Blackburn Accounting

Strategy 1:

Adopt these 'healthy' practices to get your cash flowing:

Profit margins: with the current ever-increasing costs of doing business, it’s critical to have true-cost pricing. Don’t let your profit margins be eaten away.

Whether it’s the price of eggs, utilities or wages, you need to consider how to manage the increased cost of doing Business.

Firstly, do you know what your profit margin is for your business?
Secondly, do you know your profit margins for the goods and services that you offer?
Thirdly, which project lines are not profitable and are affecting your business?

Tips:

Regularly check the cost of goods and products and determine realistic profit margins by setting prices not too low or too high.

Pricing points are needed to keep you competitive and ‘in the red’.

Be balanced, with inflation affecting your purchases you need to increase your sale prices accordingly.

Offer value for money and your customers will keep coming back!
Contact Blackburn Accounting to help you to work this out.

Watch for more in this series!

Business

Pets

The rise is real, read the ‘stats’, visit your local cafe or venture to the park and you are most likely to be greeted by a pet lover, a pet parent, with pooch in toe, on a lead, taking their daily walk! Aren’t they adorable!

It’s true, pets are taking over our hearts, purses and wallets.

But why this rise in popularity!

And what does that mean for Pet Businesses, the Industry?

Why this rise in Popularity?

One in five families acquired a cat or dog during the pandemic to support family wellbeing. The benefits were described by parents as pets provided companionship, routine and a welcome distraction with families having more time at home.

Animals, pets, now command a more central place in our emotional lives. With less people directly involved with farming, it's more common to value animals primarily as companions, even as family members. Pew Research reports that 97% of pet owners see their pets as members of the family.18 Nov 2023

With an aging population, pet companionship for the elderly to combat loneliness has increased. Pets, cats, dogs, and birds have been shown to improve mood, particularly in those with depression and anxiety.

There are also specialist trained ‘care’ assistance animals, particularly dogs that are matched with the vulnerable in the community. It is widely reported that this connection offers tangible support, happiness and the joy of unconditional love.

Working dogs make up another sector valued by their handlers, trainers and the wider community for their contribution, ‘search, sniffer and rescuer dogs to name a few roles.

Social media has played a huge part in the rise of popularity. The impact of Pet influencers featuring cute cats and entertaining dogs, along with viral pet videos, and on Instagram famous pets have amassed huge followings.

Pet population profile

According to a national pet population survey Australia is home to approximately 28.7 million pets, amongst 6.9 million households.

Dogs are the most popular pet (6.4 million, with half of Australian households having at least one. Cats come in second favourite with a population of 5.3 million.

It follows that there has been a rise in demand for Pet-related goods, products and services.

Pet Owners – show us your money!

180 In a time of uncertainty, conflicting world events, politics and the rapid adoption of AI we are already seeing that 2025 is a time of disruption and it’s not ‘business as usual!

In this rapidly changing environment horizon scanning, course correction, agility and adaptability are important skills for Industry leaders.

A ‘typical’ small Business leader in Australia in 2025 is likely to be a tech savvy self-believing entrepreneur with a strong focus on digital marketing, the customer experience and sustainability.

Aligned with this profile is human-centred leadership that prioritizes employee needs, wellbeing and promotes practices to foster a safe, positive work environment. There is emphasis on diversity and inclusiveness within their teams.

What to look for. Do you recognize these attributes in yourself?

7 Key characteristics are:

Tech savvy: includes keeping abreast of new technology, being open to improvement or if needed seeking advice from expert others. Example AI, what’s it all about, what does or can it mean for my Business!

Digital fluency aptitude understanding and leveraging technology to drive innovation and decision making. Such as utilizing online platforms and social media applications. E.g. data analytics to reach customers, manage operations and respond to changing market trends.

Agile and Adaptable: leads change, adopts flexibility in operations and strategy to respond to market shifts and emerging trends. Embraces continuous learning to stay relevant to meet the challenges of a changing landscape.

In a family Business, just like other Businesses, not all members perform effectively to expectations or role requirements!

This is not an uncommon situation. The underperformance of a staff or family member is challenging, putting all concerned in an uncomfortable position, threatening family and workplace relations and ultimately can affect productivity.

The dilemma is how to deal with it, what to do, particularly where both the family and Business relationships are at stake. Not an easy matter to deal with and not an easy conversation to have! If you have experienced this, you will understand the predicament!

But action is needed. If the matter is not addressed, the outcome can be disastrous.

A closer look shows that the reasons for underperformance are varied;

Recruitment selection may be done based on family relationships, or obligation, not merit and competence.

A Member’s place of family importance is considered an excuse or ‘pass’ to overlook mistakes, poor behaviour or performance, by them and the family team.

A Member’s sense or belief of entitlement, with no accountability, makes them disruptive and they slack off. Such behaviours threaten the Business operations running smoothly.

Family rivalry, position and sibling power struggles resulting in lack of commitment. Members disengage and disconnect from personal responsibility.

When dealing with a family member's underperformance it's crucial to address the situation professionally, using open communication, setting clear expectations and a focus on Business needs while balancing family dynamics.

6 Steps to effectively managing underperformance

Have the candid conversation: Don't let family relationships stifle this action. Arrange a private formal meeting. Treat the member with respect and dignity while clearly stating your concerns. Provide specific examples to support your feedback.

Find the underlying cause: Facilitate a constructive conversation and avoid emotional complications. Be sensitive, listen to their perspective to understand why there is underperformance. E.g. due to unclear role responsibilities, personal issues, lack of motivation or skill gaps.

Business

Our 7 Point Business Insurance Checklist:

1.Review all your Insurance policies and check policy inclusions and exclusions.

2.Has anything changed? Have you bought new equipment or vehicles, expanded your premises, signed a new lease, disposed of any assets or hired subcontractors?

3.Are your Business valuations and inventory up to date and reflecting current costs?

4.Conduct a risk analysis. Identify and assess dangers to your Business. For example, as technology grows so does risk to these devices, Electronic, Digital equipment, Cybercrime and the impact of privacy laws.

5.Do you have Business interruption cover? Critical if you couldn’t trade due to unforeseen events.

6.Speak with your Insurance Company, Provider or Broker to make sure your Business is fully protected.

7.Build Insurance premiums into your Budget.

5 Useful Tips: