About Angus Jones

Angus started his first small business in 1989 and has since gone on to have a successful career in marketing. He realised although there were many websites for small business none was addressing the question of how to. Angus has a passion to articulate benefits that add value to customers/readers.

Choosing a business structure

Posted on May 6, 2021 by Angus Jones

Right at the beginning of your Small Business journey, you need to decide which business structure is best for your situation. This will have an impact on the complexity of running it as well as taxation and personal liability implications. This guide will explain your options to help you decide which is best for you.

A business structure is the legal structure in which you set up your business

WHY does a business structure matter?

The practical impacts of this decision can affect how much tax you pay, legal implications like licensing and personal liability, and the control and procedures you have in running your business.
You cannot run a business unless it fits into a business structure.

WHAT are my business structure choices?

The four most common types are:

Sole Trader – one owner full control
Partnership – 2 or more owners split income and liability
Company – a legal entity where liability may be limited
Trust – a person manages assets for the benefit of others

HOW do I decide sole trader, partnership, company or trust?

This can be a very complicated decision therefore seeking advice from an accountant, lawyer or business advisor could be a worthwhile investment. The good news is that if you change your mind or circumstances change, you can change your business structure at some point in the future.

Sole Trader

This is the simplest form of setting up a business and requires the least amount of paperwork but the most risk to your personal assets. If things go wrong, you could lose your house. On a more positive note, you make all the decisions and all the reporting is rolled into your personal tax return.

You will have to keep all records, like receipts, for 5 years and all profits and losses fall back to you and cannot be split. If you hire employees, you are still bound by any government legislation obligations like superannuation contributions and workers’ compensation.

Partnership

There are 3 types of partnership structures you can consider:

General partnership – all partners are equally responsible for managing the business, and each has unlimited liability for the debts and obligations the partnership incurs.

Limited partnership – is a great tool for partners who want to invest in a business but not be involved in the day to day. Here liability is limited to the amount of money they have contributed to the partnership.

Incorporated Limited Partnership – Put simply one partner has unlimited liability the rest of the partners have limited liability.

Each state has slightly different laws for partnerships and details can be found here:

A partnership must have an ABN and each partner requires a tax file number. Each partner will be responsible for the tax implications on their share of the business and must take responsibility for their superannuation. If a partnership earns more than $75,000 they must register for GST.

Company

A company is the most expensive option to set up and run. It is a legal entity and as such can borrow money, take legal action, and be sued by someone else. As a shareholder of a company whether it be 10% or 100% you are only liable for any unpaid money on your shares. So in theory they cannot come after your house, however as a director of that company, if you are found to be in breach of your legal obligations, you could be sued. A company is owned by its shareholders but controlled by its directors. More information on this can be found https://asic.gov.au/for-business/running-a-company/company-officeholder-duties/ . All money a business makes is owned by the business and an annual tax return must be completed in its name.
You must register for the Goods and Services Tax (GST) if revenue exceeds $75,000. The Australian Securities and Investment Commission requires companies to keep records for 7 years. Directors also have an annual obligation to show a business is solvent which means you can pay your debts and have the cash to run your business.

Trust

This is an expensive way to run a business but might have certain tax benefits. A formal trust deed must be established that sets out how the trust operates and also comes with annual formal administration tasks.

According to the Australian Tax Office:

Trusts are widely used for investment and business purposes.

A trust is an obligation imposed on a person or other entity to hold a property for the benefit of beneficiaries. While in legal terms a trust is a relationship, not a legal entity, trusts are treated as taxpayer entities for the purposes of tax administration.

The trustee is responsible for managing the trust’s tax affairs, including registering the trust in the tax system, lodging trust tax returns, and paying some tax liabilities.

Beneficiaries (except some minors and non-residents) include their share of the trust’s net income as income in their own tax returns. There are special rules for some types of trust including family trusts, deceased estates, and super funds.

The Australian government also provides a handy tool to help you decide. https://register.business.gov.au/helpmedecide

HINT

This handy guide can help you make your decision. Be sure to select I am not sure. https://register.business.gov.au/helpmedecide

SUMMARY – Research Business Structure

If unsure get some professional help deciding and possibly assisting you to set up your business structure. It comes down to how many owners there will be and how you divide profits and liabilities. For those of you worried about losing your house, this can be protected by insurance as discussed in a separate essential guide on Business Insurance.

IT Support – help with technology

Posted on May 6, 2021 by Angus Jones

Chances are you are reading this because you need help now! IT support is one of those things that you never think about until something goes wrong or you need to do something but have no idea how to do it. This guide will look at how to get support and what you must consider.

Information Technology (IT) support refers to any assistance given with technology-related products and services. The role of an IT technical support engineer is primarily to help monitor and maintain computer systems and networks across an organisation.

WHY is keeping my IT running so important?

If your computers and technology are not working you may not be able to make any money, it may also affect your customer service to valued clients. IT support can be critical to your small business to get you running again.

WHAT does IT Support cover?

IT stands for Information Technology and in your business could extend to your computers, phones, printers, network, software, and cloud solutions you use like an accounting package or POS system.

IT support will come in three forms:

Advice & installation of solutions
Repair of issues
Monitoring and optimisation of your IT

The actual support is provided by experts who are most likely running their own small business servicing clients like you. Some of the most common services would include:

Hard drive, email, and network configuration
Software installation
Software, hardware, and network upgrades
Desktop support
Application solution recommendations
Server and application support
Cloud services integration
Preventative maintenance and network audits
Data backup and recovery
Virus protection and removal

HOW do I choose the right IT support for my Small Business?

You should consider the following points to determine what you will require from an IT vendor:

Do you need onsite support or do you just need to visit your local computer store where you bought your PC or other IT devices?
Might you require out of hours support?
Can the IT support representative talk to you in plain English so you understand what is going on?
Are phone support and remote interrogation offered? This will save both time and cost.
Area of coverage. If you have a 2^nd location can this firm provide adequate support?
What sort of response times do you need and what can be provided? Rule of thumb here is the more critical the resolution, the better the response time needed. You could represent this by how much money you are losing if an IT solution is not working.
Do you want a Service contract that would provide you a predictable fixed cost per month or pay by the hour or a hybrid of the two?
It is possible to have an IT support business monitor your IT environment which could mean issues are fixed before you are aware of them? This could be as simple as creating an alert to notify the internet is down.
What is the process to log a service request and to check its status? Many IT service companies offer a portal where “tickets are logged” via an internet portal providing you extra peace of mind.
Does the proposed IT services business have a good reputation? You can ask for references and also search on the internet.
How much are you prepared to pay to keep everything running? It may come as a surprise to many that the cost of IT support can far exceed the cost of the hardware (PC) in the first place.

You can find IT support by googling small business IT support, asking associates for recommendations, or even asking your local computer store. Note it can be hard to find a good vendor.

HINTS

Reliability comes in two forms. Make sure the business you deal with is reputable and delivers consistent service. Having great customer service in the first month is no good if it is bad in the 3^rd month. Also understand the actual person visiting your office of a multi-person firm may not be as reliable as another. If the individual is sub-standard insist on a different person servicing your business.
Confidentiality is critical. Remember you are giving access to an external party to your confidential information held on your computers.
If your IT device such as a printer is not working is it a configuration issue or is it just broken and need a warranty repair. If it is a warranty repair, this will in theory not cost you anything. Having an IT person in your office to tell you this will incur a per hour fee.
Same day service and service out of normal business hours will most likely cost you more.
We have a whole guide devoted to back up however if you do nothing else ensure you back up your data and keep it securely on the cloud or at an external location. If everything goes wrong, you will still have a copy.

SUMMARY – Reliable Tech Support

IT support may seem expensive until you need it, and at that time you will be prepared to pay a lot to get back up and running. Pick a reliable support organisation that you can call on when needed.

Temporary shortcut method – claiming WFH deductions

Posted on May 6, 2021 by Angus Jones

The Australian Taxation Office (ATO) reminds the community that the temporary shortcut method is available to those claiming working from home deductions this year.

The temporary shortcut method was created at the height of the pandemic last year to respond to the sudden influx of makeshift home workspaces.

Assistant Commissioner Tim Loh said that “even with people shifting back to the office, we know many Australians have opted to continue working from home at least one day a week.”

The working from home shortcut method allows claims at the all-inclusive rate of 80 cents per hour, rather than needing to do complex calculations for specific items.

“The shortcut method is straight forward; just multiply the hours worked at home by 80 cents,” Mr Loh said.

“The only proof you need is a record of the number of hours you’ve worked from home, such as a timesheet.”

The temporary shortcut method can be claimed by multiple people living under the same roof. Unlike existing methods, the temporary shortcut method does not require a dedicated work area.

The shortcut is all-inclusive. You can’t claim the shortcut and then claim individual expenses such as telephone and internet costs and the decline in value of new office furniture or a laptop.

Taxpayers can still claim under the existing arrangements if they choose.

“If you decide to go with an existing method, I would encourage you to do your research and keep good records. Keeping track of each individual expense and calculating the work-related use of each one can be fiddly, so be organised. So, make sure you’ve read the guidance on our website or chat to your registered tax agent”, Mr Loh said.

Top 4 no-go expenses

If you chose to claim your working from home expenses through the fixed-rate or actual cost methods, remember you still can’t claim:

> Personal expenses like coffee, tea and toilet paper. While they might normally be supplied by your employer, they still aren’t directly related to earning your income.

> Expenses related to your child’s education, such as online learning courses or laptops

> large expenses up-front. Any asset that costs over $300 (either in total or per item), such as a computer, can’t be claimed immediately. Instead, these claims should be spread out over a number of years

> Employees generally can’t claim occupancy expenses such as rent, mortgage interest, property insurance, land taxes and rates. Working from home does not mean your home is a place of business for tax purposes. If you claim occupancy expenses, you may have to pay capital gains tax when you sell your home, even if it is your main residence.

Three different methods for 2020-21

You can choose one of three ways to calculate your additional work from home running expenses for this tax time:

· claim a rate of 80 cents per work hour at home for all your working from home expenses;

· claim a rate of 52 cents per work hour at home for the heating, cooling, lighting and cleaning of your dedicated work area and the decline in value of office furniture and furnishings. Then calculate the work-related portion of your telephone and internet expenses, computer consumables, stationery and the decline in value of a computer, laptop or similar device.

· claim the actual work-related portion of all your running expenses, which needs to be calculated on a reasonable basis.

Remember, to claim any work-related expense, you must have spent the money yourself and not been reimbursed. The expense must be directly related to earning income (not a private expense). You must have kept any necessary records (a receipt is best).

Additional information

More information about working from home is available at ato.gov.au/home.

Small business Answers guide to tax returns can be found here.

Small business accountant is unexpected hero

Posted on May 4, 2021 by Angus Jones

By Kerry Agiasotis, Managing Director and Executive Vice President at Sage Asia Pacific

Would you consider your small business accountant an ‘essential worker’? It is a phrase we have heard again and again the past year in the context of medical professionals, grocery workers and law enforcement, however never in the same sentence as ‘accountant’.

For small businesses, that is exactly what they are – essential. While accountants may not be providing medical care or keeping our grocery shelves stocked, they have, in many cases, helped keep the doors to many Australian businesses open throughout the ups and downs of the past year.

While the Australian economy is beginning to recover. March data from the Australian Bureau of Statistics found almost 20 per cent of small businesses think they will struggle to meet their financial commitments over the next three months.

With almost a fifth of small businesses feeling uncertain about their immediate future, there’s all the more need for accountants to maintain their ‘essential’ status in the months to come.

From number-crunchers to trusted advisers

Accountants worked all hours to keep their clients up to date with the latest changes, as the world locked down and the government rolled out emergency stimulus packages.

Recent data from the Australian Bureau of Statistics found that three in five Australian businesses sought external advice, such as accounting services, to navigate the unchartered territory of the pandemic.

As the challenges facing businesses undoubtedly increased, the nature of the accountant’s role underwent profound change.

Many accountants admit they felt more like a counsellor at times while supporting their clients throughout this period. On a more positive note, one of our accountant partners recently noted her highlight was getting to know her clients personally as the pandemic prompted them to open up and have more meaningful conversations.

Fast forward twelve months, and those businesses lucky enough to have access to an accountant have come to realise that accountancy is not just limited to number crunching and financial reporting.

Instead, a small business accountant is a trusted advisers guiding business owners through make-or-break decisions around how best to manage cash flow, revenue streams and whether and how to pivot business models.

Technology the key to success

Although every accountant has his or her own unique experiences from the past year. I’ve consistently heard one piece of feedback that nobody could have dealt with the unforeseen challenges without technology.

As with many industries, the wholesale adoption of new technologies by accountants throughout the pandemic launched many practices years into the future.

Automated workflows from bookkeeping to tax, dashboards, customised reporting, and data-driven insights allowed them to keep their heads above water while focusing on what mattered the most: the needs of their clients.

Accountants who had instant access to financial and operational data were able to provide the best counsel to their clients so they could make the right decisions in the ever-changing environment.

This trend is accelerating in 2021 and beyond. As cloud-based, automated practice solutions continue to enable firms to become more productive, freeing up time for accountants to focus on running their practice and supporting their customers’ needs with timely counsel.

A trusted partnership for the future

If I were to look for a silver lining in the past year, without a doubt, it would have to be how technology transformed the accountant-client relationship.

It seems ironic that software helped bring people closer together. However, by leveraging new technologies such as cloud-based and automated practice solutions, accountants could free up time to focus on well-needed client counsel.

Despite the enormous adversity endured, businesses and accountants managed to weather the storm together, finding solutions to the seemingly impossible.

As we look towards the May budget, the reopening of borders, and life after the pandemic, businesses must continue to work even closer with their accountants to leverage new opportunities and mitigate risks that may arise.

By keeping your small business accountant close and recognising the value they provide as essential to your business, you will be well placed to capitalise on the strong economic growth that’s on the cards as we continue to bounce back from the pandemic.

Small Business Answers guide to accounting software can be found here.

Free Small Business Webinars

Posted on May 4, 2021 by Angus Jones

A series of free small business webinars is being run by the City of Sydney to help small businesses adapt, digitise and grow.

The Reboot: Free small business webinars offer inspiring tips and upskilling essentials from local experts.

Creatives, retailers, hospitality owners and other small businesses can learn how to sell online, create cost-effective branding solutions and use the big platforms to accelerate growth.

They can also learn about Google, Facebook, Canva, podcasting, eCommerce and more.

The lunchtime webinars are weekly from Monday 17 May.

See here for more details.

Don’t forget to see our extensive list of Free guides here.

Small Business hopes for next weeks budget

Posted on May 4, 2021 by Angus Jones

In the lead up to the Federal Budget next week, MYOB has just released fresh data from over 1,000 Australian Small Businesses. Highlights include the positive impact of JobKeeper for them and suggests the economic recovery is well underway.

The data shows small businesses are optimistic about the year ahead. Almost six in 10 SME owners expect the economy to improve in the next 12 months. 84% of businesses are either back to normal (pre-Covid) operations or confident they will soon be.

We also know that JobKeeper was an effective interim measure, with 78% of businesses that accessed the scheme saying it allowed them to continue trading through the pandemic.

The survey also reveals almost half of SME owners believe this Budget will deliver benefits to help their business.

The top measures Small Business want to see in the Budget are:

lowering of the company tax rate (34%)
cutting red tape (27%)
conversion of the instant asset write off to a permanent policy (19%)
policies that encourage small business superannuation contributions (18%)
incentives for further digitisation (15%)
making it easier to access government procurement (15%).

Helen Lea, MYOB CEEO, says: “Next week’s Budget is another chance for the Government to show their strong commitment to small business and give small business owners the confidence to invest and create more jobs as Australia continues its economic recovery.”

Currency Risk calculator to help businesses

Posted on May 3, 2021 by Angus Jones

OFX, a leading online foreign exchange and global payments provider, announced the launch of its Currency Risk Exposure calculator. This free online tool aims to support globally-minded businesses with navigating the currency risks involved with cross-border trade.

The strong volatility seen over the last 12 months meant that Australian businesses paying in USD, as an example, juggled rates as low as 0.57 in March ’20 to highs of 0.78 in Jan ’21. The OFX Currency Risk Exposure calculator was developed to help uncover the true cost of volatility when trading internationally and support companies with building confidence when dealing with global markets and foreign currencies. The free online calculator informs local companies about the potential risks of a reactive approach to currency fluctuations by providing detail of on-the-day and historic market exchange rates.

“If you’ve ever timed a global money transfer to get the best exchange rate for your business, you’ll understand small market movements can make a big difference to your bottom line. However, many small businesses out there don’t know the true cost of FX due to a lack of transparency with their financial institutions and readily available resources.”

“The OFX Currency Risk Exposure calculator is a foundational tool that clearly outlines potential business savings to bridge that FX education and awareness gap,” said Michael Judge, Head of Australia and New Zealand, OFX.

Uncovering the real impact of currency fluctuations

Small currency fluctuations can add up. So businesses need to be aware of the effect shifting market exchange rates can have on business cash flow and understand how to plan for the good and the bad.

Easy to use, the OFX Currency Risk Exposure calculator considers several inputs that can influence FX results. Users fill in an online form detailing the local currency where their business is based, the currency they are typically invoiced in, the typical amount of the invoice, and standard payment terms.

The calculator then compares three example cost scenarios of purchasing the desired currency – at the current market rate and at the lowest and highest market rate over the previous three months. Cost comparisons are calculated using historical currency market rates for demonstration purposes only*.

For example, the OFX Currency Risk Exposure calculator reveals that a US100,000 invoice could have cost as much as AUD 131,881 and as little as AUD 125,821 in the last 3 months – a marked difference of AUD 6,060.

Saving thousands with enhanced FX risk knowledge

The digital FX and payments company hopes the Currency Risk Exposure calculator will bring awareness to an often-overlooked factor for businesses moving money globally and encourage businesses to break pre-existing reactive habits and attitudes towards currency fluctuations.

As businesses build a more sophisticated understanding of which FX risk management strategies best suit their needs, enhancing this knowledge with FX specialist advice will position them well to minimise FX exposure to business profit margins.

“Businesses don’t need to leave their currency risk to chance or at the mercy of on-the-day rates. Forward contracts, for example, help our clients with a confirmed exchange rate for up to 12 months and, on many occasions, real savings against unfavourable changes in foreign currency markets.

“Whether your business is a newbie to FX or has a solid currency plan in place, bringing this kind of certainty to what can otherwise be an unpredictable area of business can have a big impact on earnings or equally the cost base of a business,” added Michael Judge.

The OFX Currency Risk Exposure calculator is available here.

Accounting packages can also help you manage your finances

Car Expenses

Posted on May 3, 2021 by Angus Jones

Work-related car expenses are among the simplest business expenses that can be claimed against your tax bill, thus saving you money. However, claiming does require some discipline. There are different methods like the ATO cents per km and logbook methods to choose from. This guide will help you decide which car expense deduction method is right for your small business.

A car expense is a cost associated with the running of a car and can include fuel, tyres, servicing, repairs, insurance, tolls, parking, registration, hiring, interest on vehicle loans, lease payments and depreciation. A work-related expense is one that is incurred whilst performing your job.

WHY should I bother?

To claim a motor vehicle expense, you must be able to provide the Australian Tax Office (ATO) a sound justification for the kilometres that you travelled for work purposes. Unfortunately, just because you have a work vehicle that may even advertise your services on the side, it does not mean you can claim 100% of its costs. The ATO is looking to understand how much you used this vehicle for business purposes versus private usage. So, unfortunately, the trip down to the beach in the ute is unlikely to be a tax deduction.

When you add up the costs of owning and running a vehicle, these costs can run up to hundreds of dollars a week. Over a year, that is thousands of dollars. If some of this can be claimed, it is much better in your pocket.

WHAT can I claim as car expenses?

Claimable work travel includes:

Travel between work locations
Travel to a customer
Travel to pick up work equipment or supplies
Travel to work-related conferences and training courses

Travel from your home to work is not a tax deduction. This includes travel where you may do minor work-related tasks such as collecting mail. Travel from home to work can be claimed where:

You are a home-based business, so any business travel can be claimed such as visiting the bank or accountant.
You need to transport bulky items to and from their usual place of work where there is no reasonably secure storage provided on-site. For example, a tradie van or ute contains the tools of the trade.
You need to travel to a different location for business purposes, such as a customer meeting before or after work.
You are on-call, and thus your work has commenced before you leave your home. This would include emergency services, medical staff and after hour repair technicians.

HOW do I claim car expenses?

There are three ATO methods to claim motor vehicle expenses:

1. Cents per km method
2. Logbook method
3. Actual cost method

You may only use one method per year per vehicle.

If you are a Sole Trader or Partnership, you can choose between cents per km or the logbook method. However, if you own a motorcycle or a vehicle designed to carry either greater than one tonne or nine or more passengers, you must use the actual cost method. Thus, if you are a tradie with a one-tonne, ute you must keep actual records all year long.

If you are a Company or Trust, you also must use the actual costs method.

Cents per kilometre method

Every year you can claim up to 5000 kilometres per car based on a cents per kilometre deduction. For the 20/21 tax year, this rate is $0.72 per km. You must provide electronic or written evidence such as a diary to substantiate your kilometres travelled. We suggest you record the date, starting and ending kilometres and reason for travel. If you made a business trip in the 20/21 tax year of 32km, you could claim 32 x $0.72=$23.04.

Logbook method

The logbook method is a means to calculate the percentage of business travel versus private travel. It requires you to keep an electronic or written logbook per car for a single 12-week period within the taxation year.

As a separate exercise, you must record all your car-related expenses for that income year such as fuel and servicing expenses. Although we don’t recommend it, costs can be estimated based on odometer readings.

If over the 12 weeks you travelled 10,000 k kilometres and 6,000 were for business, then your business usage would be 60% (6,000/10,000). If your car expenses, including depreciation, were $9,000 for the income year, you could claim $5,400 ($9,000 x 60%).

The ATO states your logbook must include:

when the logbook period starts and ends
the vehicles odometer readings at the beginning and end of the logbook period
the distance the car travelled during the logbook period
kilometres travelled for each journey. If you make multiple journeys on the same day, you can record them as a single journey
- reason for the trip (business reason or private use)
- date of the journey
- odometer readings at the beginning and end of the trip
the odometer readings at the start and end of each subsequent income year your logbook is valid for
the business-use percentage for the logbook period
the brand, model, engine capacity and rego of the car.

Actual cost method

The actual cost method requires you to keep track of every journey and every cost for that vehicle whilst it is owned by the business. As part of this process, you must keep the same sort of records as per the logbook method, but for 52 weeks or the time you have owned the vehicle. The costs for the year, including depreciation, can then multiply by your actual business use percentage to work out the deduction you can claim.

If you provide a vehicle to an employee or a spouse, tax implications are best discussed with a tax accountant.

HINTS

At the time of writing, the government provides a tax incentive to write a car off in the current financial year via temporary full expensing.

If your employee uses their own car for your business, your business can claim a deduction for any motor vehicle allowances or reimbursements you pay them for their costs, such as the cost of fuel.

There are various smartphone applications available to help you keep track of vehicle expenses, just search car logbook apps in your app store. Some of these will use GPS tracking to make your input easier. The ATO also provides a handy app to keep track of vehicle trips and other business expenses and income.

If using the logbook method best not to include your 4-week driving holiday as part of the 12 week calculation period.

Information on buying vs leasing can be found here.

A guide to buying a van can be found here.

SUMMARY – work-related car expenses

Business use of a vehicle is tax-deductible. There are three methods to claim a deduction; the choice depends on your business structure and the type of vehicle you use. Accurate record-keeping is important and will make your life so much easier come tax return time. If in doubt about anything discussed in this guide, we recommend you contact your accountant or seek clarification from the ATO

Tradies take over the small business sector

Posted on April 29, 2021 by Angus Jones

Although the rise of the online entrepreneur or the stereotype of the corner shop owner, today’s small business owner in Queensland is much more likely to be a tradie than anything else.

The most typical profile of a small business owner in Queensland is male, aged 45, working as a sole trader in the building and construction industry, most likely a carpenter. In fact, recent data analysis and industry profiling has highlighted that small construction businesses make up the largest share of small business in Queensland.

This finding has emerged as part of Construction Skills Queensland (CSQ) research in the lead-up to Queensland Small Business Month, which runs throughout May. It has highlighted that of the 450,000 small businesses in Queensland, 75,000 are building and construction-focused, representing 17% of all small businesses in the economy.

Since 2015, the number of small construction businesses in Queensland has increased by 5,000 – a growth of 8 per cent.

CSQ Research Director Robert Sobyra said that the small business tradie number is likely to continue growing with elevated home building activity.

“More small businesses have sprung up over the last five years, and we would expect this to continue even more so off the back of the current building boom.

“While the construction industry is a massive employer – employing 225,000 Queenslanders – two-thirds of these people work in a small business,” Mr Sobyra said.

“Ninety per cent of Queensland’s construction businesses have a staff of fewer than 5 people, and sixty per cent of them are working solo,” he said.

“The construction industry really is the home of small business in Queensland.”

Mr Sobyra said one of the benefits of attracting people to working in the construction industry was the ability to quickly become your own boss.

“It is not uncommon to find a tradie in their mid-twenties who has set up their own business and will move on to employing staff before they reach thirty.

“This is a much quicker trajectory than what you will find in a corporate setting.

“The building and construction industry rewards hard work and initiative, and young people can quickly move into business ownership.

“But the flipside of this is that many of these new business owners do not have the professional experience and business management skills to run a business to its full potential.

“They are also extremely time poor, so don’t believe they have the space to study or train to get these business management skills,” he said.

CSQ encourages small businesses in the industry to take up heavily subsidised training opportunities designed to help them bridge this gap.

“CSQ has a range of courses specifically designed for small construction businesses, particularly to help new business owners get essential skills so that their business can thrive. These include courses covering various essential areas such as financial management, legal requirements and risk management.”

May is Queensland Small Business Month. CSQ Research Director Robert Sobyra will present CSQ’s industry profiling data and other insights at the Small Business Friendly Conference on 30 April 2021.

Information about CSQ courses for small business can be found here.

For more information on how to start your own small business, see our guide here.

ACCC Franchising tips

Posted on April 29, 2021 by Angus Jones

Franchising allows you to run a business by buying into a ready-made business with an existing brand, systems and offering. In some ways, it is a low-risk way to buy a ready-made income.

Small Business Answers has written a complete guide on buying a franchise.

A franchise does indeed come with its own risks and challenges. Many of these risks and challenges can be avoided by doing your homework before you sign on the dotted line.

According to the Australian Competition and Consumer Commission (ACCC), they receive around 500 contacts in a typical year. These enquiries are about people trying to understand their rights and understand if something is within the law. To help small business, the ACCC has produced a new webpage with helpful franchising tips.

The ACCC covers the following topics:

Can you make an income from a franchise
understanding what flexibility you may have and will you really be your own boss
franchising does not guarantee profitability
Will the law protect me if something goes wrong
Franchising agreements are for fixed terms, and then what happens

The page also looks at several case studies, which help put everything into perspective.

The ACCC tips website “Franchising: Is it for you?” can be found here.