Investing in your super

People often overlook the advantages of making significant concessional contributions to their superannuation. By investing large sums of money inside your super, as opposed to assets outside of your super, you may end up saving a significant amount on your tax bill.

Concessional superannuation contributions are voluntary amounts that you contribute from your after-tax income. These are different from non-concessional contributions or before tax contributions. If you are under the age of 50, you may contribute up to $30 000 before tax to your superannuation, and if you are over 50, the limit is $35 000.

When you make concessional contributions to your super you do not have to pay any additional tax, as you will have already paid tax at your marginal rate. You may contribute up to $180 000 of your after-tax income each year to your super.

The advantage to investing within your superannuation fund is that all investment returns will be taxed at the flat rate of 15%. If you are thinking about making investments that will serve you in retirement you may care to investigate making larger concessional contributions to your superannuation.

Online security

Businesses are becoming more concerned with having an online presence; however they should also be concerned about the security issues that this can cause.

There is always a risk of malicious campaigns or viruses occurring online in an attempt to infiltrate business systems.

Even if the business is not directly active online, its employees most certainly are. This can prevent a risk if the employees are discussing the business online, or if they are accessing their social media accounts on the businesses computers.

The best way to approach the businesses security online is through a frequently reviewed set of procedures and policies.

However, there are a number of ways to secure the businesses online presence:

-Create a policy and procedures document on social media activity within the business. Ensure that all employees are familiar with it, and what they can and cannot do concerning their personal online presence.

-Double check when opening a link from a social media page on business computers as hackers may create false pages to obtain a business’s log in details.

– Ensure that the business has different emails for each social media platform. If hackers are able to get their hands on the email for one site, they are likely to attempt to hack different accounts.

-Advise employees to choose their online friends wisely and that it is not wise to accept friend requests from people they do not know.

-Hold regular workshops and seminars with employees and technical assistance to educate them on the latest security practices and what dangers they may be facing online.

The rules of social media etiquette

There is no denying that social media is fast becoming the most powerful way for businesses to communicate with their existing and potential customers.

Although it has become a new approach to communication, businesses should always remember to treat their customers as if they were dealing with them face-to-face.

Here are some important rules to remember when using social media for business:

Fill out details

Fill out the profile information completely, providing the name of the business, a way to make contact and some information on what services and products the business offers. This will assure the customer that the businesses profile is legitimate.

It is important to have an appropriate profile picture such as the company logo so that clients are able to easily identify with the brand.

It is not a good idea to have the same profile for both business and personal use. Creating separate accounts will clients to be separated from friends and ensure that the business maintains a professional image.

Use manners

It may seem simple; however treating clients with respect online can go a long way. Things as simple as saying ‘please’ and ‘thankyou’ can give a positive image of the business.

It doesn’t matter that the interactions are occurring behind a screen, clients should be treated exactly how they would in person.

Offer something of value

Use the social media platforms to engage with customers and offer them something of value. Clients will become quickly bored with images and posts only about the business.

Don’t just restrict content to only focus on the business, interact with clients about current events or topics that are relevant to the business, or find interesting quotes and images to share.

Facebook and Instagram are also key platforms for offering competitions or giveaways. Clients will be eager to be active on the profile if they are getting something out of it as well.

Don’t over-share

Although businesses are keen to be active on social media to ensure that they are reaching their target market, this can be just as bad as not posting at all.

No-one likes the friend who barrages their page with multiple posts a day and the same goes for businesses. Keeping posts to one or two a day will keep the business active on their clients feed; however will not annoy them enough so that they click ‘unfollow.’

It is a good idea for businesses to implement a content plan and map out when, and what, they will post to each social media platform. Also, think about the best time to post for the target audience. For example, if the business targets professionals it would be ideal to post in the morning and afternoon when they are commuting to work as they are likely on their own personal social media pages.

Reread what is written

Consider composing tweets or posts in a word document before posting them. This allows time to edit the text for grammar and spelling mistakes.

Also, remember that the Internet never forgets and one post in the heat of the moment can go viral, damaging the reputation of a business and losing a lot of clients.

Boost website traffic

Increasing website traffic is an important way in attracting the attention of customers to a business.  It also assists in higher conversion rates and repeat business.

Although it can be costly, there are budget conscious strategies that can increase a business’s search engine optimisation (SEO) and encourage more traffic to their website.

Videos

Videos clips are becoming increasingly popular as a marketing tool and can be a valuable asset to a company’s website.

Videos are cheap and easy to make, and can be used to link back to a website. Images also often rank higher than text in search engines.

Blogging

Regularly updated and high quality blogs can increase a website’s visibility within a search engine. Links to the blog can also be posted on social networking sites and other blogs to encourage people to click through to the website.

Keywords

Using the right keywords on a website will allow for SEO. The keywords are best placed in headings, homepage titles, and website content. This will increase the likelihood that they are picked up by search engines, or found by people researching a particular topic.

Save time by updating your business systems and processes

Even very small adjustments to your business systems and processes can make a huge difference to your efficiency. By formalising these activities and spending a little time and effort improving them, you can improve your productivity. The other advantage to formalising your systems and processes is that it ensures continuity and makes it easier to teach employees new tasks.

Government uses administrative powers to raise fuel tax

The government has used its administrative powers to increase the tax that motorists pay on fuel. The controversial budget measure is currently encountering difficulty in the Senate, so the government has adjusted the indexation under the assumption that there will eventually be legislative approval.

As of November 10, the tax on fuel was raised by approximately 0.5 cents per litre (from 38.143 to 38.6 cents).

According to Finance Minister Mathias Cormann, the impact of the increased tax will be minor for most drivers. However, the Labour Party and the Australian Automobile Association have been quick to criticise the increase, claiming it is an unfair tax for Australian motorists.

Don’t lose sight of super in divorce

The superannuation gap between men and women in Australia is troubling, especially when women’s longer life expectancy is taken into account. The super gap is slowly closing amongst younger generations. However, the superannuation account balances of women over 55 continues to lag behind their male counterparts.

When going through a divorce, superannuation is treated as property. It may be divided up by a court order or negotiated throughout a settlement process. Research indicates that women are far more likely to prefer retaining the family home than to pursue superannuation.

For many women, it may be hard to rebuild super following divorce. This is especially true if they are caring for dependent children.

Women should always carefully consider the long-term consequences of their choices in divorce settlements, and make a reasonable assessment of their ability to increase their superannuation.

At every stage of life, women should consider making additional superannuation contributions whenever possible. Even small sacrifices early on in your career can make a huge difference to the nest egg that you have when you retire.

Competitive marketing

As a business owner, there may be times when you have to market your products against a direct competitor.

Having to market your business competitively is always a tricky situation. Openly bad mouthing your competitor will make you seem bitter and petty to the customer, and leave them wondering if your product is inferior. There are two very important focus points when selling against a competitor.

The first point is simple: Know your product and the competition’s well enough to be able to point out the differences. A quick internet search or a read through your industry media will help you research your competitor’s product. Then figure out what a customer
might find more attractive in your product and make this your key focus.

The second point requires a simple communication method: guide your conversation with the customer so that the superiority of your offering becomes clear in their mind. Be honest with the customer, communicate clearly why you think your product is better.

Getting the customer to think in a way that is advantageous to your marketing position will bring the focus back to your competitive edge.
What sets a good salesperson apart from an average one is listening skills. They hear what the customer is saying and make sure to address these needs. If you can get your questions to reflect the customer’s line of thinking, they will feel they are being listened to and are likely to trust what you tell them about your product.

Tips for managing cashflow

Cashflow is essentially the lifeblood of your business, and it is about much more than being successful. In addition to raising revenue, a healthy cashflow is determined by organisation and planning. Here are some tips for managing your cashflow

Set targets: Set yourself realistic targets that will meet your business’s needs for the next six to twelve months. You should always factor in having enough surplus cash to make business improvements.
Monitor closely: You should monitor your cashflow closely, checking to make sure you’re on track to meet your targets. This way you will be sure to pick up on a downturn before it’s too late.
Invoice quickly: You need to invoice your clients quickly, as there will already be a delay between them receiving the invoice and making the payment. Many businesses inadvertently shoot themselves in the foot by failing to invoice in a timely manner.
Use the right software: Cloud accounting software can be a lifesaver when it comes to managing cashflow. You should talk to your accountant about packages that may be suited to your needs.
Do not be blinded by profit margins: A lot of small businesses fail because they focus on profit at the expense of cashflow. Profit is important but does not mean anything if you do not have the cashflow to keep your business afloat.

Should you let your employees work from home?

Having employees work partially, or fully, from home is becoming an increasingly common practice. There are advantages to both parties. Employers save on overheads, and employees reduce travel time and enjoy increased flexibility.

However, concerns do arise when it comes to making sure that employees are indeed putting in the hours that you’re paying them for. If this is a concern for you, rather than rejecting the idea of working from home outright, you should think about a system for preventing underperformance.

You should instigate a performance monitoring system that includes developing specific performance goals for each team member, with specific deadlines for completion. You should also have regular online meetings via skype or email to check in on one another.

If you’re considering increasing the number of hours that your employees work from home, there are also a few legal queries. For example, how workplace compensation will be decided if the employee injures themselves at home.