How does budgeting affect your business?

Budgeting is about estimating your revenues, projecting your expenses and detailing the allocation of funds, so you stick to (and don’t overrun) your agreed budget ceiling.

How does budgeting affect your business?

Having a clear, agreed budget gives you a structured framework for your financial decision-making. It’s a practical way to control your costs, monitor performance and adapt your strategic and financial decisions to meet changing economic conditions.

Using budgeting helps your business in a number of ways:

• • Better control over your finances – budgeting gives you a clear roadmap for managing your company’s finances. Sticking to that budget helps you maintain control over expenses, reduce wastage and make the very best of your resources.
  • Achieving your financial and strategic goals – your budget helps you to set and track financial goals, making it easier to align your business strategies with your desired goals and outcomes. It’s a great way to boost growth, profitability and debt reduction.
  • Improved control over your cashflow – effective budgeting helps you anticipate any cashflow fluctuations. That’s a bonus that helps you plan for both lean and prosperous periods, making sure you have the funds to cover expenses and seize opportunities.
  • Allocating your resources – budgets are useful for guiding how and where you allocate your resources. From your one pot of cash, you can decide whether to prioritize investments, marketing efforts, operational improvements or business growth.
  • Keep track of your performance – comparing your actual financial results to your budgeted results helps you quickly assess your performance as a business. You can look for variances, make timely adjustments to stay on track toward your goals.

How can our firm help you with budgeting?

Being in control of your expenses, spending and predicted revenues sits at the heart of your financial management, giving you a framework and set budgetary goals to aim for, track against and (hopefully) achieve.

As your adviser, we’ll help you set up budgets for your strategic business plans, with clear tracking and reporting to keep you on the ball and meeting those targets.

Get in touch to chat about budgeting.

The following content was originally published by BOMA. We have updated some of this article for our readers.

Gone are the days of running a business with pen and paper.

Breakthroughs in the digital space offer more options and a better user experience. But even if you’re ahead of the curve, your audience may not be. You need to get in front of potential customers wherever they operate. Even in the age of digital marketing, you can’t discount offline marketing strategies.

1. Referrals incentivise word of mouth

Incentivise your customers to provide word of mouth referrals by offering gifts or discounts to your loyal customers. Even a slight discount on a big job may seem like a lot for a small business owner, but the ongoing effects can provide more revenue in the long run.

A reputation for good work will certainly win you referrals, but imagine the impact of actively incentivising customers to spread the word. If they’re getting something out of it, then you’re already giving them a story to tell.

2. Branded clothing, vehicles & merchandise

The most important part of successfully marketing a business is building an easily recognisable brand. Besides the customer rapport you spend years building, a good logo will make you stand out in front of other competitors and quippy slogans are easily remembered by those who see them. Using brand colours for your business has even been shown to improve recognition by up to 80%.

Spend time thinking about the colours, images and words you use when marketing your business. Document the decisions you make about your brand so that you can refer to it and remain consistent. Your brand guide will come in handy if you decide to hire some help with marketing. Once you’ve settled on your brand image, put it on everything: clothing, vehicles, equipment, merchandise, websites, advertisements…the list goes on.

3. Business cards aren’t dead

Business cards are a neglected part of marketing in today’s digital marketing age. But a well-designed business card can still go a long way. People need someone to reach out to when they have an emergency like a burst pipe or loss of electricity. Business cards can often be close at hand and beat out the overwhelming amount of options online.

4. Print advertising through brochures and flyers

Other print advertising like brochures and flyers may seem outdated too, but they work in a similar way to business cards. It’s the touch, being able to hold something in your hands, and the quality of the printed medium that takes you one step closer to clients. It’s got that ‘local’ feel, doesn’t it?

It’s estimated that an average person sees some 6,000 to 10,000 ads a day. The same probably goes for you, but ask yourself, how many printed ads do you see daily? How many brochures and pamphlets do you get daily? It’s the rarity of this medium that can give it a special value.

5. Trade shows are networking hubs

Don’t underestimate the power of trade shows and the value of face to face interactions. These events are the perfect way to get exposure and to see what else is going on in the market. Regardless of whether you are a sole trader or run a bigger business, make sure to understand where the market is going.

More and more work is being automated, freeing up valuable time and resources that you can use to address other areas in your business. Trade shows are like a big brainstorming session of what other work you could be doing. The acquaintances and business deals you make will have long-term benefits on your business. An online ad is a great marketing tool, but letting prospective partners and clients meet you face to face is even better.

6. Local events build community awareness

Local events are often an untapped source of next-to-free marketing potential. Make sure to understand your local residents and what events they like to take part in. Then it’s just a matter of contacting the organisers to see how you can help. Offer some kind of value and look for a way to spread the word about your business at the same time.

It may cost you very little to provide what you’ve promised, but the exposure in front of potential clients and the positivity they will be connecting to your brand are priceless. Establish a presence and become a part of the local community. You’ll quickly become everyone’s first call when work needs doing.

7. Consider your colleagues

Regardless of your trade, you should be aware that brand building applies internally as well. Your staff will be getting an inside look at your business and you want them to be happy with what they see as well. Modern technology and apps will help you track the progress of jobs, better manage your team, and communicate more effectively.

The following content was originally published by Tradify. We have updated some of this article for our readers.

If you plan to sell your business, give yourself a reasonable timeframe to bring your business into full market readiness.

Set targets to improve performance and minimise risk.

• • Financial: go beyond asking do the numbers add up. Where do revenues, costs and profit need to be to present the best buyer opportunity?
  • Strategic: potential buyers look for a compelling business model, sound management systems, streamlined processes.
  • Human: be upfront with your team. Work through potential HR issues before taking the business to market.
  • Assets: ensure all equipment is well-maintained, premises are clean and well-organised, and all assets are in good order. Potential buyers will be turned off by the need for any urgent major upgrade.
  • Risk: assess the risks to your business and work to minimise them. Does the business depend on a single key client or supplier? Can you attract other clients or alternative suppliers? Or can you secure that key client or supplier with suitable contracts? Ensure your systems comply fully with all legislative requirements (such as health and safety) and all staff are fully trained on all systems.
  • Legal: settle any court cases or disputes looming over the business before you go to market. Look at the ownership of all the business’ assets – do you or the business have complete (and documented) ownership over them all? Does the business have any intellectual property assets which give the business competitive edge? If so, make sure they’re trademarked and patented.

Call us to help you with the detail.

• • Pay your bills on time – paying your bills and debts punctually demonstrates that you’re reliable and improves your creditworthiness in the eyes of lenders and creditors.
  • Don’t use all your credit – keeping your credit utilisation low (ideally 30% or below) showcases that you’re responsible with your business finances.
  • Don’t use multiple credits lines – taking out multiple credit cards and loans can be a red flag for credit agencies and lenders and could underline your credit score
  • Monitor and correct errors – if you spot any inaccuracies (like incorrect industry SIC or ANZSIC codes), rectify these as quickly as possible to improve your overall credit score.
  • Maintain long-standing credit relationships – having a longer credit history often demonstrates stability and can help to boost your overall business credit score.

How can our firm help you with your business credit score?

Being proactive about improving your business credit score has multiple benefits. Lenders will be more willing to fund your growth, potential suppliers will be more willing to offer trade credit and your bank will be able to see your financial stability and offer better overdrafts etc.

As your adviser, we’ll be happy to review your current credit report and help you find straightforward ways to enhance your existing business credit score.

The following content was originally published by BOMA. We have updated some of this article for our readers.

Do you know what your business credit score is, and how it can impact your finances?

Your business credit score is a numerical representation of the company’s creditworthiness. In other words, how financially reliable the big credit agencies believe your company to be.

In essence your credit score is a measure of your risk to lenders. It’s calculated based on your company’s credit history, payment patterns, outstanding debts and other financial data. A higher business credit score indicates lower credit risk, making it more likely for the company to secure favourable financing terms, loans and partnerships.

How does a business credit score affect your business?

Lenders, suppliers and potential business partners use your credit score to assess your company’s financial stability. The higher your credit score, the more likely it is that you’ll be able to meet your financial obligations, honour your credit and repay any loans.

So, having a good credit score isn’t just an arbitrary financial metric – it actually helps you borrow money, fund your growth and find the best customers and suppliers.

To improve your business credit score:

• • Pay your bills on time – paying your bills and debts punctually demonstrates that you’re reliable and improves your creditworthiness in the eyes of lenders and creditors.
  • Don’t use all your credit – keeping your credit utilisation low (ideally 30% or below) showcases that you’re responsible with your business finances.
  • Don’t use multiple credits lines – taking out multiple credit cards and loans can be a red flag for credit agencies and lenders and could underline your credit score
  • Monitor and correct errors – if you spot any inaccuracies (like incorrect industry SIC or ANZSIC codes), rectify these as quickly as possible to improve your overall credit score.
  • Maintain long-standing credit relationships – having a longer credit history often demonstrates stability and can help to boost your overall business credit score.

How can our firm help you with your business credit score?

Being proactive about improving your business credit score has multiple benefits. Lenders will be more willing to fund your growth, potential suppliers will be more willing to offer trade credit and your bank will be able to see your financial stability and offer better overdrafts etc.

As your adviser, we’ll be happy to review your current credit report and help you find straightforward ways to enhance your existing business credit score.

The following content was originally published by BOMA. We have updated some of this article for our readers.