Instant Asset Write-Off Extension Announced

Instant Asset Write-Off Extension Announced

With Australian small businesses across many industries feeling the pressure of the economic downturn triggered by COVID-19, the extension of the governments Instant Asset Write-Off scheme is a welcome announcement. The scheme was due to end on EOFY 31 June but has been extended until the end of 2020.

Originally offering an immediate deduction with a threshold amount for each asset of $30,000, the program is designed to support small businesses and encourage them to continue to invest in their own growth and expansion. At the beginning of the COVID-19 pandemic, the threshold was extended to $150,000 as an incentive for more businesses to take part. Eligible businesses are those with an aggregated turnover of less than $500 million, however you can check your full eligibility here.

Whilst some advocates are pushing for the scheme to be made permanent in order to help bolster the growth of the counties small business sector, others are highlighting the $300 million cost of just extending the scheme another 6 months.

The government states that the extension will help support over 3.5 million small businesses who purchase new or used assets over the period. By enabling business owners to deduct the asset value in one hit rather than spacing it out over several years, cash flow and growth timelines can be improved. However, there is speculation of the schemes success as research suggests that many operators do not have the initial capital required to purchase the assets.

However, if this is the case there are several options which will allow small business owners to take part in the scheme. Utilising equipment financing is an option that allows for the immediate purchase of assets without having to dip into the businesses cash reserves. Common options are Operating Lease and Chattel Mortgage solutions.

Under a Chattel Mortgage loan, borrows own the assets from the outset and pay off the value over a set term. This allows business owners to depreciate the assets on their balance sheet, as well as have the potential to claim a tax input credit for any applicable GST on the purchase. Whereas under an Operating Lease the financier owns the equipment over the term of the loan, and at the end a residual value is paid to transfer ownership. The option is generally 100% tax deductible and popular among small business operators.

The extension of the Instant Asset Write-Off scheme is an opportunity for small businesses to invest in their growth and recovery post COVID-19. Whether owners are looking to invest in new technology, operating equipment or machinery now is a great time to consider purchasing.

Sales Boosting Techniques For Small Business

Sales Boosting Techniques For Small Business

Finding new and creative ways to boost sales within your small business can be challenging. Often facing a limited budget and trying to capture customers within a smaller local market, the process of creating and implementing sales boosting techniques can be hit and miss in terms of their success. Sometimes, making sure that you are covering the basics and doing them well can be a more effective approach than overreaching for out-there and overly complicated marketing strategies.

First and foremost, listen to your customers. There is no doubt that if you go into business blindly guessing what your customers like and dislike that you may only chance upon success, but will likely meet failure. Listening to your customers and opening up a dialogue to better understand your customers wants, needs and buying behaviours can be a goldmine for your business. If you find your customers are a little quiet and not openly giving feedback, try implementing a survey in store or online for a small discount or rewards. This information is vital to your businesses success, so it may mean giving a little in order to realise the long-term benefits. Don’t forget, ask your staff for input, they are on the front line and likely have a better understanding of your market than anyone else.

Discover new ways to drive value for your customers. With markets often facing saturation, and the same product available from so many different sellers, it is important that you can provide value to your customers in areas other than your basic offering. Keeping your finger on the pulse of what your customers expectations are and making an effort to exceed them will help your business stand out from the crowd and drive sales. Whether this be in spaces such as customer service, convenience or technological integration, provide something a little extra that gives customers a perception of more value at no extra cost!

You have likely heard before that the power of a team is greater than the power of one, and this applies to running your small business as well. Take advantage of opportunities for cross-promotions and affiliations. Pairing up will other small businesses in your local area to achieve bigger marketing promotions than you would each be able to achieve independently has a range of benefits. Aside from achieving larger scale, you can also broaden your scope by reaching not only your customer base, but theirs as well! Utilising the other small businesses in your area is a no-brainer and can help build a strong business district overall, benefiting all involved.

If you’re not on social media, you’re missing your chance to sell to a captive market. Australians spend an average of 6 hours on social media every day, and these platforms act as one of the most powerful marketing tools available to businesses today. The best part is, it’s free! Simply being present on social media so that customers can find you is the first step. Building out your profile with branded content, promotions and customer reviews & testimonials not only increases your social proof but puts your business in front of a new market of potential customers. Whether you opt to utilise paid advertising or stick to an organic campaign, social media should be an integral part of a small businesses sales strategy.

So, before you start thinking of all the crazy ways that you can pull customers into your store, make sure you have these basic down to perfection to make sure that any customers who walk through your door are not a missed sales opportunity.