Good Businesses Pay Tax

It’s natural attrition to avoid paying tax. Since we were kids we’ve heard people complain about having to pay tax so understandably when we get into business we continue this trend and do everything in our means to avoid handing over our hard earned cash to the government. However have you ever stopped to think about the effect of this tax minimisation when it comes time to sell? Paying tax does have its upsides. If we’re paying tax then it means we’re making a profit. Secondly, our bottom line is important, particularly when it comes to selling a business. See…

Greed

Greed is one of those deep dark human emotions that raises its’ ugly head at the worst of times. Generally it shines brightest at moments of opportunity. Sounds strange, why get greedy when there’s an opportunity you ask? Well it’s human nature, when we get offered something our natural reaction is to want more. It works both ways, especially in business sales. Take a buyers position for example. A business is on the market at $1million dollars for example. What’s your instant reaction of what you would offer? $700,000, maybe $800,000 if you felt generous. This is even before seeing…

Reluctance to Employ

One of the secrets to success in business is your ability to bring in good people and have them work toward a common goal yet so many business owners have a reluctance to employ. It’s often at a point in their business growth path where they know they need to put someone new on to help ease the workload or even more so continue growing but just won’t due to a lack of trust. Yes that’s right, it’s not resources or money or time it always comes down to trust. If you really need more people in your business to…

Never Assume Without a Backup Plan

In business we tend to assume many things. We assume that staff member remember to order that product, we assume that our customers like our service, we assume the figures are correct, we assume that debtor will pay on time and so on. Made in good faith these assumptions that we make every day are reflections of our good nature. The positive outlook believing the best will happen. Which by the way is the only way to run a business, you have to have trust and faith in people however, and it’s a big however, without appropriate systems in place…

What Buyers Want

Remember that movie with Mel Gibson in it called ‘What women want’ it was based around Mel’s character being able to hear womens’ thoughts. Just imagine if you could do that with buyers. Unfortunately, or at least for now, the only way we can find out what buyers want or are thinking is if we ask them. Strange concept this asking of questions isn’t it. You ask a question and generally get a response relevant to how much the buyer trusts you. Got great repour, buyer is completely honest. Got no trust at all, buyer lies point blank to you….

Patience is a virtue

Understand this; when the value of your transaction or sale is significant, ie. it requires bank financing, your purchasers will take longer to make a decision. Patience becomes your virtue. Your ability to stay cool, focused and helpful rather than desperate, pushy and irrational will be the difference between making a sale and not. Many of our businesses require doing big deals. This could be signing up a new customer worth $1million dollars in revenue a year to your company or selling a house, a piece of machinery, a construction contract and so on. Once an sale becomes worth more…

Can you handle the truth (about the value of your business)

Gene Hackman said it best in the movie A Few Good Man “You can’t handle the truth” well for most business owners this is in fact true. Everyday I’m asked to give advice on how much a business is worth. And everyday I see relatively the same look on business owners faces when they find out. When you’re a business owner and you’ve been working hard, bloody hard, for ten, fifteen or even twenty years and then decide its time to sell you would assume in all innocence that you business is worth a substantial amount. Unfortunately time doesn’t equal…

Surround your self with the right people

In business there’s always problems, issues, dilemmas, opportunities and more so who you do you call to bounce things off? Sure you can call your accountant for accounting based issues or solicitor for legal related queries but what if you needs someone’s opinion. Being able to call a close friend, mentor or even fellow business owner to bounce ideas or problems off is vital in small business. Without a tight trustworthy network of good people around you, business becomes a very lonely place. So who are the right people? Well simple, anyone who a) you trust b) is more successful…

R.I.P. MYOB – Enter Xero

Bookkeeping programs are the vein of most business owners existence. Unfortunately they’re vital to our businesses and our ability not only to comply for tax but also to report on our own performance. Finally there’s a brighter future install for these archaic systems. Enter www.xero.com.au The new kid on the block is Xero and there’s a few key reasons why this program is taking small business by storm. Firstly it’s web based. Yep, that’s right all you data is held online rather than on your hard drive. No more risk of loosing everything due to a local meltdown. Secondly it…

It’s time to get on the Cloud

Everyone has heard about Cloud computing yet so few business owners are adopting this brilliant advance in technology. Put simply cloud computing is where all your programs, documents and files are held on the internet rather than on your own hard drive or server. Before going into the practical application let’s understand why you should make the jump to the dark side. The two main reasons supporting cloud computing are cost savings and productivity. Remember that $45,000 you spent on a server for your office IT system but it seems to crawl rather than run. Well online data storage costs…