Category: Blog

The word “retirement” conjures up many images. While most baby boomers might be dreaming of more time on the golf course or booking a cruise, you might be thinking about buying a business. Crazy? Maybe not.

If you’re close to reaching your preservation age you will soon have access to your superannuation. An increasing number of people at this stage are taking control of their finances and buying themselves a new later-life career in the form of an established business.

Perhaps you’ve been retrenched and finding it difficult to land a new job. Or maybe, after a short period of retirement, you’re re-invigorated and ready to start afresh. 

Seniors bring life experience and skills as well as a wide network of contacts to a commercial venture. But running a business doesn’t always go to plan. Small businesses are risky by nature, often have voracious appetites for capital and are usually vulnerable to irregular cash-flow.

Assuming you satisfy superannuation conditions of release, consider these questions before leaping in with both feet:

• How much capital will you need? Will you be using your savings or relying totally on super? If using super, consider the risks associated with putting all your eggs in one basket. Do the sums and work out an appropriate balance.
  
• Will you buy a start-up or an existing business? Starting from scratch means starting small usually with a lot of unknowns ahead.
  
  Existing businesses come with customers, structures and processes. 
  
  Regardless, your decision must be guided by how much you’re ready and able to put into building and maintaining your new venture.
  
• Have you sought professional advice? No really – you still need to think about retirement planning, tax, insurance, etc. Important any time, they’re fundamental when you’re self-employed. 
  
• Are you compliant with super regulations? Self-managed Super Funds (SMSFs) exist to protect the future benefits of members. Therefore, all SMSF investments must meet Related Party regulations, meaning that you cannot use SMSF money to buy a business if you, or another fund member, intends working and deriving an income from it. There could be other options available and this is where you need to seek specific advice first.
  
  Retail or industry funds sometimes restrict lump-sum withdrawals. Access to and the tax applied to a lump sum withdrawal will depend on your age and the taxable components of your super. Your super fund can tell you how much in your account is taxable or tax-free.
  
  Even though a lump sum withdrawal may be tax-free, if you use that money to earn income, that income will be taxed at your marginal tax rate.

If your business pays you an income, it’s imperative that you speak with your financial adviser about super as significant restrictions apply to contributions. These include an annual cap on concessional contributions of $27,500. This will impact on how much you can re-contribute to replace the amount you’ve withdrawn. 

Access to super below age 55 is subject to strict withdrawal conditions. The desire to purchase a business is not one of them.

• Will you know when it’s time to give up? You probably don’t want to think about this, but Australian Bureau of Statistics (ABS) figures indicate that around  40% of small businesses fail in their first three years.
  
  This is why conducting due diligence before purchasing an ongoing business is crucial. If things don’t turn out as planned, throwing good money after bad won’t help. Will you know when to quit? Do you have an exit plan? 
• What about your succession plan? What will you do with the business when you finally retire? Sell? Pass it on to family? Plan for this final stage at the beginning.

Thanks to improved health and medical technology, Australians are living longer, which is why a sound strategy for such a big leap later in life is more important than ever. After all, if 60 is the new 40, then the story is not even close to finished!

In these ever-changing and uncertain times in society, there has never been a greater emphasis on our health and wellbeing.

However, there is a crucial element that is often overlooked – our financial wellbeing. When addressing our overall health, it is essential that we also look at the responsibilities and stressors that come with managing our finances.

According to the Organisation for Economic Co-operation and Development (OECD), the average Australian household finds themselves in debt around 203% of their net disposable income, ranking us fifth worldwide behind countries such as Denmark and Norway. In this debt race, the further away from first place we come, the better!

With little education around budgeting and responsible spending, especially among young adults, it can be easy to fall into an unhealthy financial position. Yet, it may be comforting to know there are a range of basic strategies you can implement into your daily lifestyle to keep on top of your finances, all while positively contributing to your own health and wellbeing.

1. For the average Australian, it is essential to know where your hard-earned cash is truly going—spending $30 per week on coffee? It is sometimes easy to blur the lines between our needs and wants, so creating a structured budget to implement weekly is a great place to start. 

The 50/30/20 budgeting method assigns half of your earnings to needs, such as rent, food and bills, another 30% goes towards wants and leisure (an occasional latte from your favourite café), leaving the remaining 20% to be distributed between debt repayments and savings.

Implementing an organised, non-negotiable budgeting system will create a solid foundation for managing your money.

• Another creative way to manage your debt is to map out a financial liabilities’ hierarchy or debt pyramid. Jot down your current debts and place those with the highest interest rate at the top, much like your credit card. Then, make your way down, assigning debts such as mortgages, student loans, car loans etc., into their rightful positions based on interest rates or fees.
• Beware of apps and programs allowing you to ‘buy now, pay later’, such as Afterpay or ZipPay. While easy to use and usually requiring no more than a few taps, these payment methods can quickly plunge you into financial despair. Miss one payment? You will likely cop a late fee, then another, and another, making it a tough cycle to break. The bottom line here: Don’t spend money you don’t have.
• Much like that assignment you said you would do yesterday, or that pile of laundry that has been staring at you for days, it is easy to leave bills and repayments to the very last minute, or even worse, until they’re overdue. Allocate an hour every other week to sit down, open those bills, review any owing repayments, and act accordingly.
• Lastly, consider speaking to a professional! Investing time into your financial situation and wellbeing is essential to a well-balanced lifestyle. A financial adviser can give you realistic, well informed, and knowledgeable advice specific to your individual needs, and help set you up with skills that will last a lifetime.

Proactively managing your finances is the very best way to boost your financial wellbeing, lower stress, and keep you feeling your best during these uncertain social and economic times.

The word ‘inflation’ doesn’t only dominate business news headlines, but finds its way into general news reports too.

So, what is inflation and how does it affect you? 

In simple terms, inflation signifies a rise in the price of goods and services, meaning you pay for more for every purchase you make. 

Does the US influence Australia’s inflation rate?

It is not a surprise that countries in today’s world are more connected than ever before. Therefore, a rise in US inflation rates will impact Australian economy too, along with other countries.

However, the degree and timing of its impact will vary. For example, a rise in labour costs in the US may have a limited impact on Australians; however, an increase in the price of iPhones or Nike shoes in the US will reflect in their price in Australia too. 

What will be the impact of rising US inflation on Australia’s economy?

Interest rate movements made by the US Federal Reserve Bank (the Fed) are closely monitored by central banks worldwide, including the Reserve Bank of Australia (RBA). In recent times, many developed economies, including the US and Australia, have reduced interest rates to boost their economies. With rates nearing all times lows there is an expectation that rates will increase due to the strong performance of those economies. Quite often when the Fed increases its interest rate, Australia is quick to follow suit. 

The cost of borrowing funds (home loans, business loans, personal loans etc) will increase, leading to a rise in the inflation rate, making goods and services more expensive. Rising inflation rates can also negatively impact the Australian dollar, where one AUD buys less USD than it may have done previously. 

This also affects tourists who may have to convert money before travelling, and can negatively affect individuals’ capacity to save money, especially if their incomes do not rise by the same rate as inflation. 

What will be the effect on investors? 

A rise in inflation affects investment markets negatively due to higher interest rates, volatility in the economy and uncertain share prices.

For mum and dad investors, rising interest rates mean paying more interest on their home loan, which reduces their disposal income and, in turn reduces their capacity to invest. Growth in share prices can be volatile, meaning it will take them longer to build wealth. 

For retirees, an increase in the price of goods and services at a time of share market volatility can lead to having to sell more of their investment assets (potentially at a loss or reduced profit). Also, there could be uncertainty in dividend income, which many retirees often rely upon. Retiree investors will have fewer years to recover from a drop in their portfolios compared to younger investors.

How should you prepare for a rise in inflation?

• It is important to first analyse your personal cashflow situation to understand where your money goes.
• Consider fixing at least part your home loan to limit your exposure to rising interest rates.
• Reconsider new personal loans, such as car loans. Do you need to take on new debt when interest rates are likely to increase?
• For the risk-taking investor, it can be tempting to invest more money into shares when prices are falling, but always consider averaging your position to avoid market timing risk.
• For investment purposes, consider having exposure in well established companies “blue chip stocks” vs riskier stock. Investors often find comfort knowing their funds are exposed to good quality companies with strong balance sheets.

If the thought of rising inflation leaves you feeling unsettled, be sure to talk to a professional adviser. Your adviser will review your financial position, your ability to meet your financial obligations, as well as identify strategies to outpace inflation.

Depositing cash in a savings account or a term deposit are the most common ways to invest your money. But, how do you know which is right for you? 

First, let us explain their main differences and impact on your money.

What is a savings account?

A savings account is adeposit accountheld at a bank or other financial institution that earns interest.

Benefits

1. Easy access to your money at any time, while the remaining balance earns interest.

• You can save more by depositing more at any time.

• Savings accounts are eligible for the Australian Government’s Financial Claims Scheme, which protects against the failure of an authorised deposit-taking institution (ADI) (such as banks or credit unions). The government guarantees deposits of up to $250,000 per account-holder per ADI.

Downsides

1. You may need to link your high-interest saving account with a transaction account to meet certain conditions, such as depositing a minimum amount every month or limiting your withdrawal frequency.

• As interest rates can vary, your earnings will also fluctuate.

• You may be tempted to spend more given the easy accessibility of funds.

Fees

Most banks do not charge a savings account fee; however, some may charge an account keeping fee.

Possible Tax outcome

Interest earned is treated as investment income and taxed at your marginal tax rate. 

What is a term deposit?

A term deposit is also a type of deposit account held at a bank or financial institution, with money kept for a set period of time at a fixed interest rate. 

Benefits

1. The interest rate is guaranteed and does not fluctuate.

• You can invest in multiple term deposits of different terms and interest rates. For example, you can invest $15,000 in a 6-month term deposit earning 1% p.a. and $5,000 in a 12-month term deposit earning 1.50% p.a.

• They too are eligible for the Australian Government’s Financial Claims Scheme.

Downsides

1. If you want to access your money before the term finishes, you may be required to notify your bank at least 31 days prior, except under special circumstances.

• If interest rates increase, you cannot benefit as your money is already locked away at a fixed rate.

• Banks usually have a minimum balance requirement for a term deposit of approximately $1,000 to $5,000. It may be a considerable risk if you do not want to lock away that much of your savings or have just commenced your savings journey.

Fees

Banks usually do not charge any fee on a term deposit. However, if you want early access to your money, there may be an early withdrawal fee and loss of interest for the remaining term.

Possible Tax outcome

Interest earned is treated as investment income and taxed at your marginal tax rate.

Which is better for your needs?

Interest rates, accessibility of funds, and fees are key factors to consider. 

If you want a guaranteed income, term deposits are the way to go. However, if you want easy access to your money, use a savings account. Alternatively, you may keep some funds in a savings account for daily expenses or an emergency and invest the rest in a term deposit. 

Ultimately, the right decision for you will depend on your budget and financial requirements.

With international travel resuming and holidaymakers booking their long-awaited getaways, this article highlights important tips for travellers that could save a lot of heartache and money. 

On 19 March 2020, Australia’s international borders were closed. Our island home was suddenly Fortress Australia.

How we’d taken the freedom to come and go as we pleased for granted!

After nearly two years, the restrictions have lifted and we are emerging, blinking and hopeful. While some of us may have lingering concerns, many others just want to get back out there.

The world is beckoning! Are you ready? 

If that question alone has you flapping your passport about like one of those inflatable arm-waving advertising men, here are our tips for a well-planned, long-awaited holiday.

Vaccinations

Let’s address that elephant over there in the corner. According to the World Health Organisation (WHO) vaccinations are going to become part of our norm, and vaccination evidence will be required for the foreseeable future. 

Vaccinated travellers can download an International COVID-19 Vaccination Certificate (ICVC) directly from Medicare. Australia’s ICVC is widely accepted at overseas touristy places, restaurants and bars. 

You can store your ICVC in an app on your phone, but remember to carry a printed copy in case of dodgy internet service. 

Unvaccinated travellers must provide evidence of exemption before boarding an aircraft. Do some research too, to understand any restrictions at domestic or overseas places you’re visiting.

The requirement for COVID vaccination is here. Think of it as you would any travel vaccinations we’ve had in the past, like rabies or typhoid.

Booking

When booking anything; flights, accommodation, events, thoroughly read the cancellation Ts & Cs – that’s thoroughly with a capital THOROUGH.

If you need to cancel, most organisations offer credits for future use. Be fair, they’re desperately trying to get back on their feet; refunds are not always viable. If you need assurance you can get your money back, you may have to cancel within a certain time-frame. 

Again, read the Ts & Cs carefully and, if you do book, make diary notes for cancellation and refund deadlines.

Insurance

Some travel insurers offer limited COVID cover, generally covering medical quarantine and cancellation costs if you’re already overseas. If you’re unable to travel due to lockdowns at home or your destination, you’re probably not covered.

This is why we stress: read the Ts & Cs for all bookings made. Are we harping on about that a bit too much?

Apologies, because you always read the fine print on travel insurance policies, right?

Stay informed

Your airline’s website will provide their boarding requirements. In the weeks/days before departure, check often to see if anything has changed.

For information about your destination, or returning home, visit the government’s website www.smartraveller.gov.au and ensure you:

• review the latest travel requirements for all destinations,
• understand your obligations for returning home,
• are up-to-date with COVID restrictions/lockdowns in your destination country.

With all the hoo-har around COVID, easy to forget that there are other risks associated with overseas travel. Stay informed about government warnings around terrorism, war, scams, etc.

Australians are intrepid travellers. We’re known internationally for being fun and easy going. Yet we’ve taken a battering over the last couple of years, and, maybe we’re a wee bit out of practice. 

If you’re eager to resume travel, you’re now free to do so, just be smart, be safe and be vigilant.

Oh, and have fun too!

As house prices spiral ever higher and interest rates test record lows, it has never been easier for anyone to borrow too much when buying a home and then suddenly find themselves struggling to meet the repayments.

And the number of Australians in this situation is growing. Research by the University of NSW suggests the proportion of households in financial stress has surged to 42% this year, up sharply on the start of 2020, when less than a third of households were in financial stress.

In addition, calculations by the fintech company, Digital Finance Analytics, suggest just a 0.5 per rise in home loan interest rates could push another 220,000 Australian households into financial difficulties.

While these figures are daunting, there are some simple effective steps you can take if you are fearful your financial position is not as good as it should be. As always, start with drafting a budget and finding out where all your money goes.

If you’ve tried and failed to create a meaningful budget, speak with your accountant or tax agent as there are some very simple, cheap and clever software programs that can help you finally get one in place. Look for costs you can reduce, or better still, do without entirely.

Getting by with just one car in the family rather than two, for example, is estimated to save most families between $2,000 to $5,000 a year in related costs – savings that could be re-directed to help pay off your mortgage.

Then review your actual mortgage. Speak with a mortgage broker to determine whether there are better and cheaper home loans on the market that you can take advantage of. Remember every dollar of interest you save, means an extra dollar reducing the total size of your mortgage if you leave your payments unchanged.

If interest rates do increase and you can no longer meet your monthly repayments, be pro-active and speak to your bank or home loan provider as soon as you become aware that there is a problem and ask for their help to find a way forward.

There may be some simple steps you can take such as consolidating any expensive credit card debts or personal loans into your low-cost home loan to reduce your overall repayments or consider selling that boat or caravan you no longer use and use those funds to reduce your debts.

If once you’ve reviewed the family budget closely, you realise you have simply borrowed more than you feel you can repay, don’t wait in the hope that things will somehow get better. The sooner you take steps to resolve the situation, the better.

It maybe that you will need to sell the property that is ultimately causing your financial difficulties and while this can be disappointing, it is important to remember that it is not the end of the world. That it is possible to sell and move to a smaller home or a cheaper suburb.

The most important thing to keep in mind is to not wait until you’ve fallen behind on your mortgage repayments. You will always be better off financially if you take control of the situation rather than wait until the bank steps in and sorts the situation for you.

Not a day goes by where we don’t hear about bitcoin in the news or from a friend who has a hot tip on a new cryptocurrency. The past few years have seen an increase in the popularity of digital assets such as cryptocurrency and Non Fungible Tokens (NFTs). Direct shares and managed funds are also digital assets.

However, this does not diminish the value of physical assets such as property, gold and cash. There are certain societies in the world that accumulate gold because it is a status symbol. On the other hand, people in countries like Australia love to invest in property. 

As taught in Finance 101 courses, diversification is a key aspect of investment and therefore, it is important to look beyond investment properties and consider other asset classes to spread your risk. With easy access to shares, managed funds and crypto, there is now a buffet of investment options to choose from, albeit with caution.

Let us understand the difference between digital vs physical assets.

Digital Assets

Similar to physical assets, they give you ownership in an asset but which is intangible, just like a JPEG image or PDF file. Shares, managed funds and cryptos are owned, stored and recorded in a digital format. 

Pros

Transaction costs – Usually, brokerage or commissions on buying and selling digital assets is much lower than on assets like property.

Liquidity – You can buy and sell them instantly on the internet with just a few clicks.

Fractional ownership – You can now buy a fraction of a share or a bitcoin on a trading platform. Common investors now have access to investment opportunities that were previously available only to large institutions.

Cons

Fear Of Missing Out (FOMO) – Given the increase in popularity of crypto and shares along with their easy availability, people are trading on them simply to be a part of the hype rather than conducting with their own research.

Security – Storing and securing digital assets is becoming increasingly important as your account can be hacked into and you can lose your valuable assets. Even though an asset like crypto which is backed by blockchain technology is not hack-proof.

Physical Assets

Owning a physical asset such as property, gold, cash or even collectibles is not a new concept. They are tangible assets that give us a sense of security because we can see, touch and feel them. 

Pros

Acceptability – Given the history behind these assets, they are easily accepted as a form of asset in all parts of the world. 

Usage – You can live in a property or wear gold jewellery as these assets can be used for enjoyment purposes too. 

Cons

High barrier to entry – There are high cost barriers to purchase physical assets such as building a 10%-20% deposit prior to applying for a loan to purchase a home. These assets are limited in nature making them expensive to acquire.

Liquidity – Apart from cash, other physical assets are not very liquid. It can take months to sell a property. Also, you cannot sell only a bathroom of your house if you needed urgent cash.

Next Steps

When deciding where to invest your hard earned money, it is important to consider your life goals, age, current financial situation, risk appetite and the most important thing – something that will make you sleep peacefully at night. You should consult professionals including a financial adviser to help navigate you through the different investment options that suit your situation.

Planning to apply for a loan but confused by the myriad of banking jargon? You’re not alone. Many people struggle to understand loan terms and the multitude of acronyms used by bankers and mortgage brokers.

Although you may seek advice from your local bank or mortgage broker, having a basic understanding of these terms will ensure increased confidence before signing on the dotted line. 

Loan to Value Ratio (LVR) 

Amount of loan you are borrowing compared to the value of the asset, expressed in percentage terms. 

For example, if you are borrowing $300,000 on a $500,000 home, your LVR is 60% ($300,000/$500,000). 

Lender’s Mortgage Insurance (LMI) 

Generally, lenders prefer an LVR (Loan to Value Ratio) of up to 80%. If the LVR is above 80%, lenders may ask you to pay Lender’s Mortgage Insurance (LMI). 

The LMI premium is paid to protect the lender should you default on the loan, and the property sale does not cover its cost of lending you more than the standard 80%.

Fixed and variable interest rate

A fixed interest rate is set for a specified period. In contrast, a variable interest rate may move up or down according to current economic conditions.

Guarantor

A Guarantor is a third party (usually an immediate family member) providing security to the bank against your loan. If you default, the bank can recover any outstanding amount from them.

Generally, if you have a guarantor, the bank may waive any LMI cost.

Principal and interest repayments

With these types of repayments, you are repaying both the interest and the principal component (borrowed amount) of the loan.

Interest only repayments

With these types of repayments, you are paying only the interest component for a certain period. 

Offset account

This type of account is a transaction account linked to your loan. The balance in this account offsets your loaned amount, reducing the interest component. 

For example, if your outstanding loan is $500,000 and you have $20,000 in this account, you will pay interest on $480,000.

Redraw facility

With this facility, any extra repayments you make on your loan can be accessed at a later date.

For example, if your minimum monthly repayments are $2,000 but you repay $3,000, you can access (redraw) the $1,000 if you need it.

Pre-approval or conditional approval

Before applying for a formal loan, you can apply for pre-approval. 

The lender will state how much they are willing to lend you, pending certain conditions (such as the bank’s property valuation or taking out home insurance). Pre-approval also lets the vendor know that you are serious about buying their property.

The importance of understanding basic banking terms cannot be understated. 

For example, you sign an offer document on your dream home, thinking that your loan is approved. However, you later realise that you only have conditional approval, with a clause that you must first repay your credit card debt. 

The bank then rejects or delays your loan approval until that condition has been met. As a consequence, the seller rejects your offer, and you lose out on your dream home! Devastating!

When meeting with your bank or mortgage broker, along with asking about your borrowing power, be sure to also ask how some of the above terms impact your situation, i.e., would an offset account or a redraw facility fit your situation?

You will come across so many terms and acronyms in your journey loan application journey. So, keep a curious mindset and most importantly, keep learning.

Want to be a millionaire? It may seem an impossible dream, but depending on your circumstances joining the ranks of the millionaires may be easier than you think.

There are three key components to a successful savings strategy. The first is some surplus cash; an amount of money you can regularly set aside in your quest to become a millionaire.

Second, an investment return. This can be in the form of share dividends, interest income, rent from properties or a mix. You won’t be withdrawing any of these returns from your investment portfolio; you’ll reinvest the income so that you earn interest on your interest on your interest. This so called compounding of investment returns, when combined with the next ingredient, is what will really drive your growing wealth.

That final ingredient? Time. 

So what might your path to millionaire status look like? Let’s say you’re in your 20s and you’re prepared to wait 40 years to achieve your goal. Plug the relevant numbers into the savings goals calculator at moneysmart.gov.au and it will tell you that, at an interest rate of 10% pa and starting with a $0 balance, you’ll need to save just $157 per month to hit your target, or around a cup of barista-brewed coffee a day. 

Your total contribution will be $75,360. The other $924,640 is from your investment returns. No wonder that some people view compounding returns as a form of magic.

The benefits of starting early can’t be stressed enough. If you only have 20 years to devote to your get-rich plan, you’ll need to save $1,306 per month. If you can afford that you’ll still be a millionaire, but $313,440 of the total will be your hard-earned money. 

A real return

Of course, a million dollars in 40 years time won’t have the same buying power as a million bucks today. You’ll also likely pay tax on at least some of your investment income and incur some investment management fees. After accounting for inflation, tax and fees, let’s say your real rate of return is 6% pa. This lifts the price of a ticket to the real millionaires club to $500 per month over 40 years.

Going for growth

With your timeframe and contribution rate settled you’ll need to design an investment portfolio that is likely to deliver your required return without taking on undue risk. 

With a long investment horizon, and particularly in periods of low interest rates, it’s appropriate to look to growth assets such as shares and property to provide the foundation of your portfolio. And don’t be daunted every time investment markets take a bit of a tumble. Instead see them as opportunities to pick up some bargains.

A helping hand

With time of the essence there will never be a better time to launch your ‘project millionaire’. To make sure you make the most of your savings, understand investment issues and utilise the best tax structure talk to your financial adviser.

---

Another way to look at it – your daily coffees could end up costing you a million dollars over 40 years.

Work From Home (WFH) arrangements seem to have got our creative juices flowing with more online, home-based businesses springing up every day, providing a limitless variety of goods and services.

Home based micro businesses (0 – 4 employees) and small businesses (5 – 19 employees) offer everything from retail items, to construction industry services.

According to a report by the Australian Small Business and Family Enterprise Ombudsman the number of micro and small businesses in Australia has increased from 2.06 million in 2016 to 2.3 million in 2020.

Are you one of the growing number of Australians setting up a home-based business? Perhaps you have an idea for a home business but don’t know where to start.

Here are a few tips to get you underway.

Business plan: tedious, sure, but a must-have for business structure, reviewing competition and identifying your vital points of difference. Review it regularly and it will grow and evolve as your business grows and evolves. See the websites we’ve listed below for business plan templates.

Note: when seeking finance or government support, a business plan most likely will be required.

Funding support: the government can assist with funding through start-up grants. Check out www.business.gov.au for government support information. 

Structure: Will you set up as a Sole Trader, a Company or another structure? There are pros and cons for each so you should seek advice from a tax accountant, and/or a solicitor experienced in business.

Registrations: Consider the following registrations, they can protect and legitimise your business. 

• Business name: go to www.businessname.com.au for details.
• Australian Business Number (ABN): see www.abnregistration.com.au.
• Goods and Services Tax (GST), your accountant can help with this.

Insurance: investigate the types of insurance you may need, e.g., Professional Indemnity, Public Liability, etc. Your financial adviser can assist or refer you to an expert to help you work out your business’s needs.

Office equipment and space. 

• Dedicated workspace is essential. Those videos of WFH employees with unsuspecting partners in the background may be funny when it’s someone else, but not a good look for your start-up!
• An online presence: website, social media, business domain including a professional email address. Avoid personal addresses; CoolDude@gmail.com probably doesn’t project the right image!
• Dedicated phone: a business phone will help set structured business hours, tailor your voice messaging appropriately and avoid the risk of little people taking important client calls. Further, service providers sometimes offer special deals on business plans.
• Stationery: make a statement by having a designer develop a unique logo and colour palette. Then brand everything (business cards, website, invoices) in the same colours, fonts and style. 

The key to success is in planning and playing to your strengths while knowing when to seek advice from others such as:

• Small Business Australia: www.smallbusinessaustralia.org
• Australian Securities & Investments commission: www.asic.gov.au
• Australian Taxation Office: www.ato.gov.au
• MoneySmart: www.moneysmart.gov.au

Starting a business is an exciting experience. It’s a lot of work, and may be slow to get going as you establish yourself, but the rewards can be satisfying! 

Now, think about an iconic brand your family has known and trusted for years. Well, here’s the thing – it started with an idea.