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.

Temporary full expensing

Posted on March 31, 2021 by Angus Jones

Following the COVID support instant asset write off available for small business in 2020, the Australian Government announced in October 2020 Temporary Full Expensing which allows a business to temporarily write off business assets in full.

The Australian Government has announced a temporary measure to allow businesses to claim an immediate deduction for the full cost of eligible capital assets.

WHY should I care?

This means you can write an eligible asset off in one year versus over the useful life as deemed by the Australian Tax Office. For example, a bar refrigerator in a restaurant normally would need to be written off over 10 years, under this measure the fridge’s cost can be written off against your business assets in one financial year.

WHAT do I need to know about temporary full expensing?

The eligible period is for the 2020-2021 and 2021-2022 taxation years and is for assets first held between 6 October 2020 and 30 June 2022. Thus, it is currently scheduled to end June 30th 2022. Your business must have an aggregated turnover of less than $5 billion, and you cannot make any other claim under other depreciation rules.

You may deduct the business portion of the cost of eligible new depreciating assets and the cost of improvements to existing assets. This measure also is available for 2^nd hand assets if your turnover is below $50 million.

Suppose your business makes a loss for the financial year after claiming a full expensing deduction. In that case, you can carry your loss forward to use in future taxation years.

If you wish to depreciate a vehicle, you have a limit for a car of $59,136 in the 2021 financial year. Commercial vehicles with either the ability to seat 9 people or more or have a load capacity of 1000kg or more have no limit.

HOW do I fully expense a capital item

You will be able to fully expense an asset within your 2021 tax return via forms that will be available from July 1st 2021.

From our earlier example, if the new bar fridge bought in March 2021 cost $3,000 and was used 100% for business, the $3,000 cost could be included in the 2021 tax return as an expense versus only $300 if temporary full expensing was not available.

Small businesses that elected to apply simplified depreciation rules have been given an amnesty allowing them to take advantage of temporary full expensing.

HINTS

More information is available from the tax office here.

Your accountant can assist with the process.

More information can be found about completing a tax return in our guide on a small business tax return.

SUMMARY – Temporary full expensing

This is a great initiative by the Australian Government, which not only benefits your expense deductions but may also have a flow-on effect of increasing your sales if you sell items likely to be depreciated by other businesses. This temporary measure allows your small business to expense a capital item in the current financial year rather than over several years. You can claim this simply through your end of a financial year tax return.

Sharing Sensitive Data

Posted on March 17, 2021 by Angus Jones

Veritas Technologies, a global leader in data protection, availability and insights, has revealed new research highlighting the dangers of sharing sensitive data by misusing instant messaging and business collaboration tools. In Australia, 66% of employees have admitted to sharing sensitive and business-critical company data using these tools, the survey found.

The Veritas Hidden Threat of Business Collaboration Report polled 12,500 office workers across ten countries, including 1000 in Australia. Shows employees take data out of the businesses’ control that employs them, exposing companies to risk. 53% are saving their own copies of the information they share over IM, while, conversely, 47% of knowledge workers delete it entirely. Either approach could leave companies open to significant fines if regulators ask to see a paper trail.

Sensitive data being shared by employees on these channels includes client information (15%), details on HR issues (10%), contracts (12%), product development information (12%), and even COVID-19 test results (12%). Just a third of employees suggesting that they hadn’t shared anything that could be compromising. The research also reveals that, while employees use collaboration tools to close deals, process orders and agree on pay raises, many do this despite believing that there will be no formal record of the discussion or agreement. In fact, only 48% thought that the businesses they worked for were saving this information.

According to Geoffrey Coley, Director, Strategy & Architecture, Asia South and Pacific region, at Veritas Technologies, “For many Australians, our entire way of work has been reset since the start of 2020. Companies are rushing to bolster their data protection ways of working to include the platforms where their business is actually being conducted.”

Increased use is compounding issues

The research shows that the challenge is compounded by the amount of time employees are now spending using messaging and collaboration apps. Time spent on tools such as Zoom and Teams has increased by 21% since the start of the pandemic. This means employees are now spending, on average, 2.3 hours every day on them, with 21% of employees spending more than half their working week on these applications.

A significant amount of business is now being conducted as routine on these channels, and employees are taking agreements as binding. For example, as a result of receiving information over messaging and collaboration tools, 24% of employees have accepted and processed an order, 21% have accepted a reference for a job candidate, and 20% have received a signed version of a contract.

Sensitive data is shared on these tools even though 29% of knowledge workers have been reprimanded by bosses for their use. However, these admonishments may have been in vain as 75% of all workers responding to the survey said that they would share this kind of information in the future.

Geoffrey said: “Getting employees to use ‘approved’ methods of communication and collaboration tools is an uphill battle. Instead, our message is simple: don’t fight it – fix it.”

IM trusted nearly as much as an email

When asked which methods of communication provide the most reliable proof that an agreement is binding, the trust that workers had didn’t appear to be based on the ability of a business to capture the discussion as evidence:

Email is viewed as a reliable affirmation of an agreement by 97%, followed by a written letter at 96% and electronic signature a close third at 92%
Instant messaging platforms, including Zoom, Slack and Teams, were still trusted by 90%, text by 89% and WhatsApp by 77%
66% even viewed social media as reliable proof that something has been agreed

“Business data is sprawled across different locations. Deals are being done, orders are being processed, and sensitive personnel information is shared through video-conferencing and messaging platforms. It’s now critical for companies to include this rapidly growing volume of data in their protection and compliance envelope. If they don’t, the implications could be huge,” concluded Geoffrey.

Veritas recommends the following steps for businesses that want to regain control of data being shared over messaging and collaboration tools:

Standardise on a set of collaboration and messaging tools that meet the needs of the business – this will limit the sprawl
Create a policy for information sharing – this will help control the sharing of sensitive information
Train all employees on the procedures and tools that are being deployed – this will help to reduce accidental policy breaches
Incorporate the data sets from collaboration and messaging tools into the businesses’ data management strategy using eDiscovery and SaaS data backup solutions – this will empower users to make the most of the tools without putting the business at risk

For more information on sharing sensitive data see Small Business Answers guide on Internet Security protects from cyber threat

Methodology

Research conducted and statistics compiled for Veritas Technologies LLC by 3Gem. A total of 12,500 office workers who used communications channels as part of their job were interviewed between 23 November – 8 December 2020 in Australia, Brazil, China, France, Germany, Singapore, South Korea, UAE, United Kingdom and the United States.

Finances tips when self-employed

Posted on March 12, 2021 by Angus Jones

Working for yourself and running your own business provides many advantages, including creative freedom, independence, and the flexibility of managing your own schedule. At the same time, self-employment comes with great responsibility.

The somewhat unpredictable nature of self-employment requires you to manage your money well. The sooner you get on top of your business finances, and by extension, your personal finances, the greater your chances of running a successful business.

Leading Australian life insurer TAL’s Head of Financial Health, Jo Hetherington, shares five tips to help make self-employment work for you.

1. Explore your options when it comes to deciding on your business structure

One of the key decisions you’ll make when starting a new business is what structure to operate under. Would it be best set up as a sole trader business, a partnership, a trust or a company structure? Your business structure identifies how you operate and will be dependent on the size and type of your business, your plans to expand the business, and your personal circumstances.

It’s essential to choose a business structure that enables you to reach your unique goals. It can affect things like who is making the critical decisions, tax advantages and disadvantages, how profits and losses are shared, and any legal obligations.

It’s a good idea to seek expert advice and discuss your proposed structure with an accountant or a financial adviser.

For more finances tips when self-employed, see Small Business Answers guide to choosing a business structure

2. Consider the value of insurance

To ensure you’re protected, most self-employed people should consider a variety of insurance, such as business buy/sell, loan or key person insurance, public liability, and public indemnity.

As the owner of your own business, you are your most important asset. It’s important to consider how you or your business would survive financially if you had to spend months, or longer, out of business because of an unforeseen circumstance like an illness or accident.

Further, income protection and business expense insurance needs should be considered. These could help you stay on top of your business and personal expenses if you could not work temporarily, giving you time to focus on your recovery.

For more finances tips when self-employed, see Small Business Answers guide to business insurance

3. Stay on top of your taxes

A key consideration for self-employed people is to understand what you owe the government and what you can claim. To avoid any tax-time surprises, periodically review and think about your taxes throughout the year, not only at tax time.

Be sure to take advantage of any government support that may be available to you. For example, you may be eligible to buy equipment for your business needs and access cash flow benefits from the Federal Government’s Instant Asset Write-Off Scheme. Eligible businesses can claim an immediate deduction for the business portion of an asset’s cost in the year the asset is first used or installed ready for use. As of January 2021, instant asset write-off is only available for small businesses with a turnover of less than $10 million. The threshold is $1,000.

Suppose you do have a particularly complicated tax component to your business. In that case, you may also want to find a tax accountant to help you keep tabs on your taxes.

The Australian Government Business Website has a range of information, grants, services, and support from across government to help your business succeed.

For more finances tips when self-employed, see Small Business Answers guide to the tax return for small business

4. Keep your cash flow going

Cash flow is the backbone of your business.

It is up to you to keep money aside. Regularly setting aside a little extra will help you manage during any quiet periods or if something unexpected pops up.

To help with your cash flow, try to bill early and collect quickly. You can do this by encouraging your customers to pay on time (or even earlier) by offering incentives to reward early payment. Creating invoices that are as clear and detailed as possible can also guard against late payments.

For more finances tips when self-employed, see Small Business Answers guide to record-keeping

5. Don’t underestimate your expenses

To get you started on the right path, you should be looking for ways to streamline your expenses. Focusing on spending only on what you need at the time will allow you to avoid overcapitalisation.

For example, when investing in facilities and equipment, it’s best to start small and take your time comparison shopping before choosing vendors or service providers that can provide you with the best possible deal.

Being your own boss also means that you need to be responsible for keeping your financial records up to date. Be sure to keep accurate records so you can confidently navigate your books in the long run.

For more finances tips when self-employed, see Small Business Answers guide to expense management

Empower remote work

Posted on March 12, 2021 by Angus Jones

34% of Australia’s small and medium businesses (SMBs) are expected to convert to a 100% laptop setup post-COVID-19, underscoring the importance of mobility in a hybrid workplace to empower remote work.

This finding is one of the many interesting strategic insights revealed in an IDC Survey Commissioned by ASUS. The survey explored how SMBs are adapting their technology use and how COVID-19 has affected technology decisions.

Long-Term Remote Work Arrangements

For Australia in particular, the survey found that over half of SMBs (68%) were ready for WFH arrangements brought about by the COVID-19 pandemic. Over a third (33%) of those SMBs said they were not completely prepared with the office equipment and software to enable remote working. 50% of employers expect their workforce to return to the office once the situation is resolved as opposed to the APAC average of 45%. This revealed a general lack of long-term planning for remote working by Australian SMBs.

“Equipping staff with the appropriate technologies for remote working has turned pivotal in enabling a positive employee experience and enhancing productivity,” said Simon Piff, Vice President, IDC, Asia/Pacific. “Purchasing decisions on devices – laptops in particular – need to be reassessed to keep pace with employee expectations, especially among the younger generation of workers who are more digitally astute and are demanding more flexible working arrangements”.

“ASUS has a good understanding of how people work and their requirements, and we were able to draw on this experience to adapt quickly and help our customers manage the challenges”,. said Emma Ou, Country Manager, ASUS ANZ.

Emma continued. “Businesses that adopt more modern, flexible ways of working with the help of digital technology will reap the benefits of greater resource management, streamlined processes, more efficient workflows, and deeper, more actionable insights based on their data.”

Other key Australian SMB findings from the survey include:

54% of employees in Australia want to have a say in the allotment of their devices but in reality 75% of businesses in Australia provision laptops as a standard offering where it is purchase by the company
49% of employees stated that businesses that offer advanced equipment and flexible working arrangements have a competitive edge over other companies
Australian businesses adopt a tactical rather than a strategic approach to laptop refreshes that are meant to occur every 3 years. SMBs in Australia hold onto their laptops a little longer than their APAC counterparts. ASUS speculates that this is because Australian SMBs tend to buy more expensive and powerful systems than the rest of APAC, which extends service life.
- 49% of businesses only refresh laptops when the staff complain that they are slow, and another 47% only do so when they are broken, whenever the budget allows
- 42% of Australian businesses are considering procuring laptops/desktops under a lease model. However, the budget is the primary concern
63% of Australia’s millennials said mobility is pivotal in laptop purchase decisions. This includes all-day battery life, lightweight, fast charging and compact size
Almost one-third of organisation in Australia state that more than 30% of their physical meetings are shifting online, with 72% of local organisations using a laptop for web conferencing with a built-in camera and microphone

Looking ahead to empower remote work

The survey infers that equipping employees with the latest devices that can empower remote work and hybrid work environment will significantly impact employee productivity and experience and provide a competitive edge to organisations to attract and retain talent.

“The need for remote working increased tremendously in 2020, and there was still great uncertainty about how coronavirus will shape business in the coming years”, said Emma Ou, ASUS ANZ Country Manager. “It was these conditions that led ASUS to develop and release new, innovative technologies that will help people get back to better productivity this year, no matter where or how they are working.”

Suggestions for Australian SMBs to implement technology :

Include laptops in as-a-service agreements – Give employees their choice in devices and move away from inflexible standardised units. An as-a-service model can also provide easy access to features previously found only in enterprise-grade, custom-developed devices.
Ensure employees have the right tools to do their job. Doing away with a one-size-fits-all strategy and adopting a more personalised approach to computing by offering employees the laptop of their choice, or based on computing needs, will improve productivity and efficiency.
Refresh laptops faster for better employee experience – Shorten refresh cycles of laptops to keep in step with workforce requirements and boost employee productivity and efficiency.

Find more information in our guide on which PC to buy

Survey Methodology

The “IDC Asia/Pacific Laptops and Workspace Trends Survey 2020” was conducted in mid-2020 in 10 countries across the Asia Pacific, including Australia. With 2,018 respondents across the Asia Pacific, with 200 of them from Australia – split equally between employers (IT decision-makers) and employees who use laptops for work – the survey sought to discover the critical challenges of remote working impacting SMBs and how their provisioning of laptops and other work devices has changed since mid-2020.

Which computer should I buy?

Posted on March 9, 2021 by Angus Jones

You need a new computer, some are $300 others are $3000. Where do you start? What do you need? In this guide, as we don’t understand your circumstances we cannot recommend the right computer but we will help you make that decision yourself.

PC is an abbreviation for personal computer. Personal computers allow us to write papers, create spreadsheets, track our finances, play games, and do many other things. If a PC is connected to the Internet, it can be used to browse the Web, check e-mail, communicate with friends via instant messaging programs, and download files. PCs have become such an integral part of our lives that it can be difficult to imagine life without them!

WHY do I need a new or different Computer?

The fact you are reading this guide means you are already considering a new PC.

The most common reasons for a new PC are:

New staff member
Old PC is too slow
Old PC has failed
Existing PC will not run the program you need
PC has been written off from a financial perspective or deemed too old to continue being reliable.

The question that needs answering here is what is the difference between a PC for home versus a PC for work? Not a great deal depending on what you do for work. These days a lot of home PCs have features built in to support gaming which is not much use at work unless you are doing graphic or video work.

A PC will not last forever and any moving part like a disk drive or fan is the most likely component to fail.

WHAT do I need to understand about a PC?

Walk into a retailer or go online and you will be presented with lots of choice and price points. There are some key decisions you need to make upfront before we look at how to evaluate a PC.

Desktop or Laptop – Laptops may also be called notebooks, which are generally slightly smaller. A Laptop is portable whilst a desktop is not. A desktop can be more powerful, have more connection port options and upgradeable but few people except for gamers ever upgrade their desktop by replacing components. Historically desktops are cheaper for similar specifications but not always. If the user will work away from the office they should have a laptop.
1. Desktop – come as either a tower unit which is large upright box, compact or small form factor which places everything in a sandwich sided box, or an all-in-one which combines the components into the back of a monitor.
1. Laptops – are a self-sufficient solution with battery including screen, keyboard and touchpad (mouse). Features, screen size and weight distinguish models.
Operation system – Today there are four main types:
1. Microsoft Windows – most common and will run almost every software.
1. Apple Mac OS – traditionally favoured by creatives or anyone who has gone down the Apple ecosystem.
1. Google Chrome – a cheaper solution that combined with a lower specified hardware set without a hard drive will perform most functions via a browser and the internet. Popular in education today.
1. Linux– an opensource operating system which is very cheap and generally only used in specialised applications.
Tablet as PC replacement – Some modern tablets are so powerful they could be used as a laptop replacement. When combined with a keyboard they are essentially the same with a different operating system.

As more and more applications and solutions go to the cloud, the operating system is becoming more irrelevant and all you need is to run a browser connected to the internet. However, you do need to ensure that any specialist software or application your business will use can run on the device you buy.

HOW do choose which Personal Computer?

Now you have picked your form factor and operating system this starts to narrow down your selection. Next, you can compare at various retailers instore or online, alternatively visit a specific manufacturers website who sell direct like HP or Dell.

Very simply the higher the specification on each of the below technologies the more expensive the PC will be. If your needs are basic the most basic solutions will do the job but we will make some recommendations below based on value for money and suitability for 3 to 4 years usage.

Key technologies include:

Screen or Monitor: built into a laptop and often bundled with a desktop. Similar technology as a TV. Two factors to consider are screen size measured in inches and resolution. For desktops, we recommend a 27-inch display with Full HD (1920×1080 pixels) resolution. Those doing graphics or video work should consider a larger display with a 4K resolution. More money will also buy more accurate colours.

Processor or CPU: This is your brains of the PC and will be an Intel or AMD product. The bigger the number the faster it will complete a task but at a higher cost. A good sweet spot is an Intel Core i5. Those doing complicated mathematics or graphics should spend more money here.

Memory or RAM: This is the PC’s short term memory. It controls how much it can remember in real-time. 8GB is the sweet-spot, however, most devices can be upgraded if not enough.

Storage or hard drive: This is the long term memory and the place you store all your applications and files. A standard hard drive has moving parts and is cost-effective and can store large amounts of data. A modern alternative is a solid-state drive or SSD which essentially uses computer chips to store data. An SSD is very fast to boot and access files. If you are using a laptop we recommend using an SSD of 256GB, if using a Desktop SSD would be good but 1 TB drive is the sweet spot. In a desktop having both an SSD and hard drive will give you speed and greater storage.

Graphics card: Unless you are using graphic intensive programs, we don’t suggest you need this functionality as the basics are built into the processor. Graphics cards are very popular with home gamers.

Connections: This is how you connect devices to your PC. We recommend you ensure you have the following ports-

HDMI to connect an external monitor.
USB 3 to connect keyboards, mouse, printers, memory sticks, camera’s etc. Two or more ports recommended.
Thunderbolt (not essential but replaces both of the above).
WiFi is how you might connect to the internet wirelessly (see Set up a WiFi network guide).
Ethernet will only be required if you want a cable connection to the internet from the PC.
Bluetooth allows you to connect wirelessly to a mouse, keyboard or your smartphone.
Speakers are included in a laptop but generally needed to be added to a desktop.
SD card slot (not essential) makes it easy to transfer from this medium used in cameras and phones.

You will need to consider software for your new PC and further details on this can be found in our guides on office productivity software and internet security.

HINTS

Visit the gadgetguy website to see reviews and recommendations on various PC products.

How to choose a Windows laptop – a guide for home and office use 2021

Watch out for specials. As this is such a competitive market they are always around and will save you some money.

Next year’s technology will always be better so just accept your PC is out of date soon after you buy it. However, most 3-year-old computers can handle any solutions currently available today.

Ensure you also read our guide on Backup- keeping your data safe.

Your IT support business or computer retailer can also recommend suitable models.

SUMMARY – understand the computer jargon

Buying a new PC can be a daunting task with lots of jargon and so much to choose from. If you stick to reputable brands and understand the implications the various technologies have on the performance of a PC your decision becomes easier. Make sure that what you buy will support the applications and solutions you need to run within your business.

Telstra Go Digital to help small business

Posted on March 5, 2021 by Angus Jones

Telstra has announced an $8.5 million investment in the future of Australian small businesses. By handing over prominent advertising space at the nation’s biggest football stadiums and launching a service to help them plan for and benefit from Australia’s rapidly growing digital economy.

Telstra will offer small businesses free Telstra Business Go Digital Consults throughout 2021 as part of the multi-million dollar plug for the backbone of Australia’s economy.

Small businesses that register their interest for a Telstra Business Go Digital Consult will have the chance to win a takeover of Telstra’s premium advertising at AFL and NRL games across the country in the first week of May.

Telstra Consumer and Small Business Group Executive Michael Ackland said the initiative comes after a year that saw more customers than ever seek to interact with businesses online.

“Australia’s small to medium businesses deserve both a Dally M and a Brownlow medal for how they have kept themselves and our economy running during an incredibly challenging period. They’ve earned an opportunity to have their name up in lights,” Mr Ackland said.

“We’ve seen a massive acceleration in the number of customers shopping online over the past year. To harness this opportunity now is the time for more small businesses to go online and interact with customers in new, digital ways and embrace more efficient selling, marketing, and invoicing.

“More businesses going digital could help grow Australia’s economy by $90b and create up to 250,000 jobs in the next five years. We know this is a big change for many small businesses, so we are offering free Telstra Business Go Digital Consults to help businesses embrace the digital economy.”

Launching Telstra Go Digital

Telstra’s new Telstra Business Go Digital Consult will be offered free to all SMB customers throughout 2021 – a value of approximately $7.5 million.

The new service (RRP$149) helps businesses be their best online through a consultation by a Telstra Small Business Expert of their digital touchpoints. From online marketing and cybersecurity to e-commerce and employee engagement, identify gaps, vulnerabilities, and opportunities. They then help equip the business with a tailored report and roadmap to go digital.

The Go Digital Consult also unlocks a host of exclusive offers with Telstra’s extensive partner network providing SMB support, including Small Business Australia, Samsung, Cisco, Spotzer, Facebook and Microsoft.

Helping SMBs reach new audiences through mass exposure

Eligible Telstra Small businesses who register for a Telstra Business Go Digital Consult and enter the competition online before 23 March will also get the chance to get unprecedented access to some of the country’s most valuable and coveted sports advertising. By taking over Telstra’s premium AFL and NRL sponsorship at each stadium hosting games during Telstra Small Business Week (May 03 – 06).

Winning SMBs – they could be a local tattoo parlour or a fruit and veg shop and more – will each be plugged in one of 17 stadiums across the country. With placements previously only accessible to big business with significant marketing budgets.

From seeing their name up in lights in signage takeovers to on-screen plugs from iconic sports commentators, Telstra is helping propel small businesses to new heights.

For more information see Small Business Answers guides on:
Marketing
Website domain and email
Build a website

Why Aussies start their own business

Posted on March 5, 2021 by Angus Jones

Xero’s new Tipping Point report uncovers what motivates Aussies to become self-employed, the hurdles to start own business and the qualities of a successful sole trader

Xero’s Tipping Point report is based on a survey of more than 800 existing sole traders with no employees and 200 aspiring business owners. The research uncovered the motivations for starting a business and the challenges they face along the way.

Australians have long felt an innate desire to carve their own path as ‘solopreneurs’. More than two in five (43%) sole traders have always planned to be their own boss, and close to one in four (23%) have maintained this from a childhood dream.

But starting a small business is not simply about coming up with a big idea. The research revealed the tipping point to business ownership is a combination of becoming convinced of the opportunity, the lure of financial independence, and dissatisfaction with their current work situation.

Trent Innes, Managing Director Australia and Asia, Xero said. “Australia is a nation of self-starters, with sole trader ventures accounting for the majority of our homegrown businesses. Xero’s Tipping Point report reveals that the Aussies who make this leap are driven by the freedom and independence that comes with working for yourself. While many of us may like to lay claim to a great business idea at one time or another, this research shows it takes a particular person and special set of circumstances to truly turn that idea into reality.”

Be your own boss

Among the biggest motivators to start your own business is the desire to gain freedom and control. Making their own decisions (47%) and working for themselves (46%) were top of the list as reasons for sole traders to branch out. Passion and creativity follow closely behind, with just under a third (32%) choosing to follow their passion and wanting creative freedom (31%).

Seeking the freedom that comes with being their own boss. Many solopreneurs were drawn into career independence due to feeling stuck in a ‘rut’ in their previous jobs or careers. Four in five (79%) sole traders felt negatively towards their last job or career before they went out on their own, with millennials aged between 30 and 39 the most likely to fall in this category. The most common feelings were unhappiness with a former manager (34%), frustrations with lack of control (32%), feeling like they were going nowhere (31%) and feeling uninspired and unmotivated (30%).

Tackling the hurdles of going solo

Along with the joys of working for yourself, there are also challenges. Unsurprisingly, finance is one of the main obstacles’ sole traders face in the initial planning phase. Budgeting for unknown costs was a key challenge for more than a third (39%) of sole traders. Other challenges included staying organised and on track (55%), driving customer acquisitions (53%), and knowing where to get started (38%).

Overcoming perceived mental obstacles – particularly the confidence to go it alone – were reported as genuine road bumps on the sole trader journey. More than two in five (44%) respondents felt they had to generate self-belief and reduce self-doubt. One in three (34%) were concerned about overcoming fear, worry and anxiety.

Luckily, there is moral support to be found amongst your nearest and dearest when you first decide to go it alone. Sole traders leaning on family members as their go-to (37%), followed by a romantic partner (29%) and a colleague/friend (27%). Beyond those in their personal circles, one in five (19%) turn to an accountant for advice when starting out.

Start own business: Top attributes

The report found that being optimistic, having a strong work ethic and being adaptable are vital characteristics for success. For those looking to start out, two in five (40%) view reliance on effective digital tools as critically important. Despite this, less than 38% of existing sole traders have a website, and among those that do, less than half (48%) can make sales transactions through their website.

While solopreneurs may be slow to adopt technology. The research found that almost two-thirds (64%) who used cloud accounting software during the pandemic believed it played a crucial role in supporting their business.

COVID-19 a catalyst to start own business

The pandemic has not dimmed the entrepreneurial spirit of aspiring sole traders, with many feeling optimistic about their short-term business prospects. In fact, two in five (41%) say the past year’s events have increased their desire to start a business.

“Australians have shown remarkable resilience in the face of the pandemic, and nowhere is this more evident than in the micro and small business sector. It’s this inherent resilience that will drive many aspiring business owners to get their idea off the ground in 2021 and gain the autonomy they’ve longed for – sometimes from as early as childhood,” Innes concluded.

Traits perceived by sole traders as critical to success

Personal habits	Organisational habits
Stay positive and take things in their stride (69%) Adhere to a strong work ethic (65%) Keep adaptable and open to change (62%) Attention to self-care – mental and physical health (57%)	Meticulous record-keeping and knowing their numbers (60%) Maintain a decluttered and organised operation (52%) Always plan ahead and have contingencies (51%) Create procedures and processes (51%)
Time management habits	Business management habits
Ability to separate work and family life (51%) Daily goal setting (47%) Focus on time management and task prioritisation (46%) Establish routines (44%)	Network regularly (48%) Seek advice from experts/ mentors and able to ask for help when needed (45%) Invest back in the business (40%) Lead by doing (38%)

Small Business Answers guide to starting a small business can be found here

Home Office Hacks For Business Productivity

Posted on February 26, 2021 by Angus Jones

Having a split workspace between home and the office is becoming the norm for workers and business owners alike.

While the home office has become a necessity for many of us over the past year. Those who have run businesses from home for years say most people get it wrong when trying to create the right environment and mindset for working and running a business from home.

Retailer Dave Strutton splits his time between his store on the outskirts of Adelaide’s CBD and his home office in the Adelaide Hills.

He believes we must maintain a functional workspace in our homes at all times to accommodate the changing nature of work and the threat of sudden lockdown.

“Over the past year, many business owners have found themselves having to work from home for the first time – either full time or in hybrid situations – and I expect that will continue for some time,” Mr Strutton said.

“For that reason. I think it’s more important than ever that we have a dedicated home office that mirrors as much as possible our workstations in our business premises” he said.

The owner of a Howards Storage World franchise says the key to a good home office is setting up a space that is properly laid out, well equipped and kept neat and tidy.

“Everyone’s homes are different. What works for one won’t necessarily work for another, but you don’t have to have a big space – or even a separate room – for a home office.

“Look for customised and adjustable shelving and storage units that allow you to set up a workable space that utilises whatever space you have available.

“This also gives you the flexibility to move things around should your circumstances changes.”

Location – Start by selecting a quiet room or space away from distractions and interruptions, such as children, pets and the TV. Don’t plonk yourself on the dining table or spread work across the kitchen bench. You’ll end up with food stains on essential documents as you rifle through your things looking for a phone charger! Set aside a permanent space just for working or studying.
Equipment – Make a list of everything you need – not just a desk and chair. You’re basically recreating your office workstation, so you will need essentials at your fingertips. Drawers and draw dividers, overhead shelves, filing systems and a cable organisation kit will help you maintain order. A wireless charging pad and labels are also useful. If you’re splitting your time between work and home, put items that will be moving between locations in a separate box or basket for a seamless transition.

Workplace expert Maureen Kyne from Maureen Kyne and Associates works from her home in regional Victoria.

She believes there needs to be a clear delineation between your designated work and home zones.

“The lines between home and work have blurred, and there are many pitfalls when it comes to working from home or dividing your time between home and the office,” Ms Kyne said.

“You have to be disciplined to create the right environment and the right mindset. Those who are splitting their time between home and the office really should be aiming for ‘hybrid harmony’.”

Dress code – get dressed in the clothes you would normally wear for work. Ms Kyne also applies make-up and puts on her high heels before entering her home office and shutting the door behind her. Dressing appropriately gets you into the right frame of mind.
Behaviour – Don’t keep any items nearby, such as books and magazines you’re reading, avoid distractions and don’t get in the habit of doing chores or housework, such as putting the washing on or cutting up veggies for dinner during work hours.

Both experts agree a well-planned and well-organised home office can make working from home a more enjoyable and productive experience.

Check out our guide on buying supplies to set up your office

Dave Strutton is the owner and operator of Howards Storage World in Adelaide.
Maureen Kyne is the principal of Maureen Kyne & Associates

How to Improve Wi-Fi

Posted on February 26, 2021 by Angus Jones

We rely so heavily on Internet connections these days, and we are quick to blame the broadband provider when it does not work. However, the question you should be really asking is How to improve Wi-Fi?

WiFi a wireless radio transmission allowing computers, tablets, smartphones, Printers, Camera’s and other WiFi enabled devices to connect to the internet or communicate with one another within a set area.

WHY should I worry about Wi-Fi black spots?

Wi-Fi is designed for in-building use with a range of about 10 to 30 meters. Its range is such as to not interfere with someone else’s Wi-Fi network in the next building. Wi-Fi is unlikely to pass through water or thick steel but can pass through walls which will reduce the signal strength.

The better the connection you have (signal strength), the more reliable and faster your connection will be. Remember, though, your internet connection will never be faster than the broadband plan you have subscribed to. See our guide on Internet Plans and Provision.

WHAT do I need for Wi-Fi?

Everything you need to know about setting up a Wi-Fi router and a computer network can be found in this guide.

HOW to Improve Wi-Fi?

Our sister publication has created a simple guide for improving Wi-Fi performance.

Place your Router in the middle of all the Wi-Fi action
The best place to position your Wi-Fi router will be in the centre of where the devices (or people) are located in your office.
Connect data guzzlers to your Router by Ethernet cable
Your Router will have some ethernet plugs on the back of it. Any device that uses lots of data like a network backup drive or a busy printer may be best directly connected via an ethernet cable.
If your place of business is dual-level or longer than 30m, you need Wi-Fi extenders
Some Wi-Fi routers are better than others at transmitting; however, the 10m to 30m limit is real, so a product called a Wi-Fi extender placed within the range of the Wi-Fi router will then extend the coverage a further 10 to 30m.
The trick is Ethernet backhaul – not Mesh Wi-Fi
Referring back to point 3. A long ethernet cable plugged into the Wi-Fi extender (especially if out of Wi-Fi range) will provide you coverage at a greater distance and at a faster speed.

HINTS – How to improve Wi-Fi

A speed test like www.speedtest.net will give you an indication of what speed your internet is running at. Do a test with a PC connected by ethernet cable directly to your Router, then do a test over Wi-Fi. This will show you what the best case is and if you have a problem. The faster speed is better.

Visit Gadget Guy to read the one-page guide on Kill Wi-Fi blackspots in 5 simple steps

SUMMARY – Improve Internet speed

Put simply, if you have poor internet, look for a solution. We suggest you start by understanding your broadband plan speed. Test its actual speed, then the speeds of your Wi-Fi connected devices in your office.

You will be pleasantly surprised by the effect of fast internet on your and any employee’s productivity.

Leasing vs Buying Equipment

Posted on February 17, 2021 by Angus Jones

Setting up or expanding a business can be an expensive exercise. To provide yourself with the tools and equipment you will have to either buy items or lease items. Almost anything can be leased from office equipment to machinery and tools. This guide will help you consider the choice between buying and leasing as well as providing further knowledge around the process of leasing.

Leasing of plant and equipment is obtaining the use of machinery, vehicles, or other equipment on a rental basis. This avoids the need to invest capital in equipment. Ownership rests in the hands of the financial institution or leasing company, while the business has the actual use of it.

If you do not have the available cash, further details on ways of acquiring finance can be found in our guide on Financing.

WHY should I lease versus buy?

To understand which is best in your situation it is best to understand the various advantages and disadvantages of each.

Leasing advantages include: making lower monthly payments rather than buying upfront, getting a fixed financing rate instead of a floating interest rate, benefiting from tax deductions on leasing costs, conserving working capital and avoiding cash-devouring down payments, and gaining immediate access to the most up-to-date business tools. The equipment also shows up on your income statement as a lease expense rather than a purchase. If you purchase it, your balance sheet becomes less liquid. The leasing company may also be responsible for repairs saving you maintenance costs.

Leasing disadvantages: You may pay a higher price over the long term versus buying. Leasing commits you to retain a piece of equipment for a certain period, which can be problematic if your business is unstable. Some brands or models may not be available to lease.

Buying advantages: Allows you complete control over your purchase including selection, modifying, and selling the asset for cost recovery. You can control repairs and service intervals. In certain cases, you can claim depreciation as a tax deduction. No agreements or contracts to agree to.

Buying disadvantages: Requires you to have cash flow and might force you into buying a cheaper model. If technology is outdated you have no easy upgrade path other than selling. Unless a warranty or insurance policy exists, repairs and maintenance will be an additional expense.

WHAT do I need to understand about leasing?

If you are just starting a business you may find it difficult to lease equipment. Lease companies will look at your lack of credit history but may consider your personal rather than business credit history during the approval process.

There are four types of equipment leases:

Finance Lease: Ownership of the equipment is with the business. It is on-balance sheet. Lease payments are tax-deductible. At the end of the lease, the equipment is returned to the Lessee or purchased by the business for an agreed price.

Operating Lease (Rental): Ownership of the equipment remains with the Lessor (it is off-balance sheet). Financing payments are tax-deductible. At the end of the lease, the lessee returns the equipment to the lessor or purchased by the business for an agreed price.

Commercial Hire Purchase: Equipment is owned by the business and it is treated as on-balance sheet finance. Only the interest portion of the payments is tax-deductible. The business can claim depreciation deductions on the equipment. At the end of the term, the equipment remains with the company. Sometimes there is a residual value payment required.

Chattel Mortgage: Equipment is owned by the business and the interest component of the payment is tax-deductible. The business can claim depreciation deductions on the equipment. This is a traditional secured loan where the equipment acts as security for the Lender. At the end of the finance term, the borrower remains as the owner of the equipment.

Watch for balloon payments, here you make small monthly payments with a large payment at the end. While this allows you to conserve your cash flow, the final balloon payment may be more than the equipment is worth.

If your lease requires you to return the equipment at the end of the lease and it’s worth less than the value established in the contract, you may be responsible for paying the difference. Also, watch for additional charges such as wear and tear.

HOW to buy or lease equipment?

Buying equipment is fairly straight forward however when selecting the right product you should consider:

What you need both now and in the future?
Would it be more cost-effective to have someone else’s plant or machinery do the task for you?
Do you have the right environment or space to operate this product?
Is the quality or reliability of product critical and does the extra cost make sense?
Do you need to buy new or will 2^nd hand work?
How easily and/or quickly can the product be repaired or serviced?

If you decide to lease, the above list also applies. You can secure an equipment lease through:

Banks and bank-affiliated firms. Banks may offer advantages, like lower costs and better customer service. Check whether the bank will keep and service the lease transaction after it’s set up.
Equipment dealers and distributors can help you arrange to finance using owned leasing subsidiaries or an independent leasing company.
Independent leasing companies.
Commercial leasing broker. Much like mortgage brokers, these people charge a fee to act as an intermediary between lessors and lessees.

HINTS

Every lease decision is unique, so it’s important to study the lease agreement carefully. Compare the costs of leasing to the current interest rate, examining the terms to see if they’re favourable. What is the lease costing you? What are your savings? Compare those numbers to the cost of purchasing the same piece of equipment, and you’ll quickly see which is the more profitable route.

SUMMARY – Leasing versus buying equipment

There are advantage and disadvantages of both buying and leasing. Make sure you:

Understand the tax consequences.
Make sure the product and the financing meets your needs.
Understand what the implications are at the end of a product’s useful life or the end of lease terms.

Your accountant should be able to advise you in these matters if you require additional assistance.