A shelf company is a company that has not traded and historically has had no activity. In the past it could take up to two weeks to incorporate a company, yet people often needed a new company quickly, so providers of company registration services would register companies and have them 'sitting on the shelf', ready…
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The Export Market Development Grants (EMDG) scheme is a key Australian Government financial assistance program for aspiring and current exporters. Administered by Austrade, the scheme supports the export of intellectual property and know-how outside Australia. The EMDG scheme: Encourages small and medium sized Australian businesses to develop export markets. Reimburses up…
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Increasing the average transaction size will increase sales revenue. For example, a 20% increase in average transaction size will result in a 20% increase in total sales revenue. To implement this strategy: Change the product or service mix – i.e. add higher priced products and/or reduce lower priced products. Bundle products…
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Unlike private companies, under the Corporations Act public companies can raise capital from the public, and have unlimited shareholders. These two attributes make public companies an attractive structure when businesses need to raise large amounts of funds. Compared to private companies, public companies are subject to additional administration and regulatory costs (i.e. half-yearly financial statement…
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Raising your selling prices will increase sales when your product or service has an inelastic demand curve i.e. when you raise prices and there is minimal or no change in volume sold. This is a profitable strategy when higher prices produce greater gross profits due to increased profit per unit, even if volume has fallen. …
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Lowering your selling prices will increase sales when your product or service has an elastic demand curve i.e. when you slightly lower your prices, volume goes up substantially. This will be a profitable strategy if lower prices produce greater gross profits due to increased sales volume even though the profit per unit has fallen. …
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Proprietary limited companies are the most common company structure in Australia and account for 98.5% of all companies. Generally, they are the most appropriate company structure for small businesses. A Proprietary Limited company (also known as a Pty Ltd company), cannot raise capital from the public, and is restricted to a maximum 50 non- employee…
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Upselling can involve marketing more profitable services or products, or just exposing the customer to other options that were not considered. Upselling is more successful when the up sellers know more about the individual customer and understands what the customer values and wants. This information includes the customer's background, budget, preferences, interests, and previous buyer…
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A partnership of discretionary trusts is a partnership where each partner is a discretionary trust. This is a good structure for unrelated parties wanting to operate a business or invest together because: Provides each partner with a fixed interest in the partnership; say 50% each. Allows access to the CGT small business concessions. Provides…
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By calculating the true value of a customer, or potential customer, it places a value on the total sales and profits generated by the customer over their lifetime with the business. The actual numbers can be astounding. For example, although the initial sale may only be $100, the value of repeat sales over a 20-year…
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