AND DON’T FOR­GET…

Collective Hub - - COVER -

AC­COUNT­ING

I was re­ally lucky here, as my sis­ter is a char­tered ac­coun­tant. Ob­vi­ously there are costs of pay­ing an ac­coun­tant for com­pli­ance (such as BAS and tax re­turn prepa­ra­tion), but ac­tual ac­count­ing help and ad­vice is an­other must. One key thing we worked on to­gether was prod­uct pric­ing – and mak­ing sure the pric­ing of my prod­uct also took into ac­count tax ex­penses such as GST and putting aside money for in­come tax. It was also [key for] un­der­stand­ing the true cost of hir­ing staff and tak­ing into ac­count su­per­an­nu­a­tion and work­ers’ com­pen­sa­tion.

AD­VER­TIS­ING

We ad­ver­tise through Face­book and In­sta­gram. The one tip I would give here is to al­ways set a bud­get for your ad­ver­tis­ing spend so it doesn’t blow out. (Gen­er­ally I use a per­cent­age of sales as a rough guide in how much to spend on ad­ver­tis­ing.) An­other trick is to set a spend limit within the Face­book ads man­ager it­self, so that you don’t ac­ci­den­tally go over the an­tic­i­pated spend.

PROD­UCT PACK­AG­ING

This is a re­ally big part of my busi­ness, and with each new prod­uct we in­tro­duce comes pack­ag­ing de­sign costs and pack­ag­ing pro­duc­tion costs. Jug­gling prod­uct pack­ag­ing and cash flow is one thing I found dif­fi­cult when I first started my busi­ness, as there are high min­i­mum-order quan­ti­ties for pack­ag­ing. As a work­around I used non-branded pack­ag­ing and ap­plied branded stick­ers to my bath soaks (the first range in our prod­uct line). While ap­ply­ing stick­ers took ad­di­tional time, it helped re­lieve cash flow pres­sure. As the busi­ness has grown, we’ve moved to all branded pack­ag­ing.

SHIP­PING

This one is a huge di­rect cost for my busi­ness. For all pur­chases, we of­fer free ship­ping Aus­tralia-wide, and we of­fer a min­i­mum spend for free ship­ping to the US and New Zealand. For Aus­tralian or­ders, we use Aus­tralia Post – both stan­dard post and ePar­cel tracked ship­ping. The ben­e­fit we have found in us­ing the Aus­tralia Post net­work is that they de­liver any­where within Aus­tralia and, if our cus­tomers are not home to col­lect their parcels, they leave them at the lo­cal post of­fice. For in­ter­na­tional or­ders we use DHL. Over­seas ship­ping is re­ally ex­pen­sive, how­ever DHL of­fer an e-com­merce so­lu­tion that has fairly com­pet­i­tive rates.

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