What are the average prices for services offered by financial advisory firms?
What are the most effective ways to finance inventory? When should I consider these options as opposed to straight cash purchase?
How can you improve your profit margin?
As @Hitesh Mohanlal has mentioned, the key is volume, and that means building up and maintaining a decent (and/or growing market share). However, I have seen several low-margin businesses use 2 keys to differentiate enough to create a loyal and passionate customer base.
The best example I can offer is a grocery store chain that operates mostly in the South-Eastern region of the United States. That chain is called Publix. Most grocery stores work on volume and economies of scale (the more they sell the better price they can buy at to stock their stores).
However, the reason Publix is so fascinating to me is that it isn’t one of those grocery chains that requires you to have a club card to get the good prices. It also doesn’t do over-the-top and unsustainable promotions or sales. Publix has possibly the best customer service I’ve ever personally experience from almost any type of business. Can’t find something? They won’t tell you what aisle it is in, they walk you to that aisle and ensure that is what you wanted. They also offer umbrellas near the exist in case it is raining so you don’t get soaked while trying to take your purchases to your vehicle and many other small touches like this throughout the store.
Additionally their store brand line of products are given as much care as name brand products. They don’t need to do that, they choose to do that, and their items are almost always less expensive and come in more varieties.
Lastly, they demonstrate excellence by including recipes with items featured in their weekly ads. They also have in-person cooking demonstrations, give out free samples, and have the recipes printed on nice cards that are free to take as well.
So you can see that in many ways a margin business can stand out by crafting a unique brand, having excellent customer service, and looking to add value to customers in ways that are intangible. So my recommendation would be to look at incorporating these ideas instead of just feverishly trying do more volume. The things I’ve mentioned will increase the volume because it helps build a reliable and passionate customer base. And the return on investment for a life-long customer compared to a one-time customer is important to keep in mind.
Sharing this question on behalf of community member, Tara Dixon: Do you guys have any advice on the Sole Trader supplement, does anyone have a clear understanding of; 1> how to claim 2>...
The Federal Govt will be introducing a Coronavirus Supplement of $550 per fortnight to individuals who are receiving certain eligible income support payments AND for the next 6 months will expand access to certain individuals as well. This expanded access will include Sole Traders, self employed and contract workers who meet the income test as a result of economic downturn due to the Coronavirus.
This will commence from 27th April 2020 so a short while off before you can claim.
Applicants are encouraged to claim through on-line and mobile channels or over the phone where you do not have internet access. Given the call lines are now open till 8pm, a call later in the day may be more productive to getting through. MyGov is one way you can make an application so if you do not have an account yet, set this up ready for when you can make a claim ( my.gov.au ). When you log onto MyGov on the home page you will see the following message about half way down
"Claiming a Centrelin payment. The fastest way to claim a Centrelink payment is through your online account. You can do this if you're linked Centrelink to myGov. If you have linked Centrelink to myGov and your circumstances are affected by coronavirus (COVID-19), you can register your intention to claim a payment. You only need to do this once. We'll let you know the next step to make your claim"
Below this is a Register Intention to Claim button to click
The asset test will be waived for the period of the coronavirus but income testing will still apply to other payments you receive consistent with pre coronavirus arrangements.
"For small businesses which filed as companies, 49 per cent registered a net income of between $0 and...
When you consider that a huge percentage of new businesses fail within the first couple of years, with many failing in their first year, it is not surprising that the owners don't have a good income.
On top of that, most startups rely on external money being injected into the business. This money is typically from the owner. It doesn't make sense to pull an income from a business (and pay tax on it) when you are pooring your own money into it.
And then when times are tough, suppliers and employees still need to be paid. Not paying them is a quick path to being shut down. The only person who is desperate enough not to be paid is the business owner.
Tax minimisation for the owner is handy for a short while, but then catches up to you when they want a bank loan. A "successful" business owner will have a reasonable level of income.
Of course there are cash in hand businesses, and tax minimsation going on, but overall the article reflects that most small businesses struggle.
Anyone thinking of starting a business would do well to read the article and know the failure rate statistics for new businesses before they start.
I have heard stories about Bitcoin and that some business owners use and accept it as currency. What is Bitcoin? How do I get it? Also, how do you use it? Is there a Bitcoin credit card number?
They are many similar digital currencies, however bitcoin seems to be the most well known of them all.
It is a more an underground digital currency. With that said its transactions underpin a growing economy which can't be ignored either.
As mentioned, most everyday businesses do not understand bitcoin, so are hesitant to offer it as a payment option. Some that do have opened up to new / wider markets they never previously had.
Presently it is hear to stay, no one can predict where it is truly heading, and equally the value can turn to dust overnight or boom significantly like any other traded commodity.
Enough to enable you to carry out the formative aspects of your business plan, plus a 3 month contingency.