Wild Streak

One of the first decisions to be made when starting a new business is whether you should register for GST. Here I’ll discuss the key issues you need to consider.

What will your turnover be?

Many business owners automatically register for GST, unaware that in some circumstances it may be optional.

Currently, it’s mandatory to register for GST if you expect your annual turnover to be $75,000 or more.

However if your turnover will be less than this, registering for GST is optional, and you should consider the cash flow and administrative implications of your decision.

Cash flow implications

If you’re forecasting a turnover below the $75,000 threshold, not registering for GST means your selling prices will effectively be 10% cheaper than those of your GST-registered competitors. Or you could charge the same price as your competitors and enjoy a healthier profit margin.

On the other hand, you won’t be able to claim back the GST on your expenses or on any goods you purchase for sale.

Also bear in mind that some businesses are wary of buying from those that are not registered for GST, perhaps questioning their credibility. This may affect your sales. Furthermore, some businesses prefer to purchase from GST-registered businesses just so they can claim the GST back.

Administrative requirements

On the negative side, GST registration means additional administration work, and reporting to the Australian Taxation Office (ATO), typically on a quarterly basis. A registered business has two distinct roles, the running of the business, and acting as a tax collector for the ATO.

However, being forced to maintain your financial records in a timely manner often provides valuable insights that assist in the management of the business, so the admin involved in completing your business activity statement (BAS) may be a blessing in disguise.

In addition, your decision about whether or not to collect GST has implications for the information you’re required to include on your invoices.

What type of business would benefit from not registering for GST?

A business with high service-based sales and minimal expenses and capital purchases may benefit from not being registered for GST, if that option is available to them.

For example, a GST-registered business with an income of $70,000 excluding GST, and outgoing of $10,000 excluding GST, would be required to remit $6,000 collected GST to the ATO. This creates a negative impact on their cash flow, as well as additional paperwork. On the flip side if your non-registered business turns over $70,000 it’s all yours – or at least until the time comes to pay your income tax!

As with all tax issues, you’ll need to speak to your tax accountant about whether or not registering for GST suits your individual situation..

Has registering for GST had a positive or negative effect on your business? Please share your experiences with us.

While competing at the national dragon boat racing championships, I gained some valuable insights into my business that I’d like to share with you.

Never say never

I only took up dragon boat racing in 2008, so I never thought it possible that I’d be going to a national championship the following year. If anyone had suggested to me a few years ago that I’d be a state representative in a sport I’d never participated in, I would have laughed. It wasn’t a possibility I’d considered.

As soloists, it can be challenging and overwhelming to consider delivering our services and products in areas that we’ve previously not thought possible.

It may be as simple as having the opportunity to deliver a presentation to a potential client or speak at a conference, or it may be such a big hairy audacious goal that you get goose pimples thinking of it. Either way, just think of me proudly wearing my NSW team uniform, and remember that anything is possible!

Do the background work

In the lead up to the championships I was in training for months.

Similarly, when working to acquire a new client we need to research as much as we can about the client’s needs. The more background work we do, the better equipped we’ll be to fulfil their requirements.

Communication is everything

If you want 22 people to make a boat move in the same direction as quickly as possible, you need to have clear communication.

Clear and regular communication is also essential if you’re going to be of service to your clients and achieve common goals.

Talk to your clients about their preferred form of communication and respect their preferences so they know they’re being heard and supported. And even when the going gets tough and you need to have some difficult conversations, remain committed to keeping the lines of communication open.

A little encouragement goes a long way

In the lead up to the national championships there were times when I questioned my ability. But whenever I doubted myself, someone would step up and offer me words of encouragement.

As soloists we need to ensure that we build a network of positive, encouraging and supportive people around us.

It’s also important not to give the little gremlin of doubt that we all seem to have chattering away in our heads the power to stop us from achieving our goals. When that doubting voice comes to visit, speak to someone you trust about your ideas. Consider your options and believe in yourself.

Leadership is essential

The NSW dragon boat squad I was part of involved over 300 people across numerous divisions. But we were united by the head coach, who had a vision for the team and expressed it clearly, inspiring and motivating us all.

As experts in our respective fields we’re also leaders, and our clients expect us to show leadership qualities. We can achieve this by communicating clearly with our clients using active listening skills and asking appropriate questions. We also need to be able to understand our clients’ visions for their organisations and work with them to help them reach their goals.

Our credibility goes hand in hand with our leadership skills.

 Teamwork can achieve amazing results

By the time the championships arrived we were all working together as a team and focused on our goals.

As a soloist, it’s easy to think you’re not part of a team, but in fact, for many of us, our clients are our team members. Together we build a positive and mutually beneficial relationship that helps them achieve their goals while we achieve our own. This positive experience can often lead to repeat work that’s enjoyable and profitable for all. 

What have you learned that’s helped you in your business lately?

From product design and processes to marketing and language, small businesses need simplicity to prosper. So why is it so elusive?

“Less is more”, “short and sweet” and “Keep it simple stupid (KISS)” are powerful philosophies. They sound straightforward, but are actually tricky for small businesses to attain.

Things start off simple. Innovative products, start-up business models and fresh ideas are generally born into the world polished up and free of baggage. But then they attract the sticky tentacles of complexity. Simplicity drifts into chaos as ‘stuff’ flies in to fill up the vacuum.

I’ve long had an interest in, but never mastered, the elusive art of simplicity. Here are some of the things I’ve discovered:

Less is usually more

The temptation is always to add. More features. More options. More words. More stuff. And before you know it, the strong and focused concept you started with is diluted and confused.

“The simplest way to achieve simplicity is through thoughtful reduction.” LawsOfSimplicity.com

Simplicity is prioritisation

But less is not always more. You need to identify what is truly essential, and only eliminate that which is dispensable. Ruthlessly prioritise who, and what, deserves your limited time and attention.

“Everything should be made as simple as possible, but not simpler.” Albert Einstein

Simplicity is honesty

Say what you really think, even if it’s not what others might want to hear. Too much time and effort is wasted skirting around issues that can be put to bed in one open conversation.

Simplicity is leadership

Delegate to good people then get out of the way. Make timely decisions and stick to them without over-analysis. Don’t be afraid to say no to non-essential requests.

Simplicity looks easy

Beautiful design can look effortless. Brilliant ideas seem obvious in hindsight. But they are usually the end result of hours of hard work and years of study and experience.

“An expert is someone who has succeeded in making decisions and judgements simpler through knowing what to pay attention to and what to ignore.” Edward de Bono

Simplicity is an epic battle

No wonder true simplicity is so rare, if not unattainable. It is a never-ending battle against a tireless force.

But the alternative is chaos. And put simply, that sucks. Do you have anything to add (or take away)?

If you love promoting your business on the cheap, these three low-cost tools deserve pride of place in your marketing plan.

Google tools

Google offer a number of free tools. If you’re thinking of using more than one of them, sign up for a free Google account so you can access them via one unique login for your business or website.

• Google Analytics: Google Analytics is a program that helps you understand what keywords are being used to find your website, what your site’s most popular pages are, and how many people are visiting them. It’s easy to use and provides the data in a number of ways.
• Google Local Business Center: Previously known as Google Maps, the Google Local Business Center is ideal for those businesses with a very local and specific target audience. You’ve probably noticed that your own use of search engines has become narrower and more local over time. After all, why search for a cleaner in Melbourne when you really want someone around the corner from you in Preston? Having a local business listing will allow you to tap into that trend. Incidentally, Google are not the only ones who offer this service – it’s also worthwhile listing your business with Yahoo Local. 

Referral networks

Word of mouth referrals are a hot topic on Flying Solo and an essential part of marketing for any small business. A number of websites have been set up to link buyers and sellers of products and services. Some sites are completely free for both the seller and buyer; some charge the seller to receive leads, and others operate on a territory-based model. If nothing else, most are free to join and are worth investigating further. Here are some sites to consider:

• For B2C referrals: My favourite is Word of Mouth on the Web, a place where people share their opinions and experiences about various businesses. There is an advertising package available, but by asking your customers to review your business you can get a listing at no cost. Other options to investigate include Service HQ and Bid My Loan.
• For B2B referrals: ifindconsultants   

Free PR

SourceBottle is a website that enables journalists to find information, case studies and interviewees for stories they’re working on. For small business owners, it’s free to join and gives you a direct way to liaise with the media. Set up an account and media requests from journalists are emailed direct to your inbox twice a day.

 When it comes to marketing, everybody loves a freebie! What’s your favourite?

Noticed a change in your Google traffic this month but can’t pinpoint what it is? Maybe the answer lies in the long tail. The “long tail” in relation to search engine traffic is the visitors you get who have used complex or less popular queries on a search engine. According to an article by Vanessa Fox on [...]

With over 40 events, MicroBiz Week can help your micro, home-based or solo business grow and thrive. Check the online calendar for details on: Networking & Connecting workshops; Webinars, Resources & Demonstrations; and a showcase of Microbiz Masters.

MicroBiz Week, the annual celebration of dedicated workshops and events targeted at the solo, home-based and micro-business sector, is set for 31 May to 4 June, 2010. 

Sponsored by the NSW Government and now in its fifth year, MicroBiz Week is part of the NSW business calendar with its primary objectives being to assist businesses in the start-up and first few years of operation. 

This year, small business operators can get information and advice on a wide range of topics including how to deal with isolation, working from home, connectivity, networking, virtual business activities and online opportunities. A dedicated “Start a Business Day” will be held on 3 June. 

The week is held in conjunction with over 30 partners, professional experts and speakers and includes events like webinars, seminars, workshops and demonstrations. 

For more information on MicroBiz Week, go to http://microbiz.events.smallbiz.nsw.gov.au or Hotline 1300 661 539.

 

 

It seems some major sites are rethinking how they deal with user comments after increasing numbers of attention-seekers litter comment threads with, well, crap. Last year I published an article called “Rethinking user comments” after getting sick and tired of seeing interesting discussions turn into link-drops, peppered with “me-tooers” degrade into slinging matches, off topic rants [...]

Freelance consulting can be challenging, especially if you’re trying to achieve work / life balance while also delivering customer satisfaction and hitting deadlines.

Staying focused and completing projects on time is critical when working alone, so you’ll need to develop good time management skills. Maintaining your workload from existing customers while also securing new work to keep the income steady can be just as important. 

After working closely with freelancers from a wide variety of disciplines, I’ve noticed that sticking to the following six principles tends to set the successful freelancers apart from the pack. 

1. Establish set work hours

You may be working for yourself but it’s more important than ever to maintain a set schedule. While the hours you choose to work are completely up to you, defining them provides a much-needed routine to keep you focused and allows your clients to know when they can reach you. Maintaining a fixed work schedule is simply a way of creating a good, consistent work habit. 

2. Have a dedicated workspace

Having an office doesn’t mean you have to pay rent for a professional space. In fact, most freelancers enjoy the benefits of working from home and being close to family. The key to staying focused when working from home is having the right workspace. It should allow for plenty of privacy, be in a quiet area that allows you to concentrate, provide plenty of room to work in, and include necessities such as a phone, fax, computer, desk and file storage. Do whatever necessary to set your home office up efficiently – anything less will hinder your productivity. 

3. Finalise your fee structure

It may seem obvious, yet many freelance consultants neglect to establish a written fee structure for their services. Ideally, create a firm price list for your services that you can give to prospective clients or refer to when submitting a proposal for work. The most common pricing method is a fixed, hourly rate, but you may also want to set a flat fee for certain services or projects. 

4. Polish your portfolio

Depending on the type of work you do, it is recommended that you create a professional portfolio of your work. Whether you’re a copywriter, graphic artist, virtual assistant or web designer, assemble the best examples of your previous work in a nice binder, portfolio book or web page. This allows you to have work samples readily available and neatly organised to show prospective clients. Not only does it enhance your credibility, it’s a good way to showcase the range of your capabilities and organisational skills. You may also want to include short customer testimonials along with the work samples for an added boost of credibility. 

5. Always carry professional business cards

How many times have you met someone you may want to do business with, gone to exchange contact details and realised that neither of you have a business card? Scribbling contact information on a scrap of paper is not the best approach for marketing yourself as a successful freelance consultant. Keeping a simple business card with basic information on-hand at all times remains the best method for trading contact information, and also shows that you’re a legitimate professional. 

6. Join an online community

Engaging with other freelancers and business owners in online communities, social media networks, blogs and forums means businesses can easily find you when they’re looking for help with new projects. This is an ideal way to market yourself and your skills to prospective clients without having to spend large amounts of time or money on advertising.

These are my six favourite tips for successful freelancing, but I bet between us we can come up with plenty more. Care to add any to the list?

Do you ever feel conflicted or frustrated, with part of you wanting to go ahead with something, and another part hesitant? Neuro-linguistic programming (NLP) can help.

Think about the following: 

• When you woke up this morning, how did you know to be you?
• If you drive, how did you get to your last destination? I bet when you think about it you can barely remember the majority of the journey.
• If words make up just 7% of communication, who is in control of the other 93% of yours? 

These are all examples of the unconscious mind at work. 

For the most part, we aren’t aware of the fact that our operating systems are comprised of both conscious and unconscious minds, so we don’t use them both to their full potential. For many people the exception is when they have one of those ‘I’m feeling uneasy but can’t explain why’ moments. 

Thinking about your unconscious mind in NLP terms may shake up your thinking. (Your conscious thinking that is!) 

Your unconscious mind doesn’t process negatives

To use a classic example, if I say to you ‘Don’t think of a blue tree,’ what pops into your head? 

How is this knowledge important to your business? Think about the language you use with your clients. For example, what message are you sending if you say to a customer ‘Don’t worry about the price’? 

You need to be very purposeful with your language if you want your clients to interpret what you say favourably in both their conscious and unconscious minds. Omit any negatives and turn your language into positive, inspiring talk. 

While we’re on the subject, how do you respond to that most common of all questions, ‘How are you?’

If your routine answer is ‘Not bad’ or ‘Can’t complain’, take a moment to consider what your unconscious mind hears every time you say this. Yep, things are bad and you’re complaining. Neither of those states is very inspiring or uplifting, so it could be time to weave some more empowering alternatives into your vocabulary! 

Your unconscious mind maintains instincts and generates habits

You may have heard that you need to consistently repeat a new habit for 20 days if you want it to stick. That applies when you only use your conscious mind, but if you also use your unconscious mind, change can happen in an instant. How great is that for time management? 

Your unconscious mind is programmed to continually seek more

You’ll never be done learning and discovering, because you’ll always have part of you wanting more and driving you to keep moving forward. So enjoy the journey, as well as the destination, because as soon as you get there, you’ll be starting another journey again! 

Give your unconscious mind a break

How can you start consciously using your unconscious mind? Like physical fitness, it is a matter of training. One thing you can start doing immediately is giving yourself time to reflect every day so that your conscious mind gets a rest and your unconscious mind can get to work. 

What you’ll effectively be doing is setting yourself up for more of those amazing ideas and precious moments of great inspiration that pop up when you least expect them. Eureka! 

Are you in two minds about commenting on this article? Please don’t be! We’re keen to hear your responses – both conscious and unconscious.

After talking about it for months (years?), Rupert Murdoch is about to ban search engine spiders from two of his publications. The first two Newscorp properties to carry out the the wrath of Rupert are UK (soon to be pay for play) news sites, The Times and Sunday Times. According to PaidContent, the sites will only allow [...]

A couple of weeks back I posted about another blogger raising the possibility of banks using social networks as a financial assessment tool. It seems that debt collectors may have already made a start. My original post, “Bank Loan Tweeticide” was in relation to banks using social networks to assess loan risks based on the activities [...]

Ever thought about hosting your own events? Here are 10 reasons why you should.

Sponsoring or exhibiting at conferences, trade shows and expos can be a great way to get exposure to potential clients and secure new deals for your business. However, they can also be very expensive and time consuming, and there are no guarantees that the people you’ll be exposed to are in your target market.

Running your own events could have numerous advantages for your business.

1. Lower costs

Trade shows and exhibition stands at conferences can be very expensive. When you work out the number of people you meet, then divide that by the number of your competitors at the event and then analyse your cost per sale, running your own event becomes a very attractive alternative.

2. Increased sales

Because your own events can be cheaper to run, you can afford to hold more of them throughout the year, carefully timed so that you maintain frequent contact with your prospective clients. And that means you stand a greater chance of catching prospective clients when they’re ready to purchase.

3. Cut out your competition.

At trade shows, seminars, conferences and exhibitions, you’re up against competitors who are also vying to establish contact with your prospects. Running your own event takes your competitors out of the equation and maximises your own exposure to your target market.

4. Spread the load

By running a series of events, you create a more consistent flow of sales leads throughout the year, strategically scheduled to avoid “flat spots” in your sales cycle.

5. Your place, your rules

You get to choose venues that suit you and your clients, and you can run your events on dates that fit in with your schedule.

6. Fly under the radar

Running your own events makes it difficult for your competitors to keep tabs on your activity. You can market directly to your prospects and reduce the chances of your competitors finding out your latest strategies.

7. Customer intimacy

By holding your own highly targeted events on a frequent basis, you create more opportunities to get to know your customers and prospects, and for them to get to know you.

8. A reason to talk

Organising an event gives you a great reason to call your prospects and talk to them.

9. Double exposure

Paying for an exhibition booth at an event doesn’t necessarily entitle you to speak on the conference program. However, if you organise your own event, you not only get to set up a trade display, but you can deliver a presentation from the podium as well, establishing yourself as an authority on your subject. You also get complete control over your speaking topic and can position yourself in exactly the way that meets the needs of your market.

10. Select your own audience

At a trade show or seminar, you pay not only for exposure to your target market, but for people outside your target market. Running your own event means you can hand-pick the people you want to attend.

What sort of event should you run?

You could run a breakfast seminar, an information evening, a lunchtime briefing, a half-day workshop, or any other type of session. The important thing is to structure your event to suit your target market.

For example, a business consultant might choose to run a breakfast seminar, whereas an evening information session might work better for a mortgage broker.

Does running events work for your business? Please share your tips with us below.

Google AdSense, the hugely popular revenue generation tool for online publishers, has finally revealed what has been a closely guarded secret, the percentage share of ad revenue it pays to publishers. I was expecting to see the cut being 50% or perhaps even less based on experiences with other ad networks. But the mighty G seems [...]

I used to be so good at work life harmony. I committed myself to tasks with a relaxed yet dedicated fashion and was productive and happy. Then that all changed.

If I could meet the woman from back then, I’d love to wipe the smug grin off her face and give her a dose of the adrenalin that’s plagued me of late.

You see I’ve become so busy. I know everyone is. Indeed it’s a badge of honour for many, but not for me.

I work part time and coparent two young girls, neither of whom are tricky kids. I am well organised and competent, or thought I was. I enjoy great support from my partner, my colleagues, my clients and community.

But I’m still overwhelmed by the sense that there’s more to do than will ever be done.

Lately, I calculate there are 25% more things to do than there is time to do it in. As it is I am up at 6.30 and do not stop until gone 11pm. Something has to give, so here’s what I’m going to do:

1. Pick my battles. Stressing over undone jobs is a luxury I cannot afford at the moment.
2. Lower my standards. If my two year old has toast for dinner occasionally it’s not going to do her any harm. Ditto the odd takeaway for us.
3. Celebrate the small things. If, at the end of the day, I have managed a pleasant client interaction, ticked off a work task or two, have a semi tidy home and children that are fed, clean and asleep, then that’s pretty good going.
4. Stop striving for order. Young children create chaos. You can’t wish that away, or you’d wish away them. Not good.
5. Take two hours a week to do something self-centred and do it without guilt or apology.
6. Strive to get back to smugness. I should be on my way to that by the time you read this, as Flying Solo’s new website – a big, big project right now - will be running smoothly. Won’t it?!

I reckon one of the great mysteries of modern life is: how did we become so overscheduled? Why is downtime not considered valuable? Is spreading yourself thin the only way you can be deemed a useful and productive member of society?

What I really want to know, dear reader, is: Is it just me, or does anyone else want to get off? Share your thoughts below.

In the rough and tumble world of the soloist, it’s important to have protection from the biggest threat to your business: you. Yes, it’s time you got a bouncer!

This bouncer is not going to stand outside the door to your office and deny you access if your choice of outfit for the day doesn’t meet the dress code. In this context, a bouncer is someone you can bounce ideas off and get feedback from.

Why do soloists need a bouncer?

Do you ever talk yourself out of ideas? Do you tell yourself you can’t do something even though there’s a strong possibility that you can? Do you agonise for days over decisions that could probably be made quickly and easily if you discussed them with someone else?

All of these habits suggest that you need a bouncer, because the very act of keeping everything to yourself is costing you business.

As soloists, most of us work alone. Having a bouncer means we have someone to give us objective feedback and ideas, boost our motivation and confidence, offer different viewpoints to our own, hold us accountable, and open our eyes to new opportunities.

Oh, and it can help reduce feelings of isolation too. Sometimes your bouncer might even make you a nice cup of tea.

Where can soloists find a bouncer?

Your bouncer should be someone who is empathetic, trustworthy and objective, and who has a good understanding of you and your business. They’ll be honest and straightforward with you, even if you don’t like their answers.

You can find bouncers in lots of places! Here are some ideas, but remember, choose someone who has a good understanding of your business so that they can give you informed feedback. 

• Someone you already know: You might already have a friend or relative who can be your bouncer.
• Networking buddy: You might have gelled with someone at a networking event.
• Social media friends: Perhaps you’ve connected with someone via a blog, forum or other form of social media?
• Fellow student: Maybe you studied with someone you can reconnect with?
• Professional life or business coach: Consider hiring a coach for one-off or ongoing coaching sessions. 

Bounce, but always go with your gut

It might be that your bouncer tells you something that you really don’t agree with. That’s okay, the role of a bouncer is to listen and offer objective feedback, not to give you absolute and definitive guidance that must be followed. Sometimes it’s the process of bouncing an idea off another person that solidifies an initial decision.

Having a bouncer or two will take your business to new heights. And remember, bouncing is a reciprocal relationship that is beneficial to both parties.

So, do you think it’s important to have a bouncer? Or if you already have one, please sing their praises, or explain the benefits of your relationship here.

As click fraud detection becomes more refined, so too do the strategies of those looking to commit it. Microsoft Corp. filed two lawsuits last week in relation to a new form of click fraud the company has called “click laundering.” A previously unknown form of PPC advertising fraud, click laundering was detected by Microsoft after dramatic [...]

Find out what they mean for your business...

Proposed tax reformsTuesday 04 May 2010

The Government recently released a report containing a number of proposed changes to the Australian tax system.

Some of the proposed changes that may affect small business include:

• instant write-off of some business assets
• simplified depreciation methods
• reduction of the small business company tax rate
• an increase to employer superannuation contributions.

For more information on the proposed tax reforms and to view the full report, visit the Stronger, Fairer, Simpler website.

Find out what events are being held near you...

NSW Manufacturing Week 2010Friday 30 April 2010

During the first week of May, Industry & Investment NSW is coordinating a number of events across NSW to develop and grow businesses in manufacturing as part of NSW Manufacturing Week 2010.

The types of events available to attend include:

• workshops
• seminars
• site visits.

NSW Manufacturing Week 2010 will run from 3 - 9 May. To find out what events are being held near you and to register your attendance, visit the Industry & Investment NSW website.

Understand your Trade Practices Act responsibilities…

New trade practices guide for professionalsThursday 06 May 2010

The Australian Competition & Consumer Commission (ACCC) has produced a guide to assist individual professionals to understand their trade practices responsibilities.

The guide outlines the simple steps that professionals can take to minimise their likelihood of breaching the Trade Practices Act 1974.

For more information or to download a copy of the guide, visit the ACCC website.

Register your business for the Victorian Carer Card...

Business registrations now open for Victorian Carer Card ProgramMonday 10 May 2010

Registrations are now open for businesses wishing to be charter members of the Victorian Government's new Carer Card program.

The Carer Card is a discounts and bene?ts card to provide recognition, understanding and support for unpaid carers throughout Victoria.

Discounts and benefits are welcome from all sectors including travel, leisure, education, home maintenance, health and wellness and automotive.

Businesses who wish to provide an exclusive offer to Carers will be listed in a printed and online business directory to be distributed to the 140 000 Victorian Carers. Retailers will also receive marketing collateral (such as posters and register stickers) to show they are part of the program.

For more information about the program or to register your business, visit the Carer card website.