Whether your business has been utilising JobKeeper payments or not, economic indicators suggest that it’s now more important than ever to look at ways to improve revenue and perhaps look for assistance from every corner, to achieve your business goals. The good news is that there is a wealth of resources waiting for small business owners. From gaining knowledge from industry leaders to looking at ways the government is assisting business, now should be a time of optimism.
If you have trimmed costs every possible way, there is only one other way to increase profit and that is to increase revenue. Easier said than done… I know. During the last twelve months, we have discussed many scenarios with clients. Here are a few of the adjustments that clients made, to increase revenue:
- Some opted to adjust the quantity of items on their menus or revamp the whole offering
- Others added a delivery service via UberEATS and Deliveroo – something they had never previously considered
- Others adjusted their trading hours
Of course, costs are involved with every change. We were able to support our clients to assess whether the commission paid for the delivery service outweighed the cost of producing the meals. If trading hours were adjusted, what would happen to wage costs? Over the past 12 months, we have seen many long standing hospitality businesses find it difficult to make these types of adjustments, but, with hindsight, have appreciated the changes – that turned out to be both necessary and rewarding.
Another example that may be helpful for small eateries is seen with a client, who, up until twelve months ago, was open seven days a week for breakfast, lunch and dinner. With our analysing of the financials and that client’s willingness for change, they are now closed one day a week, and no longer offer breakfasts – and they are now a much more profitable business, with increased revenue. From a health and wellbeing perspective, this client is now also enjoying a day off each week too, and feeling less fatigued and now more focussed on the business than ever before. Repeat customers are noticing the renewed enthusiasm and can see the happy changes with the owner as well as the hard-working employees.
But what happens if you have exhausted all possibilities of change and you still cannot see light at the end of the tunnel? This is where we can say it is great to run a business in Australia. The Federal and State governments, as well as local councils are all offering assistance to businesses. While JobKeeper will not be continuing, businesses and/or the owners could be eligible for other assisting packages and grants. Check out www.business.gov.au website for possibilities of federal grants and your state government’s treasury website (in South Australia it is https://www.treasury.sa.gov.au). Also, contact your local council’s business or economic development arm, to see if they are offering assistance in any way.
JobMaker has also just been introduced, and the government has continued with various tax benefits, notably the Instant asset write off benefit ending June 2021. If you are not sure, of or what you may be eligible for, give us a call. Or, if you would like assistance in looking at ways to improve profit, we would love to have a chat with you on (08) 8235 1594 or message us here.