» Business Insights

5 common small business mistakes to avoid

BMT team — Tue, 14 Sep 2021 23:52:11 +0000

The number of small businesses operating in financial year 2020/21 grew, with over 87,000 entering the market despite the uncertainty surrounding COVID-19. To turn a business-idea into a successful reality, here are 5 common small business mistakes that should be avoided. 1. Failing to prepare The phrase ‘prior planning prevents poor performance’ rings true for all types of businesses. A successful business is based on more than just passion for the product or service the business is offering. For a business to run like a well-oiled machine the business owner must be strategic and there must be a comprehensive business plan in place. There’s so much more than a unique business name to consider. Some additional factors include the funds required and financing available, workforce planning, inventory requirements, government obligations and the business’s structure. It’s important to have both a short-term and long-term plan in place before the business takes off. Plan flexibility and adaptability is also needed as businesses don’t always run smoothly and an owner needs to be prepared for the unexpected. 2. Inadequate market research on the competition Unless the business idea is extremely unique and has never been seen before, then there will most likely be competitors in the market. To make things harder, these competitors are often already established in the market and have a loyal following. Market research on this factor is crucial. Failing to do so can be detrimental and prevent market break-through. Once research on the competition is complete, a business can start working out what their key differentiation will be. That is, what they can do differently to the competition to catch customers. Some examples of differentiation tactics include: a competitive and aggressive pricing strategy delivering world-class customer service that goes above and beyond, or include service add-ons that aren’t currently being offered. 3. Entering an oversupplied market This can be prevented by completing the second point of doing the research on the competition. An oversupplied market with numerous competitors can be telling of the business’s likely future success. However, it’s important to remember that just because competitors are there it doesn’t mean that the business won’t be successful. There are several ways a business can be successful in a market with plenty of options, one of which is the differentiation factors discussed in the previous point. Another option could be to see if it’s viable to enter a different location. 4. Failing to budget Budgeting is the most crucial part of a business that is looking to get off the ground. When cash flow is low in the early stages, the budget plan will make or break how and if success will come. There are two things that can go wrong with a budget – overspending or underspending. Overspending can cause funds to run dry and out-pace the cash coming in. While underspending can also be cause negative consequences as it stops the business reaching its full potential. Working through a business budget is different to a personal budget. Engaging an accountant or financial adviser that specialises in business planning can be a sure way to ensure the appropriate budget is in place. It’s also important to be aware of the business incentives currently on offer to many Australian businesses and how they can help boost cash early. 5. Not claiming depreciation and missing out on thousands Depreciation is a tax deduction business owners can claim on the assets they use and own for their business’s operations. To better understand what depreciation can be claimed on, let’s use the example of a café. The café business owner can claim depreciation on all the fit out they ow n and use including the kitchen equipment and machines, furniture, crockery and cutlery, benchtops and point-of-sale equipment. If they also own the building (and not just rent) they will also benefit from claiming depreciation on the building’s structure and fixed assets. Since depreciation is the natural wear and tear of assets over time, no money needs to be spent to claim it. This means it’s a non-cash deduction which can be extremely beneficial to a business’s bottom-line. But on the flip-side, it means it can also be easily missed and go unclaimed. Engaging a specialist quantity surveyor early in the process ensures that depreciation can be claimed from the very beginning. A specialist, such as BMT, will assess the business’s assets and provide an obligation-free estimate of the likely depreciation deductions available. Business owners can contact BMT today and start claiming depreciation now by calling 1300 728 726 or by Requesting a Quote.

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Loss carry-back measure to allow businesses to claim more now

BMT team — Sun, 25 Oct 2020 23:12:23 +0000

The private sector is an engine-room of the economy, producing 8 out of every 10 Australian jobs. The 2020-21 budget includes several measures that will give the COVID-hit sector a kick-start and help businesses keep their workers. An unprecedented decision from this budget is the allowance of businesses to apply tax losses against tax profits from a previous financial year. This measure is called the loss carry-back. Content: What is the loss carry-back and how does it work? How can businesses make the most out of the loss carry-back? Businesses can achieve maximum carry back with BMT What is the loss carry-back and how does it work? Under the loss carry-back measure, businesses with an aggregated turnover of up to $5 billion can apply tax losses against tax profits in a previous financial year. The $5 billion threshold covers 99 per cent of businesses, Australia wide. The initiative allows eligible businesses to carry back tax losses from the 2019/20, 2020/21, or 2021/22-income years to offset previously taxed profits in 2018/19 or later income years. The new measure essentially backflips the previous arrangement, where businesses normally must return to profit before they can use these losses. This allows businesses doing it tough due to the pandemic to use their losses now and receive a healthier tax return. For example, under the previous arrangement, if a business made a loss in the FY 2020-2021 and didn’t return to profit until FY 2022-23, they would’ve had to wait two whole years to claim back the loss they made. However, the new claim back measure would allow this business to use its FY 2020-21 loss to amend its tax returns going all the way back to FY 2018-19. Doing so would result in an immediate reimbursement of tax previously paid. To be eligible, the tax refund requires the amount carried back isn’t more than the earlier taxed profits and that the carry back doesn’t generate a franking account deficit. It’s estimated that the combination of the loss carry-back and the full expensing measures will create an additional 50,000 Australian jobs. How can businesses make the most out of the loss carry-back? BMT Tax Depreciation has analysed this new measure and has found that a tax depreciation schedule will help businesses claim back the maximum amount. Any business, whether they own the property they operate from or lease it, can benefit from lucrative depreciation deductions. Depreciation is the natural wear and tear of a property and its assets over time and claiming depreciation reduces tax liabilities. One of the most beneficial features of depreciation is that it’s a non-cash deduction, meaning businesses don’t need to spend any money to claim it. So unlike other losses a business could be experiencing such as a reduction of patronage due to COVID-19 restrictions, the business doesn’t have to make a fiscal loss to claim depreciation. Therefore, if a business organises a depreciation schedule now, claims the deductions and uses these to amend previous returns they can get a much bigger financial benefit. Businesses can achieve maximum carry back with BMT A tax depreciation schedule is the best way to identify all the deductions a business owner can claim. BMT Tax Depreciation has completed schedules for thousands of businesses across the country. When preparing a schedule, BMT will conduct a site inspection to ensure that everything is claimed, and full compliance is maintained. Their comprehensive commercial schedules include every business incentive available. To learn more about depreciation and how BMT maximises deductions for business owners, Request a Quote or call 1300 728 726.

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Kirsty Spraggon – building your network ARPM 2014

BMT team — Tue, 12 Aug 2014 00:06:58 +0000

We were fortunate enough to attend the Australasian Residential Property Management (ARPM) conference 2014 on the weekend and got to listen to some very talented speakers. One speaker that caught our attention was Kirsty Spraggon. Kirsty is a very successful international speaker, author and entrepreneur with an outstanding career that saw her ranked in the top 1 percent of individuals in RE/MAX’s global network of 121,000 sales agents worldwide. Learn more about Kirsty and visit her website today www.kirstyspraggon.com.au Kirsty spoke on the subject of building your network. Below are some takeaway pointers from the talk, which we’re sure you will find very useful when building your network. Building your network Be there: Be present Be listening Be energised Care: Be memorable Pay a genuine compliment Care enough to connect Pay attention Share (no-one cares what you do until they know who you are): Share an experience Share some advice Share a part of yourself The images below are courtesy of ARPM

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If I have seen further it is by standing on the shoulders of giants – Issac Newton

Bradley Beer — Thu, 24 Apr 2014 07:15:44 +0000

Tomorrow is a day that is woven into the fabric of what it means to be an Australian and a New Zealander. We commemorate the lives of those who have traversed the path of war, their courage and commitment so that today we may enjoy the fruits of their sacrifice in a free and democratic society. We also celebrate the continued service of our military troops who continue to defend our freedom as a country. Australia is a country where we have the freedom to pursue wealth and happiness, look out for one another and to give a helping hand to the least fortunate. The Credit Suisse 2013 Global Wealth Report based on median wealth has Australia at number one with a median $233,504, and at number two based on average wealth at $402,578 per person behind the Swiss. While you may or may not feel wealthy, we all too often forget what we have and the opportunities we have each day living in Australia. Sometimes we get so caught up in our day to day survival or existence that we forget about who and what we have in our lives. We forget about the beauty of life that we have to enjoy because of the giants who have gone before us in our history as a country. So tomorrow I will be doing two things that you could do as well that will set the mood for you to have an amazing weekend. The first is to reflect on the courage of our service men and women, their commitment and sacrifice so that we can enjoy the freedom and opportunities that we have today. The second is to reflect on what is good is in my and your life. We all have our problems in fact the only ones who don’t are lying with their feet up in the cemeteries. So just take the time to reflect and take stock of your health, your family, your friends, your work, your career, your business, your community, your state and your country. Spend some time between 15-30 minutes to contemplate and to write your reflections down. You’ll be surprised to get a glimpse of the giants of yesteryear that have blazed a trail for us and what we have because of them. You’ll also see how fortunate we are with the people and opportunities we have surrounding us in our lives. In response to their sacrifice, the least we can do to honour their contribution to our Australian way of life, is to be the best you and I that we can be, and to follow in their footsteps and become giants for the next generations of Australians to follow. Lest we forget. Wishing you a safe and reflective ANZAC weekend

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BMT on Sky News Your Money Your Call – 03/03/2014

Bradley Beer — Thu, 06 Mar 2014 01:34:16 +0000

BMT participate on a regular basis on the Sky News Your Money Your Call program. If you missed Monday night’s Your Money Your Call here is the replay. Michael Teys, Damien Collins of Momentum Wealth and our very own Brad Beer discuss the property market, foreign investment, depreciation, the National Rental Affordability Scheme and other caller Q&A’s

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The RNR formula to avoiding the most common investing mistake

Bradley Beer — Fri, 14 Feb 2014 03:36:01 +0000

As the Managing Director for BMT Tax Depreciation, I have the privilege to travel around the country helping to build a community of smarter property investors and real estate professionals. In the process of discussing depreciation with investors and real estate professionals and the hidden cash benefits tied up in the depreciation of investment properties, I often get the opportunity to talk to them about various investment strategies. In the beginning, what was at first a surprise is now perhaps the most common mistake I hear and see investors make when purchasing a property. The mistake many investors make is that they have no overall strategy. The reason I think is because they have no clarity of what exactly it is they’re trying to achieve through investing. So whether it’s investing or setting life goals, I want to share with you a 3 question strategy which I call the RNR formula. I use it to get a clear picture of which strategy I would need to use to achieve a particular result or goal. RNR Real Deal Need To Results Focused 1. Real Deal Having a reality check or taking stock and understanding where you are in terms of your wealth, health and relationships is the first step. As the proverbial saying goes “the truth will set you free”. It will also get you on your way to wealth creation or financial freedom. Here are some personal finance truths to get you started as an investor. What is my net wealth? Calculate my net wealth What is my lending capacity? Calculate my lending capacity What income streams do I have available to me? View video on Cashflow Quadrant Collate all of this information and you’ve got a good foundation to build on. Healthy or not, the main thing is you’ve got a starting point. 2. Results Focused Now that you know what your personal balance sheet looks like, it’s time to take a good look at what you really want in life. I know “N” comes next in the formula but you have to know the result you want before you can determine what you “Need” to get you there. Most people can tell you what they don’t want, but find it hard to tell you what it is they actually want in life, mainly because they’ve never taken the time to define it with clarity for themselves. In determining the results you want in life. The big problem here is people often mistakenly define means goals as end goals. By this I am referring to end goals as the results you want for your life. End goals are the experiences you want to have in life where time and money are not a factor. What do I want to experience in life, how do I want to grow as a person, how can I contribute in life and to the world? Means goals are the goals that get you there, so if financial freedom is an end goal or your desired result, the means goals could be; get an education, get a job, build a business, invest in shares or invest in property. This is a very important distinction to make. Not knowing what results you want in your life can be a source of frustration for many. Knowing is the starting point for formulating your strategy for life, personal growth and investing. In his book 7 habits of Highly Effective People, Dr Stephen Covey talks about the difference between means goals (working towards) and end goals (the actual goals or desired outcomes). To help his readers understand this point he introduces the second habit which is “Begin with the End in Mind” which focuses on choosing these goals. In illustrating this second habit Dr Covey uses the analogy of a funeral. Imagine attending a funeral service, it’s an open casket funeral and as you look into it you see yourself. You also see your family, friends and co-workers grieving while giving a eulogy of your life, how would this make you feel? What would you want them to have said about you and the person you were, how do you want them to remember you? If you look to the end of your life, what do you expect to have accomplished? What kind of life do you wish to have lived? Most of us would want to be seen in a good light and be remembered as a loving, generous and successful person, who was rich in spirit and bank account and much loved by those people around us, or then again you might prefer to be a lying, cheating scumbag, though I doubt that very much. Here’s an exercise to help you determine your end goals or what it is you really want from life. Take some time to answer the following questions, you can add other people or groups to the list. What do you want the following people to say about your life? Family Friends Co-workers Community The second part to this exercise is to evaluate your current goals in light of your newly discovered end goals, are they aligned? Now look at your current life. Make a list of your current goals, this list along with your personal balance sheet should give you a clear picture as to where you are at in life. Now compare the two; are your present goals and desires in line with how you want to be remembered at the end of your life? If so then you are on the right path and you’ve aligned your means goals with your end goals. If not, then you might want to re-evaluate changing what you’re currently doing if it’s not taking you to your end goal. By beginning with the end in mind, you can determine if your current direction and investment strategy is right for you. You can help reinforce this by writing a personal mission statement that aligns your means goals with your end goals. Habits […]

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Five success insights from Tom Panos – attraction agent

Bradley Beer — Sun, 01 Sep 2013 10:06:42 +0000

On Wednesday we were privileged enough to have good friend, cancer beater and Director of Real Estate Advertising for News Ltd Tom Panos present his Attraction Agent training programme to some of our BMT team. Tom is highly regarded as one of Australia’s premier authority on Real Estate marketing, considered by his peers to be the No.1 educator and thought leader in his field. It was a great learning experience which will not only have an immediate impact, but we’ll reap long term benefits for the BMT team, the company and for me personally. Today I want to share my takeaway points from Tom’s coaching, idea’s that resonated with me on a personal level. Distinctions that have helped me and I firmly believe will help any property investor, real estate agent or basically anyone to get a head start towards success in any area of life. Our destiny is decided by the little habits we consistently do each and every day. It’s these habits which have the power to attract or detract from who we are and who we want to be in life. Below are five success insights from Wednesday’s training when put into action will set you on course with your personal growth and achievements. There are also great resources below to help you with your success journey, but remember they’re only great if you use them. Don’t be like the majority of people who have access to so much, but do so little. Consumer confidence Power words Magic of action Tools for success Believe I can fly Mind the way you think. It all starts with the way we think. Success according to motivational speaker and life coach Anthony Robbins is 20% mechanics and 80% psychology. The way we think is crucial to our success in everything we do, whether it is at work, home or in play. In this day and age we have so much access to information and data that it can be one big massive information overload causing paralysis by analysis. The key to finding your way through the myriad of data and at times conflicting data, is to realize there is always two sides to every story and the most important thing is your attitude and the way you look at what is being said. Your attitude determines what you make of all information you receive. For example, I’m sure you’ve heard of the popular analogy of the glass half full and half empty. The pessimist see’s it half empty, the optimist see’s it as half full, the engineer states the glass is twice the size it needs to be, the scientist see’s the glass as full with 50% water and 50% of air, while the entrepreneur asks, what can we put in the other half. Your mindset determines your attitude, which determines your perspective, and your perspective determines the questions you ask, which determines the answers you get, which ultimately determines your sentiment towards the market, reflected in consumer confidence that determines the actions you take in the market. While one person may freeze to death in winter, another person is having a ball snowboarding, so be careful with what you feed your mind, to mind the way you think and the way you see the market, so you don’t miss out on an opportunity or make the most of any given situation. Spring is here, why not use it for some mental spring cleaning. Your words should be therapeutic Tom stressed the power and the importance of the words you use when speaking to people, vendors, buyers, clients, friends or family. Words convey who you are, it determines the size of your world, it is the beginning of materialising what you’ve got visualized in your head. Everything great that has been built was first visualised in the mind of someone. Tom shared when as a young man one of his first jobs was to sell Weber barbeques at the local shopping mall. In his own words he totally sucked at it until one day he was approached by a well to do gentleman and asked, “What is your close?” Tom being new at sales looked at the man and replied “What do you mean?” to which the gentleman repeated “What is your close?” to which Tom confusingly responded, “Well…ah I’ve got blue shirt and beige pants…” to the chuckle of the gentleman. The man went on to explain, what he meant and that it was very important for Tom understand and know what words he needed to say to be successful at what he was doing. By this time the man had all of Tom’s attention and curious to know what he needed to say, the gentleman leaned in and simply said “Would you like the red one or the green one?” and that was it. Tom would greet customers, answer their questions and simply finish with “Would you like the red one or the green one?” Some customers would move on while some would actually make a decision and Tom would make the sale. Tom’s sales outstripped his colleagues, while they were selling five a day he was selling fifteen and not long after he was asked by his boss to speak at a national convention. A young man with no real idea about how he was succeeding had to have the presentation done in a Q&A format to which Tom still gave his one word answers. Today Tom understands exactly the power of words to change and to broaden the horizons of ones life. The gentleman’s words were therapeutic to Tom’s life they met his learning needs while benefiting him career wise. Tom’s words were therapeutic, they made the decision making process easier which had a calming effect on the interested buyer. Understand the power of the right words at the right time, and how therapeutic they can be for a client, vendor, buyer, friend or family member, it’s a must if you want to grow your influence […]

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