Go Back   Small business forum Australia > Today's hot topics > New member? Introduce yourself.


Rsi

Reply
 
Link to this thread Thread tools Search this thread
  #1 (Link to this post)  
Old 11-08-12
RSI RSI is offline
Forum newcomer
 
Join Date: Aug 2012
Posts: 5
Thanks: 3
Thanked 0 Times in 0 Posts
Default Rsi

Hi All,

I have quick question.

2011 - 2012 was my first year in business "flying solo" and i had little guidance and understanding of all the political sides to business, well i found out very fast when it came tax time and BAS statements, unfortunately i found that in my first year my expenses were 30 - 50% of my gross turn over!? is this normal? or did stuff up somewhere, i spent a lot of money preparing such as vehicles, tools, stationery, computers etc.

Any insight would be great.

Cheers,

TEE


Last edited by RSI; 11-08-12 at 04:47 PM. Reason: wrong info
Reply With Quote
  #2 (Link to this post)  
Old 11-08-12
yourvirtualboard's Avatar
Forum enthusiast
 
Join Date: Dec 2008
Location: Lake Macquarie
Posts: 502
Thanks: 2
Thanked 47 Times in 45 Posts
Send a message via Skype™ to yourvirtualboard
View Member's Facebook Profile View Member's Linkedin Profile View Member's Twitter Profile
Default Re: Rsi

While benchmarking is a good idea and one I recommend - be sure you're benchmarking against relevant / similar benchmarks. ANZ have a few benchmark calculators that may suit.

With solo or micro's the figures you mention aren't unusual and it all depends on what the gross turnover is.

In your first year if you've had more wins than losses and come out profitable and supporting your lifestyle, that's a big win.

__________________
Harry Goldstein
East Coast Consulting
email me
Reply With Quote
The Following User Says Thank You to yourvirtualboard For This Useful Post:
RSI (12-08-12)
  #3 (Link to this post)  
Old 11-08-12
FS Editor's Avatar
Forum regular
 
Join Date: Apr 2012
Posts: 336
Thanks: 6
Thanked 41 Times in 41 Posts
Default Re: Rsi

Hi Tee,

Welcome to the Flying Solo forums! Managing finances can be confusing (sometimes surprising!) in the first year of business. If you're keen for more financial info, our Finance section of articles contains some great tips.

Also - make sure you read up on the forum guidelines, and let us know a little more about you and your business - that way we might be able to offer more targeted advice.

See you round the forums!

Jodie

__________________
Jodie McLeod - Editor
Flying Solo | Australia's micro business community
www.flyingsolo.com.au
Reply With Quote
The Following User Says Thank You to FS Editor For This Useful Post:
RSI (12-08-12)
  #4 (Link to this post)  
Old 12-08-12
RSI RSI is offline
Forum newcomer
 
Join Date: Aug 2012
Posts: 5
Thanks: 3
Thanked 0 Times in 0 Posts
Default Re: Rsi

Quote:
Originally Posted by yourvirtualboard View Post
While benchmarking is a good idea and one I recommend - be sure you're benchmarking against relevant / similar benchmarks. ANZ have a few benchmark calculators that may suit.

With solo or micro's the figures you mention aren't unusual and it all depends on what the gross turnover is.

In your first year if you've had more wins than losses and come out profitable and supporting your lifestyle, that's a big win.

Thank you Harry,

I acknowledge the tip and appreciate the insight.

So i have lodged my taxes and so forth this week, a little delayed i know.

But i was very shocked at the fact that my expenses were almost half my turnover.
However struggled through this year and have seen the market is steady but not amazing in this first quarter. Finding it hard to sustain good business.

We are a sign installation company also offering billboard rentals (privately owned by us, but our main area of expertise is advertising in digital graphics and billboard installations. Some sales involved but not much.

The company is currently with Westpac Bank, I know you mentioned ANZ before. do you think there is a difference in comparison?

Regards,

Tito

Reply With Quote
  #5 (Link to this post)  
Old 13-08-12
Divert To Mobile's Avatar
Forum fanatic
 
Join Date: Jun 2012
Location: Sydney
Posts: 2,606
Thanks: 74
Thanked 244 Times in 243 Posts
Default Re: Rsi

Hi RSI,

Welcome to the forum.
I agree with Harry, it depends on the actual figures and what those costs were. Considering that much of your first year expense was startup expenses calculate would your percentage profit margin is going to be next year.

Steve

__________________
Could your business benefit by looking bigger?

A landline number that diverts to your mobile.
www.diverttomobile.com.au 02 9191 7300
Reply With Quote
  #6 (Link to this post)  
Old 13-08-12
yourvirtualboard's Avatar
Forum enthusiast
 
Join Date: Dec 2008
Location: Lake Macquarie
Posts: 502
Thanks: 2
Thanked 47 Times in 45 Posts
Send a message via Skype™ to yourvirtualboard
View Member's Facebook Profile View Member's Linkedin Profile View Member's Twitter Profile
Default Re: Rsi

Quote:
The company is currently with Westpac Bank, I know you mentioned ANZ before. do you think there is a difference in comparison?
Hi Tito,

I didn't mean changing banks, just using a good tool that ANZ has for benchmarking

Taxes lodged already - that's not a delay, you'd be ahead of most. I typically only do mine after January

Quote:
Some sales involved but not much.
Where do your orders come from if that's the case?

Don't put pressure on yourself business with unrealistic expectations - if you've planned, use that as the measurement to gauge progress. If you haven't planned then maybe consider jotting down a few key things you'd like to achieve in this year. It's quite normal to be marginal or even making losses early on in many businesses that start up, especially if there is start-up costs that all fall into the first year.

__________________
Harry Goldstein
East Coast Consulting
email me
Reply With Quote
Reply

Go Back   Small business forum Australia > Today's hot topics > New member? Introduce yourself.

Thread tools Search this thread
Search this thread:

Advanced Search




Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Search Engine Friendly URLs by vBSEO 3.6.0 RC 2