Small business owners haven’t had it easy over the last few years. They survived the pandemic, and now they face a soaring inflation rate.

According to the Australian Bureau of Statistics, the inflation rate for the March quarter was 5.1%, which was the biggest jump in over two decades. The figure was also higher than the Reserve Bank of Australia’s target inflation rate of 2-3%.

The increase in inflation will affect small businesses. Here are our top tips for how small business owners can prepare themselves for the impact.

1.    Increase your team’s benefits

Wages aren’t keeping up with inflation, and in a tight labour market, workers will be keen for higher salaries. It puts pressure on businesses to increase wages and benefits. Look for ways to improve the benefits you offer your team members, such as offering bonuses, incentives or flexible work arrangements.

2.    Focus on your best-performing goods

To improve your financial position, focus your activity on your best-performing goods and services. Look at reducing or removing anything with a low turnover or low profit as it’ll minimise any waste or additional costs.

3.    Review your expenses

Spend time looking at your regular expenses and see if you can cut or reduce any costs. It’s a quick and easy way to improve your profitability and bring in savings. Some tactics include changing to more affordable suppliers, streamlining processes, and ordering items in bulk.

4.    Consider passing on rising costs

It’s a delicate balancing act knowing when to increase your prices to customers who are also dealing with the rising cost of living. If you need to pass on any costs, the key is to communicate clearly and openly with your customers. Not everyone will be receptive, but your local customers will likely stick by you.  

5.    Speak to your accountant

Lastly, you should speak to your accountant. They can advise on strategies to help you save money and improve your cash flow.

The start of the financial year is the ideal time to review your small business’ finances and plan for the year ahead. Here are our tips for kick-starting your new year.

1.    Review your expenses

Take some time to look at your business’ expenses and see if there are ways to reduce ongoing costs. This helps free up cash and improve your profits in the year ahead. Some ideas include:

• Negotiating with suppliers or providers for more competitive prices.

• Switching suppliers or providers if you can’t get a better deal.

• Buying commonly used items in bulk.

2.    Review your business plans and strategies

Review your short-term and long-term goals and assess what strategies worked and which need to be adjusted. Don’t forget to consider broader market conditions and your competition and look for new opportunities.

3.    Evaluate your insurances

You may already have insurance, but your requirements and situation may have changed in the last year. For example, you renovated your premises, bought new equipment, or hired new staff. It’s vital to check that you have the right insurance to provide adequate protection for your business.

4.    Consider financing options

If you plan to grow your business this new financial year, it’s worth considering business loans. They can help finance things like buying new equipment and paying for expenses without dipping into your savings. Arrange a chat with our team to find out more about loans that will suit your business.

5.    Embrace or update technology

As a small business owner, you manage many functions, such as administration, accounting and managing staff. These tasks can be extremely time-consuming, but you can save time and improve efficiencies with technology. There are many cloud-based tools that will simplify your work and are accessible anywhere with an internet connection. 

Spending time getting your business in order this new financial year may be taxing, but it’s always worth the effort. If you’re unsure about anything, speak to a professional for the right advice.  

How protected is your small business from a cyberattack? 

According to the Australian Cyber Security Centre (ACSC), a cyber security incident is reported every eight minutes, and 62% of small businesses have experienced a cyberattack.

Cybercrime has costly impacts, with the ACSC reporting that Australians lost $33 billion in the 2020-21 financial year due to cybercrime.

If your business has an online presence, you’re at risk of a cyberattack. But fortunately, there are ways to protect yourself.  

Assess your risk

Identifying any possible threats will help you find and plug any gaps in your security. The Australian Government’s Cyber Security Assessment Tool is a helpful tool for assessing your cyber security risks. Based on your answers, it will also give you a list of recommendations to implement.  

Train your team

Training your staff in good cyber security practices is important in preventing cyberattacks. Educate employees on spotting and avoiding scam messages, what to do if they encounter one, and remind them to use strong passwords. A cyber security policy can also help staff understand their responsibilities.  

Secure your networks

You can safeguard your devices and networks by:

• Using strong passwords or passphrases.
• Setting up multifactor authentications.
• Setting up a firewall to monitor traffic to and from your network. 
• Installing security software such as antivirus, anti-spyware and anti-spam filters.
• Keeping software up to date.

Back up your data

Regularly backing up your business’ data will help you recover any information if you lose it due to a cyber incident. Whether you back up your data onto an external drive or to the cloud, make sure you do it regularly, ideally on a weekly basis.

Control access

You should restrict staff access to data, accounts and systems to prevent accidental or malicious changes. Administrative privileges should only be given to a limited number of trusted individuals, and remember to remove access when an employee changes roles or leaves the business.

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Taking these steps will help reduce your business’ risk of a cyberattack. For more detailed tips, you can visit the Australian Cyber Security Centre.

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How protected is your small business from a cyberattack? 

According to the Australian Cyber Security Centre (ACSC), a cyber security incident is reported every eight minutes, and 62% of small businesses have experienced a cyberattack.

Cybercrime has costly impacts, with the ACSC reporting that Australians lost $33 billion in the 2020-21 financial year due to cybercrime.

If your business has an online presence, you’re at risk of a cyberattack. But fortunately, there are ways to protect yourself.  

Assess your risk

Identifying any possible threats will help you find and plug any gaps in your security. The Australian Government’s Cyber Security Assessment Tool is a helpful tool for assessing your cyber security risks. Based on your answers, it will also give you a list of recommendations to implement.  

Train your team

Training your staff in good cyber security practices is important in preventing cyberattacks. Educate employees on spotting and avoiding scam messages, what to do if they encounter one, and remind them to use strong passwords. A cyber security policy can also help staff understand their responsibilities.  

Secure your networks

You can safeguard your devices and networks by:

• Using strong passwords or passphrases.
• Setting up multifactor authentications.
• Setting up a firewall to monitor traffic to and from your network. 
• Installing security software such as antivirus, anti-spyware and anti-spam filters.
• Keeping software up to date.

Back up your data

Regularly backing up your business’ data will help you recover any information if you lose it due to a cyber incident. Whether you back up your data onto an external drive or to the cloud, make sure you do it regularly, ideally on a weekly basis.

Control access

You should restrict staff access to data, accounts and systems to prevent accidental or malicious changes. Administrative privileges should only be given to a limited number of trusted individuals, and remember to remove access when an employee changes roles or leaves the business.

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Taking these steps will help reduce your business’ risk of a cyberattack. For more detailed tips, you can visit the Australian Cyber Security Centre.

Managing your cash flow is an essential part of running a small business. It will help protect your business’ profitability and minimise the effects of economic changes. Here are our top tips for managing your cash flow.

1.    Stay on top of your accounting

Choose high-quality accounting software to help you manage your cash flow and keep your finances up to date. Good software can automate and streamline administrative processes such as creating invoices, tracking payments and running reports. Many software options are available on mobile, so you can access information wherever you are.

2.    Reduce your costs

Look for ways to reduce your expenses. These include:

• Cutting down on staff overtime
• Making your business more environmentally friendly, such as going paperless, recycling materials, and turning off appliances, computers and lights when not in use
• Improving the efficiency of processes and systems.

3.    Set up a cash reserve

A key step in managing your cash flow is ensuring you have money for an emergency. Your cash reserve should ideally be a separate account. Aim to set aside a small amount regularly and have this automatically paid. It will put your business in a strong position in the long term.
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4.    Manage your debtors

Create a system for keeping track of customers who owe you money. It may be helpful to send invoices when jobs are completed, or products are delivered. Make your invoices easy to read by having clear due dates, amount due and payment methods. Email invoices rather than mailing them.

5.    Research small business finance options

Running a business has many expenses, so you may consider finance options such as small business loans and equipment finance. These solutions allow you to buy equipment or access funds for growing your business without impacting your cash flow. We can provide advice on the right solutions for you and your business.

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We’ve helped many business owners manage their cash flow and understand their finance options. If you require strategic, ethical guidance, contact us today for an appointment.

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Whether you’re starting your first small business or looking to grow, you may be thinking about getting a business loan. It can be tricky navigating through your options, so here are five things to keep in mind:

1.    Work out your reasons

Before choosing a loan, be clear on why you want to borrow funds. It’ll also be one of the questions a lender will ask you. Common reasons include managing your cash flow, buying new equipment and expanding your business.

2.    Understanding your loan options

There are different financing options available to small business owners, such as:

• Business loans: funds that you can use to invest and grow your business.
• Car and equipment finance: lets you buy a vehicle, commercial equipment, and machinery without dipping into your funds.
• Business overdraft: approved extra funds linked to your business account. You can access it whenever it’s required, such as covering unexpected expenses.

  When comparing loans, look at interest rates and check for any hidden fees and upfront costs.

3.    Have a business plan

When applying for any financing, lenders require a detailed business plan that shows what you want to achieve and how you’ll do this. It takes time to prepare and research, so don’t rush it and consult a professional if you need help.

4.    Get your paperwork in order

In addition to your business plan, get your paperwork ready. This includes:

• Financial statements
• Proof of individual income
• Bank statements
• Identification (if you’re a new customer)

5.    Seek professional advice

We can take the guesswork out of finding the right finance solution for your small business. We’ll get a clear idea of your business’ needs and goals and provide recommendations tailored to your situation.

As small business owners ourselves, we’re well placed to help you with your financing needs. Give us a call today.