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  • #979353
    RSI
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    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

    #1113772
    yourvirtualboard
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    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.

    #1113773
    Jodie McLeod
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    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

    #1113774
    RSI
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    yourvirtualboard, post: 127295 wrote:
    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

    #1113775
    Divert To Mobile
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    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

    #1113776
    yourvirtualboard
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    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 :)

    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.

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