Five ways to reignite your business in the new financial year
From franchising your business, making it tourist friendly to going online or even overseas, we have five ways to kick-start your business in the new financial year.
1. Franchise your business
Are you running a top-notch business which could be replicated and the rights sold? Maybe franchising is for you. But what does it mean? On a basic level, you are selling the right for others to sell a product or service under your trademark or trading name.
Jim’s Mowing comes to mind. He stated mowing lawns in 1982 and grew the promise of “six-figure income from an outdoor hobby you love” into a multi-million dollar empire.
At last count there were more than 250 franchisors managing more than 3200 franchisees in Australia, New Zealand, Canada and the UK. According to BRW, he gets an average annual revenue of $100,000 per franchise which means a total revenue of about $320 million. That’s a lot of grass clippings.
Franchising also comes with a lot of compliance, tax obligations, and its own code of conduct, so do your homework.
2. Export overseas
Why limit your customer base to just Australia? This year may be the time to get your product overseas and what bigger market is there than our neighbours China? But where to start? Finally the government has provided some much-needed pathways to get your goods on their shelves.
NSW Business Chamber’s new Export Growth China program offers trade experts in Sydney, Brisbane and Shanghai, focused on securing interest from a Chinese buyer and moving you towards a lucrative sales contract. Take a quick check to see if it’s for you.
Of course expanding your market overseas can mean not only bigger profits but bigger risks. For more on exporting go to business.gov.au. Find out what support is available for exporting from the Export Finance and Insurance Corporation (EFIC).
3. Get tourist friendly
In the last year, international travellers spent $36.6 billion in Australia. The question is how much of that tourism windfall is your business getting?
Tourism Research Australia has packaged up some tips, marketing strategies, and a raft of resources specific to SMEs to help you grab some of that tourism gold.
4. Get your cash flowing
With half of small businesses going under in their first three years and poor cashflow being cited as the top cause, there’s no denying how critical it is to get it right. In simple terms, you have to know the ebb and flow of your cash so you can meet your tax and super obligations, including:
- PAYG income tax instalments
- PAYG amounts withheld from employees’ wages
- Fringe benefits tax
Check out our Five-step guide to a killer cashflow. We ask expert Tim Hoopmann and our SMEs how they do it.
5. Expand online
Balking at the idea of tackling the Chinese market but still want to push your product overseas? Well, the most immediate and cost-effective way is online. The pluses are obvious. There is the saving on staff, rental, and you get an around-the-clock shopfront.
It’s probably not a question of should you, but how. According to the latest NAB data, online sales rose by 10.6% from a year earlier, more than double the pace of traditional bricks-and-mortar retailers.
It’s estimated that over the year a total of $19.2 billion was spent online, equivalent to 6.6% of spending at traditional retailers. While that may seem small in comparison, the growth is far outstripping its opposition.
A good example of a business which wouldn’t exist without an online shop is consumer electronics retail giant Kogan. The company, founded in 2006 by Ruslan Kogan, sells budget products from Asia to Australia and the UK. Price point is the key to his business model which has made him a wealthy man. He made the BRW Rich 200 list with more than $320 million.
Have a website but don’t feel you are getting a good return on it? Here are 11 DIY hacks you can do today to drive more customers to your business.