• Business Growth & Optimisation

6 Business Mistakes You Don’t Need to Learn the Hard Way

5 min. read23.04.2021
By Team Zeller

Managing a successful business is incredibly rewarding, but it takes careful planning, industry understanding and the awareness to avoid common missteps along the way.

There’s a reason the word “risky” is so often coupled with “business”. The Cambridge Dictionary defines “risky business” as something that involves risk or the chance of failure. In a commercial sense, every new venture will come with some form of risk.

Some risks — such as those posed by evolving commercial landscapes and fluctuating industry factors — can be difficult to prepare for. Others, however, can be avoided with careful planning at the early stages of your business journey.

Keep reading to discover six of the biggest business mistakes it pays to avoid in the early days.

1. Not having a business plan

The old proverb — fail to prepare, and you’re preparing to fail — rings true. The biggest mistake new business owners make is not writing a business plan.

Starting a business is no small feat. There’s a lot of preparation work you’ll need to do, but having a business plan will help you hit the ground running as soon as possible. Taking the time to lay out your business’s mission, competitors, and key objectives, amongst other things, also gives you something to reference when the pace kicks up another gear.

Even if your business is an established entity, it pays to have one in place for a multitude of reasons. It can help forge your business direction, for example, giving you a clearer path towards the next level of growth. It can also give you greater control over your business by empowering you with a more thorough understanding of the different forces and factors that will sway your success, indicating areas for improvement and opportunity.

Follow the steps in our How to Write a Business Plan: A Step-by-Step Guide blog to get started.

2. Giving little thought to your tools

A trap that business owners fall victim to time and time again is selecting the wrong tools for the job. One of the most expensive missteps, when it comes to tooling, is choosing a merchant services provider with hidden fees — specifically, terminal rental fees.

What appears to be an affordable option on the surface may be weighed down by hidden fees.

When it comes to choosing an EFTPOS payment terminal, do your research and do it thoroughly. Hidden fees add up over time, and can cost your business far more than anticipated.

When comparing terminal options, make sure to also consider the cost of contract termination fees that could catch you out further down the track. If you can’t find them listed on the website, always confirm with the operator before signing on the dotted line. You’ll save yourself time and money in the long run.

We don’t believe in hidden charges or expensive monthly rental fees. That’s why Zeller Terminal is yours to keep for a one-off payment of $299.

3. Mis-naming your payment terminal

Something as simple as giving little thought to the name of your EFTPOS terminal could have costly consequences for your business down the line. This is because the terminal name will show up on your customers’ credit card statements, and if it doesn’t match the business name on their statement, it could earn ‘unrecognised transaction’ status, leading to increased chargeback requests.

Not only will this compromise your business’ credibility by creating confusion for your customers, but dealing with chargeback requests could chew into valuable time that could otherwise be spent managing and growing your business.

Has your business encountered recent customer chargebacks? Learn how to minimise them.

4. Not understanding your fees

As most SME owners can appreciate, every dollar counts when it comes to running a business. However, many still accept excessive bank account administration fees as ‘standard’ — simply because they don’t know any different. The reality is that there are countless ways and means of minimising these fees, the trick is knowing how.

Firstly, you should shop around for the best business account, comparing factors such as monthly account fees, rates and fees for processing, transaction and deposit limits, and card charges.

The next step is to understand the ways in which you can further minimise costs. This could include linking your accounts, bundling features and services, setting low-balance alerts, meeting minimum spend amounts, and exploring other perks that could provide future value to your or your business.

Business banking shouldn’t be expensive. In fact, there are even fee-free business accounts these days that can help keep more money in your back pocket.

5. Rejecting modern forms of payment

Some business owners are still under the impression that accepting more forms of payment creates more hassle — largely due to added processing fees and the need for additional hardware or software — when in reality it actually opens your business up to greater opportunities.

As more payment options become available, the way customers make purchases will continue to evolve. We’ve already experienced the shift away from hard currency and cheques to credit and debit cards, as well as the introduction of contactless payments and newer alternatives such as Alipay and Zip Pay. If businesses don’t support these developments by diversifying their payment offerings, they run the risk of losing sales and customers to businesses who have embraced modern methods of payment.

Possible consequences of not diversifying include losing existing customers who upgrade their payment preferences, losing out on new customers whose payment preferences don’t align with your offerings, stagnant cash flow due to reliance on fewer payment methods that may take days to settle, and higher overhead costs as a result of not adopting free or lower-cost options.

6. Being burdened by complicated technology

While it’s true that technology is indeed advancing, that doesn’t necessarily mean all modern technology is intuitive and easy to use. Take your payment terminal for example; precious time and money can be wasted on tedious tasks such as setup, installation, updates, wireless connectivity issues, and payment processing problems, if you choose a provider that has prioritised cost-cutting over functionality and ease of use.

To avoid wasting valuable resources, both in terms of time and money, ensure you research your options. Ideally, you’re after a payment system that is not only affordable but also intuitive, straightforward, and easy to install. And in a perfect world, every component of your payment system – terminal, software, accounts, and cards – operate seamlessly together, empowering you with a complete payments solution.

Suffice to say, business is a fast-moving beast and if you’re equipped with the know-how to navigate those early days when setup and management can seem overwhelming, you can avoid costly mistakes like the ones above. Which means you have everything to gain from staying informed about the commercial world.

You’ve already learned how to avoid common business blunders, now it’s simply a matter of building on that knowledge to help grow your own enterprise. Sign up to our Business Blog for more tips to maximise your business’ potential.

Understanding Chargebacks: A Guide for Australian Businesses

At best, chargebacks are frustrating. At worst, they are costly disruptions that can harm your bottom line. Understanding why chargebacks occur – whether legitimate or fraudulent – is key in helping you prevent them. Read on to discover everything you need to know about chargebacks, and the necessary steps you can take to avoid them. What is a chargeback? A chargeback is a form of customer protection that allows them to file a dispute against a merchant, with the aim of having a charge returned to their card. In the simplest terms, it is a type of payment dispute that results in a refund. However, instead of your business providing a refund directly to the customer, the customer’s bank reverses the charge, removing money from your bank account and placing it back with the customer. Effectively, a customer can get money back without your agreement, or even involvement. Chargebacks are a way to ensure customers are protected against dishonest or fraudulent businesses, however, they can also be exploited by dishonest customers or criminals using stolen credit card information to pay for goods or services. How do chargebacks work? When a customer requests a chargeback from their bank, the bank investigates the issue by contacting the vendor business. If the business is unable to provide adequate evidence that the product or service was in fact provided as promised, the bank will reverse the charge on the customer’s credit card. Usually, the chargeback process goes as follows: The cardholder notices a transaction that they believe is unauthorised, fraudulent, or erroneous and contacts their bank or credit card company to dispute the charge and request a chargeback. The card issuer investigates the dispute by requesting additional information such as receipts, order confirmations, shipping details, or any communication between the cardholder and the merchant. If the card issuer determines that the cardholder's claim is valid, they proceed with the chargeback process. The disputed charge is then debited from the merchant’s account and is credited back to the cardholder’s account. The merchant is notified of the chargeback and may be given the opportunity to respond and provide additional evidence to dispute it if they believe the chargeback is unwarranted. If the chargeback is upheld, the merchant loses the disputed funds, and they may also incur a chargeback fee. The impact of chargebacks on businesses. Not only are chargebacks a source of anxiety for merchants, but their cost to your business is actually much greater than just the revenue of the sale. Chargeback fees Chargeback fees are fees imposed on merchants by banks or payment processors to cover the costs associated with processing chargebacks. When a chargeback occurs, the merchant may be charged a fee, regardless of whether the chargeback is ultimately resolved in their favour or not. In Australia, chargeback fees range from around $25 to $40 per chargeback. Lost merchandise In the situation where a cardholder receives a product, and initiates a chargeback process, the cardholder is usually obligated to return the merchandise, however this is not guaranteed. If the merchant loses a chargeback in addition to forfeiting the product, the cost to their business is doubled as they cannot resell it or recoup its value. Operational and marketing costs Whether you’re selling a product or a service, a lot of work happens before it reaches the customer. From packing and shipping to managing inventory and staff, countless hours are spent preparing the customer’s final product, and time is money. What’s more, a sale doesn’t always come for free. Money spent on marketing also disappears every time a charge is reversed. 6 common reasons for chargebacks and how to avoid them. 1. Unmet expectations If the item or service that a customer pays for is defective or not as described, they can request a chargeback. How to avoid this kind of chargeback: Ensure all product descriptions – whether on a website or in store – are accurate; Use photography that clearly and accurately shows the product; Publish accurate size guides, if selling online; Carefully check products for defects before sending them out for delivery. 2. Onerous or unclear returns policy If a customer cannot find your returns policy, or if the policy is unclear, they can request a chargeback. How to avoid this kind of chargeback: Make your returns policy clear and straightforward; Ensure your returns policy is visible on your receipt, website, and in-store; Make it easy to contact your business by publishing a customer service phone number or email address on your website and receipt. Learn how to customise your receipts with Zeller here . 3. Unrecognisable business name If a customer sees an unfamiliar name on their credit card statement, they may request a chargeback. How to avoid this kind of chargeback: Ensure your business name is clearly and consistently written across your website, receipts, marketing material, and in-store; Check that how your business name appears on bank statements is clear and up to date. Learn how to change how your business name appears on their bank statements here. 4. Inefficient service or delivery If a customer’s product takes much longer to arrive than anticipated, or if a service takes longer than expected, they may request a chargeback . How to avoid this kind of chargeback: Where possible, provide tracking information for shipments and send updates if there are any delays or issues with the order; For high-value items, request a signature upon delivery; Ensure that all terms of service and delivery timelines are clearly communicated to customers, both on your website and in any confirmation material you send them; Offer prompt and responsive customer support Keep detailed records of any communication with your customers or shipping documentation, which could be used as evidence in the case a charge is disputed 5. Chargeback fraud If a dishonest customer wants to avoid paying, while still keeping the purchased goods or services, they might falsely claim that the transaction was unauthorised and request a chargeback. This is what is known as chargeback fraud. To avoid this kind of chargeback, it’s important to have a process for documenting evidence that your agreed upon product or service was provided. How to avoid this kind of chargeback: Take a photo of your goods in their packaging before they are sent. If providing a service, ensure to take photos or screenshots of the finished work. Ensure your customer signs a contract upon completion of any work. Provide your customer with clear, itemised receipts. If the product is being shipped, provide tracking details and request the customer’s signature 6. Stolen card information If a criminal uses stolen payment information to make an unauthorised purchase, the legitimate cardholder may discover the transaction on their statement, and initiate a chargeback. How to avoid this kind of chargeback: Wherever possible, encourage customers to pay in person rather than over the phone. Fraud rates are considerably lower with card-present transactions compared to card-not-present transactions. When you do have to process over-the-phone payments (otherwise known as  MOTO payments ), we recommend requesting extra details to help ensure the person making the payment is in fact the legal cardholder, such as their full name, billing address, and some form of ID. If the product is being shipped, provide tracking details and request the customer’s signature (especially if payment has been made by MOTO). Consider taking payment via  Zeller Virtual Termina l or  Zeller Invoices , which incorporate an additional layer of security (3DS), which asks customers to verify the payment via their banking app. How and when to file a chargeback dispute. If someone requests a chargeback from your business, the cardholder’s bank or credit card company (acquirer) will notify you. From there, you’ll have the option to challenge the chargeback. This is called a chargeback dispute. After being notified of a chargeback, you will be given a deadline before which you can dispute the claim. Timeframes will vary from one acquirer to the next, but on average the deadline is between 10 and 30 days from the time you are notified. If you miss the deadline, you will automatically lose the chargeback dispute. When you are notified about a chargeback, you will be given a reason for the dispute, such as, the customer did not receive their goods or that the item was defective. If you choose to challenge the chargeback, it’s essential that you compile evidence that directly addresses the chargeback reason. For example, if the reason indicates that the customer didn’t receive the item, you should submit any delivery information you have that supports the claim that they did indeed receive the item. Without sufficient evidence, banks are almost always going to side with the customer. How are chargebacks managed at Zeller? No chargeback fees. Unlike other financial service providers, Zeller will not charge your business additional chargeback fees, and our dedicated Account Services team will work with you to compile information to help you defend the chargeback, too. 3D secure authentication.  When you accept payments with  Zeller Invoices  or  Pay by Link , merchants are provided with an additional layer of protection to deter unauthorised card use. 3D Secure (also known as 3DS) authentication may prompt the cardholder to enter a one-time passcode or a similar authentication step on their banking app in order to proceed with the payment. 24/7 transaction monitoring. When you accept payments with Zeller, you’re not alone. Behind every transaction is a team of anti-fraud experts and 24/7 monitoring that – in addition to the best practices outlined above – will reduce your risk of chargebacks. You can transact with confidence knowing that our dedicated team works hand-in-hand with advanced tools to successfully identify and act on suspicious activity. Chargeback dispute support. In the event that a chargeback does occur, our payment disputes team is here to support you. We will deal with the bank to help save you hours on the phone, and we will not charge you a fee. Plus, if you’re ever unsure, you can contact our support team from 9AM to 1AM, Australian Eastern Time, and you can read more about how Zeller keeps your business safe here.

What to Look for When Choosing a Free Business Account

Learn how Zeller Transaction Account compares to traditional business banks in Australia. Keeping accurate financial records is essential to running a business, and it all starts with a business bank account. However, navigating the muddy waters of bank jargon and fee structures is no easy task. To help make the decision easier for small business owners, we’ve compared the best business banking accounts in Australia, and weighed them up against Zeller, a smarter and more affordable non-bank alternative to your traditional business bank. Read on to discover why you need to open a business bank account, what factors you need to consider, and why an alternative financial services solution like Zeller could be the better choice for your small business. Bank accounts for Australian small businesses Every bank and financial services provider has its own approach to offering business transaction accounts and structuring the fees that come with them. Some have a wide range of add-on services that can be very valuable to the right business, but come at an additional cost. Others require fees simply for continued access and use, without any added benefits. Identifying what’s relevant and useful to your particular business will not only keep costs low, but ensure you are getting the maximum value from the service. Business bank account comparison table To help you find your way through the weeds, we’ve aggregated the fee structures and features of business bank accounts from six major Australian banks — Westpac , CommBank , NAB , ANZ , Suncorp and Bendigo Bank — and compared them to the Zeller Transaction Account in one simple comparison table. Simply select the two banks you would like to compare from the drop-down menu, and scroll down to compare all the different criteria you should consider when choosing a business bank account. What is a business bank account? A business bank account is a specialised bank account designed specifically for the needs of businesses. It is used to manage the financial transactions of a company, such as paying bills, receiving payments from customers, and managing payroll. Business bank accounts can be opened at most banks and financial institutions, and are typically offered in a variety of account types to suit the different needs of both large and small businesses. Why do you need a business bank account? Whether you’re planning a medium-sized enterprise or starting out as a sole trader, any business venture requires separating your personal and business finances. For businesses structured as a partnership, company or a trust, having a business bank account is a legal requirement for tax purposes; For sole traders, a business bank account is not required under Australian law, but is strongly recommended. Separating business from pleasure in your bank accounts makes reconciliation for bookkeeping and tax considerably easier, professional and legitimate. Additional benefits include: Clear cash flow Centralising business revenue and expenses with one institution gives you a clear view of your cash flow, to ensue the financial health of your business. Loan documentation Lenders often require documentation that proves the business is operational, and a business bank account statement can help provide that proof. Brand perception Your business name will appear on invoices and payment paperwork, helping to create a more professional, trustworthy perception with your customers. Is there an alternative to a traditional bank? Yes, business owners nowadays can access a wide range of non-bank financial services solutions, as an alternative to their traditional business bank. Additionally, you should also re-consider the value you can get from an alternative to the traditional business bank — rather than just an account to store money in, many new providers offer an array of powerful business banking features. When comparing business banks, look for solutions that include features such as instant sub-account creation, the ability to issue virtual and physical business debit cards in a click, real-time fund transfers, a dedicated business banking mobile app, transaction tagging and reporting, integrations with your accounting software, customer-level tagging and relationship management reports,  and more. If you’re considering a non-bank alternative to your traditional provider, sign up for a free Zeller Transaction Account to review all of the features and functionality included that you may never get from a regular business bank. Zeller's financial solution Zeller is a popular Australian alternative to the traditional, outdated business bank, that offers business owners a complete financial services solution with free Transaction Accounts , Business Debit Cards , an EFTPOS Machine , invoicing software , and more, all available from one convenient and free account. If you require a way to store, manage and spend your business funds, and accept electronic payments, but have no need to visit a bank branch, a non-bank such as Zeller is a very compelling choice. With Zeller: Whether you’re paid by card or funds transfer, access to your funds is generally quicker than traditional banks, which often use legacy technology and complex internal processes. You can create multiple accounts and debit cards at the click of a button. Fund transfers are made in real-time. A powerful web portal and leading edge mobile app allow you to send and receive funds transfers, and work with your transaction accounts, debit cards, and real-time card sales. Contacts can be assigned to transactions, and you can add notes and images to transactions, to simplify reconciliation. Everything is consolidated in one, easy-to-use platform: from your EFTPOS payments to transfers, settlements and expenses. You can even write, send and track invoices in your Zeller account. Your Transaction Account can be synced with Xero’s Bank Feeds Integration, for seamless bookkeeping reconciliation A fee-free small business account with no paperwork, no need to visit a branch, and the ability to open sub-accounts and issue debit cards with a click: Zeller is the smarter non-bank alternative to your traditional business bank. Sign up for a free Transaction Account. Your fee-free merchant account is ready to use in minutes — no lengthy paperwork required. Sign up online now How do you open a business bank account? With the major banks, opening a business bank account will depend largely on what kind of business you are running and whether or not you are already a business customer. Depending on what camp you sit in will determine whether you can open an account online or whether you’ll need to go into a branch. As Zeller is an entirely online financial services provider, all customers — no matter the business structure — can open an account online in a matter of minutes. Whichever institution you choose, opening an account will require you to provide: A business name A primary business address An Australian Business Number (if applicable) An industry type Certified identification documents (such as passport or driver’s licence) for all owners or partners Additional documents may be required if your business operates under a particular structure such as a trust, cooperative or association To see specific requirements of each bank, check the comparison table and scroll down to “How to Apply” or visit the bank’s website. Or, if you're looking for a smarter, faster non-bank alternative, follow the prompts to sign up to Zeller for free here . Five things to consider when finding the best business bank account for your small business. 1. Fees, Transaction Limits & Staff-Assisted Transactions Depending on the option you choose, you could be spending as little as $0 or as much as $264 a year on business bank account fees. Beyond the account fee, be sure you understand all the fees associated with using your account – some of which can be hidden in the fine print. Certain accounts from ANZ and Bendigo Bank, for example, only offer a limited number of free electronic transactions per month, while staff-assisted transactions are capped at 20 to 30 per month for nearly all the major banks’ no fee business bank accounts. If you’re not careful, seemingly inexpensive plans can actually end up costing you more to use. To help you decide what you need, let’s break down some terminology: Electronic transactions are any type of transaction that is conducted with your computer, smartphone or other digital device. This could include transferring money between accounts, paying bills, shopping online, or using a debit card or mobile payment app, such as Apple Pay. Staff-assisted transactions are those that require you to go into a bank branch and speak with a teller; to deposit cash or collect change, for example. If you’re going to be making several electronic transactions each day, it’s worth doing the maths: two transactions per day at $0.40 per transaction (as is the case with Bendigo Bank’s no fee business bank account) will end up costing you $24 a month. Staff-assisted transactions can be as much as $3 each, when not included in your plan. If you need to collect change once a week, at a rate of $3 per transaction you’ll be paying $12 a month — more than the monthly fee for most accounts that offer this service for free. 2. Debit Cards All the best business accounts will include a debit card as part of their offer. This is the bare minimum requirement when opening a business account, and all of the options we compare in the table above do indeed provide one. Each will have slightly different features associated with it. While all banks will have maximum daily transaction and cash withdrawal limits for security purposes, most will allow you to increase these limits if you need to. If you’re likely to be withdrawing cash frequently from ATMs or making significant purchases, it’s important to note how much you can increase these limits by. Similarly, if you’re planning on using your business account to manage staff expenses, check the requirements for ordering additional debit cards. The big four banks — Westpac, Commbank, NAB and ANZ — all require that each additional cardholder is an account signatory. This is a potential deal breaker for any small business owner who just wants to give their staff members a card to purchase everyday items, without also giving them the authority to access and manage the whole bank account. Flexibility provided by Zeller Debit Card This is where Zeller has a much more flexible alternative to the traditional business banks. Within your Zeller Account, you can create as many Debit Cards as you like — one for each staff member, for example, which can each draw from a different Zeller Transaction Account. With Zeller’s no fee small business account, Debit Cards are free to create and can be virtual and instant, with the option of plastic cards. 3. Mobile Business Banking Apps How you use and interact with your business bank account will either be a seamless experience or an endless source of frustration. Rather than finding out the hard way, do a little research upfront to make sure the banking app and online platform are going to work for you. A great place to start is by looking at the reviews on the Apple App Store, at the time of writing*, the Zeller App on the App Store was rated the highest with 4.8 stars, while the CommBank Small Business app was the lowest with 2.1 stars. Most banks use the same app for both business and personal banking. Zeller, on the other hand, is a financial services provider solely for business, therefore the app is entirely tailored to what small business owners need. From the Zeller App you can create and manage accounts, issue new cards, build and review payment reports and transaction insights, and manage expenses — all with real-time business data. *Customer ratings on the Apple App Store as of 17 May 2023. 4. Reporting & Analytics Tools One of the most important ways of measuring the financial health of your business is to track your cash flow. When considering what business bank account to choose for your operation, you need to look into what tools and reporting the bank will offer you, because ultimately, these will inform important business decisions, such as: Committing to capital purchases such as a new coffee machine or vehicle When and at what level to roster staff on, and when to take a break If recent marketing has brought in more sales For owner-operators who are short on time, being able to gain these financial insights at a glance is essential. In this domain, the Zeller Business Transaction Account is second to none. From the dashboard on desktop or from the Zeller App , business owners can: Visualise their cash flow with real-time reports in a user-friendly interface Break down incoming and outgoing transfers Categorise and filter transactions by type, contact, date, amount and spend category Assign contacts and attach receipts or notes to transactions to know exactly where the money’s going and why. Your browser does not support the video tag. 5. Customer Support & Service A final and very important consideration when choosing a business bank account is the customer experience. Whether this is over the phone, on a mobile app, or in person at a physical branch, it’s important to choose a provider that is suited to your needs. If you’re leaning towards a bank and need the option of speaking to someone face-to-face, then make sure to look up where your closest branches are before signing up. If you prefer to manage all your finances online, make sure you like the user experience provided on the website or mobile app of your chosen provider. For day-to-day support, have a look at how robust their customer service platforms are including contact channels, customer assistance directories, and support articles — some will be much more comprehensive and easier to navigate than others. Where Zeller offers a considerable advantage over traditional business banking counterparts is its phone, SMS or email customer support (available 9AM to 1AM AET, 7 days a week) as well as 24 / 7 debit cardholder support. So, what’s the best business bank account? There’s no one-size-fits-all solution: every business is structured differently and every owner will prioritise different features. However, if you’re embracing the inevitable shift towards cashless transactions, Zeller’s financial ecosystem is very hard to beat on cost and functionality. Zeller is a non-bank alternative that has been designed for businesses, therefore every feature is tailored to the needs of business owners. To come to a final decision, weigh up all the considerations outlined in this article, consult the comparison table above, do your own research, contact the banks if you require even more detail, and sign up for your free Zeller Account today to give it a try. Sign up for a free Business Account. Your fee-free merchant account is ready to use in minutes — no lengthy paperwork required. Get started

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