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In simple terms, Business success equals wealth by applying a simple formula: increase revenue, grow margins and decrease expenses and costs. Other suggested methods include core wealth formulas.
What's your formula? How is your Business tracking during these challenging economic times?
Since our article ‘Is There a Winning Formula for Success (June 2024) 10 Tips', I have continued to follow this question to seek and find answers. I hope the following provides further insight.
Recently, a consumer expert has highlighted the impending wealth transfer as Baby Boomers shift their wealth to younger generations over the next two decades. This presents challenges particularly in the luxury goods market, where luxury brands have always run on scarcity, status and heritage. These aren't necessarily the reasons younger consumers value. Businesses need to be aware of these changed wants and expectations.
For example, a WA luxury jeweller is already seeing the next generation spending differently from their parents and grandparents. They are also shopping smarter, mixing high-priced items with budget-cost ones.
Tip: To stay in the game and be relevant, Businesses need to respond to changes like this.
Other examples include:
Should we heed the warnings of potential human extinction from this artificial superintelligent technology or proceed with haste and abandon any misgivings?
Is AI the best thing since sliced Bread? The Jury is out!
Likely you have your own experiences, challenges and thoughts as we embark on a journey into this brave new world of AI!
Already, opinions are varied and divided. Headlines abound with examples, such as;
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AI needs to work for us, according to a local AI infrastructure company. A spokesperson suggested Australians could enjoy safe, higher-speed access to artificial intelligence while using less water and energy.
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Booming data build increases rate risk! A leading Bank has warned the building spree of Australia's $175 billion data boom is now big enough to help keep interest rates higher. This spree will make the Reserve Bank's inflation fight harder.
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Perhaps eventually AI will make many humans unemployable! But there are no signs of it yet, with the Bureau of Labour Statistics reporting the economy added more jobs in August than expected. In this article, The Economist reported that AI is creating a lot of jobs to replace those it has destroyed.
If you are a small Business owner with debt owed to the ATO, failure to act can lead to more than a business debt; it can have implications that may follow, with risk to personal assets.
Are you a Director, or have you given personal guarantees? If so, once a director’s penalty notice is issued, you can find your own assets exposed.
Be aware that, with closer scrutiny and new tools, the ATO is more active and under pressure to recover outstanding debts.
Don’t let you or your Business be exposed to this risk.
Contact Blackburn Accounting today. Let us help with your taxation and Business matters. We are your Family Business Specialists, offering a range of services.
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Have debt, need help to address and resolve it?
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Want strategies that legally minimise tax obligations
Blackburn can provide the answers you need to run a successful Business that’s running at peak performance.
We previously explored this topic ‘Handing over the Reins- Letting Go!
We highlighted problems that sometimes surfaced with this ‘changing of the guard '; handing over the baton was very challenging for some.
That raised the question, ‘Why is that so? ’
We identified contributing factors such as;
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Feeling a loss of identity, importance, self-worth
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Control issues – no longer making decisions or contributing
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Fear of financial insecurity
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No Post –retirement planning. Fear of irrelevance.
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Distrust in the next generation.
Let’s look at a Case Study:
Bill, the founding member of a Panel Beating business, is struggling, refusing to let go of the reins. Despite an existing Succession Plan, he is adamant that he should continue and remain head of the operation.
Good Governance – Why Every Business Needs It. You may recall we explored this topic in November last year.
And here we are in 2026, in the headlines, stories of governance, regrettably, tales of poor governance. Examples highlighted failures in systems, bad conduct, and downright dishonesty by some corporate players.
But poor governance can and does happen in organisations, big and small and in all spheres of business sectors, private, public and non-profit. Indiscretions are not isolated incidents, whether by deceit, default or ignorance.
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Examples. In the high-flying gambling entertainment industry, it was reported that a key leader failed to report suspicious conduct to the Board. Corporate governance failures emerged as the problem, with vigilance lacking.
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The headlines. In the current investigation of an established accounting firm, it is reported to have ‘bad practice and poor oversight’ when dealing with a whistleblower’s concern. This suggests that some officials failed in their duty.
What's the answer? How to avoid these mistakes?
For Leaders, Board members and Committees, core responsibilities include
Your Accounting Partner
Your Management Accounting Partner
Your Expansion Engineer
Your Special Projects Partner