We understand that going into business is a very daunting task and making sure the registrations, insurances and software programs you require are up and running when you open the doors can be quite over whelming. And then going forward ensuring cash flow is adequate, deadlines are met and target profits are being made can potentially be quite stressful.
As a result David Hadley and I have been working on a resource package to give clients who are looking at buying or starting a business we are at the final stages of completing this and think it’s going to be a great tool for clients to give direction on the things that need to be done in business and the time frames they need to be done in.
As I have been reviewing and preparing documents I have been thinking how important the points are and that clients would really benefit from even just a few of these points â€” so what better topic for my blog this week!
Here are just a few points to consider;
1) Knowing what you’re getting yourself in for
- Long hours at the business followed by long hours at home doing follow up
- Will your family & friends support you & understand the sacrifices to be made
- Managing customers, suppliers, employees and finances
- You may no longer have employee benefits such as annual leave & sick leave
2) Understanding and evaluating the investment decision
- Vendor usually has an overinflated view of business worth
- If starting business implementing strategies to get customers in the door and purchasing
- What financial returns do you require and what are you prepared to pay
- Do you have sufficient capital to use for finance
- Know what are you actually buying Business? Real estate?
3) Choosing the right investment vehicle to offer
- Tax effectiveness
- Asset protection
- Business efficiency
- Industry requirement
4) Get professional advice and communicate regularly with professionals
- Tax Agent/Business Advisor
- Bank Manager/Financier
So plenty of food for thought and that’s just the beginning! So if you are thinking about buying or starting a business, it doesn’t have to be in the immediate future, please feel free to request our brand new resource package to get a head start on the process.