2020 vision

It is the roaring 20’s again and there are some big trends on the small business horizon. Customer Reviews Rule (even more)  Consumers have never had so much choice, and with choice can come confusion, which is why google and other user reviews are only going to become more important   in 2020. Reviews are the single biggest way companies can build trust in the marketplace, so for small business it becomes imperative to encourage clients to leave testimonials on their website and reviews on trusted business-rating sites. As quote by Rebecca Mitchell of Awesome Lending Solutions " Google Reviews have become the word of mouth marketing of this generation." Consider the following consumer statistics of over 2000 people in the US and Canada:  90 per cent read and checked online reviews before visiting an actual business 88 per cent said they trusted online reviews as much as a recommendation from a friend, and 86% said they would hesitate to use a business with negative reviews.  Do you have the resources to dedicate time to monitor and respond constructively to negative reviews? Rise of Gen Z and Millennial's  Millennial's (born 1981-1996) and Gen Z (born 1997-2010) are going to increasingly impact small business as they begin to make up a significant proportion of staff and clients. It's estimated Millennial's currently make up half the workforce, with that set to rise to 75 per cent by 2025 and small business will need to adapt. As customers, Millennial's and GenZ  expect fast communication and the latest tech-based payment options. Analysing different generations as consumers, McKinsey reported that while Gen X consumed goods that conferred status, Millennial's sought experiences and Gen Z valued individualised products and services from authentic and ethical brands. As staff, Gen Z and Millennial's may seem impatient, but they've been raised on tales of entrepreneurs who made millions in their 20s. Opportunities for professional development will be welcomed and open channels of communication with superiors expected. Corporate social responsibility matters  It is not just your price point, but your ethical and green credentials that will be increasingly important to clients in both the customer-facing and B2B sphere. This includes how businesses treat their employees. In 2019, staff underpayment scandals tarnished many brands. People doing business with you want to know your staff are happy and appropriately paid. Conversely, happy staff are likely to deliver a better customer experience. If you are a producer, clients also appreciate knowing your products are ethically sourced and sustainable. This can actually be your unique selling point and will grow in importance in 2020.  Remote workers  While employers initially viewed working from home with skepticism, experience and US research by Airtasker suggests staff can be more productive and happier with this flexibility. There's also savings for employers in having fewer staff on site. Remote work looks set to expand significantly in 2020. A McCrindle report found half of surveyed staff in Australia were willing to take a pay cut to work remotely. The introduction of 5G removes impediments caused by download or upload problems. Instant project communications  With staff increasingly working out of the office on mobile devices, rather than desktop computers, communication apps should increasingly replace communications such as group emails and inefficient meetings. Apps such as HipChat, Slack, Teams and Basecamp are more efficient ways to manage communications across projects. Video trumps text  The higher speeds offered by 5G will only accelerate the rise of video as an important marketing stream for both customer-facing and B2B businesses. Videos are easy to consume, engaging and rank higher than text content on Google. Video also keeps people on your website longer1. Hey Google - what's the future of search? Some pundits estimate that by the end of 2020 about half of all internet searches will be voice-based, and about 30 per cent will be conducted on a device with no screen. That is a daunting prospect for businesses who rely on getting noticed online. Think about it. When a voice assistant, such as Amazon's Alexa or Google Home, is asked to perform a search - for example ''find me the closest pizza shop'' - it only returns one answer, not a screen full of results. So, a business is either the search winner, or it's nowhere. Big data for small business  Analytics are going to become more important in delivering customized service and identifying customer trends. Software is making it easier and more accessible for small businesses to use data to gain an insight into where their customers come from and what they want. Facebook Pixel and Google Tag Manager can be essential tools for all business web pages to track potential and existing clients. Small businesses not already checking traffic via software such as Google Analytics, Facebook Analytics and Instagram Insights should invest in understanding how to use these free metrics. 1 Cournoyer, B., 6 cool stats about video SEO, Brainshark, August 8, 2013 Please note, we do not provide tax, legal or accounting advice. This article has been written for general informational purposes only and is not intended to provide, and should not be relied on for tax, legal or accounting advice. We encourage you to consult your own tax, legal and accounting advisers before engaging in any transaction.

How to invest in property through an SMSF in 2022

For some years, self-managed super fund members have been able to invest in residential property, as long as they follow strict guidelines.

The first step is to have a discussion with an expert to determine whether investing through an SMSF is the most appropriate approach to property investment given your personal circumstances.

“If it is, the next step is to set up the SMSF,” says Albert Waldron, a finance broker with Awesome Lending Solutions who has also recently invested in a property through his own SMSF. “I recommend using the services of a specialist. Do this before you start looking at an investment property to buy.”

Another tip is to be aware that rolling over any existing super into a SMSF may take up to a month to process, so build in time for this to occur.

“If you need a loan to buy the investment property, you will need to establish a bare trust as that is what the lender lends the money to,” Mitchell explains. “The purpose of this trust is to allow a limited recourse borrowing arrangement (LRBA) to occur.”

This means, should you hit unexpected difficulties and be unable to make repayments, your lender can only access the assets that the loan is against.

One potential difficulty is that you have to have found the property you want to purchase to be able to establish the loan.

“When purchasing, I highly recommend you set a longer than normal finance approval period – a minimum of 21 days,” Waldron says.

 What can you buy?

There are two main, and fairly simple, rules of buying residential investment property through SMSFs. Firstly, you and your relatives cannot live in the property and, secondly, you can maintain the property but cannot improve it.

“The residential investment property can be a house, an apartment or townhouse, or any other type of property a non-SMSF investor might consider,” says Waldron.

The maximum borrowing within an SMSF is normally 80 per cent of the property value and it’s important to take into consideration that there is a cost to establishing and maintaining your SMSF, as well as subsequent fees and charges involved in the purchase of the investment property.

Thinking of investing in property through an SMSF? Contact us now on 1300 761 988 or by going to our website www.awesomelendingsolutions.com.au

How Many Investment Properties Do I need to Retire

Have you wondered how many investment properties you would need for financial freedom?

Holiday Properties the Good the Bad the Ugly

The Christmas / New Year period is a funny time in finance. With everyone on holidays, you would think that the office would go quiet, and the phone would stop ringing. The opposite is true.

Financial resolutions for the New Year

Time to make your new year resolutions? Start today!

Raising money savvy kids

There is no doubt one of the greatest gifts we can give to our children is to teach them how to manage money. It’s never too early to start introducing fundamental financial concepts appropriate to their age and level of understanding. Time to start today?

The RBA has rates on hold while banks raise them, what's going on?

While the last move on interest rates by the Reserve Bank of Australia (RBA) in May 2015 was down over the next few weeks and even into next year many borrowers are going to be getting a letter in the mail advising that their home loan rate is going up.