Ask any small business owner how they managed to grow their company and you’ll probably hear a common theme – sheer hard work.
In isolation, moving your business forward is not an easy task. But working in collaboration with others towards a shared goal may be the difference between business success and failure.
Working together with your competitors? Is this possible?
Informally it’s about networking and sharing ideas. On a more organised level, it’s called cluster groups and they operate throughout New Zealand with excellent results.
Collaborating on big projects
Cluster groups bring together businesses with a common interest and then undertake projects for the purpose of moving everyone’s business forward. These projects are often long-term, some taking many years to complete. The critical mass gives the group the leverage needed to engage in projects, which would normally be impossible for single entities.
Improving training levels, developing brands and moving into export markets are examples of areas in which clusters can support a local industry group.
For example, if the forestry industry had an ongoing issue finding skilled pruners, a cluster group of forestry companies could work together with training providers to develop the appropriate courses to upskill the workforce. Cluster groups are about linking with other entities to find a solution which will benefit all parties.
Click here for your local Auckland Accountant
Sunday, June 26, 2011
Sunday, June 19, 2011
Family Trust Funds under Seige
The article on Fridays NZ Herald highlighted the importance of Trust compliance.
The family trust is under seige as never before. A raft of amendments are pending to make it easier to "bust your trust"
It is crucial that your trust is run in a professional and compliant manner.
We offer a full trust review and ongoing trust administration to ensure compliance.
Contact us - your local Auckland Accountant for more details.
Click here to link to article.
The family trust is under seige as never before. A raft of amendments are pending to make it easier to "bust your trust"
It is crucial that your trust is run in a professional and compliant manner.
We offer a full trust review and ongoing trust administration to ensure compliance.
Contact us - your local Auckland Accountant for more details.
Click here to link to article.
Monday, June 13, 2011
Grab Your Audience with Good Ads
Why do we put so much advertising material into the bin without so much as a second glance?
Usually because too many ads are uninspiring, too much like all the rest or don’t tell us what we want to know. We simply don’t notice them, or perhaps haven’t got time to.
We do take note however when we react to the first few words of an ad. These ads grab our attention immediately, to the point where we want to read on.
And there’s the hook. If we’re inspired we’ll keep reading. Even if the ad is a bit long but continues to maintain our interest, we’ll keep reading.
Okay, some people just never look at ads, but others will generally at least take a glance – and when they do you’ve got about two seconds to hook them. If you haven’t managed it in those first few seconds, the ad or direct mail campaign could be wasted money.
So how do you make people sit up and take notice rather than file in the bin? A few tips can make all the difference.
Make them react
Something about those first words or sentence needs to make us react: “that’s funny”, or “that’s weird”, or “that’s different”. The worst kind of ad is one that generates no reaction whatsoever.
In his book Write Right – The secrets of writing business letters and ads that really work, Paul Dunn makes this point: “In other words, we want that opening to have IMPACT and draw the reader in. We want it to stimulate some reaction – either negative or positive – but some reaction nevertheless. We certainly don’t want zero reaction or apathy.”
Stirring a reaction might only require one word, or maybe one sentence. Either way it has to tempt the reader to want to know more. Finding out more might require the prospect to visit the shop, or even just continue to read the ad or letter. At this stage, that’s all you’re wanting.
Click here for your local Auckland Accountant
Usually because too many ads are uninspiring, too much like all the rest or don’t tell us what we want to know. We simply don’t notice them, or perhaps haven’t got time to.
We do take note however when we react to the first few words of an ad. These ads grab our attention immediately, to the point where we want to read on.
And there’s the hook. If we’re inspired we’ll keep reading. Even if the ad is a bit long but continues to maintain our interest, we’ll keep reading.
Okay, some people just never look at ads, but others will generally at least take a glance – and when they do you’ve got about two seconds to hook them. If you haven’t managed it in those first few seconds, the ad or direct mail campaign could be wasted money.
So how do you make people sit up and take notice rather than file in the bin? A few tips can make all the difference.
Make them react
Something about those first words or sentence needs to make us react: “that’s funny”, or “that’s weird”, or “that’s different”. The worst kind of ad is one that generates no reaction whatsoever.
In his book Write Right – The secrets of writing business letters and ads that really work, Paul Dunn makes this point: “In other words, we want that opening to have IMPACT and draw the reader in. We want it to stimulate some reaction – either negative or positive – but some reaction nevertheless. We certainly don’t want zero reaction or apathy.”
Stirring a reaction might only require one word, or maybe one sentence. Either way it has to tempt the reader to want to know more. Finding out more might require the prospect to visit the shop, or even just continue to read the ad or letter. At this stage, that’s all you’re wanting.
Click here for your local Auckland Accountant
Monday, June 6, 2011
The Pricing Puzzle – Where to Set Charge-out Rates for Trades
High, low or somewhere in the middle? Where to pitch realistic charge-out rates is a common conundrum faced by small trade businesses.
In fact it’s probably one of the most difficult tasks. You have to be careful not to under price as this will reduce profits, but at the same time, overpricing for labour and material mark-ups could turn customers away.
Setting charge out rates is just as important as market awareness, product development and advertising. You can do all these things excellently and then undo the lot by setting charge out rates too low or too high.
Pricing is a complex strategy which should be carefully undertaken and reviewed.
Know Your Overheads
First of all you must know what it costs you to operate your business before you start to set a charge-out rate. Your accountant can help you prepare this information. In particular, you’ll need to look at:
Annual budget
Budget for investment in stock, work in progress and debtors
Cash-flow forecast.
It would also be a good idea to start producing periodic accounting reports, say monthly, so you can check how the business is going compared to the budget.
Customers Don’t Choose on Price Alone
Once you’ve worked out your bottom line, don’t simply jump in with the lowest rate. There is no doubt that charge-out rates are of concern to customers but contrary to what you might think, they are not the only thing customers take into account when choosing a tradesperson.
Far from it. In fact astute customers tend to choose tradespeople primarily for reliability. Other factors which enter into the buying decision include:
Quality
Technical and back-up services
Reputation
Punctuality – turning up on time!
Tidiness
Location
Guarantees
Refund policy
It would help to do some research on what goes into your customers’ buying decisions before setting your rates. For example, looking at what your competitors do and how they charge could be one way of determining what customers in your area are looking for.
Do your competitors offer round-the-clock and/or prompt service, do they give guarantees or are they renowned for quality work? If they are flat-out busy yet charge a high rate, chances are customers care more about the service than the money they have to spend.
In the market place you’ll find many businesses charging 5%, 10% and 20% higher than their competitors, yet still run very profitable businesses. In fact these businesses are often the most successful because they have achieved excellence in those areas listed above.
Click here for your Local Auckland Accountant.
In fact it’s probably one of the most difficult tasks. You have to be careful not to under price as this will reduce profits, but at the same time, overpricing for labour and material mark-ups could turn customers away.
Setting charge out rates is just as important as market awareness, product development and advertising. You can do all these things excellently and then undo the lot by setting charge out rates too low or too high.
Pricing is a complex strategy which should be carefully undertaken and reviewed.
Know Your Overheads
First of all you must know what it costs you to operate your business before you start to set a charge-out rate. Your accountant can help you prepare this information. In particular, you’ll need to look at:
Annual budget
Budget for investment in stock, work in progress and debtors
Cash-flow forecast.
It would also be a good idea to start producing periodic accounting reports, say monthly, so you can check how the business is going compared to the budget.
Customers Don’t Choose on Price Alone
Once you’ve worked out your bottom line, don’t simply jump in with the lowest rate. There is no doubt that charge-out rates are of concern to customers but contrary to what you might think, they are not the only thing customers take into account when choosing a tradesperson.
Far from it. In fact astute customers tend to choose tradespeople primarily for reliability. Other factors which enter into the buying decision include:
Quality
Technical and back-up services
Reputation
Punctuality – turning up on time!
Tidiness
Location
Guarantees
Refund policy
It would help to do some research on what goes into your customers’ buying decisions before setting your rates. For example, looking at what your competitors do and how they charge could be one way of determining what customers in your area are looking for.
Do your competitors offer round-the-clock and/or prompt service, do they give guarantees or are they renowned for quality work? If they are flat-out busy yet charge a high rate, chances are customers care more about the service than the money they have to spend.
In the market place you’ll find many businesses charging 5%, 10% and 20% higher than their competitors, yet still run very profitable businesses. In fact these businesses are often the most successful because they have achieved excellence in those areas listed above.
Click here for your Local Auckland Accountant.
Subscribe to:
Posts (Atom)