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.

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.

The year ahead – without Job Keeper

Posted on February 17, 2021 by Angus Jones

A new SME Recovery Survey conducted by American Express aims to better understand the current environment for business owners and uncover how they react as business conditions shift in 2021 with the removal of Job Keeper.

The research shows that most Australian SMEs (53 per cent) are optimistic about the year ahead. Despite the ongoing pandemic and the expected end of JobKeeper in March, which according to 55 per cent of respondents, helped or was vital in keeping their business afloat during the health crisis.

However, SMEs’ feelings of optimism are tempered by the knowledge that more than two in five businesses will need to access additional capital in the form of a loan this year. One in four (26 per cent) say as a direct result of JobKeeper ending. On average, those seeking a loan intend to request just under AU$100,000 ($97,225).

According to Martin Seward, Vice President of Global Commercial Services for American Express Australia, “Many businesses are still feeling the full impact of the Covid-19 crisis, while others have rebounded with their sights firmly set on growth. We have taken a transformational step to evolve our business beyond our existing card offering to help support businesses on their journey forward.”

The American Express research reveals that the top business resolution for nearly two in five SME operators this year is to try new ways to grow their business. More than a quarter of that group believe this growth could be more significant with the appropriate amount of capital.

Top 5 reasons for accessing capital in 2021:

To grow/expand their business
Buying equipment
To ensure their business’s survival
Marketing and advertising
To cover essential operational costs

And yet, nearly half of SMEs seeking funds from other lenders during the pandemic said they faced challenges – from finding the process complex to being asked to use personal assets as security.

Of those small businesses that attempted to gain capital for their business from other lenders during the pandemic, top challenges they faced were:

Finding the process complicated and lengthy
Needing to approach several lenders before they were successful
Not receiving the entire amount of funds requested

“We don’t believe SME’s growth should be hindered by red tape or unneeded complexity, and certainly not at the expense of having to put your house or business on the line – something that extraordinarily a third (32 per cent) of SMEs needed to do to raise capital during the pandemic. Our unsecured business loans remove some of the existing complexity that comes with many other loans on the market, with funds deposited into a customer’s account typically within two business days of approval,” concluded Seward.

American Express is partnering with ODX to provide small business with a digital and frictionless experience to tap into financing.

“We are proud to work alongside such an iconic brand in the pursuit of making working capital readily available to businesses in Australia to fuel the recovery” added Brian Geary, President of ODX

About the American Express Business Loans

Unsecured funding from $5,000 to $250,000
Annual interest rates from 10.95% p.a.
Terms of 6,12,18 or 24 months
Quick and simple online application process
No set-up or early repayment fees. A $30 fee for a missed payment
Fast decisions with funds usually delivered within two business days of approval
Loan approval is subject to American Express eligibility criteria

For more information on Business financing read Small Business Answers guide on Loans & Equity Funding

_{About the research: The research was commissioned by American Express and conducted by Lonergan Research per the ISO 20252 standard. Lonergan Research surveyed 1,009 Australian small to medium-sized (up to 199 employees) business leaders. Surveys were distributed throughout Australia, including both capital city and non-capital city areas. The survey was conducted online amongst members of a permission-based panel, between 18 and 28 December 2020. After interviewing, data was weighted to the latest population estimates sourced from the Australian Bureau of Statistics as of the 2016 Census.}

Can’t pay my debts – Insolvency Reforms

Posted on February 15, 2021 by Angus Jones

With Australian small business gripped by the effects of COVID-19, many find themselves in a position where they can’t pay their debts. The Australian government has stepped in to help by introducing insolvency reforms.

Insolvency is when you find yourself in a position that you do not have the funds to pay the money you owe to others. As the owner of a small business your business and most likely you personally are responsible for paying your debts.

WHY should I pay my debts

If you don’t pay money that you owe to others, they have the right to recover those funds. If you don’t have the funds, you become insolvent or essentially bankrupt.

Before January 2021 it was illegal for a business to trade if insolvent. The Australian government has introduced reforms that will allow a small business more time to restructure and survive the financial effects of COVID-19.

WHAT do insolvency reforms mean to me?

If you find your self insolvent and your debts are less than $1million, you will be eligible. Note that you must also have paid your employees their entitlements including superannuation and have your taxation lodgements up to date.

The small business reforms package consists of:

• A debt restructuring process providing a quicker and less complicated procedure for financially distressed but viable firms to restructure their debt.

• A liquidation process to allow faster and lower-cost liquidation, maximising returns for employees and creditors.

These reforms have been announced as temporary so at some point they will be removed!

Most importantly, this means that you can keep trading under your control while developing a debt restructuring plan.

HOW do I get help?

Traditionally you would need an administrator who would take control of your business which would be placed in voluntary administration.

Now a small business restructuring practitioner is recruited, which will reduce the complexity involved.

If you are facing financial stress, you should approach a practitioner immediately to discuss your options. There is a flat fee to do this but remember it is the difference between closing your business immediately and trading out of your insolvency.

The practitioner will work with you over up to 20 days to create a plan that your creditors must vote on. If the plan is approved, the practitioner will administer the plan, including making payments on your behalf to creditors as set out in the plan.

HINTS – Small Business Reforms Package

A government fact sheet can be found here

You can find a registered restructuring practitioner h e re. Only a person registered with the Australian Securities & Investment Commission (ASIC) as a “registered liquidator” can act as a business restructuring practitioner.

SUMMARY – Can’t pay my debts

Key to your business success is good record keeping. Knowing your financial position and understanding if your business has become insolvent means you may be able to trade out of your issues. Alternatively, shut your business down without also destroying any personal assets. The recent government reforms show sympathy and understanding of small business. They are making it easier to get back on your feet.

Website design for subscribers, leads, and sales

Posted on February 1, 2021 by Angus Jones

Website design is critical for your business success. When you open a web page, do you read it or do you scan it? We all want instant gratification to quickly find what we want. A well-designed website will engage readers and help you achieve your goals. This guide will look at why web design is essential and look at what you should consider to get the best result.

Web design can be defined two ways.
1. Referring to the design of the website displayed on the internet and the consumer experience. The experience of viewing the page includes its layout, the content contained and the graphic design.
2. To create and maintain a website using a process of planning, conceptualising and arranging content. Website design uses specialised software and templates combined with human creativity.

WHY should I care about good website design?

The best layouts for sales are deeply influenced by conversion science (study of converting a user’s interest into a sale). This means layouts are critical for marketers who want more subscribers, leads, and sales.

A visitor’s first impression of your website is critical! Layout and design are what influences that first impression.

More than 90% of first-impressions are design-driven. A visitor will form an opinion of your site in less than a second.

A recent study indicates that nearly 50% of all web visitors will decide if your site is worth their time based on design alone.

Colours and graphics contribute to a website’s design. Still, it is the layout that is most important when it comes to user experience and digital conversions.

WHAT makes a good website?

Simple to use – users should not have to work out how to use it
Intuitive – makes information easy to find
Streamline – marketing fluff or clutter is removed
Engagement – convince readers you are worthy of their time
Easy to read – simple text and layout means lazy readers will absorb
Consistency – colours, fonts, and imagery are consistent and on-brand helping visitors connect with you
Responsive – ensures superior experience no matter if consumed on a desktop, tablet or a mobile
Fast – our patience is stretched if a web page takes too long to load

For information on steps to create a website refer to our guide to building a website to boost your brand

HOW do I ensure my website design is effective?

Let’s face it, not all of us are creative, and if we are, we may not then have the skill set to briefly explain a product or service. The net result is web design takes a specific set of skills that may collaborate with several individuals with different abilities.

Web design has become much simpler with the availability of user-friendly software tools and the availability of template-based building tools. You have many options to do it yourself or completely outsource the project to something in the middle, like getting some help with some graphics. See our guide on graphic design.

Some key practical attributes of a good website:

Use lots of white space to highlight the headline and call-to-action
If the visitor wants to learn more, they can scroll down
Simple (cut-down) menu that makes finding what you need simple and intuitive
Show an example of the solution at work
Visitors can understand why they would need the solution, which helps to push the conversion
Have a call to action that is static – it’s always prominent, even as visitors scroll down and continue to read
Keep the menu static, so readers always have access to other content
Ensure the layout is pleasing and easy to read so visitors will be engaged
Use clearly marked headings with simple explanations and links for more info
Have information to learn enough to drive a conversion based on someone skimming
Use words and images that will draw attention
At the bottom of a page list out links that make it easy to navigate the site with minimum clicks and scrolling
Put essential information above the fold requiring little visitor input (landing page info on screen)
Ensure your menu items are simple to understand, and you should have a practical website layout to drive more sales
Video can be an effective way to tell a story quickly. Ensure the video is short and clearly explains a customer benefit
Use pop-ups to collect customer data and consider an exit pop-up to reignite interest in your site

HINTS

Good web design is only part of the equation of having a successful business. If you have a product that no one wants or your pricing is not right, the best website is unlikely to solve this. For more helpful info see our guide on marketing to grow your business.

You need to be credible. The design will get you eyeballs, but you will never see them again unless your content is of high quality and relevant to the reader.

Don’t be afraid to use offers. This offer could relate to price, availability, bonuses etc. There is a reason year after year, retailers use sales to boost sales.

Test your new site. Ask family friends, business associates etc. to look at your new site and give their frank feedback. Don’t accept the answer “Good” ask them specific questions.

SUMMARY – Website to drive sales

Having a website and something to sell is a start, but that website must be engaging to attract a buyer to look further and persuasive to help you close a sale. You can do some simple things with the website layout, content, and graphic design to give your site an unfair advantage over your competitors.

Tips to improve your business cyber health

Posted on December 3, 2020 by Angus Jones

Many small businesses are struggling with taking the first steps to improve their cyber health.

Australian SMEs know cybersecurity is important, regardless of how they rate their understanding of it. However, they face significant barriers when attempting to implement good cybersecurity practices, with 62% of SMEs, revealing they have experienced a cybersecurity incident (ACSC).

Mallika Sathi, Vice President, Cyber Security & Intelligence Solutions & Digital Identity at Mastercard APAC, has shared her top tips for small businesses to improve their cyber health.

Small businesses can also access the Global Cyber Alliance toolkit, which is a free and effective tool business can use today to take immediate action to reduce risk.

Additionally, earlier this year, Mastercard launched the Getting Back to Small Business campaign that gives business peace of mind that as they navigate and adapt to the new normal, their businesses and their consumers are safe and secure.

The Getting Back to Small Business program offers support to businesses ranging from setting up their online retail front and ensuring their cyber health is in check, to securing payments for consumers and enhancing checkout security, and everything in between.

Cyber Health top tips from Mallika:

Use strong passwords: Use strong, unique passwords for each online account and update them regularly – don’t store passwords on your computer.
Knowledge is power: Know who you are dealing with online. Check that you are dealing with a trusted, reliable business or supplier by confirming their company details and researching online feedback and complaints.
Multi-factor authentication: Small businesses should implement MFA wherever possible. The multiple layers make it much harder for criminals to attack your business. When paying anyone externally, this will ensure the transactions are secure.
Scam awareness: Even large or small businesses can be victims of scams. Protect yourself and your business by being aware of the common scams targeting small businesses. Fraudsters are using very sophisticated phishing emails to steal data or download malware to your computer.
Security Tools: Install security software for your business to minimise fraud and reduce chargebacks costs & customer disputes. Protect against the ever-changing cyber threats and remember to back-up your computer and mobile devices regularly.
Educate yourself: Being prepared for a data breach is a must for businesses of all sizes. Small businesses need to have a data breach response checklist in place to ensure they understand the steps to take.

For more information see our handy guide on Internet Security and protecting from cyber threat.