Setting the right price for products and services drives sales, profitability, and enables long-term growth. Here are some pricing strategies that can help unlock significant business potential. 1. Understand Costs Effective pricing is only possible with a good understanding of costs, such as: Fixed Costs: The expenses that remain constant regardless of production levels, like rent, salaries, and insurance. Variable Costs: The costs which fluctuate based on production volume, including raw materials and direct labor. Break-even Point: The minimum sales volume required to cover all costs, and a valuable baseline for pricing decisions. Accurate and frequent financial reporting is necessary in order to keep a handle on these metrics. 2. Analyse the Market Enlightened leaders study their competitors’ pricing strategies, especially what they charge and the value offered at those price points. They also carefully monitor market demand (e.g. based on seasonal or economic factors) because high demand may justify higher prices. 3. Value-Based Pricing Strategic pricing means understanding customer perception of value. Products should be priced based on perceived value in addition to the costs of production. Also, understanding the value proposition enables the seller to highlight unique features and benefits of their products. That way, they market and sell in ways that persuade customers to choose them over competitors. 4. Dynamic Pricing Different circumstances may warrant different prices. For example, adjusting prices based on real-time demand is common in industries like travel and hospitality. Promotional Pricing means offering temporary price reductions to stimulate demand, clear out inventory, or attract new customers. 5. Bundling and Packaging It can make sense to combine multiple products or services into a single package at a discounted rate. This can increase perceived value and encourage customers to purchase more. A related concept is tiered pricing, whereby different tiers of products are offered at varying price points to cater to different customer segments, such as budget-conscious and premium customers. 6. Monitor and Adjust Pricing Since market and economic conditions are constantly in flux, leaders should continuously monitor pricing strategy performance. This regular review includes gathering feedback from customers and sales teams to understand how pricing impacts sales and customer satisfaction. A small variation in price can significantly impact business profitability and growth potential. Use these strategies to unlock the full profit potential of your business!

Budgeting is an important part of business planning. A well-designed budget helps leaders manage finances, allocate resources and stay on track to achieve business goals. Here are 6 practical tips to help create a budget that works for your business. 1. Set Clear Goals Define financial goals for the upcoming period. Whether it's increasing revenue, reducing costs, or expanding operations, clear objectives guide all budgeting decisions. For example, a business aiming to increase sales by 15% in the next year, might budget for targeted online advertisements and promotions which drive traffic to the website. The budget would be quite different for a business aiming to cut costs by 5% in the coming 6 months. 2. Track Income and Expenses Detailed records of the business's income and expenses help identify spending patterns and cost cutting opportunities which are taken into account in the next budget cycle. These records help leaders analyse and identify patterns in revenue and expenses to develop intelligent assumptions on what may happen in the future. 3. Be Realistic (Even Conservative) When creating the budget, be realistic about revenue projections and expense estimates. Overestimating income or underestimating expenses can lead to budget shortfalls and financial difficulties. It can also be helpful to make budgets with different scenarios based on, for example, ‘aggressive’, ‘conservative’ and ‘expected’ assumptions. In any case, always err on the conservative side. 4. Prioritise Essential Expenses Identify the business's essential expenses, such as rent, utilities, and payroll, and prioritise them in the budget. This ensures they’ll be covered even if revenue is lower than expected. For example, we’d expect a manufacturing company to prioritise essential expenses such as raw materials and production costs over the website upgrade, company offsite and internal newsletter. 5. Plan for Contingencies Include a contingency fund in the budget to cover unexpected expenses or revenue shortfalls. Having a buffer avoids financial difficulties if things don’t go as planned. For example, a contingency fund can help a services business deal with a sudden increase in project scope, so they can hire additional staff to deliver the project on time. 6. Review and Adjust Regularly Review the budget regularly and adjust as needed. As the business grows and market conditions change, the budget should evolve to reflect these changes. Most well-run businesses will review the budget at least monthly. A budget helps leaders commit to certain forecasts and optimise business performance as things change. We suggest you follow these guidelines when preparing your next budget!

Budgeting is an important part of business planning. A well-designed budget helps leaders manage finances, allocate resources and stay on track to achieve business goals. Here are 6 practical tips to help create a budget that works for your business. 1. Set Clear Goals Define financial goals for the upcoming period. Whether it's increasing revenue, reducing costs, or expanding operations, clear objectives guide all budgeting decisions. For example, a business aiming to increase sales by 15% in the next year, might budget for targeted online advertisements and promotions which drive traffic to the website. The budget would be quite different for a business aiming to cut costs by 5% in the coming 6 months. 2. Track Income and Expenses Detailed records of the business's income and expenses help identify spending patterns and cost cutting opportunities which are taken into account in the next budget cycle. These records help leaders analyse and identify patterns in revenue and expenses to develop intelligent assumptions on what may happen in the future. 3. Be Realistic (Even Conservative) When creating the budget, be realistic about revenue projections and expense estimates. Overestimating income or underestimating expenses can lead to budget shortfalls and financial difficulties. It can also be helpful to make budgets with different scenarios based on, for example, ‘aggressive’, ‘conservative’ and ‘expected’ assumptions. In any case, always err on the conservative side. 4. Prioritise Essential Expenses Identify the business's essential expenses, such as rent, utilities, and payroll, and prioritise them in the budget. This ensures they’ll be covered even if revenue is lower than expected. For example, we’d expect a manufacturing company to prioritise essential expenses such as raw materials and production costs over the website upgrade, company offsite and internal newsletter. 5. Plan for Contingencies Include a contingency fund in the budget to cover unexpected expenses or revenue shortfalls. Having a buffer avoids financial difficulties if things don’t go as planned. For example, a contingency fund can help a services business deal with a sudden increase in project scope, so they can hire additional staff to deliver the project on time. 6. Review and Adjust Regularly Review the budget regularly and adjust as needed. As the business grows and market conditions change, the budget should evolve to reflect these changes. Most well-run businesses will review the budget at least monthly. A budget helps leaders commit to certain forecasts and optimise business performance as things change. We suggest you follow these guidelines when preparing your next budget!

Data has evolved from being a byproduct of operations to a strategic asset that can drive growth, innovation, and competitive advantage. Small and medium-sized businesses (SMBs) that effectively harness the power of data analytics make more informed decisions, enhance operational efficiency, and gain deeper insights into customers. Here are ways SMBs can leverage data analytics to drive business decisions and grow. 1. Understanding Data A first step is to understand the type of data available and its potential value. Identify data sources, such as sales figures, customer demographics, website traffic, and social media engagement. Available data will vary by industry. For example, a retail store tracked purchase history and customer preferences through its loyalty program. This data enabled personalisation of marketing campaigns and promotions, resulting in greatly increased repeat purchases. 2. Choosing the Right Analytics Tools Your needs and objectives determine what tools you need. For analysing large datasets, consider Tableau or Power BI. For real-time analytics, platforms like Google Analytics or Mixpanel may be suitable. Cloud-based solutions are cost-effective and scalable, ideal for SMBs with limited resources. 3. Implementing Predictive Analytics Historical data can help forecast future trends and outcomes. For example, a software subscription-based service used predictive analytics to forecast customer churn. By targeting at-risk customers with retention offers, they reduced churn by 15%. 4. Improving Operational Efficiency Streamline operations and reduce costs by analysing processes and identifying bottlenecks. For example, a manufacturing company used data analytics to optimise its production processes and inventory levels. Lead times were cut by 25% after improved resource allocation. 5. Enhancing Customer Experience Gain insights into customer preferences, buying patterns, and satisfaction levels. For example, a hotel chain used data analytics to personalise guest experiences based on preferences and behaviour. Tailored services and promotions led to improved guest satisfaction scores and repeat visits. 6. Using Data for Strategic Decision-Making Inform strategic choices with data-driven decision-making. Use data to support decisions on entering new markets, launching products, or expanding the customer base. Leaders need to persuade themselves and others that they can achieve a positive Return on Investment through new initiatives. Data analytics provides the insights to assess future outcomes and quantify the probability of success. While data analytics alone can’t guarantee business success, it provides valuable insights that drive decisions and improve outcomes. How can you better understand and utilise available data?

In addition to the many challenges of running a business, scammers present a growing (and formidable) risk. Reports from government agencies show they’re having a hard time protecting businesses from scammers. For example, Australia’s investment watchdog - the Australian Securities and Investment Commission (ASIC) - recently claimed to be taking down roughly 20 scam sites each day! What can business leaders do to counter this threat? First, let’s look at some typical examples of scams. Phishing Phishing occurs when scammers impersonate government agencies or large organisations like banks to trick business owners into revealing sensitive information. This can happen over email or text and the recipient usually clicks a malicious link that seems legitimate. The fraudsters often prey on fears and uncertainty, sending out fake updates about safety measures or offering access to supposed government subsidies. Compromised email accounts Email phishing becomes more complicated when hackers access legitimate email accounts and send links or fraudulent payment requests. These emails are especially dangerous because they’re hard to distinguish from legitimate correspondence. False billing In this case, scammers send fake invoices, hoping busy administrators won’t notice they’re fake. Small businesses face significant risk especially where one fraudulent payment could significantly impact cash flow. Supply scams Scammers can set up fake websites or social pages and sell nonexistent products. Buyers seeking something urgently or that they think is scarce are particularly prone to this scam. Overpayment scams More rare, perhaps, but this involves scammers overpaying for goods using stolen credit cards or fake cheques. Then they request a refund for the excess and, once the original payment fails, the business is left with the bill. So what can businesses do about scams? Here are 7 best practices. 1) Recognise that any person or business is a target. Scams are not only directed at small, unsophisticated businesses. Many vigilant, tech-savvy people have fallen victim. And the techniques of scammers continue to evolve. 2) Create a culture of suspicion: Verify the source of emails, SMS, or social media messages before responding or clicking on links, especially where sensitive information is involved. Be doubly suspicious where the sender implies urgency, a common technique of scammers. 3) Train your employees to recognise and report suspicious activity. Anyone can be targeted. 4) Double-check payment requests, especially those involving new bank details. Set up processes which require multiple steps, or involvement by multiple people, before payments are executed. 5) Strengthen password policies, because weak passwords are a common entry point for scammers. Make sure all business accounts have strong, unique passwords that change regularly. 6) Update software because outdated systems are an easier target for scammers, especially those engaging in phishing attacks. 7) Online monitoring tools like Google Alerts can reveal unauthorised use of the business name online. Scammers often misuse legitimate business names to seem credible to other victims. With no end to the threat of scammers in sight, it’s prudent for leaders to be ultra cautious and adopt strategies like those mentioned above. What should you be doing to protect your business from scammers?

Running a small or medium-sized business is challenging. Investing in hiring, marketing and raising prices may drive growth… but also impact the bottom line. Making prudent investments while managing cash is extremely important. Here are some practical strategies to help leaders achieve long-term profit growth, without putting the business at risk . 1. Stay Informed: Monitor Key Metrics Keep an eye on gross margin, net profit margin, and other key metrics which make sense in your business. For example, a financial services firm implemented a real-time dashboard to monitor key performance indicators (KPIs), and this analysis helped make informed decisions about their pricing and cost-control strategies. 2. Price Right: Regularly Review Your Pricing Strategy Research the market to ensure prices are competitive. Your pricing should capture the true worth of products or services in the minds of your customers. For example, a theater owner learned to modify ticket prices based on customer demand, resulting in increased revenue per performance even in slow periods. 3. Bundle Up: Offer Product Bundles Create bundles of products or services to encourage customers to buy more. This can increase the business’s average sale value and boost profits. For example, an e-commerce platform introduced personalised product bundles based on customer purchase history, leading to a significant increase in average order value. 4. Discount with Purpose: Offer Strategic Discounts Use discounts strategically to move slow-moving inventory or to attract new customers. For example, a seller of furniture offered targeted discounts for high-end products during off-peak seasons, which had a long-term positive impact on the bottom line. 5. Start Smart: Streamline Your Operations Review processes and identify inefficiencies. Find ways to automate or simplify them. This reduces costs AND frees up time for the team to focus on what matters. For example, a manufacturing business implemented an automated inventory system, saving 100 man-hours per month. In addition to reducing costs, the time saved was partly allocated to innovation, with good results. 6. Stay Sharp: Negotiate with Suppliers Regularly review supplier contracts and don't be afraid to negotiate better terms. Consider forming partnerships or buying in bulk to get discounts that boost the bottom line. A retail chain which renegotiated supplier contracts, achieved a 15% cost reduction, which directly increased profit margins. 7. Be Agile: Implement Just-in-Time Inventory Keeping a lean inventory helps reduce storage costs and avoids tying up cash in excess stock. For example, a food distributor uses sales forecasts to order inventory only when needed. This has reduced warehouse costs and food waste, leading to higher profitability. 8. Work Wisely: Outsource Non-Core Activities Consider outsourcing tasks like Accounting or IT support to specialised firms. This lowers overhead costs and gives access to expertise to help the business grow. For example, a software developer outsources some projects to an offshore team, which accelerates time-to-market and improves customer satisfaction. Each business is different but consider these practical strategies to improve your business's profitability and set the stage for long-term success.

Some major businesses are able to ‘capitalise’ their brands. That means the brand has been valued and included as a balance sheet asset.  Most businesses don’t go to those lengths… but leaders who build valuable brands usually have a better chance of standing out and attracting customers and partners.  Let’s look into what makes a [...] Read More The post Building a Brand Identity to Standout in a Competitive Market appeared first on Green Taylor Partners.

As markets evolve, leaders need to revisit their strategies to stay competitive and thrive. This is challenging because change can be uncomfortable. A mindset change may be required to effectively respond to shifting conditions.  Each market is different, but here are five focus areas to stay competitive in a changing environment. 1. Focus on Customer [...] Read More The post 5 Ways to Stay Competitive in a Changing Market appeared first on Green Taylor Partners.

The Accounting function has the important job of keeping managers informed on the state of their business, while ensuring compliance with rules and regulations. This can get complex… but establishing efficient Accounting systems and processes saves time and improves the accuracy of financial information. What does this mean? Let’s look at ways to improve the [...] Read More The post Refining Accounting Processes to Save Time (and Cost) and Improve Efficiency appeared first on Green Taylor Partners.

Have you set business and personal goals for the coming year? Successful business people often say having clear goals is instrumental to their success. They relish thinking about the exciting things they can achieve and enjoy imagining their lives once those goals are attained. So why doesn’t everyone take goal-setting more seriously? It could be [...] Read More The post Setting Business and Personal Goals for the Year Ahead appeared first on Green Taylor Partners.

Businesses have a better chance of THRIVING when there’s a focus on operational efficiency and productivity. This reduces costs, improves customer satisfaction and results in a competitive edge. Here are 5 practical strategies applicable in most businesses (and industries) which can boost efficiency, productivity, profitability and growth.  1. Leverage Automation Automation transforms routine tasks, like payments, invoicing [...] Read More The post 5 Ways to Improve Efficiency and Productivity in Business Operations appeared first on Green Taylor Partners.

For business owners aiming for growth and stability, keeping track of critical financial metrics is a good basis for deciding strategy. Here are five essential financial metrics that are of value to most leaders. They can, of course, be supplemented by other metrics which are especially suited to your business. 1. Revenue Growth Rate This [...] Read More The post 5 Critical Financial Metrics to Monitor in a Small-Medium Business appeared first on Green Taylor Partners.

What is ‘working capital’? And how do leaders effectively manage it? This refers to managing the company’s short-term assets and liabilities, so the business has the liquidity to meet short-term obligations and fund its day-to-day operations.  Here are some practical strategies to strengthen a business through astute working capital management.  1. Get to Know Your Working Capital Ratio The Working Capital Ratio (or current [...] Read More The post 7 Practical Strategies for Effective Working Capital Management appeared first on Green Taylor Partners.

A cash war chest or financial buffer helps a business weather disruptions like reduced sales, unexpected expenses, or economic downturns. Cash reserves help leaders avoid drastic measures such as debt or service cuts and provide a sense of security and flexibility. Here are six practical steps leaders can take as they establish and maintain cash [...] Read More The post Building a Cash War Chest for the Business – 6 Essential Steps appeared first on Green Taylor Partners.

It’s critical for businesses to monitor their performance effectively. But there is no single list of KPIs which apply to all businesses. Here are some guidelines when choosing KPIs suited to your business.  Restate Your Business Goals KPIs should directly align with your business’s short-term and long-term goals. For instance, if your goal is to [...] Read More The post Tracking the Right Key Performance Indicators (KPIs) for Your Business appeared first on Green Taylor Partners.

Sometimes business profits suffer because of spending too much with certain suppliers. In the competitive business world, getting the best terms with suppliers improves margins and lays a foundation for long-term success. Startups and well-established entities who negotiate effectively enjoy significant cost savings and improved supplier relationships. Here are seven ways to get better deals with suppliers: Research Market [...] Read More The post 7 Ways to Get Better Deals from Suppliers appeared first on Green Taylor Partners.

In recent years, Environmental, Social, and Governance considerations (ESG) have become an increasingly strong influence on businesses. What does this mean for leaders? Each business (and regulatory environment) is different… but here are some steps leaders can take as they navigate this part of running a business. Learn the regulations This is a good starting point because it’s important to be compliant with laws. Engage a specialist, consultant, or advisory firm to clearly define your obligations. In many cases, you’ll find the laws and guidelines are still under development. Knowing your obligations provides a baseline on what you may need to invest in this area. Invest in education and training ESG should not be seen as “a management challenge”. Make your team aware of the obligations and opportunities so they can get involved. Many universities and online platforms offer ESG courses and certifications. Establish benchmarks Assess your organisation’s current performance in environmental, social, and governance areas. How do you compare to your industry peers? Define any financial and reputational risk and set measurable goals to close any gaps. Integrate into business strategy For some businesses, ESG activities focus on ensuring compliance. Others will make fundamental changes in their business, such as in product development, supply chain management, and investments to realise ESG goals. That requires planning and careful assessment of the risks in various scenarios. Manage stakeholders Customers, suppliers, the media, employees, shareholders, and regulators may take an interest in an organisation’s approach to ESG. Transparency, detailed reporting, and regular engagement helps allay ESG concerns and set reasonable expectations. Innovation and technology Antiquated business methods can compromise performance on ESG metrics and investment in sustainable technologies may reduce environmental impact and improve social outcomes. A common source of opportunity is the Supply Chain, where collaboration with suppliers can result in sustainable practices. Make ESG part of long-term success Ask how ESG initiatives can contribute to organisational success and resilience in the long-term. The answer will vary by organisation and industry but there may be immediate and long-term benefits from diversifying the workforce, investing in ESG-focused funds or assets, setting ambitious sustainability targets, and consulting ESG guidelines when choosing partners and customers. For some businesses, a highly evolved ESG strategy will be a source of competitive advantage. How does ESG strategy fit into your long-term plans?

We sometimes see businesses which are healthy, growing, reputable, and stable… but their cash resources are limited. And that’s an impediment to operations running smoothly and ensuring long-term success. Here are 10 practical strategies to help you boost your business’s cash flow: Invoice Promptly Send out invoices promptly after completing a job or delivering a product. Offer incentives for early payment to encourage prompt settlements. Tighten Credit Terms Review credit terms with customers and suppliers. Shorten payment terms for customers and negotiate longer terms with suppliers to improve your cash flow cycle. Monitor Expenses Keep a close eye on your expenses and identify areas where you can cut costs. Look for opportunities to renegotiate contracts, switch to more cost-effective suppliers, or eliminate unnecessary expenditures. Improve Inventory Management Optimise inventory levels to avoid excess stock sitting on shelves tying up cash. Use forecasting tools to better predict demand and adjust ordering accordingly. Negotiate Supplier Discounts Negotiate discounts with suppliers for early or bulk payments. Take advantage of any available discounts to reduce purchasing costs and improve cash flow. Offer Discounts for Early Payment Encourage customers to pay invoices early by offering discounts. Even a small discount can incentivise customers to settle their accounts sooner. Monitor Cash Flow Regularly Keep track of cash flow on a regular basis using cash flow forecasts. This will help you anticipate any potential cash shortages and take proactive measures to address them. Improve Debt Collection Processes Implement efficient debt collection processes to minimise overdue accounts. Follow up with customers promptly on overdue invoices and consider using automated reminders. Explore Financing Options Consider alternative financing options such as lines of credit, invoice financing, or business loans to bridge any cash flow gaps during periods of growth or unexpected expenses. Focus on Profitable Sales Concentrate efforts on generating sales that contribute positively to your bottom line. Identify your most profitable products or services and allocate resources accordingly to maximise revenue. By implementing these strategies, you can improve your business’s cash flow and ensure greater financial stability for the future. Remember, effective cash flow management is key to sustaining and growing your business in the long run.

Busy leaders need to focus on the needs of customers, prospects, employees, regulators, suppliers and so on. However, we encourage these leaders to also take an active interest in the FINANCIAL health of their business. Conducting a periodic self-audit or financial health check helps identify areas for improvement and ensures the business remains on track towards the financial goals. Here are some important topics to cover in a self-audit. Cash Flow Analysis Analyse your cash flow to understand the movement of money in and out of your business. Review the cash flow statement to identify patterns or trends, such as seasonal fluctuations or irregularities. Ensure that your cash reserves are sufficient to cover operating expenses and emergencies. Debt Management Evaluate your current debt obligations and ensure they are managed effectively. Consider refinancing high-interest loans, consolidating debt, or negotiating with creditors for better terms. Prioritise debt repayment to minimise interest costs and improve your financial position. Profitability Metrics Assess business profitability through metrics like gross profit margin, net profit margin, and return on investment (ROI). Compare your performance to industry benchmarks to gauge competitiveness and identify areas for improvement. Find opportunities to increase revenue, reduce expenses, and enhance overall profitability. Financial Reporting and Analysis Review your financial reports, including income statements, balance sheets, and cash flow statements, to track performance and identify trends. Update your accounting software to ensure accurate and timely financial reporting. Risk Management Identify risks to your business’s financial health, such as economic downturns, market volatility, or regulatory changes. Develop contingency plans and risk mitigation strategies to minimise the impact of unforeseen events on your business operations. Schedule time to conduct the self-audit and address areas of concern. Involve your Accountant to gain access to expertise in these areas. This also helps keep leaders accountable and confident that they’re on track to accomplishing their goals.