He has since enjoyed being appointed CEO of Australasia’s largest business management software provider and helping SMEs build stronger businesses by implementing cloud-based solutions.

Reed explained that joining MYOB hit the mark on many things he loves, and it’s his identifying with the company’s ethos that has seen him dedicate 10 years there.

“I really like technology and the way it can drive productivity [and] I enjoy working on business tools and solutions. MYOB is a company with a great brand and great values. Liking what I do and the people I do it with and for is, for me, a requirement of any job,” said Reed.

Development of online accounting systems and a better work environment

MYOB has enjoyed numerous successes under Reed’s leadership – particularly, the development of cloud accounting systems that has helped Australian businesses operate more efficiently.

“There are a few things that I’m really proud of since I’ve become CEO. The first is the innovative solutions that we’ve delivered to our clients,” said Reed.

“Cloud accounting systems take a lot of the hard work out of bookkeeping. MYOB LiveAccounts and MYOB AccountRight Live can both reduce the amount of time it takes a business owner to do the books by around 25 percent and 75 percent, allowing our clients to get back to running their business and doing what they love to do,” he added.

Reed went on to explain that the ‘anywhere anytime’ nature of online accounting solutions and features such as automatic bank transaction feeds enable SMEs to work smarter.

“They can achieve deeper, more up-to-date understanding of their financial situation, spend less time on admin such as manual data entry and spend more time on growing their business,” he said.

“SME operators can seamlessly switch between working online and offline. When working with their file online they can invite their accountant or bookkeeper in and they can all work on the books at the same time,” Reed added.

He also takes pride in the internal changes he has brought to the company, saying that their team engagement is much higher, and their vision and values are much clearer.

“Creating a work environment where everyone can do their best, succeed and grow is really important to me,” said Reed.

Future of small businesses in 2013 

Reed believes small business policy should be a priority for politicians in the upcoming Federal election – especially in light of the difficulties they’ve been facing with the compliance burden, carbon tax and red tape.

He acknowledges, however, the positive initiatives that have been implemented in recent years to help SMBs.

“The tax loss carry-back, instant asset write-off and increase in the tax free threshold limits have all been policies that have helped small business; while industrial relations laws have regressed,” said Reed.

The future of small businesses is heavily tied to the overall economic outlook. Reed explains that while 26 percent of SMEs expect the domestic economy to improve within 12 months, 7 percentage points higher than July 2012 according to the latest MYOB Business Monitor, it is up to the government to help build confidence among SMEs in the economy.

“I hope the election is decisive and brings about confidence to the local economy – that’s what is needed to ensure this increased optimism translates to real performance,” he said.

The importance of online technology

One of the most important tools for business today is the Internet. Reed said that online technologies can help small businesses become competitive within the increasingly important digital economy.

“The benefits include the ability to compete on a more level playing field with local and global rivals by being easily found and contactable, increased productivity through streamlined business processes and spending more time on, rather than in, the business thank to less time spent on business administration,” said Reed.

“This means more time for growing the business, which has the potential to make a difference to our economy,” he added.

Reed’s plan for the future is to ensure that MYOB’s business management solutions make business life easier, so Australian SMEs have “more time to build their venture or to enjoy life outside of work.”

They have just finished a survey of 5000 Australian consumers to uncover what specific needs count when creating value for money and a great customer experience.

Top Ten Brands

• Singapore Air
• Air New Zealand
• RACQ (Royal Automobile Club Queensland)
• ING Direct
• ALDI
• Specsavers
• Emirates
• Ubank
• Chemist Warehouse
• Dan Murphy’s

The airlines are dominating the top ten because they are delivering the total package, attentive staff, the latest in-flight entertainment, comfort and price. Other distinctive differences with winners are their tone of voice or personality of the brands, which we can identify with.

Other insights

Aussies are empathic towards Australian brands. “Our research really found that Australians really just want an objective source of information. The challenges for Australian companies is still really getting that peer to peer objectivity, it is becoming increasingly important and turning a terrible experience into a good one. If you sting an Aussie customer they won’t forget easily,” said MD of Nunwood, Anna Thomas

She continues, “Building great customer experience is about understanding the nuances of the consumer need – which may change at various points along the customer journey – and bringing them to life within the parameters of the brand and the particular business culture. It’s part art, part science, and it’s really exciting work.”

Top Trends

1. Australian’s want to buy Australian. Source locally. Supporting Aussie businesses is still very important

2. Give us the information. We go online, so educate us before we find the information from someone else and buy online. Also, reviews from our peers are important.

3. There are a lot of bargain hunters online. This is a big part of the online shoppers.

4. Aussies aren’t interested in low price and low quality.

5. We shop globally because we can. Keep us shopping locally with great service, value, information and we will see the difference and stay loyal. If not we will go where the offer, value and experience is better.

Read more here. More from Nunwood about the six pillers of customer experience

Due to the reduced amount of documentation work required in accessing them such loans have become extremely popular with borrowers.

Something that could be termed as a revolutionary innovation in the financial market, Low doc loans have assisted numerous people world over in changing the course of their life in a positive sense. Considered to be loans that could change the future of a business, low doc loans have surely helped thousands of people around the world in realizing their dreams. These loans are not only hassle free in nature, but could be availed at levelheaded rates as compared to other financial products in the loan market at least under the present circumstances.

7 things one should know about low doc loans

Low doc home loans or low documentation loans are particularly designed for the people that are unable to produce the obligatory documents that make it possible to avail conventional loans from the financial institutions.Therefore, anyone ranging from unemployed individuals to small scale businessmen can avail these loans during the times of need with minimum fuss. In order to avail these loans, a person is required to put forward an application with self-verification certificate without any obligation of property ownership and related affidavits.

1. Everyone is eligible

Aspirants with impaired credit history or those with poor credit ratings can also avail these services. Although, it requires some extended, if the services give you access to loans, it’s worth the extra effort.

2. Varied form of interest

Although, low doc loans are much easily accessible than standard loans, borrowers might have to shell some extra money in the form of rate of interest. The rate of interest in increased because the risks of loan defaults involved is greater than in the case of normal mainstream loans from banks. The person should be discreet and far-sighted in impending upon the lender that not only offers advance at a lesser interest rate than others in the market, but also charges no supplementary collateral.

3. Require additional security

The additional fact that should be kept in mind while accessing low doc loans is that they require extra security. The amount of collateral required as pledge is far more than in the regular cases and hence the aspirant should be well versed with fact in advance.

4. Enhanced features

One of the best features of the low doc loan is that the borrower gains extended access to a range of loan features and options that were previously unheard of or available for him in the market. Such loans could also be termed as a time and money savers for the informal and self-employed workers who find it hard to avail loans.

5. Increased opportunities to earn credit

At present, due to increase in competition in the lending market, majority of the big names in the lending business, including the banks now offer low doc loan services. Earlier, only non banking financial institutions with limited presence used to offer these loans to the aspiring candidates.

6. Lucrative proposal

Usually as seen the world over, low documentation loans cover up to 80% or more than three quarters of the residential property in case the candidate intends to acquire one for investment purpose in the days to come. The remaining 20% of the amount has to be infused by the person into the portfolio. This makes the proposal lucrative for the people intending to invest in some property and in need of urgent loans with minimum of paper work involved.

7. Beware of cheats

With the boom in the low doc home loan market in recent years, many lenders with dubious credentials have mushroomed the world over and are claiming to provide loans at lower rates than credible institutions. This has resulted in numerous scandals. Therefore, people should beware of such cheats.

According to ASIC’s external administration appointments statistics, insolvencies are the highest on record since the original Global Financial Crisis (GFC).

Latest insolvency figures to December 2012, show that 10,632 Australian companies are struggling to stay afloat, 44 percent higher than the historical average and 12.7 percent higher than 2009, at the height of the GFC.

Michael Fingland, CEO of Vantage Performance, believes that forewarned is forearmed, and small to medium sized businesses in particular should be closely scrutinising their future cash flow.

“Over the coming 12 months we anticipate lending conditions will tighten even further for SMEs, so sweating your working capital for cash flow will be a key positive step you can take,” he said.

Here are Fingland’s top tips for improving your cash flow:

1. Test your business and cash flow: build in worst case scenarios

What if you lose that major customer? What if customers take longer to pay? What if sales/margins continue to decline? What if you have a serious bad debt? How would your cash flow survive one or more of these events?

Consider selling non-core or surplus assets. In tough times be prepared to decrease the size of the business to survive, rather than chasing revenue. A reduction in turnover can actually have a positive impact on cash flow if you manage it correctly.

2. Sweat your working capital

Look at your receivables ledger. Get on the phone, call them, record answers and follow up.

Look at your creditors and see if you can negotiate better terms.

Try to rationalise the number of suppliers you have. You can often obtain better terms as you will be providing greater volume to fewer suppliers.

Review your stock holdings. Get it in your bank account and cull obsolete or slow moving stock. If your clients aren’t buying the stock then they don’t want it or the pricing is wrong.

Reconcile your bank account daily and produce a 13-week cash flow forecast, then check your forecast for accuracy.

Slowly refine the cash flow forecast so you have no surprises. When you get to the stage that you can see “holes” in cash flow and start taking actions ahead of the hole, that’s when you know you are regaining control of your business.

3. Consider outsourcing your manufacturing or logistics operation

If you manufacture in-house, you are most likely committed to paying wages weekly.

If you move to an outsourced model, you are now paying that supplier 30-60 day terms.

Fingland said this gives you a permanent improvement in cash flow equivalent to one to two months’ wages.

4.  Look at a sale and lease back for property and other major assets

To demonstrate to your stakeholders that you are prepared to make the hard decisions, investigate a sale and lease back option on your properties or other assets.

The proceeds can be used to pay down debt, which reduces pressure from your financier, and with the right strategy and assistance, you may be able to obtain agreement from your financiers to allow some of the proceeds to be retained for working capital.

You can avail self managed super fund (SMSF) loans to buy investment properties and enjoy quick returns. All it requires is a smart property investment strategy.

Whether you want to effectively turbo-charge your overall retirement savings or you wish to make your super fund a healthy source of income in near future, you might as well work on a property investment strategy backed by various SMSF loan packages.

Read on to know why SMSF loans for property acquisitions have been so popular with Australian residents:

1. It doesn’t matter if you don’t have an SMSF already. You can set it up now and apply for SMSF loans right after that.

2. You can acquire properties way more expensive than you (or your superfund) can afford right now. Only SMSFs enable you to ‘borrow’ money for investment purposes.

3. When you borrow money via self managed super fund loans, you no longer need to rely on fund managers. You can make your own property investment decisions.

4. Your net super balance can be increased by as much as 100 to 150 percent by purchasing residential or commercial properties financed by self managed super fund loans. On a bigger super balance, you stand the chance of experiencing compound growth too.

5. SMSF loans can be availed for buying just about any type of property. From offices and commercial spaces to factories and medial suites, you can go for any property you believe will provide healthy rental income or appreciate over the next few years.

6. Since you get concessional tax benefits, it is possible to repay the total loan amount at a much faster rate after acquiring a property.

7. If you’re going to turn 60 anytime soon, you’d have to pay no tax on income or capital gains to the government. This is a substantial rebate that can indeed turbo-charge your retirement savings basket.

8. You can use the rental income obtained from the investment property rented out to an individual or business to repay the debt or interest amount from time to time.

9. There is no dearth of options when it comes to self managed super fund loans. A property investor can choose fixed, variable or combination loan schemes depending upon his/her property investment strategy.

10. Terms of these loans are quite flexible as compared to most other property loans in Australia. This is one of the main reasons why super fund loans are so popular with Australian residents who manage SMSFs. Who wouldn’t want a loan term as long as 30 years or as short as 1 year?

The fundamental logic behind the strategy of making property investments backed by self managed super fund loans is that you can increase the total return on investment significantly by increasing the value of the superfund.

Total credit card debt is currently a little over $50 billion according to the latest Reserve Bank figures, with the average being $3,282 per person.

While many credit card holders are likely to be making minimum repayments, an improvement on the past 30 years, credit card debt is still a serious issue for Australians.

“While it’s great to see consumers are more cautious about using credit cards, there are too many card holders sitting on big debts and not priortising to pay them down,” said Michelle Hutchison, Spokesperson at RateCity.

The RateCity survey in December last year showed that 11 percent of respondents were making minimum repayments to pay off their debts – which approximates to 1.7 million credit cards.

But with minimal monthly repayments, it would take over 24 years to pay off debt and the total interest charged would cost more than double the original balance.

“By making the minimum monthly repayment of 2 percent on average, the average credit card balance of $3,282 would take 24 years and five months to pay off, based on the average purchase rate of 17.21 percent, according to RateCity. At this rate, you could still be paying off your credit card debt after you finish repaying your mortgage!” said Hutchison.

In light of these results, Hutchison recommends credit card holders to make a bigger effort to end their ‘debt rut’.

“Credit cards can be easy for consumers to fall into a debt rut, because they are very flexible and credit is generally always available. But there are ways for card holders to get out of this bad debt for good,” said Hutchison.

She advises credit card holders to consider consolidating with a personal loan, adding debt to their personal mortgage or comparing balance transfer cards; and increasing repayments little by little will make a big difference to the debt.

“For instance, boosting your repayments from 2 percent to 4 percent will reduce the time it will take to pay off the average credit card of $3,282 from over 24 years to less than nine months, and interest charged would drop by $4,767 to $1,663,” said Hutchison.

You can search, compare and apply for financial products at RateCity.

The key inclusions that small businesses would like to see in the May 14 Federal Budget are reduced taxes for small businesses (51 percent), a reduction in Government red tape (40 percent) and relaxed import and export regulations (20 percent).

Small business decision makers who expect the Budget to hinder small business growth outnumber those that expect it to support small businesses by almost two to one (47 percent versus 25 percent).

Twice as many small business decision makers also think the Coalition winning the upcoming Federal election would be better for business than those who think it will be worse (47 percent versus 23 percent).

“Small businesses want to see more certainty from government addressing the issues facing the sector. For example, the manufacturing sector is contracting, insolvencies are a major concern for retailers due to reduced consumer demand and businesses are concerned about the lack of available funding,” said Gary Green, National Sales Director, Bibby Financial Services.

“As a result many SMEs are in a holding pattern with regard to investment, and have been for some time. Our survey found approximately half (49 percent) intend to maintain their current level of investment over the next 12 months compared to 28 percent who intend to invest more in their business.”

This announcement follows Australia’s Money Confidence survey of almost 12,000 Australian adults, which found that 39 percent of new small business owners had trouble getting access to finance through banks in October and November of 2012, while 69 percent had to cut back on personal expenses when the business was low on cash.

“We know the first few years of running a small business can be challenging, so today we’re pledging to lend $1 billion over the next 12 months to make it easier for Australians to realise their business dreams,” said Nick Reade, ANZ General Manager Small Business Banking.

Reade explained that many small business owners are under the false assumption that big banks are only willing to provide loans to big businesses, whereas evidence reveals otherwise.

“A lot of new small business owners think that it’s only big businesses that get loans from the banks, but that’s not the case. In the last year, we approved more than seven out of every 10 lending applications from new small businesses,” he said.

ANZ advised that to apply for a small business loan, customers need to present a business plan, cash flow forecast, recent personal tax returns and no negative credit rating.

More information and tools customers need to apply for lending is available via the ANZ Small Business Hub.

A positive start to the year, the St.George – Melbourne Institute Household Financial Conditions Index has risen to 12.4 percent,  2.5 percentage points higher from the previous quarter.

Hans Kunnen, Chief Economist of St. George Bank, explained that threats to job security during the Global Financial Crisis (GFC) is one of the key motivators for Australians to save money.

“The GFC scared many people. They saw the dangers of excessive debt and were worried about losing their jobs.  They were highly motivated to save. We call that precautionary savings,” he said.

“More recently, we have found that most people have kept their jobs, some young people found employment, many people received small pay rises and their mortgage rates were falling. As this unfolded, they have actually found they could save more.”

The group which saw the greatest improvement in conditions was 18-24 year olds with a 36.1 percent improvement since December 2012. Kunnen explained this is likely due to young people picking up work  for the Summer break.

On the housing front, the level of outright home ownership rose considerably across all states, with 45.6 percent of respondents claiming to own their homes outright, an increase from 40.2 percent recorded in December.

Commenting on the implications of the study, Kunnen said that saving now will lead to better peace of mind in the future, where Australians will have the opportunity to move onto business ventures.

“Stronger savings now can lead to more spending in the future. Some people have paid off their home loans and may now be ready to move onto other ventures such as taking out a loan to buy shares or purchase an investment property,” he said.

“The feeling of ‘security’ that often comes with saving, may lead to some loosening of the purse strings later in the year. Many people are saving for holidays.”

Other key findings outlined in the report:

• By state, New South Wales has experienced the greatest improvement in household financial conditions with a 3.8 percent increase, followed by South Australia (2.9 percent), Queensland (2.8 percent), Victoria (2.7 percent) and Western Australia (1.2 percent)
• South Australia experienced the greatest positive shift from 39.8 percent to 49.9 percent for the quarter
• As a preferred savings vehicle, deposits with banks have risen from 83.6 percent to 87.4 percent
• Those holding shares grew from 33.4 percent to 37.3 percent
• 40.0 percent of households indicated they were debt free, down from 42.7 percent
• The number of respondents using credit cards rose to 37.4 percent compared to 31.3 percent in December 2012
• The percentage of respondents with mortgage debt has decreased from 42.4 percent to 38.8 percent
• 60.0 percent of Australians are paying up to 10 percent of their after tax income on servicing debt
• Saving for holidays or travel remain the most popular motivation for saving at 59.5 percent

A recent survey by HomeLoanFinder.com.au revealed that of the 35 percent of Australian home owners who experienced stress over mortgage repayments, 15.6 percent were unsure at times whether they would be able to make any repayments at all.

10.4 percent attribute this stress to the fact they were recently forced to take a pay cut, while 9.1 percent struggled with managing a budget.

When it comes to meeting mortgage repayments, the biggest stresses were rising utility bills, lack of job security, and difficulty with budget management.

The results also showed that Australians were willing to make a number of sacrifices to help alleviate the stress of repaying their loans. For instance, 42.7 percent would hold out on a holiday, 29 percent would eat out less and 15.2 percent would go as far as renting out a room in their house.

“Mortgage related stress affects so many of us but there are ways to handle this effectively and not let it take charge of everyday life. Recognising that you’re struggling with repayments is the first step to taking control of the situation,” said Jeremy Cabral, Publisher of HomeLoanFinder.com.au.

“By making some key lifestyle and personal finance choices, Australians can relieve the stress and get their mortgage repayments in order.”

Here are Cabral’s top five tips to help people manage their budget and ease the stress of loan repayments:

1. Create a budget

Creating a budget makes it easier to monitor your costs and understand the money coming in and out of your household.

Think about your priorities and identify what you need for basic living expenses. Then cut back on extras and put them towards your mortgage repayments.

2. Meet with your bank

Set up an appointment with your bank and explain your financial situation and that you are experiencing hardship in repaying your home loan.

Discuss the following options with them to see if they can offer you a solution:

a. Negotiating a lower interest rate on your home loan.

b. Asking your lender for a hardship variation to temporarily reduce your payments or postpone your payments for an agreed period.

3. Temporarily change how you pay your home loan

If your credit rating has taken a hit recently, you might want to hold off a complete loan refinance as you might not be able to switch to the best loan for you right now.

Instead, you can switch your payment type on your loan to interest only, if that’s an option from your lender. Consider it a temporary reduction in your repayments until you sort out your financial troubles.

4. Shop around

Research online and talk to other financial institutions that might be willing to offer you a better deal. It is crucial that you calculate whether the benefits outweigh the penalty costs you might have to pay for switching.

5. Pay extra

Paying a little extra each month on your mortgage can make a huge difference in the long run. If you find that you have a little extra room in your budget, put that towards your mortgage repayments.

In the PPSR 12 Months in Review, 12 Months Ahead Forum, Carol Chris, Veda’s General Manager of Commercial and Property Solutions, revealed that only 11 percent of Australian SMEs are using the PPSR database.

A lack of awareness on what PPSR is, combined with a lack of knowledge of how the system operates, were cited as the main barriers to adoption within the SME sector, as well as the prevalence of conflicting advice from legal professionals.

So what is PPSR?

The PPSR is a national commercial law on secured finance involving personal property. It emerged as a result of bringing together 26 different Commonwealth, State and Territory laws and registers regarding security interests in personal property under one national system.

Before the PPSR was introduced, the law and practice regarding personal property securities differed between states and territories within Australia. It caused a lot of uncertainty among individuals and business owners and was increasing the cost of transactions involving property securities.

Benefits for SMEs

Following its success in the US, Canada and New Zealand, the PPSR was introduced in Australia to improve credit management and the ability of individuals and businesses to use all their property in raising capital. However, while big banks and larger businesses have adapted well, smaller businesses are not protecting their interests adequately.

“Registering your interests on the PPSR should be an integral part of good practices in credit management but it is clear that this is not happening within Australia’s small business sector,” said Chris.

While acknowledging that the PPSR system is complex, Chris along with representatives from Commonwealth Bank, ANZ Bank and the Australian Institute of Credit Management and Insolvency and Trustee Service, ascertains that using the PPSR database will make it significantly easier for businesses to protect their interests in the event of their business partners and suppliers going into liquidation.

“By registering your interests on the PPSR, small businesses can realise secured creditor’s status to better their position in the list of creditors in the event of insolvency or liquidation,” said Chris.

More information on the PPSR is available here.

Or to find out about the solutions Veda has to offer that allow businesses to search and upload entries to the PPSR database more quickly and easily, click here.

The growth of the “collaborative consumption” movement or the “sharing economy,” supported by the social fabric of the connected internet is growing at a scale and speed never thought possible.

The “always-on” nature of the web and our mobile devices means it’s never been easier for individuals to share a car, rent a cool holiday space or swap their under-utilised power tools with those in their local community, whilst at the same time creating new opportunities for micro-entrepreneurs to make some extra money.

A similar wave of change is now set to hit the workplace where the rise of the collaborative consumption movement is helping smaller businesses to efficiently tap into underutilised resources and work more productively by saving time and reducing cost.

What is the collaborative consumption movement?

From crowd-funding to co-working office spaces, there are many collaborative consumption services now available to businesses. Behind each of these collaborative marketplaces, technology is used to provide businesses with access to (rather than ownership of) scarce or underutilised resources – whether it’s time, skills, cars, accommodation or other things.

How can your businesses tap into the collaborative consumption movement?

Here’s a few suggestions on how your business can tap into the collaborative consumption movement to improve productivity, lower costs and unlock the benefits of the connected hyperlocal community:

1. Human Resources: Many small businesses need to hire extra staff for short-term projects such as promotional work, mystery shopping or event staffing. The collaborative consumption movement allows businesses to easily access a scalable, on-demand local workforce as needed. For example, Airtasker is a service that helps businesses hire anywhere from one person to help unpack boxes for a day to a team of one thousand Airtaskers to conduct an Australia wide mystery shopping project.

Outsourcing certain tasks around the office can also ensure that staff can concentrate on their core competency, like sales or marketing. Getting skilled staff to work on “odd jobs” and time consuming errands is a waste of a resource that could be better suited to achieving prime business objectives.

2. Workspaces and Accommodation: For some businesses, the cost of renting office space no matter the size can mean costly overheads and expenses. Services such as Deskwanted.com are connecting businesses who are seeking a workspace with businesses that have spare desks and facilities. A good example of a co-working space includes Tank Stream Labs which offers desks and connectivity as well as a collaborative environment where businesses can set up their office and interact with other similarly sized businesses at a fraction of the cost.

For businesses who have staff frequently travelling interstate or internationally, AirBnB is a listing of places to stay. Rather than putting executives up in expensive hotels, companies can use AirBnB to find an apartment for a short or long stay. This is especially useful in cities where accommodation is expensive, like New York and Sydney.

3. Staff training and motivation: Businesses looking to train staff should take a look at WeTeachMe, a marketplace for learning experiences. Businesses can find personalised courses run by expert professionals in niche areas like SEO, online marketing or business plan writing. Staff can also be encouraged to share their expertise with people interested in their respective fields. This is a great way to utilise the skills of expert professionals without running a costly training program just so your staff can properly use PowerPoint.
4. Car pooling: As traffic and congestion continue to increase, the commute to work is becoming more and more problematic. JayRide is a marketplace for carpooling, allowing groups of people who are traveling to the same destination to share a ride. Hugely popular in Europe, companies can create their own car pools and allow staff to save money and travel together, increasing productivity and doing the right thing by the environment!
5. Borrowing niche items: Some items will only be needed for a specific period of time, maybe a one off event or a unique shipment of stock. Purchasing a brand new piece of equipment can be costly if the business will not be using it again, not to mention wasteful. Open Shed is a platform that allows people to borrow under-utilised items from one another. Businesses can use Open Shed to borrow items for events, perhaps a balloon pump, stock trolley or power drill as a one off rental, instead of purchasing the item new. There is also an option to set up a workplace market for sharing items, a great way for staff to engage with each other, and monetise valuable items which are not being used effectively.

Small businesses are for the most part entrepreneurial in spirit and have a keen eye on the bottom line. Unlike many large corporates, these smaller companies also have the flexibility and freedom to test new and creative ways of conducting business.

Like those who were quick to respond to big shifts in online behaviour, such as digital advertising and social media, those who tap into products and services available through a vibrant collaborative consumption movement are well placed to punch above their weight.

Notice Saver distinguishes itself from other high interest savings accounts by requiring customers to serve a notice period before withdrawing. Customers will get the benefit of higher interest rates but unlike a term deposit account, it is much more flexible because you can add money in at any time. The interest rates are also tiered depending on your balance.

RaboDirect has likened the product to a timer switch, whereby Notice Savers are unable to withdraw their money before the notice period of 31, 60 or 90 days (optional) are up. This essentially kills the temptation of impulse shopping that comes with having instant access to your money.

Recently, RaboDirect conducted a national poll and found that 81 percent of Australians have made an impulse buy in the last six months. 74 percent of 18-24 year olds and 62 percent of 24-39 year olds tend to spend more if cash is readily available. However, what is more shocking is that 46 percent of working Australians have only one months’ worth of savings or less in the bank.

Group Executive of RaboDirect Australia & New Zealand, Greg McAweeney said Notice Saver is best suited for SMBs who have some cash and want to save for upcoming GST payments.

“They can place their excess funds in a notice saver account and get the best interest rate they can. A lot leave it in a cash account which gets hardly any interest,” he said.

RaboDirect is part of the international Rabobank Group which is the world’s leading specialist in food and agriculture banking. Rabobank operates in 47 countries and has a client base of more than nine million clients worldwide through a network of more than 1600 offices and branches.

There are currently around 60 branches throughout the rural regions of Australia. According to Global Finance, Rabobank is among the top ten safest banks in the world for over ten years.

For more information, click here.

What if you already had the assets you needed for short term loan, but didn’t even realise it?

Personal asset lending has taken the UK and US by storm. Assetline has brought the service to our shores.

What is it?

When a business needs fast liquidity, the options are limited. Banks are not always the answer. It takes time to go through credit and income checks and your loan request might still be refused. Selling an asset is not ideal either. It takes time if you want the right price and involves hefty commissions. Not to mention that you lose your asset forever. Now, there is an alternative called a personal asset loan.

A personal asset loan is a flexible short-term loan against your valuable assets – your luxury watches, jewellery, gold and precious metals, your fine art and antiques, cars (including classic cars) and fine wine collections.

How does it work?

The process is pretty simple. You apply online by uploading a picture of your valuable – no need to leave home, or even pick up the phone to initiate the process. This also means you can do it at any time of the day or night. A professional valuation team will then value your asset. Experts are used for different assets, which means the lender understands your collateral and more can be lent against it. Once you’ve accepted the offer, you send your item in for secure, fully insured storage and get cash directly into your account within 24 hours.

What’s to like?

A few things. No spiralling debt (remember, you already own the asset), no income or credit checks needed (bad credit history not a problem), very fast turnaround time, confidential and discreet service and no penalty for early repayment.

What can the funds be used for?

Anything, really. Bridging finance. Purchasing inventory. Cashflow irregularities. Investment opportunities. You own the assets, so you make the decision. The cash is yours.

Australians have worked hard to acquire a vast array of valuables, but would never have thought they could borrow against them. They can now for the first time unlock value in these assets. This model – which is fast, flexible and discreet – has proved revolutionary in other markets and is bound to shake up short-term lending in Australia.

Previously, Australians have had to mortgage their future to secure short-term loans. The personal asset loan model is unique in that it deliberately avoids the risk of spiralling debt, in contrast to other short-term funding options. Business owners can unlock the equity in assets they already own, eliminating the risk of bad debts and putting them firmly in control.

While many small businesses in Australia are trying to do the best they can, it’s inevitable that many will also fail. One third of new businesses failed between 2007 and 2009 according to the ABS, and it’s something that new business owners constantly have in the back of their minds.

For companies like Bond Street 180, a business advisory service, this statistic is something that needs to be addressed. When Dynamic Business spoke to managing director Daryl Wright, he expressed a desire to help businesses grow and get past the first few years of struggle. “My personal passion is to see small businesses continue to grow and develop. A lot of people have great entrepreneurial ideas. Their ideas are centered around their passion and their core skill sets. And many of them will chug along and earn a couple of hundred grand a year, but they’ve got potential to go to another level. And if we can take a role in defining and supporting those to see pathways for them to grow into something bigger, better and larger, that’s exciting.”

Wright believes that many small businesses are limited in their growth by their own internal issues that are yet to be addressed, as well as the most prescient of all small business issues, cashflow. “Any strategy development is dependent upon your ability to have the funding, the ability to have the resources to do that,” Wright acknowledges.

Despite his passion in helping small business grow, Wright is conscious of the fact that new small businesses can fail. One of the reasons that businesses get it wrong is due to their internal structures, says Wright. “First of all, depending on your size, you need to address your own leadership management structure. I can give you the example of a tradie, who does well and before long he earns $20-$30 million. He has the skill sets to run the business but there is a leadership and management issue. So be sure of your management limitations and get help, get support in the leadership area. There are a lot of people that can provide that kind of support.

“Second is strategy. The moment you see warning signs, like you can’t pay bills on time, you’ve got high levels of customer complaints or you’re passing unnecessary credits. The moment you start seeing things which are negative to the normal patterns of business, ask the question what’s going on. And never look externally for the issue before you’ve looked internally. Most problems are internal, not the GFC, or the economic climate. Those are our external factors but if your business is starting to hit the slide, have a look at what’s going on internally. There’s often something fundamentally wrong internally.”

Adding to internal management and working on your business strategy, Wright also believes that you need to look at your own staff. “We have a wonderful culture in this country. We tolerate a fair bit. But look at the performance of your team. Do they know what is expected of them? How are your relationships with those people? Chances are, if your relationship with your team isn’t good, you’re gonna hit tough waters at some stage. Because those are the people who are making it happen. If they’re not respected, not empowered and not motivated, they are not going to perform at 100 percent. They are going to perform enough to get their paycheck each fortnight. You need to be sensitive in those areas.”

If those solutions don’t help, Wright has one final piece of advice for small business. “Call us,” he laughs.

The Tax Institute’s 2013-14 Federal Budget Submission urges the Government refocus its efforts on areas of the tax law that are in need of urgent and significant reform.

Taking into consideration the range of matters that affect small business, The Tax Institute has outlined ways in which the Government can help alleviate the compliance burden and improve tax policy outcomes for small businesses in Australia.

Steve Westaway, President of the Tax Institute, said this would involve, “exploring the possibility of creating a separate, ‘small business entity’ structure, streamlining definitions and access to small business concessions, and simplifying carry-forward loss integrity measures.”

A separate ‘small business entity’ structure would integrate the benefits of existing, available structures such as the company, trust, partnership and sole trader structures.

Simplifying and minimising the costs associated with carry-forward loss integrity measures such as the ‘continuity of ownership test’ and the ‘same business test’ would allow greater flexibility in capital raising and making changes in business operations.

The Tax Institute also encourages the Government to pursue a more ‘open and transparent timeline for legislative change’ so taxpayers aren’t left in limbo for much longer and can start making informed investment decisions.

No doubt you have heard the comment “It was a great business but they did not have the cash to run it properly”.

There is almost no transaction in business that will not add to or take from the business cash reserves. The most common problem that uses up a business’s cash reserves is debtors. The business must pay for the goods or wages to make something to sell, but that cash is not replaced quickly, as the debtor may not pay the debt when expected.

Prior to the GFC, it was possible to call your bank and obtain short term finance to cover the problem of a debtor not paying on time. This is no longer the case for many businesses. Banks see businesses that are caught short of cash as “poorly run” and potentially a credit risk.  Whilst banks still like to see their loans secured, it is the cash flow back to the business to repay that debt that interests them more.

The method of avoiding this sort of problem is calculating the business requirement for assistance and ensuring that that assistance is available when required. Cash flow budgets allow the business to see its cash deficiencies early and approach lenders early so that either funding can be put in place or the business activity stopped prior to making the deficiency.

As with most business issues, it is planning that is vital to ensure not only success, but survival too. Cash flow budgeting is a crucial form of planning that every business needs to put into practice. Cash is king simply because it can make or break a business.

Here are seven tips that will help you win more work:

1. Be clear

Clarity and accuracy should be the foundation of your first email response to a customer query. Define exactly what service will be provided for what price; if you’re unsure then offer a price range. It is more professional to give a price range than to quote a figure that may be subject to change at a later date. If applicable then always offer a timeframe so that the customer’s expectations correspond with yours.

2. Give all the details 

Provide customers with as much information as possible so they can make an educated decision about what they want. If you have completed similar projects to the one they have requested then send them a portfolio. Similarly, if you have a pricing chart or examples of what previous clients have received for various prices then send them through.

You can also use this as an opportunity to upsell; let them know what else they can get if they are willing to expand their budget a little. At Service Seeking, we have found that customers generally prefer to streamline projects by using one service provider so it is crucial for businesses to let them know what they can additionally provide.

3. Ask questions 

Asking questions about the project is valuable as it gives the customer an incentive to respond and it presents you with an opportunity to determine exactly the service they require. It also highlights that you are interested in their business and you are keen to meet their requests.

4. Respond, respond, respond

Reply to customers promptly and thoughtfully. Answer all questions on all avenues – whether it is a direct email, a comment on your Facebook page, a voicemail or a tweet. Broaden the ways in which you contact them. If they have left a phone number in an email- call it. Make sure you have provided multiple contact points for the customer so you are completely accessible to them. Responding to all questions and comments, big and small, boosts your profile as an approachable business and improves the customer experience.

5. Chase it up

Determine a follow up timeframe that suits your business and enact it consistently with all customers. It might be worthwhile investing in a CRM system to diarise and manage this. If you haven’t heard back from a customer after a follow up email don’t be disheartened. Just because they are taking their time does not mean they are not interested in your service.

However, don’t waste time on administration with customers who are clearly not interested. If you have provided information and responded to queries, abandon the cause and redirect your energies. If you are consistently failing to hear back it might be time to reevaluate your pricing (especially compared to your direct competition) and reconsider how effective the avenue through which you are gaining business is.

6. Freebies

Incentivising the experience is a surefire way to ensure the customer will respond. If you offer a free consultation for your services or a discount for new customers you are more likely to win more work.

7. Win them over again

Attention to detail can go a long way in winning customers back again. Conduct a customer satisfaction survey to gauge what their experience with your business was like and help improve your it for next time. Send a thank you email after the completion of the contract.

Determine how often customers may need your service and send timed emails at allocated intervals throughout the year asking them if they need to utilise your service again. Creating a loyalty program with discounts and promotions is another great way to make sure customers come back.

Imagine you are in the top 50 of your industry Australia-wide and you get introduced to the owner of the number one performing business in your industry. You arrange for private lunch, a chance to speak one-on-one with a keynote speaker at industry functions, someone that runs a team of seven to your solo enterprise. He is the big dog on the block. This is your chance to find out what they do that makes them number one.

You’re sitting at the table in anticipation, waiting for some pearls of wisdom to come forth to help you get bigger and better. And then he arrives. You ask and he talks.
After an hour you work out two critically important things. Firstly, he is on his way to a heart-attack and an early grave by working ridiculous hours each week, and secondly you realise that every month you are making 34 percent more net profit than him.

That’s right one person outperforming seven, a difference of 938 percent profit per employee. This is a true story.

Three words that will change your business are – focus on profit.

It’s easy to be in awe of your competitors and try to work out their sales figures. But big numbers are largely irrelevant. They are only part of the game and when you constantly focus on turnover you are leaving out the most important part of the equation. You can’t survive or flourish unless your business is making a healthy profit.

Many businesses don’t increase the visibility of profit. To have a proper profit focus in your business you should stop waiting until the end of the year to find out if you have made any money or not. You should be looking at your figures weekly or at most monthly. Get your bookkeeper or accountant to do this.

For example, if you give quotes, build your overheads into your quotations so you know how much money you are really making.

Measure your profitability per employee per month. This gets you focused on getting the maximum bang for your buck out of your team. Check your profitability per customer. It most probably wouldn’t surprise you to know that those problem customers who expect the world and want to pay peanuts are costing you money.

Reward your salespeople based upon your most profitable lines not necessarily on highest sales figures. And obviously keep a tight control on your expenses – don’t spend money on things that aren’t going to make you a profit.

It may seem obvious but don’t fall into the trap of not looking at the bottom line at least once a month.

In This Chapter

“Preparing for sale, years ahead

“Identifying the secret weapon that makes your business worth five times more

“Compiling the ultimate sales document

“Doing the buyers’ job for them: Due diligence and more

“Finding a buyer

At risk of recommending you put your feet up before starting to run a marathon, I suggest you start planning the sale of your business before you so much as open doors for trading. Any business benefits when you, the owner, can stand separately from the business. Plan to build a business that still generates cash even when you’re away, and that doesn’t rely solely on your efforts. Otherwise, you’re not really creating a business; rather, you’re creating a job with a pile of overheads.

Preparation is the key to securing a good price for your business. Plan to sell when the timing is best for you. You don’t want to be forced into a sale, or simply to sell your business because someone fronts up out of the blue and offers a half-decent price. Instead, plan to exit with a sense of flair, with money in your pocket and a smile on your face. 

364 Part VII: The Part of Tens

Plan Your Exit from Day One

Always try to have an exit plan simmering away, even if you don’t plan to sell any time in the immediate future. Ask yourself the questions: If I were to sell this business today, what could I get for it? Can this business run independently of me? What assets or business systems do I have to sell? Try to create a formula that you (or someone else) can replicate again and again, so that your business idea can expand. For more on this way of thinking, see if you can get your hands on either copy of one of the ` best-selling titles The E-Myth or The E-Myth Revisited, written by best-selling author Michael Gerber, and both quite transformative in the way Gerber provides models for turning a simple business idea into a valuable asset.

Time the Sale to Suit Yourself

Too many business owners get forced into selling, either due to ill-health, personal circumstances or because they’re struggling to survive. You can’t hope to get a good price in this situation. Rather, aim to time the sale to suit yourself, doing the groundwork at least three years (yep, I said years, not months) in advance.

The first step, which is only possible if you plan in advance, is to declare every cent of cash takings. (Sure, you could choose to keep a ‘black book’ where you record cash takings but, hey, if you offer visible proof that you’re happy to be dishonest about your tax, how can a prospective buyer trust you not to be dishonest about other things too?)

The next step is to improve your net profit every which way you can. Remember, for every dollar you increase your bottom line, you can probably realise at least five to ten times that amount in the increased value of your business. I knew a husband and wife team who ran a nursery business with a turnover of $600,000 and average net profits of $50,000 a year. As part of preparing to sell, they bumped up prices by 10 per cent. Sales only dropped a little but, even so, they immediately made an extra profit of $40,000, increasing average profits to $90,000 a year. The result was an instant increase in value of their business of about $300,000.

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