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Lots of leads but low conversions? Your website and user experience could be sabotaging your sales.

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For business owners who’ve spent time and money on marketing, it’s the worst-case scenario: there’s a promising influx of traffic to their site and then… nothing.One by one, every potential customer falls away. The leads go cold. All those visits only convert to a pitiful number of sales.Where did it all go wrong?The truth is that only a tiny percentage of website visits – between 2 and 7 per cent, on average – ever convert. And, as Shaun Johnson, the co-founder of global customer experience platform <a href="https://www.maisieai.com/?utm_medium=footer-link&amp;utm_campaign=gmail&amp;utm_source=email" rel="noopener noreferrer" target="_blank">Maisie</a>, explains, some browsers simply can’t be convinced to spend. “At least 50 per cent of cart abandonment is due to people not actually looking to purchase – they're just browsing.”But that still leaves a large number of visitors with genuine intent to purchase – and who could very well purchase from you – but are instead deterred by a poor user experience or technical issue.To improve your conversion rate, we’ve covered some of the most common conversion killers threatening e-commerce businesses – and explained how to fix them.10 ways to improve your e-commerce conversion rate...&nbsp;

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"At least 50 per cent of cart abandonment is due to people not actually looking to purchase.”

<h2>1. Complicated navigation</h2>Imagine visiting a brick-and-mortar store and trying to find your way to the checkout to buy a product, only to be hampered by a confusing store layout, overly chatty salespeople or long checkout queues. Eventually, you might just give up and abandon the purchase.It’s the same for online shopping. In fact, <a href="https://clutch.co/web-designers/resources/top-6-website-features-people-value" rel="noopener noreferrer" target="_blank">94 per cent</a> of consumers say that simple, straightforward navigation is the most important feature when it comes to browsing websites.“All website visitors should be able to get to the product they want within two clicks,” says Anaita Sarkar, founder of <a href="https://sellanythingonline.com.au/" rel="noopener noreferrer" target="_blank">Sell Anything Online</a>. “Any more than that, customers bounce away.”A common culprit when it comes to low e-commerce conversion rates? Posting about a product on social media, only for customers to click on the ad, navigate to the landing page and be unable to find that exact product or product page quickly, says Sarkar.&nbsp;To improve navigation (and conversion rates) on your e-commerce store start with clear product categories, a site search feature and compelling call to actions (CTAs), says Johnson. And always ensure that social media ads direct to specific landing pages or product pages (not your homepage.)UK book retailer <a href="https://www.clearpay.co.uk/en-GB/gift-cards/WATERSTONES_GBP" rel="noopener noreferrer" target="_blank">Waterstones</a> is a prime example of an excellent site search. The search bar is displayed prominently on the homepage and integrates an autosuggest function, which enables website visitors to find the exact product they’re looking for with minimal effort. The autosuggest function also removes the risk of losing conversions due to user spelling error, which would otherwise bring up an empty result.&nbsp;

"All website visitors should be able to get to the product they want within two clicks."

<h2>2. Mandatory account creation</h2>Asking customers to create an account when they shop with you is a great way to grow your customer database and subscriber list. However, it can also lead to customers abandoning their shopping cart.“Forcing people to create an account in order to purchase is a major conversion killer,” says Johnson, who adds that the secret to increasing e-commerce conversions is to smooth the path to purchase – not create barriers during the checkout process, like requiring account creation.He advises that retailers should always offer a guest checkout option (with automatically populated fields to make checkout even smoother) and also offer the option of creating a customer account once the purchase is completed.Leading sportswear brand <a href="https://www.adidas.com/us" rel="noopener noreferrer" target="_blank">Adidas</a> have optimised their checkout conversions with a short, self-contained checkout form. The page also has no navigation bar to tempt users to abandon cart, which makes the path to purchase clear, and is likely to boost conversion rates.<h2>3. Unexpected or overpriced shipping costs</h2>For customers, there are few things more frustrating than adding a product to their cart only to be confronted with extra fees such as shipping or taxes.“This frustration will be more acute for lower priced products,” says Johnson.Want to reduce the pain of shipping costs – and increase your conversion rate? Consider building all or some of the shipping costs into the product price so you can charge less or offer free shipping.Alternatively, if offering free shipping is not feasible, try to negotiate better shipping rates (remembering that shipping prices have eased since the pandemic) or look at ways to upsell customers so that they qualify for free or discounted shipping.<h2>4. Poor mobile user experience</h2>There are any number of shopping channels available to consumers – from desktop to social commerce - but when it comes to improving your conversion rate it increasingly it pays to think mobile-first.“Brands still build websites based on a desktop format, even though 80-90 per cent of customers are shopping on mobile [devices],” says Sarkar.Depending on what platform your website is built on, optimising for mobile can be as simple as ticking a box. But there are a few key elements that a mobile-friendly website must have.“Ensure that all the CTAs, menus and buttons are easy to access on a mobile device. A tip here is to also test on both Apple devices and Android devices because different phones display sites differently,” says Sarkar.Johnson adds, “Also, make it easy for people to save products to their cart on a mobile device and then enable them to access the cart later on a laptop/desktop where they prefer to make the purchase.” Many point-of-sale systems have a built-in saved carts feature, including <a href="https://squareup.com/help/au/en/article/7751-reintroducing-square-for-retail" rel="noopener noreferrer" target="_blank">Square.</a>Beauty retailer <a href="https://www.sephora.com.au/?dxid=Cj0KCQjw166aBhDEARIsAMEyZh4PUObjTyFIYWMFEIbu7qcwyd0a8eu9OUiFiEOOpzA2Zta72ZyYJgAaAijCEALw_wcB&amp;dxgaid=Cj0KCQjw166aBhDEARIsAMEyZh4PUObjTyFIYWMFEIbu7qcwyd0a8eu9OUiFiEOOpzA2Zta72ZyYJgAaAijCEALw_wcB&amp;gclid=Cj0KCQjw166aBhDEARIsAMEyZh4PUObjTyFIYWMFEIbu7qcwyd0a8eu9OUiFiEOOpzA2Zta72ZyYJgAaAijCEALw_wcB" rel="noopener noreferrer" target="_blank">Sephora</a> – which operates both in bricks and mortar and online – does a brilliant job of integrating mobile to enhance their customer experience. When shopping on a smartphone, a Virtual Artist makeover tool helps consumers choose a new look while they earn rewards to shop.In store, customers can scan barcodes to read product reviews and watch how-to videos for the various types of product application.

"Brands still build websites based on a desktop format, even though 80-90 per cent of customers are shopping on mobile."

<h2>5. Lack of trust</h2>Buying online requires a certain amount of trust. In the absence of being able to visit a store in person to touch and feel products while also meeting the salesperson, online shoppers must trust that a brand will deliver products in good condition and within the time frame specified.“The perception of trust goes a long way when it comes to a customer spending money on a site,” says Sarkar. “[Elements] like a lack of testimonials, an out-of-date or bad website with issues like badly written copy, lack of payment options and no social media presence don’t engender confidence in the consumer and will negatively affect conversion rates.”One way to combat this is to include what Sarkar calls “trust badges”, which could also be described as “social proof”. Examples of social proof that may boost your conversion rate include:&nbsp;<ul><li>Media mentions of your brand</li><li>Awards</li><li>Customer reviews</li><li>Counters that explain how many customers have purchased a particular product</li></ul>US beauty brand <a href="https://lashify.com/?utm_source=afterpay&amp;utm_medium=referral&amp;utm_campaign=feature" rel="noopener noreferrer" target="_blank">Lashify</a> lists the number of team members, loyalty customers and days of operation to add credibility and boost conversion rates.<h2>6. Low-quality or unprofessional images</h2>There are few things that undermine consumers’ trust in a brand as much as <a href="https://www.afterpay.com/en-AU/business/access/product-photography/how-to-take-product-photos" rel="noopener noreferrer" target="_blank">poor-quality imagery</a>. In today’s visually driven world, where shoppers are inundated with photos on social media every day, it is vital that e-commerce imagery is <a href="https://www.afterpay.com/en-AU/business/access/product-photography/product-photos-iphone" rel="noopener noreferrer" target="_blank">crisp, cropped properly and colour-corrected</a>.Fuzzy, low-resolution <a href="https://www.afterpay.com/en-AU/business/access/product-photography/product-photography" rel="noopener noreferrer" target="_blank">photography</a> or images that have been stretched out of proportion create the perception that a brand is not well-resourced or doesn’t pay attention to detail.“If images are not shot professionally, customers can tell,” Sarkar warns, suggesting this “will affect their perception of your brand because badly shot or phone images are signs that the business is not trustworthy.”Create professional-looking images by employing a photographer or learning simple DIY product photography. To maximise the impact of imagery, consider zoom photography functions, video or 360-degree moving imagery.<h2>7. Lack of payment options</h2>In essence, increasing low conversion rates means making it as easy as possible for customers to purchase from you.One way to do this is to look at the checkout process and allow your customers to pay with a method that suits them.“Not every customer is keen to use credit card or bank account details,” says Sarkar.In fact, increasing numbers of shoppers expect buy now pay later (BNPL) payment options at checkout.In Australia, spending on credit cards has stagnated since the beginning of COVID-19, while BNPL use is up <a href="https://afterpay-newsroom.yourcreative.com.au/wp-content/uploads/2022/03/Afterpay_Web_report_AU_Final.pdf" rel="noopener noreferrer" target="_blank">161 per cent</a> since January 2020. BNPL is becoming especially popular among Gen Z, with spending up by <a href="https://afterpay-newsroom.yourcreative.com.au/wp-content/uploads/2022/03/Afterpay_Web_report_AU_Final.pdf" rel="noopener noreferrer" target="_blank">270 per cent</a> since January 2020.From a global perspective, <a href="https://afterpay-newsroom.yourcreative.com.au/wp-content/uploads/2022/10/AP0207-GenZ-Report-V4-5.pdf)" rel="noopener noreferrer" target="_blank">58 percent</a> of Gen Z shoppers in the UK, US and Australia have used BNPL in the past 12 months.<h2>8. Slow delivery timeframes</h2>In our increasingly digitally driven world, convenience and speed are a baseline customer expectation, and this should be a factor when you're considering the reasons for low conversion rates.<a href="https://www.statista.com/statistics/1279369/delivery-time-expectation-online-shoppers-worldwide/" rel="noopener noreferrer" target="_blank">Research shows</a> that 41 per cent of shoppers expect to receive their delivery within 24 hours while 24 per cent hope to receive it within two hours. Furthermore, <a href="https://www.meteorspace.com/2022/08/25/statistics-that-prove-how-your-delivery-speed-impacts-your-business/" rel="noopener noreferrer" target="_blank">62 per cent of shoppers</a> in the US say that fast delivery is the most important component of a positive customer experience.That’s why it’s important to offer a range of deliver options – from standard shipping to expedited or express delivery –&nbsp;to improve your conversion rate.

"Stats show more than 50 per cent of customers will abandon a site if the page takes more than three seconds to load."

<h2>9. Slow loading times</h2>Much like delivery times, customers expect speed when it comes to website loading times.&nbsp;&nbsp;“Stats [by Google] show more than <a href="https://www.marketingdive.com/news/google-53-of-mobile-users-abandon-sites-that-take-over-3-seconds-to-load/426070/" rel="noopener noreferrer" target="_blank">50 per cent</a> of customers will abandon a site and not come back if the page takes more than three seconds to load,” Sarkar says.<a href="https://www.portent.com/blog/analytics/research-site-speed-hurting-everyones-revenue.htm#:~:text=When%20pages%20load%20in%201,a%206%2Dsecond%20load%20time." rel="noopener noreferrer" target="_blank">Studies have found</a> when pages load in one second, the average conversion rate is almost 40 per cent. At a two-second load time, the conversion rate already drops by 34 per cent.But not all loading times are created equal, and Sarkar advises you should “always optimise mobile site speed first, before desktop”.To keep your site speed as fast as possible (and boost conversion rates), ensure you’re using a performance-optimised hosting platform and that all images are compressed and optimised, as large image sizes are often the biggest cause of slow loading times. Other ways to reduce loading time include optimising the redirects on your pages and enabling browser caching.<h2>10. Product out of stock</h2>Displaying a product that is out of stock or not available in the customer’s preferred size or colour is perhaps one of the most obvious conversion killers.“This [conversion killer] can be overcome with better demand forecasting, or just-in-time restocking as inventory gets low,” Johnson advises.If you know you’re having a sale, a popular sales season is approaching, or you are running targeted ads, ensure inventory is available.And if high demand means you do inadvertently run out of stock? Give shoppers the option to add their name to a waitlist for when more stock arrives. This is not only a better customer experience. but it reinforces a sense of exclusivity and demand for your brand, and will increase conversion rates.

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Struggling to convert browsers into buyers?

Struggling to convert browsers into buyers? Here’s how to identify nine e-commerce conversion killers – the reasons for low conversion rates - and fix them to increase sales.

10 Reasons For Low Conversions Rates On Your E-commerce Site

10 Top Reasons For Low Conversion Rates

10 e-commerce conversion killers a

The pros and cons of self-financing versus seeking a loan or investment.

Steve Jobs and Steve Wozniak did it when they launched Apple. So, too, did eBay founder Pierre Omidyar, and NastyGal’s Sophia Amoruso.What do these founders have in common? They all bootstrapped their businesses when they launched, which means they used their own money to launch, and didn’t have outside investment.Deciding whether to bootstrap or borrow funds to launch or scale your business is a choice that every entrepreneur must make at some point, and there are pros and cons to both.&nbsp;<a href="https://wrinklesschminkles.com.au/" rel="noopener noreferrer" target="_blank">Wrinkles Schminkles</a> founder Gabrielle Requena understands these nuances better than most. She bootstrapped her business at the beginning – but considered taking on investment at one point.Requena launched Wrinkles Schminkles, which produces anti-ageing wrinkle treatments, including medical-grade silicone patches, in 2014 while running her own consulting company.&nbsp;Initially, Requena bootstrapped Wrinkles Schminkles by putting $50,000 of her own savings into its set-up. “I was lucky to be in a position where I was earning enough money from my day job to able to invest in [Wrinkles Schminkles] as a side business,” she says, explaining that the initial lump sum covered creating prototypes and building a website.

“I was lucky to be earning enough money from my day job to able to invest in my own business."

Within a few years the business had taken off and become her full-time job.&nbsp;However, in 2018, Requena began considering taking on investment as a way to grow the company and access new markets. So, she applied to appear on reality TV show Shark Tank, where judges evaluate start-up businesses and offer funding in return for equity to successful contestants. “It was an excellent experience… but very, very scary,” she laughs.&nbsp;Although a Shark Tank judge did suggest investing in Wrinkles Schminkles, Requena ultimately declined. “It wasn’t at the equity I was offering – it was a lot more,” says Requena, who today still owns her multi-million-dollar business outright.&nbsp;While bootstrapping her business was the right approach for Requena, there’s no one-size-fits all approach to financing a venture.&nbsp;The right option, says commercial finance specialist<a href="http://www.saraheifermann.com" rel="noopener noreferrer" target="_blank"> Sarah Eifermann</a>, will depend on a number of factors including cost of sales, scalability, the nature of your operations, and, of course, your financial situation.To help make your decision, we’ve broken down the pros and cons of each method, with secrets and success stories from business owners and experts.&nbsp;<h2>Bootstrapping</h2>For many business owners, bootstrapping (which comes from the phrase “pulling yourself up by the bootstraps”) may be the only option.Bootstrapped businesses tend to be very lean; they might be run out of the founder’s home, and rely upon personal savings to fund the initial set-up. (Steve Jobs famously sold his car to fund the launch of Apple.) Hiring staff may not be an option, financially, and it’s common for bootstrapped businesses to utilise freelancers and contractors rather than take on the expense and responsibility of employees.THE PROSTotal controlSelf-financing your business means retaining total control. All decisions are yours alone, and there are no obligations to other people, whether that’s investors or banks.&nbsp;“There is a noise that is created when you’re answering to other people’s opinions and interests versus just keeping yourself focused and in your own lane,” observes Requena.No repaymentsNot having to borrow money means not having to make repayments, and for Eifermann, the benefits of this can’t be understated. “There’s no debt, no repayments for debt and less debt stress,” she says.Faster start-up speedDepending on the size of the business, bootstrapping may also allow you to get up and running faster. “Bootstrapping is often a faster and sometimes less stressful way to purchase assets for your business,” says Sam Roby, founder of<a href="https://purecapital.com.au/" rel="noopener noreferrer" target="_blank"> Pure Capital</a>, explaining that seeking investment or approval on loans can take weeks or months. If you need to purchase equipment or launch quickly, bootstrapping may be simpler.

“Bootstrapping is a faster and less stressful way to purchase assets for your business.”

THE CONSSlower growthReinvesting profits into the business is a sustainable, if sometimes slow, way to grow. Sometimes an injection of cash can help make a crucial hire, purchase a piece of equipment that will allow you to scale or enter a new country or market.Difficulty competingIf your industry is highly competitive, scaling quickly may be necessary to compete. In new or innovative industries, being first to market (known as achieving first-mover advantage) can be critical for success. In these situations, a business loan may be the only way to stay ahead of the competition.&nbsp;<h4>Case study</h4><h2>“Accept that bootstrapping will impact your style of living”</h2>UK-based gift retailer<a href="https://sundaysdaughter.com/" rel="noopener noreferrer" target="_blank"> Sunday’s Daughter</a> launched in 2012 with founder Rachael Howard and her husband at the helm.Today the business has eight employees, but at first, the pair self-financed using their savings and reinvested any money they made from from sales back into buying more materials. It was a period that Howard remembers as “very stressful”.&nbsp;“We lived from pay cheque to pay cheque,” she says, adding, “If you self-finance a business, then accept it will impact your style of living,”

“If you self-finance a business, then accept it will impact your style of living."

On the positive side, Howard says, “I learned so much during that [early] period; the importance of counting all the pennies and looking for better deals all the time. It definitely made me more cautious of overstretching and aware of our cash flow.”&nbsp;“I think being able to secure a loan would have made it easier to develop the business more quickly.”<h2>Borrowing&nbsp;</h2>There are countless ways to secure financing for small businesses – whether that’s launching a start-up or taking on debt or equity to grow or scale – and this approach works best for entrepreneurs who believe they have a great business idea but don’t have the finances to fund it.Business owners that do take out a loan must feel confident of their business plan and ability to pay the money back.&nbsp;THE PROSSpeedTaking out a loan can be a great way for businesses to scale quickly, says Roby. “You can also work with your broker to structure the loan in a way that will be the most beneficial for you, which may include some combination of a deposit and residual payment.”Access experienceWorking with a bank or lender or securing investor funding may offer access to that lender or investor’s experience. Requena describes this as “smart money… money that’s also backed by the smarts to open doors and offer insights into different areas of the business where you’re out of your depth”.THE CONS&nbsp;Financial liabilityA loan may facilitate faster growth for your business, but it comes with a bigger price tag and higher risk.“Financing with a loan can cost a lot of money and break your business if managed incorrectly,” Eifermann warns. Like bootstrapping, you can’t sustain it without making a profit.

“Financing with a loan can cost a lot of money and break your business if managed incorrectly."

StressCommitting to a loan can put a great deal of pressure on your business and create stress if your actual sales don’t align with your forecast. The application process itself can also be time-consuming and costly, and not all businesses are eligible to receive a loan.Says Hody, “The biggest con of taking out a loan is paying interest, and also a potentially slower turnaround time [for financial contracts].”<h4>Case study</h4><h2>"They make sure you have everything in order to be able to start strong."</h2>Independent sustainable women’s clothing brand<a href="https://join-the-sisterhood.com/" rel="noopener noreferrer" target="_blank"> Sisterhood</a> – a UK-based label that now ships around the world – was created by Eve Jones, who took out a business loan to launch it.“[Our bank] helped with a business plan and [they] make sure you have everything in order to be able to start strong. They review the plan… It was really manageable, making the finances a lot less stressful.”&nbsp;When Jones started the business, she was 25 and still living at home. No rent and minimum financial responsibility helped make her loan experience largely stress-free.&nbsp;“I set up working from my mum’s kitchen table, using our garage as my ‘warehouse’ for the first year to save on office rent. After the first year of working unpaid, I was then able to pay myself a proper salary from the business to move into my own flat. Having a loan was a real pro as I didn’t feel under pressure with the repayments being so low.”

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Discover the pros and cons of self-financing versus seeking a loan or investment.

Bootstrapping vs business loan. Read our guide to pros and cons and which one is better. 

Bootstrapping vs business loan: Which is better?

Bootstrapping vs Borrowing: Which is better?

Bootstrapping vs Borrowing: Which is better? AU

Every mega brand was once a humble start-up that was expertly scaled. Think you’re ready for rapid growth? This is what you need to know first.

It wasn’t a lightbulb moment. For Anna Ross, the founder of sustainable nail and beauty brand<a href="https://www.kesterblack.com/" rel="noopener noreferrer" target="_blank"> Kester Black</a>, the decision to scale her business was a gradual one, five years in the making.It took a pandemic to push Ross’s hand. In 2020, as worldwide lockdowns created an unprecedented demand for at-home nail care, Ross sold out of six of her best-selling polishes. She hadn’t anticipated the number of sales, and lack of capital meant she didn’t have enough stock to meet the surge in orders.“I estimate we lost 40 per cent of the revenue we could have made because we didn’t have those products in stock. Our $1.2 million in revenue that year could have been $1.8 million,” she says. “Our website already had a good conversion rate, but we needed money to move faster."

"We needed money to move faster.”

It was time to scale, and, after a negative experience with a potential investor, Ross turned to crowdfunding.Six months of intensive work later – including creating a $17,000 promotional video and an in-depth communications and media plan – Ross launched a two-week fundraising drive on the platform<a href="https://www.birchal.com/" rel="noopener noreferrer" target="_blank"> Birchal</a>. Eventually, Kester Black raised a total of $2.2 million, with the first million being raised in less than 24 hours.&nbsp;&nbsp;But crowdfunding isn’t the only way to scale a business. Here, we break down the options – plus how to know when you’re ready to scale.

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<h2>Small business loan</h2>Best for: Those with good credit ratings$$: $1000 to $50,000Source: Banks, Credit Unions. Strings? Long approval process, fluctuating interest rates, annual feesFor founders looking for a financial injection, a small business loan is an obvious option, says business expert, founder of<a href="https://www.startupcreative.com.au/" rel="noopener noreferrer" target="_blank"> Startup Creative</a> and author of<a href="https://www.startupcreative.com.au/resources/how-to-start-a-side-hustle/" rel="noopener noreferrer" target="_blank"> How To Start A Side Hustle</a>, Kaylene Langford.“When applying for a loan, small business owners will need to put together a strong business plan with a sales trajectory and all their numbers to show there will be a return on investment for the bank; that process is always going to be good for business,” explains Langford, adding that loans make most sense for founders looking to invest in a specific product, machine or program that will make a practical improvement to the business. “If you know a website upgrade, a new printer or a course is going to help return more money into the business, a loan could be the way to go.”&nbsp;The benefit of scaling with a business loan? “Banks do their due diligence, so if they’re willing to give you a loan, they’re validating your business plan,” says Langford. “If you have a good relationship with your bank manager, they can also act as mentor in that space because it benefits them for you to grow your business.”The downside? Taking out a loan involves paying interest, and it can affect future investment options.Similar to a small business loan, a line of credit involves taking on debt, but has the added benefit of being able to redraw on the loan, making it more appropriate for founders looking for ongoing flexibility instead of one single purchase.<h2>Grants</h2>Best for: Those with time, service businesses, or creative or community-minded industries$$: $5000 to $100,000Source: Government schemes, commercial programsStrings? Restrictions, strict deliverables, highly competitiveGrant money can be the perfect boost for many start-ups or small businesses, but you need to be prepared for the work involved in applying – and reporting back. Many grants also come with conditions that can be restrictive.Find a full list of grants currently on offer in your region click here. Alternatively in Australia, businesses can use this handy<a href="https://business.gov.au/grants-and-programs" rel="noopener noreferrer" target="_blank"> tool</a> to search for relevant government grants, funding, and support programs across all industries.The downside to grants is that they are highly competitive, and often involve jumping through a number of hoops, which means it can be a while until you see the cash in your bank account.<h2>Investor equity</h2>Best for: Those open to taking on a business partner$$: $100,000 to $10 millionSource: Venture capital funds, professional investors, angel investment firmsStrings? Loss of control and equityFinding an investor can be a transformative experience for a business. Just ask Audrey Khaing-Jones, the co-founder and COO of fashion rental business<a href="https://staging.glamcorner.com.au/" rel="noopener noreferrer" target="_blank"> GlamCorner</a>, who successfully obtained investor funding in 2015, then again in 2016, 2017 and 2020. Her most recent capital raise generated $12 million in Series B funding to accelerate operations, expand the business’s warehouse space and logistic teams, and grow from 28,000 articles of clothing to over 60,000.

"We were looking for business partners with expertise to help us grow.”

“The main reason we chose the investor equity route was because we weren’t just looking for growth capital, we were looking for business partners with expertise to help us grow,” says Khaing-Jones, crediting her ongoing partnership with AirTree Ventures for allowing the business to scale in the increasingly competitive clothing rental market.“The Airtree team was able to add value immediately [in 2015 and the subsequent years] by supporting us to scale our tech stack, our inventory management systems and our performance marketing strategies, and [also] by introducing us with people in the fashion and apparel industry.”When it comes to taking on investor equity, finding the right fit is everything. While professional investors can offer experience and deep pockets, that can come at the expense of loss or control or equity in your business.“When you raise capital from private investors you have a responsibility to deliver the ambitions you set out to do,” adds Khaing-Jones. “Some people are excited by such a challenge while others find it inhibiting.”Interested in exploring private investment? Start by networking or reaching out to your <a href="https://www.australianinvestmentnetwork.com/" rel="noopener noreferrer" target="_blank">local angel networking networ</a>k. Alternatively, consider researching (via newsclippings or websites like <a href="https://pitchbook.com/" rel="noopener noreferrer" target="_blank">Pitchbook</a> or <a href="https://www.crunchbase.com/" rel="noopener noreferrer" target="_blank">Crunchbase</a>) which investors have funded businesses like yours. Often, investors or venture capital funds will specialise in specific industries.&nbsp;

<h2>Incubators</h2>Best for: Those looking for connections and capital$$: $20,000 to $250,000Source: Academic institutions, development corporationsStrings? Highly selective, rigorous application process“Accelerators and incubators have emerged as an excellent source for capital and, perhaps more importantly, for advice and connections,” say experienced entrepreneurs and authors of<a href="https://startup-playbook.com/" rel="noopener noreferrer" target="_blank"> The Startup Playbook</a>, Rajat Bhargava and Will Herman.Securing funding from an incubator usually means applying to join their program and then undergoing rigorous screening to make sure you’re a fit for them – and they’re a fit for you. If successful, applicants will receive a fixed sum of money in return for equity in the company. They’ll then work with you to start growing the business using the incubator’s strategic connections.<h2>Crowdfunding</h2>Best for: Businesses with a loyal following$$: $5,000 to $5 millionSource: Crowdfunding platformsStrings? Maximum effortThere are two forms of crowdfunding, note Bhargava and Herman: “Reward-based crowdfunding (on platforms such as<a href="https://www.kickstarter.com/" rel="noopener noreferrer" target="_blank"> Kickstarter</a> and<a href="https://www.indiegogo.com/" rel="noopener noreferrer" target="_blank"> Indiegogo</a>) involves a large group of customers financing product development by pre-buying the product. And equity-based crowdfunding (à la<a href="https://circleup.com/" rel="noopener noreferrer" target="_blank"> CircleUp</a> and<a href="https://www.angellist.com/" rel="noopener noreferrer" target="_blank"> AngelList</a>) occurs when a large group of people each invest a small amount of money as a seed round for the company.”&nbsp;Kester Black had success with the latter method. Founder Anna Ross recommends crowdfunding for brands who already have a substantial customer base – especially those in the fintech, food and beverage, and fashion and beauty spaces – and for founders who still want to be in control.Ross still owns 86.68 per cent of Kester Black. The $2.2 million capital raise came from 1,700 shareholders, who invested sums of money ranging from $250 to $50,000 each, and who have now become a dedicated group of supporters, undertaking internal customer surveys and helping with product development.

"They bought shares in the company because they were loyal customers who wanted to see us grow."

“The majority of our investors wanted to support me as a young businesswoman. They bought shares in the company because they were loyal customers who wanted to see us grow – not because they were looking for 10 times return on an investment in a year,” she says, nodding to the fact that crowdfunding is a more grassroots approach than taking on professional investors.So far, the Kester Black capital raise has been used to invest in a 3PL (third-party logistics supply chain management), allowing the brand to jump from 2,500 orders a month to 10,000. Ross has also set up a European warehouse and invested heavily in new product development. Investors have already seen a rise in sales – with some months being up 60 per cent compared to last year – but Ross says the full benefit of the capital raise will be seen next year.“Crowdfunding is the preferred capital raising method for mavericks,” says Langford, adding that this option is best for game-changers, innovators and early adapters who have something new, fresh and exciting to offer.<h2>How do you know if you’re ready to scale?&nbsp;</h2>Ask yourself this: what does the business really need to grow?“Sometimes the answer to that question is a business mentor or coach, a contractor, or a new product. The answer isn’t always money,” advises Langford, who has worked with more than 2000 entrepreneurs at Startup Creative. “When you’re looking to scale, you have to be really clear about what needs to happen for your business to grow.”To do that, Langford says founders should tick off this checklist:<ol><li>Know your numbers inside and out</li><li>Put together a solid business plan using the aforementioned numbers</li><li>Work out the sales trajectory for six to 12 months using conservative projections</li><li>Do your research on the market and get outside advice</li><li>Pick your moment – timing is everything</li></ol>

Every mega brand was once a humble start-up that was expertly scaled. Think you’re ready for rapid growth? This is what you need to know first.

Raising capital for small business. Here's everything you need to know about raising funds. 

Raising capital for small business: What you need to know 

Ready to scale up? Here are the five top ways to raise capital

&nbsp;From the grocery store to the gas pump, inflation is being felt everywhere. Here’s how to navigate the changing economy.

Inflation. It could be the word of 2022, splashed across headlines all over the globe: “UK inflation hits 40-year high”; “No sign of inflation easing as US faces recession”; “Australia’s inflation lower than most in OECD, but worst is yet to come”.Inflation is a normal part of any healthy economy, but rising rates have some experts predicting a global downturn, which would impact consumers and businesses alike.According to new <a href="https://www.mckinsey.com/business-functions/growth-marketing-and-sales/our-insights/survey-australian-consumer-sentiment-during-the-coronavirus-crisis" rel="noopener noreferrer" target="_blank">McKinsey research</a>, optimism amongst Australian consumers has declined since November 2020, with two-thirds of shoppers saying they do not plan to splurge in 2022.But it’s not all doom and gloom. Afterpay’s<a href="https://business.afterpay.com/rs/539-RJA-633/images/On-The-Rise-Report.pdf" rel="noopener noreferrer" target="_blank"> On The Rise</a> report found that more than half of consumers are taking measures to address increasing prices: finding alternative ways to plan, budget and save, while continuing to shop.Here’s how you can react to the changing economy, and set your business up to survive and thrive.<h2>What is inflation?&nbsp;</h2>Inflation is a measure that represents the rate of rising prices of goods and services in an economy.There are a range of reasons it occurs, including:<ul><li>Demand-pull inflation: When a surge in demand for certain goods or services is greater than the economy’s ability to meet those demands.</li><li>Cost-push inflation: When the cost of production increases due to the price rising for raw materials.</li><li>Increased money supply inflation: When money supply increases faster than the rate of production because there are too many dollars chasing too few products.</li></ul>Associate Professor Dr M.Shumi Akhtar, from the University of Sydney Business School, adds that government policies can also lead to inflation. For example, wage rises or tax subsidies for certain goods or services can increase demand; if this demand exceeds supply, costs can rise.&nbsp;&nbsp;<h2>So, what’s behind the rising inflation rate now?</h2>There are multiple reasons behind inflation. We’re experiencing a growing global demand for goods as we emerge from COVID-19 restrictions; prices are rising to make up for losses linked to the pandemic, from product shortages to bumped-up shipping costs; and the war in Ukraine has wreaked economic havoc, putting extra pressure on oil supply and seeing energy prices surge.Meanwhile, unemployment rates are low, creating an environment where people spend more, which, in turn, puts upwards pressure on prices.

“This combination of factors has made for a perfect storm."

“This combination of factors has made for a perfect storm [globally] which has had a compounding effect on major advanced economies, hence certain similar inflationary pressure is felt across Australia, the UK and the USA at the moment,” says Dr Akhtar.“In addition, the huge amount of stimulus packages [over the pandemic] injected a lot of money into the economy without much productivity, [which] essentially lost the value of money,” she adds. “And the supply chain disruption and shortages of supply in goods and services during lockdowns are having ripples in our economic system.”<h2>How does inflation affect consumer behaviour?</h2>Inflation goes hand in hand with a rising cost of living, which understandably influences consumer habits. Depending on your type of business, this may affect your bottom line.

"Usually, inflation hits hard on low-to-middle income earners."

“Inflation can have a different impact [on consumer habits] depending on the socio-economic status groups of people in the economy,” adds Dr Akhtar. “Usually, inflation hits hard on low-to-middle income earners, but not so much on the rich and wealthy.”&nbsp;&nbsp;This means that your experience as a business owner will depend on who your customers are, and what you sell (do you sell essential items such as milk and bread, or more discretionary services like massages?).More broadly, a recent survey from US-based data and tech company<a href="https://www.prnewswire.com/news-releases/inflation-is-changing-purchasing-behavior-for-majority-of-consumers-numerator-reports-301337357.html" rel="noopener noreferrer" target="_blank"> Numerator</a> found that 54 per cent of consumers are concerned about future price increases and more than 90 per cent plan to change their shopping behaviours with further price rises.Specifically, customers are…Looking for valueThe Numerator survey found that more than half of consumers planned to switch to lower-priced options, seek out additional discounts and promotions and slash their discretionary budget (referring to a cost that a consumer or household can survive without).Switching brandsWith shoppers seeking out value above all else, a loyalty shake-up is afoot. According to McKinsey, more US consumers are switching brands and retailers now than they did in 2020 and 2021, and about 90 per cent plan to continue to do so.*Spending on experiencesIn the current climate, if consumers are going to part with their hard-earned cash, they want it to be on something memorable. According to Afterpay’s<a href="https://business.afterpay.com/rs/539-RJA-633/images/On-The-Rise-Report.pdf" rel="noopener noreferrer" target="_blank"> On The Rise</a> report, recreation is among the fastest-growing categories for Gen Z and Millennials, growing about 90 per cent year on year. As such, spending on experiences and travel is expected to boom in the coming months.Comparing pricesAfterpay’s On The Rise report also found that the top three ways that Millennial and Gen Z consumers are saving money are purchasing cheaper alternatives, buying during promotional periods, and comparing prices across channels. This means that pricing needs to be a key consideration for retailers.<h2>How else will inflation impact my business?</h2>As well as consumer behaviour, inflation can affect other parts of your business. This could include increased running expenses (such as electricity and loan-repayment rates), supply pressures due to higher costs of materials, increased shipping costs and possible delays, as well as wage increases if staff request them.One small-business owner who has already started to feel the pinch is Kerry-Anne Blanket. Her business,<a href="https://www.kabgallery.com/" rel="noopener noreferrer" target="_blank"> KAB Gallery</a>, located north of Sydney, Australia, has noticed a recent change in expenses.“We operate from two bricks-and-mortar [art] gallery spaces and are online too, and I have already found inflation significantly impacting my business, namely shipping costs,” she says. “Large crates of art that I would typically be able to ship internationally for around $800 are now being quoted to cost $1300.”This increase is starting to deter some collectors, she says. To combat that she plans to focus on stocking work from artists with the strongest sales history, and consider ways in which she can positively engage repeat clients via her social media and contact book. Being aware of rising costs and being able to pivot is the key, she says.<h2>What can I do to safeguard myself against the effects of inflation?</h2>Luckily, there are some tried-and-tested methods to help your business navigate this rise in inflation. The most important, according to financial advisor Nathan McCallum, is to assess where you are right now and reflect on where you want to be in the future by making your business plan watertight.&nbsp;“By understanding your existing position, business costs and profitability, you can decide on what your goals are and then create a new business plan,” he says. “Try to indicate what inflation is predicted to be, and discover where you've got exposure to those expenses, while also considering your wages and your employment costs.”&nbsp;For his clients, McCallum recommends having three business plans: a 10-year plan, three-year plan, and a business plan for right now. Within these plans, he says to explore and review any ‘hidden costs’.These might include:<ul><li>Loans with floating interest rates</li><li>Profit margins vs predicted inflation rates</li><li>Outgoings</li><li>Regular bills such as insurance or utilities</li></ul>When it comes to driving maximum value from your customer base, one strategy to focus on is <a href="https://www.afterpay.com/en-AU/business/access/customer-retention/customer-retention-strategies" rel="noopener noreferrer" target="_blank">customer retention</a>. It’s an area that McCallum says most businesses could be better at and, in fact,<a href="https://www.forbes.com/sites/forbestechcouncil/2021/07/21/customer-acquisition-costs-often-dont-include-customer-onboarding-expenses-but-they-should/?sh=1c8cf4796c70" rel="noopener noreferrer" target="_blank"> research shows</a> that 44 per cent of businesses focus on customer acquisition, while only 18 per cent focus on <a href="https://www.afterpay.com/en-US/for-retailers/access/customer-retention/customer-retention-strategies" rel="noopener noreferrer" target="_blank">customer retention.</a> Now, he says, is the time to secure your customer base.&nbsp;Some ways to retain your customers, while also attracting new ones, are:Get savvy with your sales: Forbes reported that 50 per cent of consumers plan to seek out additional discounts and promotions if inflation continues, so consider doing an after-sale discount emailed to recent customers, or a newsletter-only sale/discount. Perhaps a ‘secret sale’ for your most valued clients might be beneficial, or a referral credit. Could a 48-hour sale be valuable, or an auction of your bestselling products?<a href="https://www.afterpay.com/en-AU/business/access/smarter-discounting/retail-discount-strategy" rel="noopener noreferrer" target="_blank">Find out how to create smarter discounts</a>Offer alternative ways to pay: Amid inflation, Gen Z and Millennials are turning to ‘buy now, pay later’ (BNPL) options, as revealed in recent<a href="https://newsroom.afterpay.com/updates/next-gen-shoppers-turn-to-buy-now-pay-later-to-reclaim-their-financial-freedom" rel="noopener noreferrer" target="_blank"> Afterpay research</a>. Nearly 40 per cent of surveyed shoppers said they believe BNPL is an effective way to deal with rising consumer prices.Centre the customer: With rising costs, now is the time to double down on your business’s performance and quality, focusing on strategies for long-term customer retention. Look at any complaints you might be getting, or potential pain-points for your customers. Are there other ways you could connect with your repeat customers, such as a <a href="https://www.afterpay.com/en-AU/business/access/marketing/customer-loyalty-program" rel="noopener noreferrer" target="_blank">loyalty program</a>, festivals, online shops on Instagram, or collaborations with other brands?Offer bulk sales or prepay options: Some customers may be looking for ways to lock in prices for the next financial year, so offering bulk sales, price-fixed subscriptions or pre-pay options could be a clever way to both attract and retain customers.&nbsp;&nbsp;

 From the grocery store to the gas pump, inflation is being felt everywhere. Here’s how to navigate the changing economy.

How to prepare for inflation? Read to find out more about how inflation will affect consumer behaviour and ways for businesses to respond. 

How to prepare for inflation: Strategies for small businesses 

How inflation will affect your customers – and your business

How inflation will affect your customers – and your business AU

With a little help from technology, you can boost your business’s productivity and profit – and say goodbye to piles of paperwork.

Managing money and monitoring cashflow might not be the glamorous side of your business – but they’re essential skills for business success. And with the right tools, working smarter and staying on top of your books is easier than ever. Here, we’ve rounded up the best finance apps on the market to keep your business running smoothly, with some input from the experts.<h2>Apps to track expenses</h2>Keeping track of expenses is an essential part of managing cashflow for any small business. Luckily there are plenty of apps for exactly that.&nbsp;<h2>Dext Prepare</h2>An expense-tracking application that automatically extracts data from uploaded receipts, invoices and statements, then sends it on to your accounting software.Best of all? Every user is given their own email address, and digital receipts and invoices can be instantly submitted, rather than having to be uploaded manually.For Kelly Baker-Jamieson, co-founder and managing director of<a href="https://www.edibleblooms.com.au/" rel="noopener noreferrer" target="_blank"> Edible Blooms</a>, Dext has been a game-changer. “We love the efficiency of uploading our receipts quickly and accurately – it saves us time and money every day,” she says. “The speed of the process ensures our expenses are being reconciled daily to keep on top of cashflow.”

"It saves us time and money every day.”

Price: From AUD$30 per month. Best for: Anyone from sole traders to medium-sized businesses.<h2>Expensify</h2>A receipt-tracking and expense management app that tracks mileage and reconciles corporate card spends. Expensify allows users to snap a photo of a receipt to upload using its SmartScan software. It also offers its own online business credit card that can be applied for and set up in minutes.For larger businesses, there’s an option to set your employees up with next-day reimbursement should they need to spend their own money for work.Price: From $14 per month, with a free option for sole traders.Best for: Any size business.<h2>DiviPay</h2>When it comes to unwelcome work-related tasks, credit card reconciliation is right up there with ‘fun’ team-building activities. That’s where expenses app DiviPay comes in. It aims to make corporate credit card reconciliation and staff expense forms easier for small to medium-sized businesses with an all-in-one corporate card and expense-management solution.&nbsp;“The ability for start-ups to get credit cards for themselves or their employees for business purchases is near impossible; there’s a lot of jumping through hoops to continue to be declined,” explains Stacey Price, founder of<a href="https://www.healthybusinessfinances.com.au/" rel="noopener noreferrer" target="_blank"> Healthy Business Finances</a>, chartered accountant and tax agent.&nbsp;DiviPay allows businesses to create an online credit card for employees, complete with a spending limit, in a matter of minutes – and then reconciles the transactions made on it.&nbsp;&nbsp;Price: From $6 per user each month.Best for: Start-ups looking for a quick credit card solution, as well as larger businesses that need multiple staff corporate cards.<h2>Apps and tools for small-business accounting</h2>Whether you run a florist or a pharmacy, every small business owner needs an accounting system, and there are plenty of DIY software tools and apps out there.<h2>Xero</h2>This cloud-based technology allows you to access and manage your business’s finances from anywhere in the world, on smartphone, tablet or computer.Xero allows you to schedule payments, send invoices or process payroll from the palm of your hand. “Xero is great for providing a snapshot of our accounts on the go, and it’s so easy to switch between our different entities and see how we’re performing,” says Baker-Jamieson, who overseas business in both Australia and the United Kingdom for Edible Blooms.Price: From $27 per month.Best for: Anyone from sole traders to larger businesses.<h2>Quickbooks</h2>Quickbooks is another industry-leading cloud-based accounting software tool, which aims to “make tax time less taxing”. Quickbooks allows small-business owners to send and process invoices, track profit and loss and see real-time business performance at a glance.Price: From $11 per month.Best for: Anyone from sole traders to larger businesses.&nbsp;<h2>Wave Invoicing and Accounting</h2>Accounting software and expense-management systems can quickly become hefty expenses in their own right, especially for new and small businesses. Unlike some other accounting tools, Wave is free. (It does, however, collect fees for credit card transactions or payment processing.)Price: Free.Best for: Smaller businesses and start-ups, as there are few advanced features.<h2>A2X</h2>Do you sell products via a Shopify store, eBay, Etsy, Amazon or Walmart? A2X will automatically link transaction data from these platforms to your accounting software, potentially saving you hours of manually matching bookkeeping entries.Price: From USD$19, depending on the platform you use.Best for: E-commerce businesses using Xero.<h2>Apps for managing payroll</h2>Employee salaries are likely to be one of your biggest expenses as a business owner, which is why keeping track of payments and payroll is so critical.<h2>Square Payroll</h2>Square offers a suite of payroll tax software that’s specifically designed for business owners. Square Payroll allows businesses to track employee hours, process staff payments, integrates payroll taxes, and manage benefits. You can even track tips and commissions.The feature is part of the wider Square Point Of Sale platform, which also offers Square Banking which includes checking, savings and loans and allows business owners to repay loans and automatically set aside a percentage of your sales to savings each month as well.Price: Square Payroll from USD$5 per month for contractors, and from USD$40 per month for businesses with staff.Best for: Small-business owners.<h2>Gusto</h2>Gusto is an all-in-one payroll platform that helps business owners pay their staff and also automatically files taxes. Employ staff who work on an hourly rate? Gusto also offers time-tracking for contractors, and facilitates payment in more than 80 countries.Price: USD$6 a month for contractors, and from USD$45 per month for businesses with staff.Best for: Businesses of any size.

Boost your business’s productivity and profit.

10 finance apps to manage cashflow – and save you time and money

10 finance apps to manage cashflow – and save you time and money AU

Looking for funding to scale your business? Here’s where to look for a small business grant, plus tips on how to win it.

For Australian eyewear brand<a href="https://www.billyboston.com.au/" rel="noopener noreferrer" target="_blank"> Billy Boston</a>, winning a grant through Austrade’s Export Market Development Grants program was a game-changer. The grant pays half of the business’s expenditure on overseas marketing for three years, up to a maximum of $76,000 per year.“It is fantastic because otherwise we would have a very limited budget for marketing, and especially for overseas marketing, which is a bit of an unknown,” says Billy Boston co-founder Angela Sweeney.In Australia, there’s a range of grants available to small businesses. Often, they’re specific to particular industries, age groups and locations.<h2>How to access government grants for small business</h2>The federal government offers close to $1 billion dollars a year in business grants, making it a key avenue for small businesses searching for funding and grants.Since 2018, all grants from Commonwealth entities are required to be published on the government’s<a href="https://www.grants.gov.au/ga/list" rel="noopener noreferrer" target="_blank"> GrantConnect</a> website. This centralised information hub provides a free service for all potential applicants to find and access federal grant opportunities in the one spot.&nbsp;Each state also has its own information service for available grants, such as<a href="https://www.business.qld.gov.au/running-business/support-services/financial/grants" rel="noopener noreferrer" target="_blank"> Business Queensland</a>, the<a href="https://www.dtf.vic.gov.au/victorian-business-growth-fund" rel="noopener noreferrer" target="_blank"> Victorian Business Growth Fund</a> and the<a href="https://www.investment.nsw.gov.au/grants-and-rebates/mvp-ventures/" rel="noopener noreferrer" target="_blank"> MVP Ventures program</a> in NSW.Unlike loans, grants don’t need to be repaid, and whether you’re in retail, marketing, trade, manufacturing or e-commerce, there are grants available to help strengthen and scale your business.Here are 10 current grants to get you started.

<h5>1.<a href="https://grantd.com.au/grant/small-business-technology-investment-boost/?utm_open_access=true" rel="noopener noreferrer" target="_blank"> Small Business Technology Investment Boost</a> (national)</h5>Funding: Up to $20,000 bonus tax deductionBest for: Retailers, wholesalers, manufacturers and trades looking to invest in digital tools.What it covers: A 20 per cent bonus tax deduction on digital expenses, including e-commerce, marketing automation, cloud computing, and cybersecurity.Application deadline: Apply at any time<h5>2.<a href="https://grantd.com.au/grant/wage-subsidies/?utm_open_access=true" rel="noopener noreferrer" target="_blank"> Wage Subsidies for Hiring Employees</a> (national)</h5>Funding: Up to $10,000Best for: Small businesses in retail, trade, manufacturing and services looking to hire new employees.What it covers: Helps cover wages for new employees, including apprentices, trainees, and long-term unemployed workers.Application deadline: Ongoing&nbsp;<h5>3.<a href="https://grantd.com.au/grant/industry-growth-program/?utm_open_access=true" rel="noopener noreferrer" target="_blank"> Industry Growth Program</a> (national)</h5>Funding: $50,000 to $5 millionBest for: Manufacturing, trade, and tech-based small businesses commercialising new products.What it covers: Funding for scaling, commercialisation, workforce training and process improvements.Application deadline: Ongoing<h5>4.<a href="https://grantd.com.au/grant/csiro-kick-start/?utm_open_access=true" rel="noopener noreferrer" target="_blank"> CSIRO Kick-Start Program</a> (national)</h5>Funding: $10,000 to $50,000 (matched dollar-for-dollar)Best for: Small businesses needing R&amp;D support for new product development.What it covers: Helps fund prototyping, testing and commercialisation for manufacturing, clean energy and food production.Application deadline: Ongoing<h5>5.<a href="https://grantd.com.au/grant/better-local-business-grant-program/?utm_open_access=true" rel="noopener noreferrer" target="_blank"> Better Local Business Grant Program</a> (Qld)</h5>Funding: Up to $2,500Best for: Small business associations/groups, industry association, Chambers of Commerce and local councils.What it covers: Grants support events or initiatives that bring local business owners together to address key regional business concerns, issues, or opportunities.Application deadline: 21 March 2025<h5>6.<a href="https://grantd.com.au/grant/multicultural-small-business-grant-program/?utm_open_access=true" rel="noopener noreferrer" target="_blank"> Multicultural Small Business Grant Program</a> (Tas)</h5>Funding: $700 to $5,000Best for: Multicultural small business owners in Tasmania seeking business advice, coaching or training.What it covers: Supports business planning, marketing, financial planning, risk management, IT system upgrades and diversification strategies.Application deadline: 31 March 2025<h5>7.<a href="https://grantd.com.au/grant/agtech-grants-program-vic/?utm_open_access=true" rel="noopener noreferrer" target="_blank"> AgTech Grants Program VIC</a> (Vic)</h5>Funding: Up to $50,000Best for: Victorian-based businesses developing agricultural technology solutions.What it covers: Funds tech-based agricultural innovations to improve productivity and sustainability.Application deadline: 30 June 2025<h5>8.<a href="https://grantd.com.au/grant/1000-safework-small-business-rebate/?utm_open_access=true" rel="noopener noreferrer" target="_blank"> SafeWork Small Business Rebate</a> (NSW)</h5>Funding: Up to $1,000Best for: Retailers, manufacturers and trades businesses improving workplace safety.What it covers: Covers the cost of safety equipment, WHS training and workplace upgrades.Application deadline: Ongoing<h5>9.<a href="https://grantd.com.au/grant/business-innovation-program/?utm_open_access=true" rel="noopener noreferrer" target="_blank"> Business Innovation Program</a> (NT)</h5>Funding: Up to $30,000Best for: Businesses with innovative ideas ready for development and commercialisation.What it covers: Supports the development of an Innovation Project Plan (IPP), creation of a Minimum Viable Product (MVP), and commercialisation efforts. Includes advisory support and milestone-based funding.Application deadline: 30 June 2025<h5>10.<a href="https://grantd.com.au/grant/accelerating-trade-grant-program-2/?utm_open_access=true" rel="noopener noreferrer" target="_blank"> Accelerating Trade Grant Program</a> (Tas)</h5>Funding: Up to $10,000Best for: Tasmanian businesses expanding into markets outside Tasmania.What it covers: Supports promotional campaigns, trade exhibitions, business matching, market research, inbound buyer visits and travel allowances for trade development.Application deadline: 30 June 2025

<h2>5 secrets to securing a grant</h2>Applying for funding can be a lengthy process and involves gathering and presenting information to the best of your ability. Here’s what you need to know before putting in the hard yards.<h5>1 Find grants that align with your goals</h5>One of the biggest mistakes businesses make is applying for every grant they come across, rather than focusing on those that match their needs.“Each grant has specific funding priorities,” explains Janine Owen of grant-discovery platform<a href="https://grantd.com.au/" rel="noopener noreferrer" target="_blank"> Grant’d</a>. “Funders want to invest in businesses that align with their goals, so choosing the right grants is just as important as writing a strong application.”<h5>2 Define how you’ll use the funds in specific terms</h5>Funders want to see exactly how their money will be used and the impact it will create. Clearly outlining where the money is going will make your application more compelling.Owen advises: “Instead of saying, ‘This grant will help grow our business,’ use specifics such as, ‘The grant will fund staff training to improve operational efficiency, reducing delivery times by 20 per cent.’”&nbsp;

"You can strengthen your application in a variety of ways."

<h5>3 Keep good records</h5>Almost every grant application will require financial documentation such as revenue figures, profit-and-loss statements, tax returns and projected budgets.“If your financials are disorganised or unclear, it could delay your application — or result in an automatic rejection,” says Owen. “Keeping up-to-date records will ensure you’re prepared when a great grant opportunity opens up.”<h5>4 Make your application stand out</h5>Grants are highly competitive. Funders may receive thousands of applications, so they are looking for businesses that stand out.“You can strengthen your application in a variety of ways,” advises Owen.“Tell a story – show the real-world impact your business is making, or a challenge you are solving. Back your claims with facts, figures and case studies. And be concise – funders don’t want to have to wade through long-winded responses.”<h5>5 Apply early</h5>Many grants close as soon as the allocated funds run out so waiting until the last minute means you might miss out.Owen believes the early bird really does win in this case. “Most grants require a lot of documentation which will take time to organise, so starting early gives you the best chance of submitting a well-prepared application…“It’s also a good idea to create a grant tracking system to stay on top of deadlines, document requirements, and submission statuses,” she says. “Using a tool like<a href="https://grantd.com.au/" rel="noopener noreferrer" target="_blank"> Grant’d</a> can help streamline this process.”

Looking for funding to scale your business? Here’s where to look for a small business grant, plus tips on how to win it.

Read our full guide to Australian small business grants up for grabs right now!

Small business start-up grants: guide to small business grants in Australia 2025

Where to get small business grants in 2025

The best small business grants up for grabs now

Six tips and tweaks to boost conversion optimisation - and create a website that sells more products.

Whatever you sell – from shoes to shirts, cars to cakes – your website has one job: to convince customers to buy your products.At every step of the customer journey – from the moment visitors arrive at your website to the final step of checking out – your website needs to persuade customers to purchase. Improving this process is known as conversion rate optimisation (CRO).<h2>What’s your conversion rate?</h2>The first step to driving more sales is to identify your current conversion rate. The formula for this is simple: Conversion Rate = Total Number of Conversions / Total Number of Sessions x 100For example, let’s say that 200 sessions resulted in 10 orders. The equation for your conversion rate is: 10/200 x 100 = 5%<h2>What’s a good conversion rate?</h2>Conversion rates vary dramatically between industries, marketing channels and even countries. However, the average conversion rate across all industries generally ranges from<a href="https://www.invespcro.com/blog/the-average-website-conversion-rate-by-industry/" rel="noopener noreferrer" target="_blank" style="color: rgb(34, 34, 34); background-color: transparent;"> </a><a href="https://www.invespcro.com/blog/the-average-website-conversion-rate-by-industry/" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 255); background-color: transparent;">2.5</a> to<a href="https://www.ruleranalytics.com/blog/insight/conversion-rate-by-industry/" rel="noopener noreferrer" target="_blank" style="color: rgb(34, 34, 34); background-color: transparent;"> </a><a href="https://www.ruleranalytics.com/blog/insight/conversion-rate-by-industry/" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 255); background-color: transparent;">4 per cent.</a>Here’s what high-converting websites do differently:<h3>1. They have great navigation</h3>When customers land on your homepage, it’s crucial that they can find what they’re looking for quickly.Your website should feature easy-to-use, intuitive navigation and clear information architecture (or hierarchy) so that all products are only ever a few clicks away from the homepage. If you have thousands of products, consider featuring a search bar prominently so your customers can navigate directly to the product they want, rather than trawling through categories.And keep it simple: rotating banners, flashing graphics and video might look impressive, but if they distract from the purchasing process, they could be costing you sales.Global retailer<a href="https://www.asos.com/au/women/" rel="noopener noreferrer" target="_blank" style="color: rgb(34, 34, 34); background-color: transparent;"> </a><a href="https://www.asos.com/au/women/" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: transparent;">ASOS</a> creates a superior customer experience through well-designed navigation – despite having many thousands of products.&nbsp;“[On ASOS] important pages are no more than two clicks away, discounts are displayed clearly incentivising purchasing, and there are almost unlimited filters to find exactly what you need,” says<a href="https://www.seoworks.co.uk/" rel="noopener noreferrer" target="_blank" style="color: rgb(34, 34, 34); background-color: transparent;"> </a><a href="https://www.seoworks.co.uk/" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: transparent;">SEO Works</a> team leader Bradley Webster. “ASOS’s URL structure also adopts an approach that reflects the site hierarchy, having folders for previous categories e.g. /mens/shirts/check-shirts/.”<h3>2. They load fast</h3>Every second counts when it comes to increasing website conversions – in fact, every millisecond counts.&nbsp;Decreasing mobile site load times by just 0.1 of a second lead to an 8.4% increase in conversions with retail consumers, according to Google-commissioned study<a href="https://www2.deloitte.com/content/dam/Deloitte/ie/Documents/Consulting/Milliseconds_Make_Millions_report.pdf" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 0); background-color: rgb(255, 255, 255);"> </a><a href="https://www2.deloitte.com/content/dam/Deloitte/ie/Documents/Consulting/Milliseconds_Make_Millions_report.pdf" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: rgb(255, 255, 255);">Milliseconds Make Millions</a>.“Customers’ attention spans are continuously shortening, and they want answers to their queries quicker and more efficiently. And with customers often opening several tabs to compare prices, products, etc. if your page doesn’t load instantly it may be dismissed completely,” says Webster.“You want to aim to get your Largest Contentful Paint (LCP) under 2.5s for a good user experience” advises Webster.<h4>How to improve your site speed load time:</h4><ul><li>Compress images and text&nbsp;</li><li>Lower average page weight to be less than 500KB&nbsp;</li><li>Lower average request count to fewer than 50&nbsp;</li><li>Implement lazy loading (also known as ‘on-demand loading’) so you only load the relevant parts when needed&nbsp;</li><li>Consolidate CSS and Javascript files and code&nbsp;</li><li>Preload fonts&nbsp;</li><li>Minify CSS, Javascript and third party scripts (third party scripts often bump up your load time)</li></ul>To determine your page speed:<a href="https://www.thinkwithgoogle.com/feature/testmysite/" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 0); background-color: rgb(255, 255, 255);"> </a><a href="https://www.thinkwithgoogle.com/feature/testmysite/" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: rgb(255, 255, 255);">test your site</a> and<a href="https://web.dev/measure/" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 0); background-color: rgb(255, 255, 255);"> </a><a href="https://web.dev/measure/" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: rgb(255, 255, 255);">get an individualised improvement report</a> for your developers.&nbsp;<h2>3. They make checkout easy&nbsp;&nbsp;&nbsp;</h2>Shoppers are most sensitive to speed when moving from product pages to cart, according to the<a href="https://www2.deloitte.com/content/dam/Deloitte/ie/Documents/Consulting/Milliseconds_Make_Millions_report.pdf" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 0); background-color: transparent;"> </a><a href="https://www2.deloitte.com/content/dam/Deloitte/ie/Documents/Consulting/Milliseconds_Make_Millions_report.pdf" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: transparent;">Milliseconds Make Millions</a> report. This means that your checkout pages need to load quickly and the payment process should be painless.&nbsp;&nbsp;“There is one thing a retailer should focus on – simplicity. Users want a quick and easy checkout process,” explains Reed. “Slow site speed and complicated checkout processes will cause huge drops in conversion rates – people will leave for another site that is easy to use.”&nbsp;<h3>Reduce friction at checkout by:</h3><ul><li>Asking only for necessary information</li><li>Offering guest checkout (without having to create a customer profile)</li><li>Allowing customers to auto-fill details such as name and address</li><li>Offering Afterpay</li><li>Ensuring checkout works well on mobile</li></ul><a href="https://www.adidas.com/us/delivery" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: transparent;">Adidas</a> is a great example of a checkout process that’s simple, fast and painless and works well on mobile.<h3>4. They are mobile-optimised with responsive design</h3>M-commerce (mobile commerce) has been on the rise for years, and it’s predicted that the number of consumers shopping via their mobile phone will double by 2025, when it will account for more than <a href="https://www.insiderintelligence.com/insights/mobile-commerce-shopping-trends-stats/#:~:text=Retail%20mcommerce%20sales%20hit%20%24359.32,ecommerce%20sales%20in%20the%20US." rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: rgb(255, 255, 255);">four in 10 US purchases by 2025</a>.&nbsp;That’s is why mobile-first website design – where we pages are designed with mobile phone users, rather than desktop viewers, in mind - is no longer optional, but imperative.“Making sure the layout is optimised for each device is important,” explains<a href="https://arken.digital/" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 0); background-color: rgb(255, 255, 255);"> </a><a href="https://arken.digital/" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: rgb(255, 255, 255);">Arken Digital</a> managing director Richard Kennedy.This means keeping design elements and navigation simple, prioritising key information and avoiding disruptive pop-ups.Take global beauty retailer<a href="https://www.sephora.com.au/" rel="noopener noreferrer" target="_blank" style="color: rgb(34, 34, 34); background-color: rgb(255, 255, 255);"> </a><a href="https://www.sephora.com.au/" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: rgb(255, 255, 255);">Sephora</a>, which is optimised for mobile, with easy access to search, simple, drop-down menus and fast load times.&nbsp;<h3>5. They offer social proof</h3>Nine out of 10 customers read reviews before buying a product, according to TrustPilot, which is why featuring reviews, testimonials, badges and ratings on your site is such an effective way to drive conversions. There are a range of social proof tools available to e-commerce retailers, which pull in live reviews and ratings, such as Yotpo, Fomo and TrustPulse.Another way to build social proof? Highlight any mentions – from reviews to inclusions and founder interviews - in major media outlets.Beauty brand<a href="https://www.bangnbody.com/" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 0); background-color: rgb(255, 255, 255);"> </a><a href="https://www.bangnbody.com/" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: rgb(255, 255, 255);">Bangn Body</a> has thousands of reviews on their products, as well as award badges.<h3>6. They cross-sell</h3>Cross-selling is a tactic that’s often employed in brick-and-mortar stores, where sales staff will suggest other, related items to purchase. Today, cross-selling can be employed online, too, with “suggested products” or suggestions of “frequently bought together” items.Cross-selling usually works best on the product pages or at checkout and when related products are shown with clear, enticing visuals. There are a range of widgets and tools, such as<a href="https://www.rokt.com/" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 0); background-color: rgb(255, 255, 255);"> </a><a href="https://www.rokt.com/" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 255); background-color: rgb(255, 255, 255);">Rokt</a>, that employ artificial intelligence to suggest product recommendations.Webster also suggests using a sense of urgency to encourage conversions. “Suggesting products that you may like, having information such as ‘Selling fast!’; ‘Only 1 left’; and ‘3 people have it in their baskets’ to encourage conversions, and displaying similar categories.”<h3>A final tip on conversion optimisation</h3>Struggling to understand what’s impacting conversion rates? “Look at<a href="https://support.google.com/analytics/answer/2785577?hl=en#zippy=%2Cin-this-article" rel="noopener noreferrer" target="_blank" style="color: rgb(34, 34, 34); background-color: rgb(255, 255, 255);"> </a><a href="https://support.google.com/analytics/answer/2785577?hl=en#zippy=%2Cin-this-article" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: rgb(255, 255, 255);">Behaviour Flow in Google Analytics</a> to analyse where users are dropping off,” says Webster. “Or consider CRO software such as<a href="https://www.hotjar.com/" rel="noopener noreferrer" target="_blank" style="color: rgb(34, 34, 34); background-color: rgb(255, 255, 255);"> </a><a href="https://www.hotjar.com/" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: rgb(255, 255, 255);">Hotjar</a> to see heatmaps of your users' interactions on the site.”

Six tips and tweaks to boost conversion - and create a website that sells more products.

Want to boost conversion optimisation? Discover five tips and tweaks to help you create a website that sells more products

Conversion optimisation tips: what high-converting websites do differently 

What high-converting websites do differently 

A small business owner's guide to taking your business to the next level

If there’s one thing that all small business owners have in common, it’s a desire to be more profitable.But while the path to more profit might seem straight-forward – simply sell more products – the reality is much more nuanced.Pricing strategy, marketing costs and average order value are just some of the factors that can influence profitability. The trick is knowing which levers to pull - and when.

<h2>Identifying ways to grow profit</h2>For Nicole Banning, the founder of swimwear brand&nbsp;<a href="https://www.ephemeralive.com/" rel="noopener noreferrer" target="_blank">Ephemera</a>, “tweaking a few levers” saw profits surge in 2020.“It was never something I would have done it if not for Covid-19,” admits Banning, saying that the looming pandemic forced her to re-examine her entire business model. “At the time, we had no idea if wholesalers would be buying in the coming season. We didn’t know if people would be buying swimwear at all.”After looking at the numbers, Banning decided to skip the forthcoming wholesale season and instead concentrate on higher-margin, direct-to-consumer sales, while also focusing only on bestselling styles. “It’s that principle that 80 per cent of your business comes from 20 per cent of your products or clients,” she continues, explaining that focusing on bestsellers meant reducing wastage, and cutting costs.

“It’s that principle that 80 per cent of your business comes from 20 per cent of your products or clients”

The result? The brand’s net profit margin increased by 100 per cent. “My business is making more money – more profit – with half the revenue,” says Banning, who adds that it’s easy for business owners to get caught up in the wrong metrics – like revenue or sales, rather than profit. “[At Ephemera] we believe in sustainable growth and the mantra of 'Revenue is vanity, profit is sanity, and <a href="https://www.afterpay.com/en-AU/business/access/boosting-profitability/cashflow-management-tools" rel="noopener noreferrer" target="_blank">cash flow</a> is king'.”

Every business is differentWhen trying to boost profits, it’s important that business owners consider their own unique business model. Just ask Irene Falcone, the founder of natural wellness e-tailer&nbsp;<a href="https://www.nourishedlife.com.au/" rel="noopener noreferrer" target="_blank">Nourished Life</a>.Falcone sold Nourished Life for $20m in 2017, but when it came time to launch her next business, non-alcoholic drinks e-tailer&nbsp;<a href="https://sansdrinks.com.au/" rel="noopener noreferrer" target="_blank">Sans Drinks</a>, she soon realised that she couldn’t simply repeat the strategies she’d used at Nourished Life. “In terms of replicating my blueprint for how to be profitable, I had a lot of things against me in a new industry.”In the drinks industry, Falcone quickly realised that margins were much lower than in beauty – partly because the products are heavier and cost more to ship. Drinks are also sold at restaurants and bars, as well as online, which changes the business model – and profit margins.

Nevertheless, there are certain tactics that Falcone and other experts agree can drive profitability in all businesses.

<h3>1.&nbsp;Cut costs</h3>While every business wants to sell more goods or services, cutting back on certain expenses is one simple way to increase profits – even if it means focusing on small cuts at a time.Falcone saves money by reusing the boxes that her products are shipped in for customers’ pick-up orders and storage. “It might only be [saving] $50 a week – but that’s $50, times 52 weeks a year.”Falcone adds that cutting wasteful spending can also offer environmental benefits. For example, she has replaced plastic tasting cups with crystal glasses - saving money, reducing waste and providing a better customer experience.Tip:&nbsp;How can you cut expenses? Can you renegotiate supplier rates or contracts? Audit your accounts to identify overspending, and possible ways to cut costs.

<h3>2.&nbsp;Identify top performing products or services</h3>If you run a small business, do you know what your conversion rates are, how many leads you are getting each month and what the margin is on each sale?Andrew Mattner, director at<a href="https://www.altitudeadvisory.com.au/" rel="noopener noreferrer" target="_blank">&nbsp;Altitude Advisory</a>, says many small business owners resort to “making stuff up”.“If you don’t know your data, then you can’t improve it.” Once you know which products and services generate the most profit, you can focus your attention on them.

“If you don’t know your data, then you can’t improve it.”

Tip:&nbsp;Undertake an audit of your sales data to identify top performers – as well as products or services that aren’t selling and are tying up <a href="https://www.afterpay.com/en-AU/business/access/boosting-profitability/cashflow-management-tools" rel="noopener noreferrer" target="_blank">cashflow</a>.

<h3>3.&nbsp;Identify your value proposition – and set prices accordingly</h3>Forget <a href="https://www.afterpay.com/en-AU/business/access/smarter-discounting/retail-discount-strategy" rel="noopener noreferrer" target="_blank">discounting</a> products says Mattner, adding that it is a flawed strategy that should only be used to clear slow-moving or dead stock that’s chewing up cash flow.Instead, he recommends small businesses focus on their value proposition, which should be well communicated via marketing. What does your business have that sets you apart – is it exceptional customer service, a fantastic product or something exclusive? “If you’re not competing just on price, then don’t fight on price.”&nbsp;Tip:&nbsp;Ask yourself if your pricing is correct? If you’re not the cheapest in the market, are you adequately conveying your value to customers?

<h3>4.&nbsp;Focus on retaining customers</h3>It’s an oft-quoted fact that it costs more to attract a new customer than to retain an existing one, with experts estimating that recruiting new customers is&nbsp;<a href="https://www.invespcro.com/blog/customer-acquisition-retention/" rel="noopener noreferrer" target="_blank">five</a>&nbsp;to 10 times more expensive.&nbsp;&nbsp;Falcone agrees. “I believe that the best way to make a profit is to retain a customer and not have to start again.” That’s why she invests in retaining customers and driving repeat business by offering the smoothest, fastest experience. She dispatches deliveries multiple times every day, gives every customer her mobile number in case something goes wrong. “I will be able to fix that problem in 30 seconds.”Tip:&nbsp;Understand why customers leave, and focus on ways to keep them coming back, whether through a loyalty scheme or excellent customer service

For more ways to boost small business profitability read:<a href="https://www.afterpay.com/en-AU/business/articles/boosting-profitability/common-money-mistakes" rel="noopener noreferrer" target="_blank">3 money mistakes that small businesses make</a><a href="https://www.afterpay.com/en-AU/business/articles/boosting-profitability/profit-margin" rel="noopener noreferrer" target="_blank">How to calculate your profit margin – and why it’s important</a>

Download your free glossary of financial terms

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Want to grow your business Here are four ways to boost profits now.

Want to grow your business Here are four ways to boost profits now

How to increase profits in your small business | Afterpay Access

How your small businesses can be more profitable

Your profit margin tells a story about your business’ health. Here’s how to work it out – and avoid common mistakes 

Whether you’re Amazon, Alibaba, or running an organic skincare business from your home office, you need to be clear about your profit margin at all times because it’s a fundamental indicator of business performance.

<h2>What is profit margin?</h2>Profit margin is the percentage of every dollar you keep from each sale.&nbsp;As MYOB CFO Caroline Rawlinson explains, “Profit margin is calculated by dividing your business’ net income by your revenue, then multiplying by 100.”So, in other words, if your revenue was $100,000 and the cost of your product was $70,000, then your gross profit margin would be 30 per cent.&nbsp;

“Important investment and operational decisions should be made based on profit margins, so ensuring it is accurately calculated is vital,”

<h2>How do you monitor your profit margin?</h2>Producing a monthly profit and loss statement (a ‘P&amp;L’) is a key part of monitoring profit margins.&nbsp;Most modern accounting software packages can do this for you and are relatively inexpensive and easy to use. Or you can visit<a href="https://business.gov.au/finance/accounting/how-to-set-up-a-profit-and-loss-statement" rel="noopener noreferrer" target="_blank">&nbsp;business.gov.au</a>&nbsp;to download a template and create your own.“Take time each day to keep your records up to date so your profit and loss statement is accurate. Think about it as your daily banking – an essential administration task that must be done,” says Richard Harling, a senior retail consultant at Retail Life.

<h2>What is a good profit margin?&nbsp;</h2>In short, it depends on your industry.<a href="https://corp.vendcdn.com/Vend-Files/Vends-Retail-Benchmarks-Guide-2019.pdf" rel="noopener noreferrer" target="_blank">Vend</a>&nbsp;reports that the average Australian retailers’ gross profit margin (their profit margin before expenses) was 53.3 per cent in 2019. However, net profit margins for US retailers generally sit<a href="http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/margin.html" rel="noopener noreferrer" target="_blank">&nbsp;below 10 per cent</a>. Some US industries have much higher margins;<a href="http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/margin.html" rel="noopener noreferrer" target="_blank">&nbsp;alcoholic beverages</a>&nbsp;can command net profit margins of more than 20 per cent, while<a href="http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/margin.html" rel="noopener noreferrer" target="_blank">&nbsp;healthcare technology businesses</a>&nbsp;deliver around 13 per cent net profit margins.To find out how your profit margin is tracking against your competition, it’s helpful to find out your industry benchmark. A good place to start is with the<a href="https://www.ato.gov.au/Business/Small-business-benchmarks/" rel="noopener noreferrer" target="_blank">&nbsp;ATO’s Small Business performance check</a>.

<h2>Want to improve your profit margin?</h2>Read Afterpay Access stories about how to boost your business’ profitability and the three money mistakes small businesses often make.

<h2>And lastly, don’t make these four mistakes when it comes to calculating your profit margin...</h2>

Not having a full picture of where your money is going:&nbsp;“The most common mistake – especially for anyone new to business financials – is not including items such as depreciation and interest in expenses. This makes profit artificially high.” Rawlinson points out.&nbsp;

Not paying yourself a wage&nbsp;“Some owners don’t cost their own labour but you have to include this when calculating your overall business expenses,” Rawlinson says.

Incorrectly pricing goods and services&nbsp;“Knowing your profit margins will help you clarify what margins to place on your goods and services so you make a profit,” Harling states.

Lack of processes&nbsp;“When a business is starting out there is often a misconception that setting up proper accounting or business systems isn’t worth the time, cost or effort, but doing so is a&nbsp;great way to set it up for long term success,” Rawlinson adds.&nbsp;

Download your profit margin glossary below:

The information in this article is general information only.&nbsp;It should not be taken as constituting professional advice.&nbsp;Afterpay is not a financial advisor.&nbsp;You should consider seeking independent legal, financial, taxation or other advice to check how the article information relates to your unique circumstances.

Afterpay is not liable for any loss causes, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly by use of this article.&nbsp;

Your profit margin tells a story about your business’ health. Here’s how to work it out – and avoid common mistakes.