Establishing and running a retail shop is both demanding and challenging. Apart from the usual small business compliance issues of GST, BAS and PAYG you have to contend with extended trading hours, inflated rents and seasonal trade. The retailing landscape has changed and the GFC has coincided with an explosion of on-line sales. The relatively strong Australian dollar has made conditions for retailers even more competitive.
Comparison shopping network group, Getprice surveyed 1800 Australian consumers and found that one in five of the consumers surveyed would shop less on overseas sites if the Australian dollar fell below US90 cents, while 16% would shop less on these sites if the dollar fell to less to US80 cents. More than half of the respondents identified broader product availability as a key factor for shopping on international sites while three out of five respondents prefer online retail over traditional retail shopping because of the price savings, special deals and discounts.
Forecasts suggest that online consumer expenditure will reach $37.7 billion by 2013 and and with 97% of Australian internet users already having shopped online it's important for your retail business to adapt to the changing market conditions. Not only that, the days when a person would only tell five of their friends about a bad shopping experience are gone courtesy of social media. For example, the Melbourne retailer Gasp recently asked three young ladies to leave their store and they tweeted and posted about their bad experience on Facebook. Their comments went viral and the story was picked up by television, radio and the press around the world.
You probably also need to deal with various council permits and regulations not to mention your staff, OH & S issues and superannuation. Your retail tenancy lease can be extremely complex and given occupancy costs are often the second highest expense (after wages) in a retail shop we can help you negotiate the terms of your retail lease and liaise with your solicitor. Whether you retail clothes, shoes, computers or liquor in your shop, having an accountant who understands your retail business can mean the difference between survival and success. Over the years, our team of accountants have mentored a number of retail shop owners through the various stages of their business life cycle from start up right through to sale. We offer you experience, technical knowledge and an intimate understanding of retail trade.
As accountants we can prepare some ‘what if’ financial scenarios so you know your business’ best and worst case scenarios. We can help you prepare a cash flow budget and project your profit and loss for your first year of operation. On an operational level we’ll help you price your services and identify your break even point and provide advice regarding profit margins. Using industry benchmarks we can analyse the performance of your retail business and compare it against your competitors so you know what is working in the business and what needs working on.
We recognise you want to grow your business, your profits and your wealth. For that reason we strive to help you ‘know your numbers’ and that includes understanding the 4 Ways to Grow Your Business. If you understand the key profit drivers in your business we can talk you through profit improvement strategies. Not only that, we can quantify the profit improvement potential in your business.
Our unique business approach is all about fast tracking your business success and the team of retail shop specialists at taxplanners offer you a full range of accounting, taxation and business coaching services including:
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