The business owner’s checklist
Being your own boss can be rewarding, but it’s also
incredibly challenging. That’s why it’s important to future-proof your hard
work by taking steps today that will prepare your business for tomorrow.
When you’re running your own business, it’s
demanding enough to keep up with the day-to-day, which means it’s easy to lose
sight on the big picture. But without careful planning, your business might not
be prepared for whatever the future holds.
Here are five essentials that every small
business owner should factor into their business plan.
1. Give it structure. Make sure you
structure your finances so your personal assets and business assets are kept
separate. As a minimum, you should have a separate business bank account and
credit card, and pay yourself a salary. By untangling your personal finances
from your business bookkeeping, you may even save time on administration.
2. Be prepared for the unexpected. If
anything were to happen to your staff, your equipment or your intellectual
property, it could have disastrous results for your business. The concept of
business insurance is a veritable smorgasbord of safeguards against unexpected
events, with options ranging from vehicle and key person insurance to public
liability and professional indemnity cover. No matter what type of business you
have, your financial
adviser can help make sure it’s protected.
3. Have an exit strategy. One day you
(hopefully) intend to retire – and a time may even come when you decide to
leave the business earlier than expected. Regardless of when you eventually
exit, it’s important to plan ahead so it can be done smoothly, with as little
financial impact to the business as possible. Start thinking about succession
management sooner rather than later – it’s a good opportunity to evaluate your
business and identify its future leader.
4. Plan beyond yourself. Even with a
retirement succession plan in place, there’s always a chance your business
could be faced with involuntary succession – for example, if you die
unexpectedly. So as well as insuring your business, make sure you’re personally
covered against death, disability and serious illness. You can also set up a
legally binding buy-sell agreement that sets out how ownership of the business
will be transferred in the case of involuntary succession. And to be certain
your assets will be distributed to your chosen beneficiaries according to your
wishes if you pass away, make sure you have a comprehensive, up-to-date estate
plan.
5. Work to live, not the other way around. Your business is a big part of your life, but it’s important to
remember that there’s also life beyond work. Many small business owners find it
hard to separate work life and home life, which can cause tension with their
loved ones. So if you’re looking to secure your business’s finances, your financial adviser can give you the guidance you need to remove some of the stress of business
ownership.
For more
information
Speak to us if you would like to
understand how this information might impact your financial situation.
Ridgway Financial Services
101 Neil Street,
Toowoomba QLD 4350
P 07 4688 9111
F 07 4688 9199
E count@ridgwayaccounting.com.au
W www.ridgwayaccounting.com.au
101 Neil Street,
Toowoomba QLD 4350
P 07 4688 9111
F 07 4688 9199
E count@ridgwayaccounting.com.au
W www.ridgwayaccounting.com.au
Important
information
Ridgway Financial Services are authorised representatives of Count Financial. This document contains general advice. It does not take account of your objectives, financial situation or needs. You should consider talking to a financial adviser before making a financial decision. This document has been prepared by Count Financial Limited ABN 19 001 974 625, AFSL 227232 (Count) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. Count Wealth Accountants® is the business name of Count. Information in this document is based on current regulatory requirements and laws, which may be subject to change. While care has been taken in the preparation of this document, no liability is accepted by Count Financial, its related entities, agents and employees for any loss arising from reliance on this document. Count Financial is registered with the Tax Practitioners Board as a Registered Tax (Financial) Adviser. However your authorised representative may not be a Registered Tax Agent. Consequently, tax considerations are general in nature and do not include an assessment of your overall tax position. You should seek tax advice from a Registered Tax Agent. If you do not wish to receive direct marketing material from your adviser, please notify your adviser by email, phone or in writing.
Ridgway Financial Services are authorised representatives of Count Financial. This document contains general advice. It does not take account of your objectives, financial situation or needs. You should consider talking to a financial adviser before making a financial decision. This document has been prepared by Count Financial Limited ABN 19 001 974 625, AFSL 227232 (Count) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. Count Wealth Accountants® is the business name of Count. Information in this document is based on current regulatory requirements and laws, which may be subject to change. While care has been taken in the preparation of this document, no liability is accepted by Count Financial, its related entities, agents and employees for any loss arising from reliance on this document. Count Financial is registered with the Tax Practitioners Board as a Registered Tax (Financial) Adviser. However your authorised representative may not be a Registered Tax Agent. Consequently, tax considerations are general in nature and do not include an assessment of your overall tax position. You should seek tax advice from a Registered Tax Agent. If you do not wish to receive direct marketing material from your adviser, please notify your adviser by email, phone or in writing.
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