Most businesspeople don't fear growth itself, it's fear of the unknown that tangles their minds. But if you want success, you more than likely need to grow. Tackle growth issues head on and take charge of your situation. Here are some common reasons I see people not taking their business to the next level.
I don't like income taxes
NZ has a progressive tax system so the more you earn, the rate of tax increases. Some people think their earnings become a diminishing return because of the higher tax but the reality is even at the top tax rate you're still winning - you keep 67 per cent of the dollar you earn.
I don't like GST
Some people teeter on the verge of the GST threshold because they don't want to be caught in the GST net. Once you hit $60,000 you're then looking at filing GST returns and adding 15 per cent to your invoices.
Now if you work solely for businesses they're not going to be too worried about the GST because they can claim it back, but if you serve Joe Public, then your fees are going to be 15 per cent higher to them once you register.
There's always some fear in GST registration but most people expect that the businesses they deal with will charge GST. You'll find that clients who use your services do so not because you're not GST-registered but because you provide a useful service.
I'll have to hire
You don't have to hire if you're that busy - you could stay up all night working instead who needs sleep right? If you're at the stage where you need some help in your business, try to work on efficiency first. A good place to start is the administration.
List out the tasks and see if you can use technology to streamline processes or what you can outsource. As your business grows the admin will only increase so you need to sharpen this area up. Once this is sorted then look at how you can increase production and labour.
Jeremy Tauri is an associate at Plus Chartered Accountants.
Phone: (09) 438 3322
Fax: 438 8455
134 Bank Street, Whangarei
If we had to sum up Brent and the team at Plus CA it would be - humorous, efficient, professional with a real focus on making your money work to its best ability for you...we will continue to deal with them even though we are moving overseas as we know they have our best interests at heart.
Jeremy thank you for your patience, assistance and general chit chat over the years. I would have absolutely no issue in recommending your services to everyone and anyone – in fact, I do.
We recently employed Jeremy Tauri of Plus Chartered Accountants and have been thrilled with the improved service we have received. Jeremy is really approachable and always available to answer queries. At his instigation we have set up quarterly meetings so that we are regularly reviewing our business and avoiding any ‘end of year surprises’.