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New Paid Family and Domestic Violence Leave

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Fair Work Australia has released on their website that they will soon be amending the Fair Work Act to introduce paid family and domestic violence leave. This blog summarises the key points of this new leave entitlement as outlined by Fair Work Australia.

This new entitlement will be available as of February 1, 2023, for employees of non-small business employers. This enables small businesses an extra six months to adjust to the change, before the start date August 1, 2023, for the remaining employees.

All part-time and casual employees within the Fair Work System, will be able to access 10 days of paid family and domestic violence leave in a 12-month period. This will then replace the current entitlement to 5 days of unpaid family and domestic leave under the National Employment Standards.

Employees can claim the full 10 days upfront, which means they will not need to accumulate it over time. However, the leave will not accumulate from year to year if it has not been used.

Currently, employees can claim 5 days of unpaid family and domestic violence leave until the new paid leave entitlement is accessible. For more information about these measures’ unpaid family and domestic violence leave click here.

Continue reading for more information regarding how this new leave entitlement will come into effect.

How the leave renews?

The leave is renewed every year on each employees work anniversary – marks an employee’s first day of the job. However, it does not accumulate from year to year if you do not use it.

Employees will have access to the full 10 days, depending on whether they start on or after the date of this new paid leave entitlement. This leave balance will be renewed on their work anniversary.

For employees who were employed prior to the starting date of the new paid leave entitlement, they can access the full 10 days on the relevant start date. However, the leave will renew on their work anniversary, not on the anniversary of the relevant start date.

Taking family and domestic violence leave

All part-time and casual employees can claim this paid family and domestic violence leave, if is unpractical for them to do so during their work hours or if they need to take further action to deal with the family and domestic violence situation.

This may include, but is not limited to the employee:

  • Accessing police services
  • Attending appointments (medical, financial or legal)
  • Attending counselling
  • Relocating or making safer arrangements for themselves and/or others

Meaning of family and domestic violence

Family and domestic violence refers to the violent acts and/or other threatening behaviours that generally occur between close relatives, a current or former partner or member/s of their household that both coerce and/or seek fear from another.

A close relative can refer to:

  • An employee’s
    • Spouse or former spouse
    • De factor partner or former de facto partner
    • Child
    • Parent
    • Grandparent
    • Grandchild
    • Sibling
  • A child, parent, grandparent, grandchild or sibling of an employee’s current or former spouse or de fact partner, or
  • A person related to the employee according to Aboriginal and Torres Strait Islander kinship rules

Payment for leave

Paid family and domestic violence leave for full-time and part-time employees will be paid at their full pay rate for the hours they would have worked that week.

Casual employees will also be paid at their full pay rate for the hours they were essentially rostered to work for that period they booked their leave.

An employees full pay rate includes their base rate plus others, such as: incentive-based payments and bonuses, loadings, monetary allowances, overtime or penalty rates and any other separately identifiable amounts.

Interaction with other paid leave

Employees are able to use paid family and domestic violence leave even during the period of paid personal/carer’s or annual leave. In this case, will then take paid family and domestic violence leave instead of the other ford or paid leave. The employee is required to notify their employer and supply the necessary evidence to support their claim.

Notice and evidence requirements

If an employee takes paid family and domestic violence leave, they must let their employer know as soon as possible. An employer will request evidence from their employee to show that their employee needs to take further action to deal with family and domestic violence, especially if its not practical for them to do outside their work hours.

An employer can only use this information to satisfy themselves that their employee is entitled to family and domestic violence leave, only if:

  • The employee consents
  • The employers deals with the information by law or
  • If its necessary to protect the safety of the employee or another person involved.

The employer cannot act against the employee or use the information for other purposes.

All the previous rules about notice and evidence under the previous unpaid family and domestic violence leave will continue for the new entitlement.

Find out more about the current rules regarding notice and evidence for family and domestic violence leave.

Support services

Confidential information, counselling and support for people impacted by family and domestic violence can access the 1800 RESPECT website, for further counselling services.

For information about these measure click here.

How to minimise the risks of cyber crimes

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With recent high profile cyber crimes being committed it is no wonder that this is now a priority for both businesses and consumers. Recently the ACSC Annual Cyber Threat Report (July 2021 to June 2022) was released to provide advice for businesses and consumers to protect themselves. An article by Accountants Daily highlighted some of the key aspects of this report.

Since the beginning of the pandemic in 2020, cyber threats have grown excessively. In particular, phishing spam calls, spam text messages, video conference attacks and insider threats.

Russia’s invasion of Ukraine has contributed to the destructive malware and sophisticated cyber-attacks on European Networks.

Advanced cyber threats have drastically increased at a larger scale, due to extortion, espionage and fraud. The Australian Cyber Security (ACSC) have calculated a 13% increase in the last financial year with an approximate of over 76,000 cybercrimes having been reported.

The top security trends for ACSC are:

  1. Cyber space has become a battleground
  2. Australia’s prosperity is attractive to cyber criminals
  3. The most destructive cyber crime remains ransomware
  4. Worldwide, critical infrastructure networks are increasingly targeted
  5. The rapid exploitation of critical public vulnerabilities became the norm

The following are crucial lessons from the latest cyber crime data.

  1. Frequency of cybercrime reports

All businesses should be weary of the increase in cybercrime and cyber security incident. As an increase in cybercrime will require an increase in cyber defence and protection.

The rate at which a cybercrime has been reported was one every seven minutes, however the reporting rate for the previous year was one every eight minutes.

The states reporting the most cybercrimes were Queensland (29%) and Victoria (27%).  However, the Northern Territory reported the highest average of losses resulting over $40,000 and Western Australia resulting exceeding $29,000.

  1. Trending cyber crimes

The three most frequently reported is online fraud (27%), online shopping (14%) and online banking (13%).

Fraud is the most prevalent, however ransomware is classified as the most destructive cybercrime, due its long-lasting impact, especially on data. Furthermore, organisations are also prone to fall victim to the indirect consequences of ransomware. This includes reputational damage and information being leaked and/or sold on the dark web.

The top-tier cybercrime syndicates target Australia’s big names, hence heightening the importance of large enterprises becoming more aware to this severe threat. LockBit was the top-rated weapon of choice against ransomware for 2022.

  1. Top industries targeted

The highest number of cyber security reports were within the healthcare and social assistance sector with a total 10%. The next leading cases were information media and telecommunications with 8% and education and training at 7%.

  1. Business Email Compromise

Business Email Compromise (BEC) is referred to as the scam that targets companies who have suppliers abroad and also conduct wire transfers. Cyber criminals are known to use BEC on the larger enterprises as they can hijack large sums without having to access the malicious payload URL.

Successful BEC attacks have risen significantly with the average loss to have increased over $64,000. According to ACSC Queensland was the most vulnerable with a total of 389 reports and a total of BEC attacks rising to 1,514.

  1. Cyber defence for organisations and individuals

Clare O’Neil, the Cyber Security Minister, had stated that due to Australia’s unique geostrategic position and information-rich environment we must build our cyber defences to ensure we have the tools necessary to protect ourselves against the impacts of cyber-attacks.

ACSC recommend following the essential eight maturity model which includes:

  1. Restricting administrative privileges
  2. Patching or updating operating systems
  3. Implementing multi-factor authentication
  4. Conducting regular back-ups
  5. Configuring your email security settings
  6. Initiating application controls on workstations and servers
  7. Denying corporate computers direct internet connectivity

It is encouraged to secure all devices and accounts, this means:

  • Turning on automatic updates to update applications, programs and smart devices
  • Activating multi-factor authentication across all of your accounts including emails, banking and social media.
  • Backing up your devices every three to six months.
  • Creating strong unique passwords for every account

First Line of Defence

To limit the risk of fraud and payment error, all accounts payable (AP) managers should conduct call-back controls to ensure the payee pays the correct invoices.

Some common challenges associated with AP teams conducting call-backs:

  • They don’t independently source supplier contact details
  • They rely on the return messages and incoming information
  • They don’t ask the correct questions
  • The people conducting them aren’t trained to detect fraud

Every time you onboard a new supplier or update your existing supplier, call-back controls are an essential. It is a simple, yet effective solution for your first line of defence.

The Bottom Line

As previously mentioned, cyber crime is an on-going issue and there are no signs of it slowing down in 2022. Therefore, being aware and understanding of how these threats are created, can minimise the chances of being at risk. For more information about this measure click here.

2022/23 October Federal Budget

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As announced by Treasurer Jim Chalmers, the 2022/23 Federal Budget has been updated as of October 25, 2022. The National Tax and Accountants’ Association (NTAA) provided an excellent summary of those updates and we have highlighted some of the key points:

Clarification for unlegislated taxation and superannuation measures

It has been announced that legacy tax and super measures that were mentioned, but not previously legislated by the Government will not be proceeded. This includes:

The Government proclaimed that certain legacy tax and super measures announced, but not legislated prior by the Government will no longer proceed. This includes:

  • The 2018/19 Budget
    • The annual audit requirement for certain self-manager superannuation funds (SMSFs) will change. Previously, the annual audit requirement for SMSFs with a history of compliance and good record-keeping changed to a three-yearly requirement.
    • Cash payments with a limit of $10,000 will be introduced to goods and services businesses. Initially, any payments made over this threshold were paid through an electronic payment system or via cheque.

Certain legacy tax and superannuation measures will be deferred to ensure policies are legislated ad implemented sufficiently. This includes:

  • The 2019/20 Mid-Year Economic and Fiscal Outlook (MYEFO)
    • The introduction of a sharing economy reporting regime for transactions regarding the supply of ride sourcing and short-term accommodation will be deferred to July 1, 2023.
  • The 2021/22 Federal Budget
    • The residency requirements for SMSFs will be relaxed as of July 1, 2022 through to the income year commencing either on or after the date of the Royal Assent of the enabling legislation.
    • This will be done by extending the ‘central control and management test’ safe harbour to five years and removing the ‘active member test’. This will enable SMSF members to make contributions to their superannuation fund, even when overseas temporarily.

Clarification that digital currencies are not taxed as foreign currency

A legislation will be introduced to further clarify that digital currencies such as Bitcoin, will continue to not be taxed as foreign currency. This includes the capital gains tax treatment where they are held as an investment. This measure will support the Government of El Salvador’s decision to adopt Bitcoin, which will be backdated to the year including July 1, 2021.

Any digital currencies issued under another authority or government official agency, will continue to be taxed as a foreign currency.

Superannuation – expanding the eligibility for downsizer contributions

The Government has reduced the downsizer contributions eligibility age from 60 to 55 years of age, which will be effective in the beginning of the first quarter after the Royal Assent of the enabling legislation.

This provides an opportunity for people to make a one-off post tax contribution to their superannuation of up to $300,000 per person from the proceeds of selling their home. Either member of the couple can make contributions and it will not be included towards non-concessional contribution caps.

Non-tax measures will also be announced to reduce the financial burdens on pensioners considering downsizing their homes. This will increase the housing availability for younger growing families.  This includes:

  • The assets test exemption will be extended for principal home sale proceeds to 24 months for income support recipients.
  • The income test will change to apply only the lower deeming rate of 0.25% to principal home sale proceeds (calculated 24 hours after the principal home sale)

Fringe Benefits Tax (FBT) – Electric Cars

Battery, plug-in hybrid electric and/or hydrogen fuelled cars will be exempted from import tariffs and fringe benefits tax as of July 1, 2022. This only applies to those who have a retail price below the luxury car tax threshold for fuel-efficient car. The car mustn’t have been held or used prior to July 1, 2022.

Employers must ensure to include the exempt electric car fringe benefits within an employee’s reportable fringe benefits amount.

COVID-19 Business Grants made non-assessable non-exempt

As a result of COVID-19 payments made prior to June 30, 2022, they can be made non-assessable non-exempt (NANE) for income tax purposes and those who are eligible. This tax treatment is only available for businesses who experienced severe economic consequences during the pandemic.

The Government has designed COVID-19 grant programs for the following to be eligible to receive the NANE treatment. This means eligible businesses will be exempt from paying tax for the following grants:

  • Victoria Business Costs Assistance Program Four – Construction
  • Victoria Licensed Hospitality Venue Fund 2021 – July Extension
  • Victoria Licensed Hospitality Venue Fund 2021 – Top Up Payments
  • Victoria Business Costs Assistance Program (Round Two Top Up, Round Three, Round Four, Round Five)
  • Victoria Impacted Public Events Support Program Round Two
  • Victoria Live Performance Support Program (Presenters) Round Two
  • Victoria Live Performance Support Program (Suppliers) Round Two
  • Victoria Commercial Landlord Hardship Fund 3
  • Australian Capital Territory HOMEFRONT 3
  • Australian Capital Territory Small Business Hardship Scheme

Boosting Paid Parental Leave

As of 1 July 2023, the Government will introduce an improved Paid Parental Leave Scheme making it flexible for either parent to claim the payment. Both birth and/or non-birth parents are eligible to receive this payment if they meet the criteria.

Parents will also be able to claim this payment at the same time they take leave.

The scheme will be expanded from 1 July 2024, by an additional two weeks a year until it reaches 26 weeks from 1 July 2026.

The leave entitlement can be shared amongst both parents, with a section titled on a ’use it or lost it’ basis. This is to encourage both parents to use the scheme and share the caring responsibilities amongst one another equally.  Single parents can access the full 26 weeks.

Extending ATO Compliance Program

  • Personal Income Taxation Compliance Program
    • From 1 July 2023, the Government will be extending its Personal Income Taxation Compliance Program for two years. By doing so, it will focus on delivering a more proactive, preventative, and corrective activities fundamental to areas of non-compliance.
  • Shadow Economy Program
    • The ATO Shadow Economy Program will extended for a further three years, starting July 1, 2023. This will strengthen the ATO’s response to target shadow economy activity, continue to protect revenue for businesses following complying to the rules.
  • Tax Avoidance Taskforce
    • The funding for the ATO Tax Avoidance Taskforce has been boosted by roughly $200 million per year for the past four years from 1 July 2022, whilst also extending this Taskforce for another year (1 July 2025). By doing so, the ATO will be supported to pursue new areas of priority for business tax risks, determining the focuses for multinational enterprises as well as large public and private businesses.

For information about these measures click here.

How Small Businesses can better build credibility online

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Building credibility is important for small businesses to build trust and encourage more customers to buy your product/service. Check out these five killer tactics to set yourself apart and establish your business as trustworthy.  

1. Show Your Achievements  

Showing your wins is super important to establish your credibility. You should recognise and celebrate your achievements, from helping clients achieve goals to winning an award.   

Post these achievements on social media, put in in an email blast, include in on your website. If you have a trophy or plaque, showcase that in your office/store.   

When you tell everyone that your business achieved something, they are likely to think positively about your business. It also encourages potential customers to make a buying decision as well.   

2. Publish detailed case studies  

A super easy way to build credibility is to publish case studies of some clients that you have worked with.   

A detailed case study will be effective to convince readers that you are skilled in what you do and have knowledge in the related industry. This will help boost your business’ credibility.  

You should go into details of what you have done for the client. Outline the problem, how you solved it and the achievements. Photos and videos are great to demonstrate this as well.  

And to let everyone read it, make sure you share it on social media and email campaigns. The case study section should be easily accessible from the home page of your website as well.  

3. Highlight your uniqueness  

What do you offer than stands out from your competitors? What sets you different? What is one thing that your customers need but no one offers it yet?  

If you highlight your uniqueness and make your business stand out, your audience will be likely to choose you rather than your competitors.   

You should also convince your customers why they should choose you; this can be done effectively with the use of case studies highlighted in (2).  

4. Share your knowledge  

When you share your knowledge on platforms such as social media, website and email campaigns, you will convince your audience that you have solid knowledge in the industry and is a thought leader.   

Give as much as you possibly can, whenever you can – within reason and within your limit of what is comfortable for you.   

You can simply share it on social platforms, or build a landing page on your website that provides an ebook or video series to customers who sign up to your newsletter. This way, you will get some leads and build credibility at the same time.  

5. Be a featured guest  

When you become a featured guest on podcasts, summits, interviews, and other websites as a guest poster, you are building credibility for yourself and business.   

Why? Because it shows that the host respect you, your business and what you have to say. It also helps reach more people and build brand awareness as well.  

What are some ways that you use to build credibility? Let us know in the comment below!  

NEXT STEPS:  

If you need help, don’t hesitate to contact us! Give us a call or book a consultation on 07 3367 0852.

You can also check out some of our articles:

What the 2020 Federal Budget means for you

How to improve wellbeing in the workplace 

Tips to advertise your small business for free    

 

Tips to advertise your small business for free

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Promoting your business online is important to your business’ growth in 2020. It helps to reach your potential customers, raise consumer awareness about your product/service and increase sales. But before spending the big bucks on marketing and advertising, have you considered the advertising options that are absolutely free and still powerful? Read on to learn more!  

1.List your business on search engines and online directories 

Registering your business with Google My Business helps people find your business easily on Google and Google Maps as well. This helps optimize your local marketing strategies without spending money! Simply fill out the registration form and get your business verified through the confirmation process. You can also look at online directories that list businesses in your industry and register for a listing as well.  

For example, we have a Google listing where potential customers can easily click on the maps to get directions, call us or view our website: 

 2.Get involved on social media

Using social media is a good way to connect with your customers. Keep in mind that the goal of using social media marketing is not to shove your product/service in their face, but to create and maintain meaningful relationships. To do this, you should post relevant content related to your business/product or brand by telling stories that engage with customers. You should also interact actively with them (e.g. by replying fast, posting polls, etc.).  

3.Get involved with the community

You can get on the local community’s good side by getting involved, e.g. raising awareness of a problem, donating to charity. It’s possible that customers will support your business because you stand for something that they are interested in and you make a difference in the community. 

4.Host a free workshop

Hosting a free workshop that gives out advice (related to your industry) can deliver promising results. Doing this shows that you are a leader and an expert in your field and builds awareness about your business as well. At the end of the workshop, you should call to action by encouraging attendants to try your service/product and giving out contact information. The next time when someone needs the product/service you offer, they will turn to you or your company for a solution. 

5. Encourage customers to leave online reviews 

Many people read online reviews before purchasing from a local business, especially on Google, and they are more likely to trust your product/service if they see a good rating from past customers. Make sure that you ask your happy customers to leave you an online review! 

For example, customers gave us reviews on our Google listing: 

Don’t forget to share this post! Or check out some of our latest articles:   

Unhealthy remote work habits to avoid 

Tips to create a work from home schedule that works for you  

Effective ways to increase your market share  

Top tips to increase your customers in 2020 

 

How to engage with customers during COVID-19

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We understand that during the COVID-19 pandemic, connecting with customers can be a challenging task. Businesses need to communicate effectively and maintain brand awareness and recognition these days. Here are some tips your business can use to better interact with your consumers during the crisis:  

1, Utilize virtual spaces  

With everyone at home, brands can engage with customers in many ways through the virtual space. Virtual events and community experiences are a good idea. For example, we have seen active brands releasing free virtual workout sessions. A virtual webinar or panel is also a good idea. You can also consider live streaming on social media or website to better connect with your customers as well.  

With a lot of people at home and many of them are eager to beat lockdown boredom, you can take advantage of virtual spaces now to showcase your goods and keep your brand on top of their mind. There are several great streaming platforms out there that you can use, and you can always utilize your social media platforms to connect with your audience in the most natural way.  

2, Ensure that you provide a smooth online shopping experience  

If you are a retailer, now is the time to make the move online or improve your eCommerce site. If you are a brand that has always been traditionally sticking to offline sales, it’s important to make the shift online now. As many people are staying home, there is a large portion of consumers moving online. To get started, getting a website and digital catalogue will be helpful for customers to shop just like browsing your offline store. You should also utilize social media and digital marketing strategies such as running ads online or email marketing to reach more people and keep them updated.  

If you have already managed an online store, make sure that your digital store is up and running smoothly. It is crucial to ensure a good user experience so customers can view and choose the products they want and place the order easily. You can also engage with customers during and after the shopping experience, such as sending them a follow-up email with a feedback form and ensuring that virtual support is always available on the website.  

For businesses that provide services, you may have many problems with delivering your service and communicating with your clients online during this time. Make sure to utilize online meeting platforms (such as Zoom, Google Hangouts or Skype) and project management applications (such as Slack, Asana and Trello) to keep the team and your clients on track.   

3, Send out human-centric messages   

The public is aware that the COVID-19 pandemic has hit us hard. Thus, messages that are human-centric can be effective. For example, if your business has offered your employees help and support during the crisis, or if you provide support to the community, feel free to send out the message. Showing that you are being sensitive to the human side is important to customer loyalty.  

4, Avoid fearful language   

It doesn’t help your brand to share over-sensationalized messages that the media has been sharing. Instead, you can share what your business has been doing to reduce the spread of the virus and send out positive vibes.   

NEXT STEP:  

Stay tuned for more blogs that can help you manage and grow your small businesses! Check out some of our past blogs in the meantime:   

New year resolutions for small businesses  

Top 3 small business challenges and how to solve them  

5 Powerful ways to improve your small business marketing  

 

 

5 Powerful ways to improve your small business marketing

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As a small business, we understand how other small businesses struggle with managing a budget for marketing strategies. A small budget doesn’t mean that you can’t get creative and succeed with your marketing campaigns. Our blog is here to guide you through some powerful tactics to utilize your marketing game and not spending too much money.  

Small business marketing

1, Profile your target market based on certain characteristics  

Conducting research about your market is not enough, you need to identify your target audience and classify them into groups based on characteristics. Some common (and effective) ways to segment a market are:  

  • Demographics (Age, gender, income, education, social status, occupation,…)  
  • Geographics (City, country, living area,…)  
  • Psychographics (Lifestyle, personality, attitude, values,…)  
  • Behavioral (Benefits sought, purchase usage, intent, occasion,…) 

It is also important to keep in mind that your target market should have a need for your product/ service and be willing to pay for your offer.  

2, Create and share content that adds value  

By publishing content that brings value to your audience, your brand will attract people and gain more audience overtime. You don’t even need to attempt to sell your products, sharing knowledge and value-added content is enough to give people a reason to follow and listen to the brand. Consider sharing content that is relevant to your business and your followers as well.  

  Content creation

3, Level up your Google My Business profile game  

You see Google ratings and business profiles everywhere, but did you optimize this yet? Filling out your Google My Business profile now to take a big step in local marketing. Make sure to include important keywords to optimize your SEO. Additionally, putting up some nice photos would improve your credibility. 

4, Get listed in online directories  

Getting on directories will drive traffic to your site and increase awareness. Depending on your industry and product/service, you will find different online directories that are suitable for your company. Many of them are free or have paid options but the basic one is usually free.  

5, Leverage micro-influencer marketing 

Micro influencers (those with small reaches) are often cheaper than highly regarded celebrities. Research has shown that these influencers usually communicate and engage with their audience more. In other words, they are perceived as trustworthy and influential among their followers. Working with them can form a strong community around your brand and build better awareness. For instance, you can easily use tools like TRIBE or Scrunch to connect with micro-influencers based on your product and desired audience.  

influencer marketing

Staying Competitive as a Small Business in the Amazon Age

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Amazon has been operating on Australian shores for some time now, but the ‘Amazon Effect’ has yet to hit. Amazon’s launch has signaled a culture shift for shoppers, with eCommerce sales set to almost double in the next five years. With this in mind, how can you ensure your small business doesn’t get left behind?

Consider how you could use Amazon to your advantage

Amazon’s Marketplace platform provides opportunities to reach a whole new segment of customers. With the recent introduction of Fulfillment by Amazon, small businesses can use Amazons capabilities for storing and sending products. This is especially useful for when their Prime service launches later this year, offering flagship shipping times. The service also processes returns, freeing you up to focus on what you do best.

Focus on your delivery times

If you decide you aren’t going to use Amazon’s logistics services, make sure you are nailing your shipping times. As Amazon keeps growing, delivery speed is going to be a growing driver of business, according to Deloitte’s David White.

Get your online right

Reports from Hitwise and OFX show Australian consumers are eager for a multi-channel shopping experience. Focusing on options such as click-and-collect are critical to bridge the gap between online and in-store customers.

The largest demographics using online shopping are the 25-34 and 35-44 age groups, think about how you can effectively reach these audiences and convert them into customers. Effective online presence is key for this, especially for small business, have a read of our article on online presence HERE.

Brand loyalty was also shown to be increasingly more important in the current retail landscape, that means continuing to engage with customers post-purchase through online newsletters, deals, or targeted ads.

Remember the power of price

Amazon sells products at a premium to US prices with their advantage coming from their range of products and delivery, not their price. Focusing on delivering prices that blow customers away is a simple way to compete against Amazon.

Millennial Millionaire

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Millionaire Millenial

The Millennial Millionaire

This week we are highlighting a man dubbed ‘The Millennial Millionaire’, Grant Sabatier. Grant is the founder of the
overseas company ‘Millennial Money’. Within a five year period, he went from having $50 to spare each week,
to full financial independence. If like me, you want to know the marvelous journey this man took to get to where he is;
then read on dear reader… read on!

The Beginning

In 2013, Grant was living in an apartment he could barely afford, with student loans (10x worse than HEC debt) and a car loan. Living paycheck to paycheck, with only $50 spare at the end of the month. Whilst he wasn’t drowning in bills, he definitely was not flourishing.

Math time: if Grant had a remaining $50 at the end of the month, how much did he have at the end of the year?

Answer: $600 (that’s not even enough for a small holiday).

The Change

In late 2014, early 2015 Grant underwent a major change of his perspective on his financial situation. He managed to: reduce his $50,000 student loan and car loan to less than $8,500 with final payment to occur in 2018, built an investment portfolio with over $35,000, and accumulated enough savings for an adequate emergency fund.

The Process

  1. Shift to a net-worth mindset – start tracking your net-worth

Income, savings, investment returns, debt to income ratio, all these numbers play an important role when optimising your money but the single most important figure is your overall net-worth. Net-worth subtracts liabilities from your assets. No matter how much you make or save, if your net-worth isn’t increasing you’re on the wrong track. Not sure where to start? Our experts can help. Give us a call on (07) 3367 0852 and talk to an advisor.

  1. Become a bloodhound

I’m not saying become an actual sniffer dog, what I mean is tracking your money every step of the way. Calculate loans, bills, food, entertainment, etc. Similar to getting a loan, ask yourself how much you spend each week on both necessary and unnecessary things. Knowing where your money is ending up is much more important than budgeting (of course, budgeting is ideal anyway!). Doing so can really help put into perspective what you should decrease.

  1. Never stop learning

You don’t have to sign up for a 3-year degree at university, and you certainly don’t have to pump thousands of dollars into a trade accreditation for this step. Luckily in the technology era, free courses and certifications are popping up everywhere. If like me you are into digital marketing, Google offers free certifications in both Adwords and Analytics, whilst HubSpot offers an Inbound Marketing Certification. No matter what industry you’re in, you should always look at increasing both your knowledge and skills.

  1. Adopt a side business

These days it’s so easy to create a side business, whilst it won’t offer you thousands in revenue, it can offer you another income stream. Some people get paid to blog, create logos, produce crafty things or even create a small side business. Similar to selling lemonade for 50c a cup as a child, you can create a small business quite easily. Unless you’re sure this is the career path you want to take, do not invest all of your time and resources into it!

  1. You are #1

From the widely known concept in ‘Rich Dad, Poor Dad’, pay yourself first. Save as much as you can before bills are due but leave enough to ensure no late payments. I’m not saying take half your paycheck and hide it from creditors, I’m saying start squirreling funds away before making purchase decisions. The most effective way is to start with 10% of your pay and place it in an interest-earning savings account, or even invest it. Anytime you earn money from your side business, put it straight in your savings or investment account – don’t spend it! This reduces the risk of impulse buying as you’ll have less and less left over to do so.

  1. Invest, don’t consume

If you were to look at some statistics, you would notice that most people are consumers rather than investors in this world. Investing is crucial if you want to build any kind of wealth or portfolio. Whenever someone earns a raise or accrues some overtime, they spend it on things that don’t work towards financial freedom. In fact, the biggest thing most people do is buy expensive things or live a certain lifestyle they can’t afford, essentially ‘champagne taste with beer pockets’. So the next time you’re at a shopping center or browsing the internet and see something you want, ask yourself “will I actually need this item and if not, will it add value to my financial freedom?” The answer is most likely always no.

  1. Patience is a virtue

Patience is the biggest key to anything in life: getting that promotion, growing your business, meeting the right person, finding the perfect home, etc. There is rarely anything in this world that you can gain without being patient. Don’t be discouraged if you’re saving less than a hundred dollars a month, it all adds up in the end. In a few years, your savings will have increased and you’ll look back proudly at your accomplishment.

 

 

Why You NEED an Online Presence to Succeed

By

Social Media

Prior to the technology boom, everyone found businesses in the yellow pages. Unfortunately, these days’ local listings, newspaper advertisements, and any other print medium just won’t cut it. No matter how amazing your business or product is if you aren’t online, you are invisible. Having an online presence can make or break a small business.

The Why

If people are able to find you through a quick google search, google maps or a social media campaign, then you are on the radar. Just being seen isn’t enough, just like the cliché ad you hear at Southbank Cineplex “don’t just be seen, be heard.” Having an up-to-date website is as important as having one in the first place. It’s not only beneficial for yourself (avoid negative reviews) but also your customers.

When I mention an up-to-date website I don’t mean a complete overhaul once a month to the excess of thousands of dollars but instead, I mean a little sprucing up. Content should always be updated, especially if you change address, prices, or even the business name. Time dedicated to creating an online presence is time well spent, especially for small business owners.

 

Online - Why?

Here are the top reasons to increase your online presence:
  1. Become More Accessible – enhance your online presence to stay ahead of the competition. You don’t want a potential customer to pick your competitor over you, so why make it easier for them too?
  2. Cast a Wider Net – these days there are hundreds of social media applications, groups, and even advertising platforms (all thanks to the internet), so why not use them to your advantage? Let the customer come to you, instead of going to them.
  3. Build Consumer Relationships and Trust – reviews will be your next best friend. You have the ability to reach out to unhappy customers and avoid your name being dragged through the mud. Positive reviews can enhance your business in the public eyes. If you can maintain at least 4 stars on Google, Facebook, or the like – you’ll maintain an online presence.
  4. Effortless Marketing – consumers can browse your products, hours of operation, and much more important information with the click of a mouse.
  5. Find What Works and What Doesn’t – easily see the effects of a marketing campaign, track website traffic, and social media statistics. Every inch of your online presence can be measured, thanks mostly to Google Analytics.

 

The How

  1. Create a visually appealing website – with up-to-date information and working links
  2. Create a Facebook and Twitter account – these will give you access to not only a new audience but also allow you to share any news, events, or discounts with the click of a button
  3. Search Engine Optimisation (SEO) – focus on important keywords that relate to the information on the webpage (needs to be done for each webpage). This allows Google to pick up said keyword without the use of advertisements. Essentially allowing potential customers to find your site without relying solely on paid advertising
  4. Hire Someone – you don’t need to hire a university graduate, in fact, you’re better off hiring someone studying marketing or advertising to work either one or two full days a week. This will increase your marketing budget but will be better utilisation of your time. They can complete all your marketing tasks, keep your social media and website up to date, and work on both SEO and AdWords. This means you don’t have to pay hundreds of dollars a month to multiple companies to stay relevant

Conclusion

Building an online presence doesn’t have to be rocket science, there is an entire wealth of technology just one search term away. Create blog posts, maintain your website, utilise social media, and your marketing will be far more effective.