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Transcript

EOFY Checklist · She's On The Money

• 0:00
  Speaker 1: Hello.
• 0:01
  Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud yor the
• 0:05
  Speaker 2: Order KERNI Whoalbury and a waddery woman. And before we
• 0:08
  Speaker 2: get started on She's on the Money podcast, I would
• 0:11
  Speaker 2: like to acknowledge the traditional custodians of the land of
• 0:14
  Speaker 2: which this podcast is recorded on a wondery country, acknowledging
• 0:18
  Speaker 2: the elders, the ancestors and the next generation coming through.
• 0:23
  Speaker 2: As this podcast is about connecting, empowering, knowledge sharing and
• 0:27
  Speaker 2: the storytelling of you to make a difference for today
• 0:31
  Speaker 2: and lasting impact for tomorrow.
• 0:33
  Speaker 3: Let's get into it.
• 0:34
  Speaker 4: She's on the Money, She's on the Money.
• 0:59
  Speaker 1: Hello, and welcome back, my friends.
• 1:01
  Speaker 5: I'm Victoria de Bayn, the owner of several successful businesses,
• 1:04
  Speaker 5: and I am joined as always by one of the
• 1:06
  Speaker 5: hardest working side hustlers.
• 1:08
  Speaker 3: I know, miss jesse Garci.
• 1:10
  Speaker 5: Hello.
• 1:11
  Speaker 3: I'm so excited.
• 1:12
  Speaker 5: I'm really excited for today because, Jess, what are we
• 1:14
  Speaker 5: talking about.
• 1:15
  Speaker 3: It's our first end of financial year themed episode and
• 1:19
  Speaker 3: we're talking about your favorite time of year.
• 1:22
  Speaker 5: I get really excited about end of financial year because
• 1:25
  Speaker 5: I feel like it's such a good time to reset, refresh,
• 1:27
  Speaker 5: get stuff going and what a better time to release
• 1:31
  Speaker 5: this than with enough time for you guys to get prepared.
• 1:34
  Speaker 3: Like, it's not going to be dropped on.
• 1:36
  Speaker 5: June thirty, because that's way too late. We're giving you
• 1:38
  Speaker 5: enough lead up so that you can get stuff organized.
• 1:41
  Speaker 5: But also this isn't the only end of financial year
• 1:44
  Speaker 5: episode we'll be dropping.
• 1:45
  Speaker 3: Because in a couple of weeks.
• 1:47
  Speaker 1: Yes, we have a.
• 1:48
  Speaker 5: Very exciting accountant joining us so that we can get
• 1:50
  Speaker 5: all of his tips and tricks as well, So we're
• 1:53
  Speaker 5: not just preparing you with one app but multiple, So
• 1:55
  Speaker 5: you're welcome in advance, absolutely.
• 1:57
  Speaker 3: But today we're talking all about specifically small business stuff,
• 2:00
  Speaker 3: so some changes that are coming to SUPER this year,
• 2:03
  Speaker 3: which might be handy for employers to know whether or
• 2:05
  Speaker 3: not you need to get an accountant. Which look at
• 2:07
  Speaker 3: us doing that right before the accountant episode, it's almost
• 2:10
  Speaker 3: like we did that on purpose.
• 2:11
  Speaker 5: Oh my gosh, she need an accountant? I mean at
• 2:14
  Speaker 5: the end of the day sometimes no. So we'll go
• 2:16
  Speaker 5: through that, yeah.
• 2:17
  Speaker 3: And then after the break, we've got a list that
• 2:19
  Speaker 3: VD is put together with five things that you should
• 2:22
  Speaker 3: be reassessing at this time of year before we get
• 2:24
  Speaker 3: into the brand new financial year. But before we get
• 2:27
  Speaker 3: to that VD, what is the ATO flagged that they're
• 2:30
  Speaker 3: going to be focusing.
• 2:31
  Speaker 5: More on this year generally, So if you've listened to us,
• 2:33
  Speaker 5: she's on the money episodes around tax before, you've probably
• 2:36
  Speaker 5: heard that. Every single year, the ATO outlines and makes
• 2:39
  Speaker 5: a list of things that they're going to be paying
• 2:41
  Speaker 5: closer attention to this year for the next round of
• 2:44
  Speaker 5: tax reporting. And we're going to touch more deeply on
• 2:47
  Speaker 5: this in our upcoming community Q and A with our
• 2:49
  Speaker 5: tax accountant. So don't worry, we won't be giving specific
• 2:52
  Speaker 5: tax advice today, but generally this year, what they're focusing
• 2:56
  Speaker 5: on is record keeping, which I'm not surprised. I feel
• 2:59
  Speaker 5: like some of us are getting a little bit slack
• 3:01
  Speaker 5: when it comes to keeping records. And as I always say,
• 3:04
  Speaker 5: keep your receipts, whether that is the physical copy of
• 3:08
  Speaker 5: the receipt or you snap a photo, save it in
• 3:11
  Speaker 5: your phone, like just make sure you've got record of it,
• 3:13
  Speaker 5: because I feel like this is where money just like
• 3:16
  Speaker 5: seeps out of your business, Like if you're not keeping
• 3:19
  Speaker 5: track of the little things they actually add up, like
• 3:21
  Speaker 5: you might go, oh, Jess, just keep that. That was
• 3:24
  Speaker 5: a laptop I bought a new laptop. It was two grand,
• 3:26
  Speaker 5: but like you're spending a couple of hundred bucks maybe
• 3:29
  Speaker 5: every single month that office works, and on printing and
• 3:32
  Speaker 5: on things that you can claim, so like, don't let
• 3:35
  Speaker 5: them slip away, because they're as big as the laptop
• 3:37
  Speaker 5: at the end of the day.
• 3:38
  Speaker 3: Absolutely.
• 3:39
  Speaker 5: The next is they're really focusing on rental property income
• 3:42
  Speaker 5: and deductions because a few people have been taking the
• 3:45
  Speaker 5: mickey when it comes to deducting things that maybe shouldn't
• 3:48
  Speaker 5: be included in their rental properties, so being super aware there.
• 3:52
  Speaker 5: And then number three is they're keeping an eye on
• 3:55
  Speaker 5: capital gains from crypto assets, property and shares. So obviously
• 4:01
  Speaker 5: they are always going to be looking at capital gains
• 4:03
  Speaker 5: in general, but I think that they're peeling their eyes
• 4:05
  Speaker 5: a little bit closer when it comes to crypto nowadays
• 4:09
  Speaker 5: because it isn't as trackable and now it's actually easier
• 4:11
  Speaker 5: for them to do a little bit of a deep
• 4:13
  Speaker 5: dive into your digital history. So I would be keeping
• 4:16
  Speaker 5: your finger on the pulse when it comes to making
• 4:18
  Speaker 5: sure that you are even keeping track of your crypto
• 4:21
  Speaker 5: because just how many times have we heard from people
• 4:23
  Speaker 5: in the She's on the Money community that are like,
• 4:25
  Speaker 5: I bought crypto, but I don't know where it is.
• 4:27
  Speaker 3: Yeah, you got to keep an eye on it.
• 4:28
  Speaker 5: They're like, oh, I bought a wallet, or I downloaded
• 4:30
  Speaker 5: a wallet and I bought some crypto.
• 4:31
  Speaker 1: I don't know where it is, or I can't remember
• 4:33
  Speaker 1: my password.
• 4:34
  Speaker 5: Like be on top of it because if it's making money,
• 4:37
  Speaker 5: you might owe some tax.
• 4:38
  Speaker 3: Oh, owing tax is good because it means you're making money,
• 4:41
  Speaker 3: and that's what we all.
• 4:42
  Speaker 5: If you can't find your password, like, that's not going
• 4:44
  Speaker 5: to feel good paying tax for money you can't access.
• 4:46
  Speaker 1: What about that.
• 4:47
  Speaker 3: Guy, Sorry, I'm going on a full segway, the guy
• 4:48
  Speaker 3: who the like one chance at the password? I think
• 4:51
  Speaker 3: so he bought like a bunch of bitcoin when it
• 4:54
  Speaker 3: first dropped for like real cheap, don't know how much was,
• 4:56
  Speaker 3: but insanely cheap, and then it ended up being worth
• 4:58
  Speaker 3: like twenty million dollars or something. It must be nice.
• 5:01
  Speaker 3: But the whole problem was I think you're right, he
• 5:02
  Speaker 3: couldn't remember his password and he had it like stored
• 5:06
  Speaker 3: on a hard drive that he got rid of and
• 5:08
  Speaker 3: sent to like the tip or something, and so he
• 5:12
  Speaker 3: must have tried to get in his account, couldn't for
• 5:14
  Speaker 3: some reason, and then his one chance at finding it
• 5:17
  Speaker 3: was gone. And apparently he was like going to the tip,
• 5:19
  Speaker 3: like searching, trying to fold at the tip every day.
• 5:21
  Speaker 3: I did there, I don't remember.
• 5:23
  Speaker 5: I don't know if through brubbishuldn't be like, yeah, want
• 5:26
  Speaker 5: to join me worth twenty meal, I'll pay you one off.
• 5:28
  Speaker 3: I'll pay you a meal, like straight off the top.
• 5:30
  Speaker 3: I'm not missing out so funny, but yeah, check in
• 5:33
  Speaker 3: on your stuff is the moral of the story. Save
• 5:35
  Speaker 3: you passwords and.
• 5:35
  Speaker 1: My safe Oh my gosh.
• 5:36
  Speaker 5: All right, so back into the episode, because I feel
• 5:39
  Speaker 5: like too many of us would actually go on a
• 5:41
  Speaker 5: complete tangent talking about crypto. Absolutely, there are two topics
• 5:45
  Speaker 5: this week that I want to take a little bit
• 5:47
  Speaker 5: longer on. I've obviously mentioned the three above. Actually, Jess,
• 5:51
  Speaker 5: can you hear that?
• 5:52
  Speaker 3: I can hear a little something something in the background.
• 5:54
  Speaker 1: What is it?
• 5:55
  Speaker 3: It's a little sweet baby. Yeah.
• 5:57
  Speaker 5: Harvey has joined us for a recording. He is in
• 6:00
  Speaker 5: his carrier on my chest asleep right now, and we thought, great,
• 6:03
  Speaker 5: what a time to record a podcast of his asleep.
• 6:07
  Speaker 5: He's decided to be a very noisy sleeper. But we
• 6:09
  Speaker 5: will continue on and do the episode. So if you
• 6:12
  Speaker 5: hear a little squeak here and there, I promise it's
• 6:14
  Speaker 5: not Jess.
• 6:15
  Speaker 3: He's just very passionate about tax. Yeah, he hears.
• 6:17
  Speaker 1: Tax and he's like, Oh, it's me.
• 6:19
  Speaker 3: I'm dreaming of tax.
• 6:21
  Speaker 5: Anyway, back to this the sharing economy income issue. So
• 6:25
  Speaker 5: at the moment, the sharing economy, I feel like it's
• 6:27
  Speaker 5: really up and coming. We've still been talking about it
• 6:30
  Speaker 5: for a long time, but the ATO is convinced that
• 6:33
  Speaker 5: many people in their sharing economy are not properly declaring
• 6:36
  Speaker 5: their profits and their gains.
• 6:38
  Speaker 1: So if you work through Uber or air tasker.
• 6:41
  Speaker 5: Or any of the many sharing economy platforms that exist
• 6:44
  Speaker 5: now which allow you to rent out your personal assets
• 6:47
  Speaker 5: or like your personal services, you've got to keep an
• 6:49
  Speaker 5: eye out. Especially this year, the ATO is now receiving
• 6:53
  Speaker 5: reports directly from companies like Uber and like air Tasker,
• 6:57
  Speaker 5: which they're then going to use to highlight datam matches.
• 7:00
  Speaker 3: Yeah, and remember, if you're using one of those platforms,
• 7:03
  Speaker 3: it's your responsibility to set aside the tax. Because I know,
• 7:06
  Speaker 3: if you're a small business owner and maybe it's your
• 7:08
  Speaker 3: first year selling stuff, or if you are someone who's
• 7:11
  Speaker 3: ubering or door dashing or whatever. You don't have someone
• 7:13
  Speaker 3: taking out your tax the way you do when you're
• 7:15
  Speaker 3: an employee. So if you haven't been thinking about that,
• 7:18
  Speaker 3: it might be a bit of a nasty shock at
• 7:19
  Speaker 3: tax time when you have quite a substantial tax bill,
• 7:22
  Speaker 3: because you need to be setting aside, you know, thirty
• 7:24
  Speaker 3: thirty five, forty five, whatever your tax bracket is percent
• 7:27
  Speaker 3: because at tax time it's your responsibility to payment.
• 7:29
  Speaker 1: Yeah. Absolutely.
• 7:30
  Speaker 5: Similarly, if you rent out a property or like part
• 7:33
  Speaker 5: of a property on Airbnb or stays, you're going to
• 7:37
  Speaker 5: be under the spotlight this year. The ATO has numerous
• 7:39
  Speaker 5: third party sources of data which it can use to
• 7:42
  Speaker 5: identify if you're actually receiving rent and they're on the
• 7:46
  Speaker 5: lookout at the moment for mismatches with tax return data
• 7:49
  Speaker 5: that you're reporting. So they now have complete access to
• 7:52
  Speaker 5: being able to review your banking transactions and they might go, oh,
• 7:55
  Speaker 5: my friend that's coming from Airbnb, can we have a chat?
• 7:58
  Speaker 1: So I think it's really important to just be on
• 8:00
  Speaker 1: top of it.
• 8:01
  Speaker 5: And then the big one JESS is work related expenses.
• 8:06
  Speaker 5: So the ATO recently claimed that there was an eight
• 8:08
  Speaker 5: point seven billion dollars shortfall between the tax individuals are
• 8:14
  Speaker 5: expected to pay and the tax that they are actually paying.
• 8:18
  Speaker 3: That's crazy, that's so much money.
• 8:20
  Speaker 5: Of money, And the ATO believes that work related expenses
• 8:24
  Speaker 5: claims are the biggest element in that quote tax gap
• 8:27
  Speaker 5: and have signaled that they're going to be looking really
• 8:29
  Speaker 5: closely at the deduction this year, so I would expect
• 8:32
  Speaker 5: them to focus in particular on a couple of things.
• 8:35
  Speaker 5: So first is deductions from work from home expenses. I
• 8:39
  Speaker 5: feel like after COVID, a lot of us just kept
• 8:42
  Speaker 5: claiming a few things that maybe we shouldn't have been
• 8:45
  Speaker 5: and the ways that they can be claimed changed last
• 8:48
  Speaker 5: year with the introduction of that new sixty seven cents
• 8:51
  Speaker 5: per hour fixed rate, and then they've enhanced substantiation requirements,
• 8:55
  Speaker 5: so you've got to prove it, my friends.
• 8:57
  Speaker 1: And we expect the ATO to check claims.
• 8:59
  Speaker 5: Pretty thoroughly, because don't forget, they've got AI working for
• 9:02
  Speaker 5: them now, so it's not all just manual. They just
• 9:04
  Speaker 5: chuck it in and I'm pretty sure AI could whip
• 9:07
  Speaker 5: through everybody in Australia is really quickly. But they're going
• 9:11
  Speaker 5: to be particularly looking at verifying whether taxpayers have a
• 9:14
  Speaker 5: record of all they're working from home hours over the
• 9:17
  Speaker 5: entire year in the form of time sheets or diary
• 9:20
  Speaker 5: or like copy of their work rosters and such. So
• 9:23
  Speaker 5: they're going to go, oh, Jess, you said you worked
• 9:25
  Speaker 5: from home. Yeah, how have you been working from home?
• 9:28
  Speaker 4: Yeah?
• 9:28
  Speaker 5: And I mean it's easy for you because you've got
• 9:29
  Speaker 5: an employer who will write a letter that just says,
• 9:32
  Speaker 5: just works from home, full stop, end of story.
• 9:35
  Speaker 1: But if you've got one of those.
• 9:36
  Speaker 5: Flexible, you know jobs where you're like, oh, I work
• 9:38
  Speaker 5: from home a day a week, and then you're telling
• 9:40
  Speaker 5: the atos three like, you might end up in a
• 9:43
  Speaker 5: little bit of a pickle because you almost guarantee your
• 9:45
  Speaker 5: employer is not going to be very happy to back
• 9:47
  Speaker 5: you up on something that's not entirely true. Well, I
• 9:50
  Speaker 5: don't want to get into water because they're claiming that
• 9:52
  Speaker 5: you're in the office on their tax returns. True, one
• 9:57
  Speaker 5: of us is not making sense here, so let's just
• 10:00
  Speaker 5: make sure that we're on the same page. They're also
• 10:02
  Speaker 5: going to be looking at deductions for occupations, so costs
• 10:05
  Speaker 5: like rent and rates and mortgage interests are all going
• 10:08
  Speaker 5: to be under the spotlight as they're actually not allowable
• 10:11
  Speaker 5: unless you are running a business from home. So I
• 10:14
  Speaker 5: know historically a few cheeky business owners have been claiming
• 10:18
  Speaker 5: mortgage or payments because they're quote working from home, but
• 10:21
  Speaker 5: they have a warehouse down the road. So we need
• 10:23
  Speaker 5: to be really careful because that's not how you do
• 10:26
  Speaker 5: it right. That's just not on my friends. And then
• 10:28
  Speaker 5: as always, just things like mobile phone and internet costs
• 10:31
  Speaker 5: are going to be looked at. Claims for work related
• 10:34
  Speaker 5: clothing and I know dry cleaning and laundry always comes
• 10:37
  Speaker 5: up every year, people.
• 10:38
  Speaker 1: Like, did you know you can claim it?
• 10:39
  Speaker 5: Yeah, if it's got a logo on it and was
• 10:41
  Speaker 5: provided by work, and even then you've got to substantiate it,
• 10:45
  Speaker 5: so be careful. Things like overtime meal claims and union
• 10:49
  Speaker 5: fees and subscriptions, and then you know motor vehicles are
• 10:52
  Speaker 5: going to be looked at again. So I think it's
• 10:54
  Speaker 5: really important to just make sure that you're doing it
• 10:56
  Speaker 5: right because incorrectly claiming deductions under the rule that allows
• 11:00
  Speaker 5: US taxpayers who have incurred work related expenses of three
• 11:03
  Speaker 5: hundred dollars or less in total to make a claim
• 11:06
  Speaker 5: without receipts means that you need to be extra careful
• 11:09
  Speaker 5: because if you get audited, they're going to go, Jess,
• 11:11
  Speaker 5: We'll wear are your receipts. You didn't have to submit
• 11:14
  Speaker 5: that when you submitted your tax return, but we are
• 11:16
  Speaker 5: well within our rights to audit you and ask you
• 11:18
  Speaker 5: to prove those costs.
• 11:19
  Speaker 3: Yeah, and at the end of the day.
• 11:21
  Speaker 5: Just don't claim things you're not paying for, like tax system.
• 11:25
  Speaker 5: I don't know about you, Jess, but I'm very grateful
• 11:27
  Speaker 5: to have in place. I feel like we are very,
• 11:29
  Speaker 5: very lucky. Let's not take advantage of it because the
• 11:32
  Speaker 5: ATO actually believes that lots of taxpayers are claiming they're
• 11:35
  Speaker 5: three hundred dollars when they didn't incur any expenses at all.
• 11:40
  Speaker 2: Yeah.
• 11:40
  Speaker 3: The rule isn't that you can just claim up three
• 11:42
  Speaker 3: hundred hundred bucks, like because you want to, like, you
• 11:44
  Speaker 3: still have to have spent the money.
• 11:45
  Speaker 5: You can claim up to three hundred dollars without having
• 11:47
  Speaker 5: to go through the rigmarole of like getting receipts and
• 11:50
  Speaker 5: submitting them. Yeah, but after that you do that doesn't
• 11:53
  Speaker 5: just mean us a free three hundred bucks to claim.
• 11:55
  Speaker 2: No.
• 11:56
  Speaker 3: And as someone who has been audited and everything was
• 11:58
  Speaker 3: all fine, it was just because I worked multiple jobs
• 12:00
  Speaker 3: and claimed lots of things. But at the time it
• 12:01
  Speaker 3: was like, Oh, that's a flag. I feel like a
• 12:03
  Speaker 3: lot of people just assume that, Oh I'm a small
• 12:05
  Speaker 3: business or I'm just a small little fish in a
• 12:07
  Speaker 3: big pond. They're not going to come after me. They will.
• 12:09
  Speaker 1: No, I'm miss jessic Riccie got got.
• 12:11
  Speaker 3: Well they can get me good because I haven't.
• 12:13
  Speaker 5: But they got you. They made your anxious, they did.
• 12:15
  Speaker 5: They may be very stressed even though you had receipts.
• 12:18
  Speaker 5: It's like when you drive past the cops. I don't
• 12:20
  Speaker 5: know about you, but like I'll be driving completely like normally,
• 12:24
  Speaker 5: completely legally, yeah, and I would just like have a
• 12:27
  Speaker 5: little bit.
• 12:27
  Speaker 1: Of a the cops are there.
• 12:29
  Speaker 3: They're going to get me, you know. I'm like, did
• 12:31
  Speaker 3: I murder somebody?
• 12:32
  Speaker 2: Know?
• 12:32
  Speaker 5: Are they going to pull me over? Why would they
• 12:34
  Speaker 5: pull you over? Victoria? Like, because you're looking real sas now?
• 12:37
  Speaker 5: Driving fast? Should I turn off my radio?
• 12:39
  Speaker 3: Literally?
• 12:40
  Speaker 2: Now?
• 12:41
  Speaker 3: I know that all of those things can sound very
• 12:43
  Speaker 3: overwhelming and very complicated. So there's probably a lot of
• 12:45
  Speaker 3: people listening right now, VD going should I just get
• 12:48
  Speaker 3: an accountant?
• 12:49
  Speaker 1: I mean you could. They are tax deductible.
• 12:52
  Speaker 5: We love that, and you've got the receipt because if
• 12:54
  Speaker 5: you pay an accountant. You can claim it the next
• 12:57
  Speaker 5: year in your tax return, which is kind of attractive.
• 12:59
  Speaker 5: But yes, there is a reason the ball is seventy
• 13:02
  Speaker 5: five percent of Australians actually use a tax agent, and
• 13:04
  Speaker 5: that's because tax is not that simple. So we're gonna
• 13:08
  Speaker 5: like do a community Q and a session with our
• 13:10
  Speaker 5: accountant very soon. But I think it's really important to
• 13:14
  Speaker 5: remember that the tax system isn't there to confuse you. Yeah,
• 13:18
  Speaker 5: Like doing it online yourself is completely possible and it'll
• 13:21
  Speaker 5: just take a couple of hours for you to go
• 13:23
  Speaker 5: through in DIY. At the end of the day, they
• 13:25
  Speaker 5: want to make it as simple as possible. We just
• 13:28
  Speaker 5: need to make sure we're doing the right thing. We're
• 13:29
  Speaker 5: not claiming things that we didn't incur and we're not
• 13:32
  Speaker 5: taking the absolute mickey. I think it's just really important
• 13:35
  Speaker 5: that we're doing the right thing. And if you feel
• 13:38
  Speaker 5: like you need help, a tax agent is and can
• 13:40
  Speaker 5: be a really good idea.
• 13:42
  Speaker 3: Yeah, and the ATO website has some awesome resources for
• 13:45
  Speaker 3: anyone who is doing their own tax return, like they
• 13:48
  Speaker 3: release every year. There's a comprehensive list of what you
• 13:51
  Speaker 3: can and cannot claim based on your industry. List all
• 13:53
  Speaker 3: the limitations. So if you're wondering, can I claim my laundry?
• 13:57
  Speaker 3: Can I claim this? Can I claim that? Like they
• 13:58
  Speaker 3: outline it, They're not expect you to just take a
• 14:00
  Speaker 3: punt in the dark. So use that website, use Google
• 14:04
  Speaker 3: like you'd be amazed at what you can do by
• 14:06
  Speaker 3: yourself without one hundred percent, And like, why not have
• 14:09
  Speaker 3: a crack.
• 14:10
  Speaker 5: You don't have to press submit. If it all becomes
• 14:12
  Speaker 5: really overwhelming and you're like, oh, I cannot do this,
• 14:15
  Speaker 5: then maybe go see a tax stage yet, But like,
• 14:17
  Speaker 5: why not go and give it a crack instead of
• 14:19
  Speaker 5: just assuming that you can't do it. I also love
• 14:22
  Speaker 5: those websites, yes, because they sometimes trigger your memory into
• 14:24
  Speaker 5: being like, ah, I did actually incur that. Let me
• 14:27
  Speaker 5: sort through my things and find that receipt. So definitely
• 14:30
  Speaker 5: refresh yourself if you haven't.
• 14:32
  Speaker 3: One hundred percent now VD Something that I know I,
• 14:35
  Speaker 3: as an employee, have been looking for to this new
• 14:37
  Speaker 3: financial art is the increase in maybe one of your
• 14:41
  Speaker 3: favorite investments, which is super.
• 14:44
  Speaker 5: You're getting more super Jess, I'm paying you more super
• 14:47
  Speaker 5: Slay for me you win superanuations going up zero point
• 14:51
  Speaker 5: five percent, which doesn't sound like a lot but superanuation
• 14:54
  Speaker 5: used to be nine and a half percent, which at
• 14:56
  Speaker 5: the time I was like, yes, slay, this is great.
• 14:58
  Speaker 5: It's now eleven and half percent from the first of
• 15:01
  Speaker 5: July this year, which is very, very exciting. So employees,
• 15:05
  Speaker 5: I would be checking your super and making sure I
• 15:08
  Speaker 5: don't know if employers are going to be very happy
• 15:10
  Speaker 5: with me saying this, but like making sure that you're
• 15:13
  Speaker 5: negotiating and that it doesn't come out of your take
• 15:15
  Speaker 5: home salary. Yeah, because some employers are going to be
• 15:18
  Speaker 5: switching that point five from your take home salary and going, well, Jess,
• 15:22
  Speaker 5: actually you signed an agreement with me that says that
• 15:25
  Speaker 5: you get paid a seventy thousand dollars package. So the
• 15:30
  Speaker 5: percentages have changed and I'm now allocating more of that
• 15:34
  Speaker 5: package to your superannuation and you'll have lace take home pay.
• 15:37
  Speaker 1: Yeah, and that I don't think is fair.
• 15:40
  Speaker 5: In this economy, we are trying to increase our super
• 15:43
  Speaker 5: because it's not enough, and you know what else is
• 15:45
  Speaker 5: not enough Usually our pay is at the moment like
• 15:48
  Speaker 5: we are in a cost of living crisis. Stand up
• 15:51
  Speaker 5: for yourself and have that conversation. So if you have
• 15:54
  Speaker 5: a package system at work, I would be making sure
• 15:57
  Speaker 5: that maybe you renegotiate.
• 15:59
  Speaker 3: If you or not packaged.
• 16:01
  Speaker 5: Make sure that your employer isn't taking it from your
• 16:04
  Speaker 5: salary just because they think that maybe you won't check.
• 16:07
  Speaker 5: And that's how it happens, Jessica. No, it's going up
• 16:10
  Speaker 5: point five percent. Of course it gets taken out of
• 16:13
  Speaker 5: your salary, doesn't though.
• 16:15
  Speaker 3: No.
• 16:15
  Speaker 5: And then for employers, make sure that you are paying
• 16:18
  Speaker 5: your employees the correct amount and know when that changes
• 16:21
  Speaker 5: and when you need to start implementing that.
• 16:24
  Speaker 1: Also, if you're an employer, are you paying yourself super?
• 16:28
  Speaker 5: How many times do small business owners lax on the
• 16:31
  Speaker 5: super thing and then get all the way down the
• 16:33
  Speaker 5: road and find that they don't have a nice little
• 16:36
  Speaker 5: super balance to see them through retirement. You work so
• 16:40
  Speaker 5: hard as an employer and as a business owner that
• 16:44
  Speaker 5: you're not setting yourself up for the future. Like if
• 16:46
  Speaker 5: you sit business owners down, and I could just sit
• 16:49
  Speaker 5: you down, jess be like, why do you do what
• 16:50
  Speaker 5: you do? Come up with a million things like you're
• 16:52
  Speaker 5: passionate about it, you enjoy it, but at the end
• 16:54
  Speaker 5: of the day, you're doing it to increase your income,
• 16:57
  Speaker 5: to put yourself in a better position, not paying yourself,
• 17:01
  Speaker 5: super you'r doing the opposite. Yeah, and you're wasting heaps
• 17:04
  Speaker 5: of time to ultimately end up in a worse off position.
• 17:07
  Speaker 3: Yeah.
• 17:07
  Speaker 5: Absolutely not one out of ten cannot recommend no hate
• 17:11
  Speaker 5: hate hate.
• 17:12
  Speaker 3: But let's go to a really quick break because on
• 17:14
  Speaker 3: the flip side, V, we're going to get your hot
• 17:16
  Speaker 3: take on the five things that all us small business
• 17:18
  Speaker 3: owners should be reassessing at this time of year before
• 17:21
  Speaker 3: we start the new financial year. So don't go anywhere, coffee, tim,
• 17:30
  Speaker 3: Welcome back everybody. Okay, what are the five things that
• 17:34
  Speaker 3: you think end of financial year is the perfect time
• 17:37
  Speaker 3: for small business owners to be reassessing.
• 17:39
  Speaker 5: Your coffee consumption. That's not your coffee consumption. Never questioned
• 17:43
  Speaker 5: how much coffee you have.
• 17:44
  Speaker 3: Pump it straight in, straight into my games.
• 17:46
  Speaker 5: Now I'm a mum ten million coffees, thank you. Otherwise
• 17:50
  Speaker 5: we are not showing up to work. But the end
• 17:52
  Speaker 5: of financial year, I feel like is a really good time.
• 17:54
  Speaker 5: It's kind of like year New me, but like you
• 17:56
  Speaker 5: get to do it every six months. Yeah, so we
• 17:58
  Speaker 5: can have the real end of year and then we
• 18:00
  Speaker 5: can have the financial end of year, and we can
• 18:03
  Speaker 5: use this as a time to either pivot our businesses,
• 18:06
  Speaker 5: or we can pivot ourselves.
• 18:07
  Speaker 1: Like there's no such thing as too late to implement something.
• 18:10
  Speaker 5: But the end of financial year is honestly the perfect
• 18:12
  Speaker 5: time to reset, review and recalibrate. So I've written down
• 18:16
  Speaker 5: five things because like that's what I got to in
• 18:18
  Speaker 5: my list, and I was like, yeah, five will do.
• 18:21
  Speaker 5: Five is also not overwhelming, so we can look at
• 18:23
  Speaker 5: all of them. So we are going to review our objectives.
• 18:27
  Speaker 5: We're going to look at business growth. How fast are
• 18:29
  Speaker 5: you growing now? Like what does growth actually mean in
• 18:32
  Speaker 5: your business? You might not think it makes a lot
• 18:34
  Speaker 5: of sense because you're, you know, eighteen months in and
• 18:36
  Speaker 5: you go, oh, should I be reviewing this be And
• 18:38
  Speaker 5: you might say, but being I.
• 18:39
  Speaker 3: Am assult trader, Like what's the point?
• 18:41
  Speaker 5: Absolutely, because it can motivate you. It can show you
• 18:44
  Speaker 5: where you've come from and where you're going and what
• 18:46
  Speaker 5: that looks like, how much are you going to grow
• 18:48
  Speaker 5: your business in the next year?
• 18:49
  Speaker 1: What's the plan?
• 18:50
  Speaker 5: Are you actually going to be growing it by staff
• 18:53
  Speaker 5: members or are you just growing it by the amount
• 18:56
  Speaker 5: that you charge? Because now your quality is better and
• 18:58
  Speaker 5: you have a better reputation, and you should be increasing
• 19:01
  Speaker 5: your fees consistently. Jessica, We've spoken about this before because
• 19:06
  Speaker 5: for me, increasing fees should happen regularly. It shouldn't just
• 19:09
  Speaker 5: be like one day you wake up five years into
• 19:12
  Speaker 5: business and go been charging the same thing for five years.
• 19:15
  Speaker 5: I need to shock my clients and increase it. Now,
• 19:18
  Speaker 5: that's just going to cause you a whole heap of issues.
• 19:21
  Speaker 5: What number you choose is entirely up to you. We're
• 19:23
  Speaker 5: going to have a look at your financial targets. What's
• 19:25
  Speaker 5: the magic number that you're aiming for? Is there a
• 19:28
  Speaker 5: magic number? Or are you so shocked at what you've
• 19:30
  Speaker 5: already achieved this year that now it's time to set
• 19:33
  Speaker 5: some bigger and better challenges. Set it and then work
• 19:36
  Speaker 5: backwards to determine what you're able to achieve.
• 19:38
  Speaker 3: Also a little tip for anyone who's got a side
• 19:41
  Speaker 3: hustle or their sole trading in addition to their full
• 19:43
  Speaker 3: time job. Now is a good time to assess how
• 19:46
  Speaker 3: much you have made in your side hustle or small business,
• 19:49
  Speaker 3: add that onto your salary and check whether that's going
• 19:51
  Speaker 3: to bump you up a tax bracket.
• 19:53
  Speaker 1: Oh yeah, you could be boogier than you.
• 19:54
  Speaker 3: Thought you were, because if that's the case. We're putting
• 19:57
  Speaker 3: this episode out now so you have time to maybe
• 19:59
  Speaker 3: make some deductible purchases that you need to make for
• 20:02
  Speaker 3: things like that to drop you back down attacks brush.
• 20:04
  Speaker 5: She's a genius, but that's really important as well. Not
• 20:07
  Speaker 5: only do you make deductible purchases, just you could put
• 20:10
  Speaker 5: some money in your super and that would bring down
• 20:12
  Speaker 5: your taxable income, wouldn't it.
• 20:14
  Speaker 3: We love to see it.
• 20:15
  Speaker 5: Oh, we love super so sexy does so much for us.
• 20:19
  Speaker 5: The next thing we're going to review jess personal aims.
• 20:21
  Speaker 5: Why are you doing it? Because I feel like so
• 20:24
  Speaker 5: many times we lock ourselves into these businesses and we
• 20:27
  Speaker 5: lock ourselves into these ideas.
• 20:29
  Speaker 1: What do you want to get out of this? Are
• 20:31
  Speaker 1: you still getting out of this business? What you want?
• 20:33
  Speaker 5: Is it sparking joy? Are you happy? If you are not,
• 20:37
  Speaker 5: what are we changing? Maybe business isn't for you. And
• 20:40
  Speaker 5: I'm not saying that because you know when it.
• 20:42
  Speaker 1: Gets hard throwing the towel. That's not what I mean
• 20:44
  Speaker 1: at all.
• 20:45
  Speaker 5: I've just spoken so many times recently to small business
• 20:48
  Speaker 5: owners who go, I wish I hadn't started, like it's
• 20:51
  Speaker 5: not for me.
• 20:52
  Speaker 3: I didn't realize how much work. It was.
• 20:54
  Speaker 5: I just wish i'd stayed in my salary in payg job. Yeah,
• 20:58
  Speaker 5: well you can go back to that.
• 21:00
  Speaker 3: Yeah, and there's nothing wrong with that.
• 21:01
  Speaker 5: No, absolutely not. And maybe you go, oh, I've actually
• 21:05
  Speaker 5: realized that this side hustle thing v it is for me.
• 21:08
  Speaker 5: I do not want to work for somebody else. I
• 21:10
  Speaker 5: actually need to take charge and really turbo charge this
• 21:12
  Speaker 5: because I'm over it. I give it six months before
• 21:14
  Speaker 5: I have to quit my job because I'm so passionate.
• 21:16
  Speaker 1: Yeah, so what are we going to do the next thing?
• 21:19
  Speaker 1: Sexiest thing, Jessica.
• 21:21
  Speaker 5: We want to review your actual versus your budget. So
• 21:24
  Speaker 5: what did you actually spend and what did you budget?
• 21:26
  Speaker 5: If you didn't budget, what are we budgeting for next
• 21:29
  Speaker 5: financial here, jess because that's super important. How are you
• 21:32
  Speaker 5: tracking against your revenue and your profit targets every month?
• 21:35
  Speaker 5: Do you have revenue and profit targets every month? If not,
• 21:38
  Speaker 5: now might be the time to go, all right, well,
• 21:41
  Speaker 5: I have this side hustle and ultimately I'd like to
• 21:43
  Speaker 5: make one thousand dollars per month. How am I going
• 21:45
  Speaker 5: to work backwards and make that happen? And vice versa?
• 21:48
  Speaker 5: Like if you're making one thousand dollars a month and
• 21:50
  Speaker 5: you're like, wow, I didn't see this coming. How do
• 21:52
  Speaker 5: you do it? How can we scale that? What does
• 21:54
  Speaker 5: that look like? Are you ahead? Are you behind? Are
• 21:56
  Speaker 5: you right on track? So, depending on where you are
• 22:00
  Speaker 5: in relation to your budget, this is actually going to
• 22:02
  Speaker 5: determine where your decision making needs to change in the
• 22:04
  Speaker 5: new year, which is kind of helpful. You're like becoming
• 22:07
  Speaker 5: your own business mentor, and that's genius. Yeah, we're going
• 22:10
  Speaker 5: to look at our cash flow. So cash flow is
• 22:12
  Speaker 5: different to your budget, and you need to always remember
• 22:15
  Speaker 5: that reviewing inventory levels like how much stuff have you
• 22:18
  Speaker 5: got or work underway is important at this time of
• 22:21
  Speaker 5: year because you might be able to move some of
• 22:23
  Speaker 5: it before the end of year and put some extra
• 22:25
  Speaker 5: dollars into your bank account or make some extra plans.
• 22:28
  Speaker 5: Like maybe you're running out of stock. You know, you've
• 22:30
  Speaker 5: been so busy that you haven't had time to stop
• 22:32
  Speaker 5: and reassess.
• 22:33
  Speaker 1: You go far out.
• 22:34
  Speaker 5: Actually, by the time I order new stock, it's going
• 22:37
  Speaker 5: to be two or three months before that arrives. Yeah,
• 22:39
  Speaker 5: like maybe I need more sooner than I thought I did,
• 22:42
  Speaker 5: and that could be a stumbling block later down the track.
• 22:45
  Speaker 5: That actually puts you backwards. Let's review our debt. What
• 22:48
  Speaker 5: debt have we got? Have we got a business loan?
• 22:50
  Speaker 5: Who owes you money? Is the important one? Chase them up?
• 22:54
  Speaker 5: Fell up your following up our invoices, and we are
• 22:57
  Speaker 5: not sorry to follow up our invoices. If you're feeling
• 23:01
  Speaker 5: so awkward about emailing a client, do you.
• 23:04
  Speaker 3: Know what you did?
• 23:04
  Speaker 5: You just got an assistant, Jess, we love, we'll love
• 23:07
  Speaker 5: an assistant. And back when I couldn't afford an assistant,
• 23:10
  Speaker 5: what did I have, Jess?
• 23:12
  Speaker 1: Fake assistant? I did? I had a fake assistant.
• 23:15
  Speaker 3: Before I had.
• 23:15
  Speaker 5: Jess, A fake assistant would follow up on behalf of
• 23:18
  Speaker 5: me and be like, Hi, so sorry, I work for
• 23:20
  Speaker 5: Victoria and I'm just chasing this debt that you.
• 23:23
  Speaker 1: Definitely haven't paid.
• 23:25
  Speaker 5: And then they'd say check with Victoria, and I'd be like,
• 23:27
  Speaker 5: I did I have Victoria?
• 23:30
  Speaker 3: I never let that pat out of the bag.
• 23:32
  Speaker 5: And to be honest, if you're a client of mine
• 23:34
  Speaker 5: from like twenty fifteen and you've heard.
• 23:36
  Speaker 3: That, no you haven't.
• 23:38
  Speaker 5: But that was because I was really anxious and I
• 23:40
  Speaker 5: really hated following up debtors. Now I'll pick up the
• 23:43
  Speaker 5: phone in two seconds and be like, hey, you're right,
• 23:45
  Speaker 5: what's going on? How can we you know, follow this
• 23:48
  Speaker 5: up and come to an agreement because I need you
• 23:50
  Speaker 5: to pay your debt the end of the day.
• 23:52
  Speaker 1: That's how it should be.
• 23:53
  Speaker 5: But if you can't, I totally get that, adopt a
• 23:57
  Speaker 5: fake assistant. Maybe you've hired a fake assistant this phone year, Jess, and.
• 24:01
  Speaker 3: Put a hard deadline on it. I would say, like,
• 24:02
  Speaker 3: I feel like when you're having those emails like now,
• 24:04
  Speaker 3: is a really good time of you to say, hey,
• 24:06
  Speaker 3: please ensure this is paid prior to the end of
• 24:08
  Speaker 3: the financial year, because a lot of businesses will also
• 24:11
  Speaker 3: get that. They'll understand and they probably need to tidy
• 24:14
  Speaker 3: things up on their end as well before the end
• 24:16
  Speaker 3: of the financial year. So if you even just expressing hey,
• 24:18
  Speaker 3: like I need this done prior to efy like you
• 24:21
  Speaker 3: might have a bit of luck.
• 24:22
  Speaker 5: And hopefully people are paying. If they aren't paying in
• 24:26
  Speaker 5: the new financial year, you could potentially look at putting
• 24:28
  Speaker 5: a caveat on your invoices as well. That basically says
• 24:32
  Speaker 5: at the bottom of the invoice, if the invoice isn't paid,
• 24:35
  Speaker 5: it could be referred to debt collectors at your expense,
• 24:39
  Speaker 5: and that actually puts you in a more powerful position
• 24:42
  Speaker 5: so that if you need to go down the debt
• 24:44
  Speaker 5: collector route, you don't have to pay the debt collector personally.
• 24:47
  Speaker 1: You get your full sum and the.
• 24:48
  Speaker 5: Debt collector can add the amount that they are charging
• 24:52
  Speaker 5: on top of that invoice, whereas if you don't disclaim
• 24:55
  Speaker 5: that on your invoice, they'll take it out of the
• 24:57
  Speaker 5: total sum that is payable. Yeah, I speak from experience
• 25:01
  Speaker 5: as someone who's had to collect debts before, Jessicaret, I.
• 25:03
  Speaker 3: Can tell you've been wounded. I've been burned.
• 25:06
  Speaker 5: I've been burned, and you don't have to be because
• 25:08
  Speaker 5: I'm learning for both of us, jess absolutely. And then
• 25:11
  Speaker 5: we are going to look at our key expenses, so
• 25:13
  Speaker 5: direct costs associated with raw materials and components and other
• 25:16
  Speaker 5: bits and bobs that make up your products, typically a
• 25:19
  Speaker 5: large expense known as the costs of goods sold or cogs, Jessica.
• 25:24
  Speaker 5: And catch up with suppliers if you've got them, and
• 25:26
  Speaker 5: discuss your plans for the new year, and get them
• 25:28
  Speaker 5: all on board, like get them intertwined into your excitement.
• 25:32
  Speaker 5: Like I think that that is going to motivate you,
• 25:34
  Speaker 5: but also make sure that everybody is on exactly the
• 25:37
  Speaker 5: same page.
• 25:38
  Speaker 1: I'd be looking at all your other expenses. What's happening there?
• 25:41
  Speaker 1: Are there any trends?
• 25:42
  Speaker 5: Are you always occurring way more expenses than you thought
• 25:45
  Speaker 5: you would?
• 25:45
  Speaker 1: Jess?
• 25:46
  Speaker 2: Like?
• 25:46
  Speaker 5: Is admin taking you way longer than you thought? What
• 25:49
  Speaker 5: expenses can you bring down? How can we save money?
• 25:53
  Speaker 5: Review your bank statement? How many subscriptions have you got
• 25:56
  Speaker 5: inside your business that you're not using?
• 25:58
  Speaker 3: Oh?
• 25:59
  Speaker 5: Like, did you subscribe to the AFR and then you
• 26:01
  Speaker 5: don't read the OFAR? Don't get me wrong, I do.
• 26:04
  Speaker 5: Don't take it off me. But if you weren't, that's
• 26:07
  Speaker 5: a good time to cut a subscription, do you know
• 26:09
  Speaker 5: what I mean? Now is the time to cut things.
• 26:12
  Speaker 5: And if you're consistently cutting things, your business expenses won't
• 26:15
  Speaker 5: get out of hand.
• 26:16
  Speaker 3: Speaking of things getting more expensive, what else should we
• 26:20
  Speaker 3: be looking at right now? You'll pricing? Love it?
• 26:23
  Speaker 5: So I'm not saying review your pricing because it's getting
• 26:26
  Speaker 5: more expensive and you should lower your prices. We're valuable businesses.
• 26:30
  Speaker 5: We are increasing our prices, dosica. But what you need
• 26:33
  Speaker 5: to be doing is a sales analysis. So how many
• 26:36
  Speaker 5: units did you sell? What units sold or how many
• 26:39
  Speaker 5: dollars have you had in sales? And what are the
• 26:41
  Speaker 5: effects of any promotions you've run. Are the promotions you're
• 26:43
  Speaker 5: running actually helpful or are you running promotions because you're like, oh,
• 26:47
  Speaker 5: I probably should do a sale because everybody else is
• 26:49
  Speaker 5: doing a sale.
• 26:50
  Speaker 1: But it actually puts you behind.
• 26:52
  Speaker 5: Because sometimes we might have a product and the margin
• 26:55
  Speaker 5: on the product's five percent, Like we're not making much
• 26:58
  Speaker 5: at all. But maybe you were like, oh, everyone else,
• 27:00
  Speaker 5: see my industry is doing a twenty percent off sale.
• 27:02
  Speaker 5: Like that's actually putting you in the whole. Like that
• 27:04
  Speaker 5: is not a good idea at all. So review these
• 27:07
  Speaker 5: things and review them consistently so that we're always on
• 27:10
  Speaker 5: top of it. What is the effectiveness of your sales
• 27:13
  Speaker 5: team if you have one, Like, if you've got a
• 27:15
  Speaker 5: sales team, they're actually driving sales. So in most of
• 27:18
  Speaker 5: your sales coming organically through tiktoks, Like, let's understand how
• 27:22
  Speaker 5: the business is driving us forward.
• 27:24
  Speaker 1: Are there any interesting trends that you can see?
• 27:26
  Speaker 5: Is there anything different that might be impacting your sales
• 27:29
  Speaker 5: this year versus the previous year.
• 27:31
  Speaker 1: We're going to do a margin analysis.
• 27:34
  Speaker 5: Yes, so I was talking about this before, but which
• 27:36
  Speaker 5: product or service is most profitable. What could you do
• 27:39
  Speaker 5: to improve the margins or the sales of this product?
• 27:42
  Speaker 5: What has been the impact of any discounts that've be offered?
• 27:45
  Speaker 5: As I said before, are you offering too much of
• 27:47
  Speaker 5: a discount because everybody else is? Or is a discount
• 27:50
  Speaker 5: something that you might want to consider, like new financial
• 27:53
  Speaker 5: year sale or something to drive a peek in sales
• 27:56
  Speaker 5: at the beginning of your financial year.
• 27:58
  Speaker 3: And where are you making the most money?
• 28:00
  Speaker 5: Have a look at that and deep dive into how
• 28:02
  Speaker 5: you can turbo charge that aspect of your business, because
• 28:05
  Speaker 5: I promise it is easier to sell to pre existing
• 28:09
  Speaker 5: clients than it is to attract brand new ones.
• 28:12
  Speaker 3: Absolutely, And if cost of materials and things have gone up,
• 28:15
  Speaker 3: that's going to have eaten into your margins now, so
• 28:17
  Speaker 3: exactly where it's a great time to go. Okay, well,
• 28:19
  Speaker 3: if the cost of XYZ material has gone up by
• 28:22
  Speaker 3: five percent, I need to be passing that five percent
• 28:24
  Speaker 3: onto the consumer otherwise I'm now out five percent.
• 28:27
  Speaker 1: Yeah, exactly.
• 28:28
  Speaker 5: And the other thing I would do and not get
• 28:30
  Speaker 5: hung up on, is a competitor analysis. So what is
• 28:34
  Speaker 5: your market doing? Do you have any known competitors? What
• 28:37
  Speaker 5: are they doing, how do your prices compare, how do
• 28:39
  Speaker 5: your products and services compare, How close are your offerings
• 28:42
  Speaker 5: to those of your competitors, and how do you differentiate yourself?
• 28:46
  Speaker 5: Even more so, we always use, you know, the example
• 28:49
  Speaker 5: of a candle business. There are so many of them,
• 28:51
  Speaker 5: but they are all still successful, right because we all
• 28:54
  Speaker 5: have different reasons and like key into your hobbit. I
• 28:57
  Speaker 5: really like Jess, and I like a product, and I
• 28:59
  Speaker 5: like having you in my house. Or you know, you
• 29:01
  Speaker 5: might go to Mecca and buy your candles because you
• 29:03
  Speaker 5: like spending a lot of money on candles. But it's
• 29:06
  Speaker 5: one of those things where you need to do a
• 29:07
  Speaker 5: competitor analysis. But I don't want you comparing and feeling
• 29:11
  Speaker 5: less than or that you're not doing enough, because we're
• 29:13
  Speaker 5: all on different journeys. Like if you're a photographer and
• 29:16
  Speaker 5: in your first few years of working in a business, yes,
• 29:19
  Speaker 5: obviously a competitor is a pre established business that's been
• 29:22
  Speaker 5: around for fifteen years, But don't compare yourself to them
• 29:26
  Speaker 5: and expect yourself to be at that stage or at
• 29:28
  Speaker 5: that level.
• 29:29
  Speaker 3: Use them as inspiration.
• 29:31
  Speaker 5: Every time you feel envious, go why and try and
• 29:34
  Speaker 5: channel that into becoming inspiration instead of envy. I think
• 29:38
  Speaker 5: so many times it goes into envy because you go,
• 29:41
  Speaker 5: oh wow, I wish I could have that.
• 29:43
  Speaker 1: You can if you work hard enough.
• 29:45
  Speaker 5: Yeah, and that's a very cool outcome of doing a
• 29:48
  Speaker 5: competitor analysis.
• 29:50
  Speaker 3: I really like that. That's such a nice way to
• 29:51
  Speaker 3: reframe it.
• 29:52
  Speaker 2: Now.
• 29:52
  Speaker 3: We did a business Bile episode about this recently on
• 29:55
  Speaker 3: how you spend your time in the business. It was
• 29:57
  Speaker 3: back on April twenty fourth, if anyone missed it. But
• 29:59
  Speaker 3: I I think end of financial year is also a
• 30:01
  Speaker 3: really great time to review how you are spending your
• 30:05
  Speaker 3: time inside your business.
• 30:06
  Speaker 5: Right absolutely, And I feel like in a financial year,
• 30:09
  Speaker 5: as I said, every six months is a new year
• 30:12
  Speaker 5: of some form and we should be using it. So
• 30:14
  Speaker 5: I guess my best tip obviously, in addition to all
• 30:17
  Speaker 5: of the tips above, I think it's more about reviewing
• 30:20
  Speaker 5: your use of time. How much time are you spending
• 30:23
  Speaker 5: on each part of your business? Are you working one
• 30:25
  Speaker 5: hundred hours a week and making four dollars?
• 30:28
  Speaker 1: Is that how you want to spend your time?
• 30:30
  Speaker 5: How can we change it so that that's not always
• 30:33
  Speaker 5: the outcome?
• 30:34
  Speaker 1: You might find that.
• 30:34
  Speaker 5: That's your reality, but you know that there's a bigger
• 30:38
  Speaker 5: picture at play, and in a couple of years you'll
• 30:40
  Speaker 5: be working one hour and making millions. So it's all
• 30:43
  Speaker 5: about perspective as well. We're not saying, oh, don't use
• 30:47
  Speaker 5: it how you want, But sometimes we find ourselves in
• 30:50
  Speaker 5: a bit of a business whirlpool and we just keep
• 30:53
  Speaker 5: doing what we keep doing because that's how we've always
• 30:55
  Speaker 5: done it. But that doesn't mean it's correct. And then
• 30:59
  Speaker 5: is it time to outsource some tasks? You know, if
• 31:01
  Speaker 5: your business is growing? Like could we outsource something? Could
• 31:04
  Speaker 5: we get a VA? Could we get somebody else involved?
• 31:07
  Speaker 5: And then also like how do we know when is
• 31:09
  Speaker 5: the right time to hire? And who are we're going
• 31:11
  Speaker 5: full blown into having a full time employee? Are were
• 31:13
  Speaker 5: doing part time? We're getting a casual employee. We're just
• 31:16
  Speaker 5: getting a VA for a few hours a month? Like
• 31:18
  Speaker 5: what does this look like? And is this reasonable for
• 31:21
  Speaker 5: our business at this time? And I guess speaking of this,
• 31:24
  Speaker 5: if you have one, we are reviewing our team.
• 31:27
  Speaker 3: We are reviewing performance to date.
• 31:29
  Speaker 5: This isn't because we're trying to be savage, Jess, your
• 31:32
  Speaker 5: team members deserve a review, Like I know you and
• 31:35
  Speaker 5: I like sitting down and going all right, Jess, what
• 31:37
  Speaker 5: have you achieved this year? Vice versa? How have you
• 31:40
  Speaker 5: liked working with me? What does this look like? How
• 31:42
  Speaker 5: does this work? It's a two way street when it
• 31:44
  Speaker 5: comes to team performance review. Have you scheduled performance review
• 31:48
  Speaker 5: meetings with all your team members before the end of
• 31:51
  Speaker 5: the year or before the end of the financial year,
• 31:54
  Speaker 5: whichever you want to do. Do you actually have formal
• 31:56
  Speaker 5: documents to support the performance management process in your business?
• 32:00
  Speaker 5: Your business is not too small to have formal documents.
• 32:03
  Speaker 5: I feel like so many times small businesses go I'm
• 32:06
  Speaker 5: too small. I know, Jess, really well, Jess. Do we
• 32:09
  Speaker 5: do formal performance review in our team?
• 32:12
  Speaker 3: Of course?
• 32:13
  Speaker 5: But it's so helpful because it lets us slip out
• 32:15
  Speaker 5: of this friends and getting stuff done and day to
• 32:19
  Speaker 5: day and going all right, well, actually you've got this
• 32:21
  Speaker 5: formal dog, let's go through it together. You've put your
• 32:23
  Speaker 5: notes in it, I've got mine. Like, where are you
• 32:25
  Speaker 5: at with these things? Because even though we're friends, you know,
• 32:29
  Speaker 5: I'm the business owner and you work for me, and
• 32:31
  Speaker 5: we have you know, gone beyond that. I feel like
• 32:34
  Speaker 5: you deserve that from me and vice versa, and if not,
• 32:38
  Speaker 5: now's the time to do it. There are heaps on Google.
• 32:41
  Speaker 5: I can always share mine at some point, but I
• 32:43
  Speaker 5: think kicking off the new year with tangible targets for
• 32:46
  Speaker 5: your team gives them more motivation.
• 32:48
  Speaker 1: And you know what.
• 32:49
  Speaker 5: Motivated people do, just make money, make more money, and
• 32:52
  Speaker 5: we like that. We're going to be looking at rewards.
• 32:55
  Speaker 5: Your team deserve to be rewarded. Incentives and bonuses can
• 32:59
  Speaker 5: be a really great way of rewarding contributions that your
• 33:02
  Speaker 5: team members make to your business. Don't forget they are
• 33:06
  Speaker 5: working for you. They are working to build your business,
• 33:10
  Speaker 5: and that deserves to be rewarded. They can obviously be
• 33:13
  Speaker 5: really effective in increasing activity during slow times and really
• 33:17
  Speaker 5: motivating your team. I've heard from a lot of people
• 33:20
  Speaker 5: who have said I can't afford rewards.
• 33:23
  Speaker 1: I can't afford the benefits for my team.
• 33:25
  Speaker 5: And don't get me wrong, we're all in different places
• 33:27
  Speaker 5: to offer incentives or bonuses, but you need to make
• 33:32
  Speaker 5: sure that your team members feel valued and you could
• 33:35
  Speaker 5: go hejs. Obviously we're not making heaps of money as
• 33:38
  Speaker 5: a business, and I really wish I could pay you more.
• 33:40
  Speaker 5: How About I give you a couple of days off
• 33:42
  Speaker 5: next month, not included any sac with that, Like there
• 33:46
  Speaker 5: are lots of ways to incentivize your team members that
• 33:49
  Speaker 5: don't include cash. If cash is in short supply, which
• 33:53
  Speaker 5: for a lot of people at the moment it is.
• 33:55
  Speaker 5: That doesn't mean you can just not look at your
• 33:57
  Speaker 5: team members and make them feel valued career development plans
• 34:01
  Speaker 5: and discussions around that. Even if you have a performance
• 34:04
  Speaker 5: review discussion with your teenage year how clear are their
• 34:07
  Speaker 5: career development discussions? Where do they want to be in
• 34:10
  Speaker 5: twelve months? Where do they want to be in three years?
• 34:13
  Speaker 5: I feel like you need to be open with your
• 34:15
  Speaker 5: team to the point where that could be not with you.
• 34:19
  Speaker 1: And that's not a bad thing.
• 34:20
  Speaker 5: And I've always said that, Jess, I would keep you
• 34:22
  Speaker 5: every day for the rest of ever. But I also
• 34:25
  Speaker 5: would never want to get in the way of your
• 34:26
  Speaker 5: career development. And if I become a beautiful launching pad
• 34:30
  Speaker 5: into a bigger, better career for you, slay like, that's amazing.
• 34:34
  Speaker 1: I've been part of that.
• 34:35
  Speaker 5: But I think that too many times people assume that
• 34:39
  Speaker 5: by having career development discussions with their team, they have
• 34:42
  Speaker 5: to have the career inside their business. Like I go, oh, Jess, well,
• 34:46
  Speaker 5: where would you want to go? And at the moment
• 34:48
  Speaker 5: you're kind of sitting at the top of what you
• 34:49
  Speaker 5: do in my business. Yeah, so how do we have
• 34:52
  Speaker 5: those career development discussions where you might go, well, I
• 34:55
  Speaker 5: actually want to stay here and I really would like
• 34:57
  Speaker 5: to do ABCDN next year. That's adding additional value to
• 35:01
  Speaker 5: my business. Or you might go, yeah, look at some stage,
• 35:04
  Speaker 5: I'd like to launch into big business and take on
• 35:07
  Speaker 5: a really corporate structure.
• 35:09
  Speaker 3: Great, how can I help you to get there?
• 35:11
  Speaker 5: Because I promise you're going to get more from your
• 35:13
  Speaker 5: team if you're helping them to get where they want
• 35:15
  Speaker 5: to go than if you go, Oh, but you have
• 35:18
  Speaker 5: to stay in my business forever in a day.
• 35:20
  Speaker 3: That is such a good point, and it really is
• 35:22
  Speaker 3: so true. I guess for both an employer and an employee,
• 35:24
  Speaker 3: it's really important to be checking in with each other.
• 35:27
  Speaker 3: Is there any other last little tipbits before we go
• 35:29
  Speaker 3: away that you reckon? People should really be getting on
• 35:31
  Speaker 3: top of this end of financial deseason.
• 35:33
  Speaker 5: Your clients and your customers. So let's review our service.
• 35:37
  Speaker 5: Are we serving who we want to serve? Who are
• 35:40
  Speaker 5: your most profitable customers? How do we get more of
• 35:42
  Speaker 5: those ones who are your least profitable clients? How do
• 35:45
  Speaker 5: we have less of those what are your service highlights? Like,
• 35:49
  Speaker 5: have there been some like flashes of brilliance? Like have
• 35:51
  Speaker 5: there been some things that you've been like, Wow, actually
• 35:53
  Speaker 5: we knocked it out of the park for that client.
• 35:55
  Speaker 1: Just how do we do it again?
• 35:57
  Speaker 5: How do we do that and take that magic of
• 35:59
  Speaker 5: that experience and give it to everybody in our business?
• 36:02
  Speaker 5: What are the low lights? Have there been some issues
• 36:05
  Speaker 5: along the way? How do we make sure it doesn't
• 36:07
  Speaker 5: happen again in the next twelve months? And then maybe
• 36:09
  Speaker 5: you could open it up as an opportunity for feedback.
• 36:12
  Speaker 5: Now is a perfect time to get feedback and survey
• 36:15
  Speaker 5: your customers. Seek feedback through surveys or focus groups or interviews,
• 36:19
  Speaker 5: or just pick up the phone and be like, hey, Jess,
• 36:21
  Speaker 5: long time no speak.
• 36:22
  Speaker 3: Are you still loving working with us?
• 36:24
  Speaker 5: You said that ages ago, but like, has the service
• 36:27
  Speaker 5: been the same? I'm just gathering some feedback to make
• 36:29
  Speaker 5: sure that next year is our best year yet. And
• 36:31
  Speaker 5: I can almost guarantee that everyone's going to be like,
• 36:34
  Speaker 5: oh yeah, Jess, I really want to be on top
• 36:35
  Speaker 5: of this. So go to your most important customers first,
• 36:39
  Speaker 5: but send an email. You'll get some feedback and it
• 36:42
  Speaker 5: will put you in the best possible position to have
• 36:44
  Speaker 5: the best year yet.
• 36:45
  Speaker 3: I completely agree, and I think like the overall theme
• 36:47
  Speaker 3: of today's episode is like we're halfway through the yard.
• 36:50
  Speaker 3: It's a really good time to stop and take an
• 36:53
  Speaker 3: assessment of what you've achieved, what you want to achieve. Like,
• 36:56
  Speaker 3: let's kind of get a bit of that new financial
• 36:58
  Speaker 3: year you me and you know, just textalk of what
• 37:00
  Speaker 3: you've done, because like it's been six months and that's
• 37:03
  Speaker 3: incredible and we're so proud of you. For those of
• 37:06
  Speaker 3: you who have been working in a business for six
• 37:07
  Speaker 3: months or have been planning something, maybe you're just ready
• 37:10
  Speaker 3: to launch it. I feel like I have nothing else
• 37:12
  Speaker 3: of value to add. VD that was an awesome episode
• 37:15
  Speaker 3: that I feel like will help a lot of people.
• 37:16
  Speaker 1: So fun. All right, Well, we'll see you soon.
• 37:18
  Speaker 3: See on Friday.
• 37:19
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• 37:28
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