shares via the issuer’s Share Registry. Issuer Sponsored Shares can be traded through any broker, providing conditions set out by that broker are met. Issuer Sponsored Shares are allocated a Security Reference Number (SRN).

In reality it does not make much difference to your trading profit, if it is chess sponsored or issuer sponsored.

Risky Stock Trading with penny stocks

There is a difference between big companies and small companies (smallcaps) and with small companies come more risk in comparison with blue chip stocks like BHP, Westpac.

Some traders can get lucky and pick a small company stock that can become a winner.

Take for example FMG – Fortescue Metals Group (iron ore miner)

This stock was once trading for between $2 and $3 – Today the price is $10

Say you dropped $5000 when it was $2, so you got 2500 shares of FMG

You sold it when it reached $10 today x 2500 shares=$25,000

You just made $25,000 from $5,000, however this is very rare- though people have gotten lucky with their stock picks and made money.

FMG was once a small cap with lot of debt and considered risky, but now they have paid up their debts and are considered much safer than they were before.

ETF’s

Another popular method of buying into shares right now is called ETF’s . With buying an ETF you have options like buying into a group of shares  where you can also invest by putting money in a regular basis  as low as $50 a month/week. Some providers/brokers also allow you to invest  in ASX 50 or a lumpsum into a group of blue chip stocks.

ETF’s are available through bank trading platforms

Learning how to trade the stock markets is essential, before you decide to have a punt on your hard-earned money.

The stock market can make you money, but it can also take your money and put you at a loss. Doing dummy trading, joining stock trading groups and researching companies for three to six months is a good idea before jumping right in. Good luck!

Article written by Jeff – I blog about stock trading – Check my stock market blog over here

The crucial role of technological input in modern business

by Leave a Comment

property lease

When it comes to running a successful business, there is no getting around the fact that it is a job that demands constant attention to detail and intricate involvement on every level possible. These days, modern businesses are functioning and thriving at an all-time high, and a massive part of the reason why that is comes down to the fact that technological innovation has well and truly impacted the modern business landscape for the better. Of course, the goal of technological influence is always to improve an aspect of life as we know it, but the simple truth is that sometimes certain technological innovations have more of a profoundly positive impact across the board than others.

Today, the landscape of business is one of the most tremendously impressive landscapes in the world. There is an incredible amount of determination and hard work that goes into bringing these landscapes to vibrant life. There is something to be said about the businesses that are willing and able to take their approach to the next level by introducing and embracing modern marvels like technological influence. More than ever, technology is present in business in fresh and exciting ways that are challenging, if not near impossible, to come to terms with otherwise.

Respecting the balancing act of entrepreneurship

The art of entrepreneurship is one that is well and truly involved in a tremendously impressive inclination towards the ongoing evolution and improvement of a business model. Being an entrepreneur is never an easy job, and it is so incredibly important that all entrepreneurs, no matter their background, are entirely dedicated towards the cause. It is a balancing act that never seems to come to an end, and it is a balancing act that is significantly important when it comes to successful and long-lived business in this modern era.

Introducing technological input into a business

The key to longevity and success for modern businesses is to work with technological innovations (among other aspects and points, of course). This was mentioned earlier, but the importance of including and embracing technological influence in a modern business cannot be overstated. The rest of the world is moving increasingly in the direction of a digital future. What that means for businesses specifically, is that they are now in a position of essentially having to transform the way they approach growth, by means of technological advancement.

Consistently thriving and elevating the business

lease calculation australia

Thriving and consistently elevating a business takes a lot of determination and hard work. This much is glaringly obvious, and it is also incredibly important to not that the influence of technological power in modern businesses is making this task easier than ever. Whether it is incorporating an automated novated lease calculator for company vehicle utilisation, or expanding a business by creating and building upon an online presence, the point is always, and without exception, the same: success in business these days is at least partially hinged on the business in question’s willingness and capability to embrace technological innovation.

10 Office Waste Management and Reduction Tips

by Leave a Comment

skipped bin rubbish

Australia is one of the world’s strictest countries when it comes to recycling and waste disposal. Unfortunately, despite most of us adhering closely to laws concerning waste recycling, we are still in the midst of a full-blown recycling crisis.

In any case, we can all still do our part to help offset the effects of the ongoing issue. The key is to reduce the amount of waste we produce so that less needs to be processed. Given that commercial establishments are some of the biggest waste contributors, it makes sense to start there.

Here are some ways your office can be part of the solution:

1.) Consider renting rather than buying some equipment

Many workplaces only need to use certain types of equipment occasionally. Photocopiers and projectors, for instance, are not likely to see daily use in most small offices. Rather than storing these onsite, where they may deteriorate with disuse, it may be better to simply rent infrequently-used equipment as needed.

2.) Invest in long-lasting fixtures

On the other hand, you’ll want to invest in more durable versions of the types of fixtures and equipment you do use. For instance, it may make sense to spend a little more on chairs if they are more likely to last longer. This can significantly cut down on the fixtures and equipment that you would otherwise have to write off every year.

3.) Ask vendors to reduce packaging

If you purchase certain supplies in bulk, ask your vendor to provide you with these without the individual packaging. Also, try to see if they can ship the items in reusable containers that they could take back and refill.

4.) Reuse durable office supplies

Folders, binders, poster board, and other similar items that could be used more than once, saving them from an otherwise premature fate at the landfill. Envelopes could also be reused if adhesive labels are used for the addresses.

5.) Only print reports on demand

The paperless office might not yet be a reality, but there are now plenty of digital alternatives to paper for many applications. Email and app suites such as MS Office and Google Drive make the use of paper for reports and other documents redundant in most cases. Try to discourage the use of paper unless specifically asked for.

6.) Provide reusable plates and utensils

Disposable plates and utensils are by far the biggest source of rubbish at most offices that use them. Traditional utensils and china tend to be a far more ecologically sustainable choice. Just make sure you can provide facilities for washing them thoroughly.

7.) Rent skip bins to handle higher volumes of waste

In many cases, the local rubbish collection services may not be able to adequately handle the volume of waste produced by your workplace. To improve sanitation and to ensure recyclable materials are sent to the right facilities, it’s often best simply rent skip bins. Skip bin rental services typically quite flexible and can rent out different types of bins depending on the volume and type of rubbish. Be sure to use a skip bin price comparison site such as Skip Compare to find the best long-term rental rates in your area.

8.) Optimize your mailing lists

Take some time to clear out duplicate addresses and long-unresponsive customers from your mailing lists. This will not only cut down on your paper consumption but will also help streamline your marketing expenses as well.

9.) Choose less wasteful landscaping

Choose native plants that don’t require too much maintenance or produce too much waste. You may also consider having a rock garden or some exterior artwork instead, especially if your office is a more arid area.

10.) Try bokashi composting for food scraps

If your office does have a garden, bokashi can be a good way to bring down your landscaping costs while reducing the amount of food waste that has to be hauled off. Bokashi is a traditional Japanese composting method that uses the bacteria naturally found on different types of grain bran to break down food scraps and other non-putrid biological waste. It produces a high-quality organic fertiliser that is almost odour-free, which makes the method an excellent fit for residential and office settings.

skipbins au

Conclusion

In most cases, keeping office waste under control isn’t just a matter of reducing the business’s environmental impact, it’s usually quite financially sound as well. Given the many waste disposal issues facing Australia, reducing and repurposing the waste we create before it’s sent out to processing facilities seems to be the smartest solution.

How to Get the Best Deal at Car Auctions in NSW

by Leave a Comment

car sales in australia

Buying cars at auctions can be quite a fun activity; you get to enjoy the thrill of bidding and at the same time, you may score a good deal. Many people are increasingly attracted to buying cars in the auction, especially because cars generally go for better prices.

Auctions are also great for buying rare cars that you might never find anywhere else. Many people with unique cars prefer to sell them on auctions. In auctions, people can bid and compete and this can potentially drive the price up.

However, for you to get a good deal, you have to know the ropes of the auction business. The following are four things you can do to get a better deal buying cars at auction.

Avoid getting emotionally involved

This is a fundamental principle in the auction business. For you to get a good deal, you must ensure that you don’t get emotionally engaged with the product. Getting emotionality attached to the product might excite you, which means that you will end up overbidding.

You, therefore, should take each deal as it comes and only gets in at the right time and at the right price. If you like a car, but the bidding drives the price beyond what you planned to spend, you should pull out.

Do proper research

Doing proper research helps you to not only understand how the auction process works but also how you can save money. Before you attend an auction, you must research what type of vehicle you want and how much it averages in price.

Knowing the average market price will help you to place a fair bid. Without doing proper research, it would be hard to know the real value of a car. As a result, you may end up overpaying for it. Researching also helps you to ensure you buy an authentic product because you are able to verify the information provided by the sellers.

Don’t get in too quickly

For the most part, an auction is like a mind game. Bidders drive the price up, waiting for the others to give up. To get the best deal, one should not jump into the bidding war. You should wait for the early bidders to show their cards and see who the real bidders are.

Even if you spot a car you like in an auction, you should hold back your enthusiasm. Show other bidders that you’re not willing to go up on a war. Once they cool down and lock in their bids, now you can make your move.

Watch the crowd

Most people who buy cars from online auctions do it in the comfort of their office or home. In the auction house, the mood is usually a little hyped. This often makes people excited as they enjoy every bit of the experience. You should be on the lookout for such bidders because they enjoy bidding wars and can quickly drive the price above the roof.

Watching the crowd also helps one to understand who the genuine buyers are and who are there just to drive the price up. Being able to read the crowd is a luxury that people who buy cars from online auctions don’t enjoy.

Finding car auctions in NSW is easy. Just Google car auctions NSW and there will be tens of offers for online as well as physical auctions. Remember, always bid with your head and not your heart.

5 Tips on Handling Disputes with Your Business Partner

by Leave a Comment

Starting a partnership is a delighting time, filled with celebrations of successes, shared vision, and new challenges. During the great times, especially when the business is really booming, keeping a close relationship on the ground while still running a business is so easy. However, what do you do when you don’t agree with your business partner and the honeymoon is over?

The one certainty with close relationships is that disagreements may arise. At the time, it can be easy to lose sight of the bigger picture, and get emotional, particularly when money is on the line and stakes are high.

Partnership disputes don’t have to throw the business into a tailspin. In this piece, we have outlined five tips that will help you contain disagreements, find a resolution, which leaves your business, and partnership, safety intact.

1. Plan ahead

Consider getting a formal partnership agreement, if you don’t have one, and review it. It should include:

• Guidance to follow when dissolving the partnership.

• The process of handling cash.

• Responsibilities and roles of each partner.

• A dispute resolution terms and procedures or clauses to follow when you are not in agreement.

Additionally, try to cut topics that you know will likely lead to conflict down the road.

2. Have a listening session

This is where each individual agrees to sit and keenly listen to the other’s opinion and position, without reacting or speaking, for a set time – normally around three to five minutes. It is a useful tool for giving each side insight into the other partner’s position and cooling tempers.

In a business partnership, all that matters is how each partner feels once the dispute is resolved and not who wins. If there is a side that feels resentful and marginalized, that result can likely poison the business, and the partnership, over time. It is remarkably useful to practice active listening as it can ease an ongoing tension and make every side feel heard.

3. Do not rush to judgement

For many Operators and owners of a small company, each decision can seem deeply personal, and large. When your business partner disagrees with you on a problem that is essential to you, it can be easy to switch into a battle mode.

Always remember the larger picture; you both entered into this business partnership because you shared a vision. If you genuinely value your business partner, you have to appreciate his viewpoint on the issue at hand, even if you do not agree with it.

4. Don’t be afraid to get help

A neutral third party can really help warring partners find a solution to their disputes. Meditators are usually trained to handle conflicts of all kinds, meaning that using one can result in a faster resolution and cleaner dispute. A mediator will also ensure that none of you is feeling ripped off when leaving the negotiating room or table.

Sometimes, hiring a professional business lawyer or mediator may not sound appealing. If that’s the case, consider using a colleague or friend, though the individual you choose should be trained in handling conflicts, and fully neutral.

5. Get legal advice

Consider getting legal advice, if resolving partnership disputes with an external mediator or on your own doesn’t seem to work. A commercial litigation lawyer in Sydney like Streeter Law Firm will set out your obligations and rights in the conflict and can aid avoid you having to take your issue to court.

Conclusion

Disputes are a given, but you cannot lose sight of the bigger goal or objective: to resolve partnership disputes as amicably and effectively as possible, for you and your business partner to keep running a growing and healthy business. The above tips on handling disputes with your partner will definitely help you both to work together towards your goal of finding success.

Sydney Success – Why More Entrepreneurs Are Choosing Coworking In Sydney

by Leave a Comment

co working in australia

Business, like the economy in general, is a dynamic process. Things are changing all the time and to be successful one must keep a close eye on trends and changes in market conditions. Responding to new developments and adapting to circumstances is key in order to perceive opportunities for cost-minimisation and profit-maximisation.

With the changing nature of the Australian working world, new tools and technologies are popping up to benefit businesses in a variety of industries. Opportunities for coworking in Sydney on Miller Street are one such option. Exploring and leveraging shared office spaces like these for your own company can allow you to gain a leg up on your competition in many ways.

Let’s look at some specific reasons why more entrepreneurs are choosing coworking in Sydney.

Cut Back On Fixed Costs

Coworking represents a significant change for workers coming from a more traditional office environment. In the past, businesses had their own buildings or office floors and some still do today, but the trend now is towards shared office environments. These traditional offices came with a large price tag that was often unnecessary. Much of the space in such a building often sits underused or wasted entirely.

Coworking can allow your business to cut back dramatically on these fixed costs. For a fraction of the price of renting out an entire office complex, you and your team can enjoy space in a shared office environment instead.

Find New Factors Of Production

You might be thinking that even if the above point were true, traditional office environments offered easy access to necessary factors of production such as basic office infrastructure. If this is a concern for you, then know that finding a high-quality provider of coworking space will give you access to facilities for printing, scanning, and copying, as well as a high-speed internet connection, included in your monthly rate. Avoid the hassle of having to deal with separate utility providers each month.

Eliminate Invisible Barriers To Entry

One of the invisible barriers to entry in today’s business world is gaining recognition in your industry in order to achieve success. In the past, proving yourself by building momentum and convincing investors took time. Now, using the prestigious address of a premium coworking space, you can rapidly gain prominence and give a great first impression. Enjoy the ability to use a recognised address on your business materials and become an instant player in your field.

Use The Insights Of Behavioural Economics

Behavioural economics has many useful insights that are readily observed in the laboratory of the coworking space. For one, you will find that your productivity rapidly increases in a shared office environment. The Hawthorne effect shows that workers are more likely to focus on their tasks if they believe that someone is watching them even if someone is not. Let the informal surveillance of your coworking colleagues keep you on task rather than wasting time procrastinating while working from home.

Use Your Comparative Advantage

Coworking also offers many opportunities for you to use your talents and skill set, your comparative advantage, in exchange for the services of others. Taking the time to get to know your colleagues in your coworking space and offering to exchange expertise can lead to interesting collaborations and serious business partnerships.

Get A Monopoly On Momentum

Coworking spaces are ideal for bringing life back into your work and providing it with a sense of meaning. You can reap all the benefits outlined above while improving your motivation and productivity at the same time. Look for a premium provider of coworking space in Sydney and get down to maximising the potential of your business.

The Most Common Financial Mistakes Made By Startups

by Leave a Comment

loans in australia

As an entrepreneur, your day is full of finding your way, building and refining your services or products, growing your business and achieving your overall goals.

This can make it hard to keep up to date with all of the daily accounting tasks and the bigger picture finances. This is a problem because some important financial decisions and information can fall to the side.

If you are a financial whiz, you might still have a problem creating a financial plan and managing all of the finances. However, this is something that you need to stay on top of because it will affect the stability of the company and your ability to work towards your definition of success.

You will also need the financials to convince and assure your investors of the viability of the business.

Unfortunately, there are a lot of financial mistakes that a startup can make. Fortunately, when you know what these common mistakes are, you can take some steps to avoid them. Many of them are mistakes that you can easily sidestep.

So if you’ve got your financial startup ready to launch, here’s the mistakes you have to avoid.

Mistake #1 – Miscalculating Or Not Calculating Your Cash Burn

Not taking the time to do this will be a major issue. First, you need to know what cash burn is. The burn rate will be the amount of capital your business will go through each month to ensure it operates. If you do not have a clear understanding of this rate, you will have problems achieving your goals before you run out of capital.

A recent survey of new business owners has should that around one-third of them have underestimated their monthly expenses. Almost 20% of those surveyed also realized that they did not have enough financing for their business. It is very easy to miscalculate your costs and this results in your assumptions for initial capital being off. A good step to take will be to keep track of all the expenses you have.

To calculate your burn rate, you need to create a bottom-up projection that uses real-world variables. If you try top-down forecasting, you could be overly optimistic in your sales predictions and this will lead to an unrealistic expectation of revenue. Bottom-up projections are considered more realistic and will show you how much money you need to keep your business going month after month.

Reforecasting is also important and you need to do this. You will have to take into account variable and fixed costs to continually determine the real state of your business. If you are new to burn rates, it is recommended that more research be done on this topic.

Mistake #2 – Not Understanding Your Marketplace Completely

When you do not completely understand your marketplace, you are more likely to misprice your services and products. You should not calculate your costs and then add the margin that you would like to make. You have to consider your market position as well as the value of what you offer. It is better to start with price and work backwards.

When you calculate this, you need to come back to the marketplace and how it affects the price. You need to know who your clients are, what needs your offering fulfils and what you have to offer. Take a look at your competition and what differentiates you as well as the trends which affect your market. All of this will need to be combined to understand your market and how it affects your business.

Mistake #3 – Hiring And Expanding Too Quickly

The people in a company are one of the largest expenses they have. If you want to keep your costs low, your staff expenses should be the first place you look. A mistake that a lot of startups make is hiring too many people too quickly. Too many employees will drain your funds and affect your ability to keep the doors open.

It is not only the recruitment and salary costs that you need to consider. Max Funding’s business loan team explain, “you also need to consider whether you need a larger office with more equipment and supplies for the new staff. There are also some psychological costs that you need to consider such as what will happen to these new people if your business does not grow as it should and you have to let them go. How your investors will take you needing to disassemble your team will also need to be considered. To overcome all of these issues, you need to hire slow.”

Mistake #4 – Hiring The Wrong People

Finance startup Credit Capital state, “a way to save on staffing costs is to hire for potential and not experience. You should not waste your money hiring experience for the sake of having experience. When possible, you should outsource your non-core tasks such as marketing, accounting and development”.

Mistake #5 – Handling Your Finances Yourself

If you have ended the seed round of funding, have many expenses or are earning real revenue, you need someone to manage your finances on a strategic level. A CFO will generally be the best person for this job. If you do not have much financial activity, a CFO might not be the best solution, but you will still need some help with the daily bookkeeping and accounting.

According to Robinson Accounting’s experts, “while you might have the accounting skills needed for block and tackle accounting, it will not be the best use of your time. It is better to hire a professional to help with this so you can focus on the core business. Administrative tasks can take your focus from where it really needs to be. So it’s vital to weigh up whether you’re actually getting value from saving money but losing time trying to do everything yourself.”

This does not mean that you need to hire a full-time accountant or CFO. If your startup is still small, you should outsource these functions and get the support you need on an as-needed basis.

Do you know of any startup mistakes we missed?

Let us know in the comments!

6 Tips for Selecting Folding Arm Awnings for Your Store

by Leave a Comment

outdoor furniture awnings stratco

As a store owner, you need to care for your customers all the time. This doesn’t mean offering quality products only but also protecting them from harsh environmental conditions such as sun and rain. Folding arm outdoor awnings are a great way to protect your customers by bringing temperatures down and covering them from rain.

Apart from regulating the temperatures, an awning will also be a great way to market your brand. All you need is to get the one that is customized according to your brand. There are different types of folding arm awnings in Melbourne, and when choosing one for your store, you need to be careful. This article will give you six tips to select folding arm awnings for your store.

1. Comply with the law

The first step before choosing an outdoor canopy is to check the council requirements in your locality. Different states will have different rules, thus checking with authorities in your area is essential. Make sure the design you choose and the message you display on your awning is not against the law. If there is any fee to be paid, ensure you pay before installing the awning.

2. Consider size

The point here is to choose an awning that is proportional to your storefront. This will not only give your shop an excellent look but also save you on the cost. There is no need of getting an oversize awning that will cost you extra dollars and add no value. Size doesn’t matter when it comes to branding.

3. Store design

Awnings have different designs and colours, giving you a wide range to choose from. When you need to get one for your store, picking the one that will match with your store’s design and the colour is very important. By considering design and colour, the two will easily blend and avoid the hustle of repainting your shop. If your store has a protruding roof, don’t forget to consider it.

4. Consider your brand or logo

Store design and colour only are not enough to determine the colour you will choose for your awning. The brand you are trying to display is also a key factor to check on when selecting your awning. The canopy should have the same colour as your brand or logo, and if possible, you can have your brand logo printed on the awning. There are ready-made awnings and custom ones, making it possible for you to get anything you want. Imagine having a green canopy while your brand colour is yellow. It makes no sense!

5. Automatic or manual

Folding arm awnings come in two main types, that is manual and automatic ones. Automated awnings are operated using a remote, and they are easier to retract or wind out. They also have motion sensors which they use to sense excess wind and retract automatically. On the other hand, manual awnings are operated using the crank, and they are more challenging when it comes to withdrawing or winding out. Also, they require more attention as they don’t have motion sensors to sense strong winds.

6. Consider quality

Quality is always essential no matter what you are buying. Melbourne market is flooded with low-quality awnings that are sold at a lower price than the usual one. When shopping doesn’t go for cheaper awnings as they may break down after a few months after installation, costing you more than you would spend if you got good quality. It’s also a good idea to go for customized awnings although they may cost you more.

Summary

There are different types of outdoor awnings in the market, and when choosing one, you should be extra careful. Get your awnings from a reputable seller to get good quality that will last.