Starting a business anywhere in the world is big decision. It needs careful research and planning before you start trading. In Australia, it is vital you find out all the necessary statutory obligations before registering the business. Some things may be consider before venturing to a new business.

Many small to medium businesses we handle in our Accounting Practices at Springwood and New Farm suffer from cashflow starvation and its impacting the bottom line!! When debtors are slow payers or they simply avoid your phone call and letter thats a sign that you need to change your process and procedures/systems. Its a red flag that your not managing your business and starving it of cash... we all know what happens when we starve, our mind set changes from abundance to scarsety and that effects the way your approach business decisions not to mention opportunities dry up. When cashflow dries up, its a red flag for you to change your business approach and debtor proceedures Secrets to improving your cashflow Increase you price to compensate you for the extra debt your business is taking on Make your clients pay a significant deposit up front Don’t deal with clients that are not meeting your terms Ensure you have you debtor collection followed up regularly Have an early payment discount for paying within your terms Have late payment fees/penalties if your payment terms are breached Ask for progress payments Take all forms of payment Credit card, direct deposit, Paypal, Bartercard   You options are limited if you dont want too or cant do any of the above but you can: Seek a bigger overdraft which will cost the business in interest Seek debtor funding (3rd parties pay you instantly and collect the funds themselves at a cost of around 5% to you) You inject more of your own money in the business (which is not recommended)   writeen by Jye Amery CPA Evolution Accountants New Farm & Springwood Ph     1300 506 664 Fax   07 3011 1028    

By focusing on a few key strategic focus points, one business worked out that they could potentially turn their profits from $15,000 to $100,000 in one year.  This sometimes seems too good to be true…..this does not happen overnight, but if you don’t focus on the important focus points for your business, it might never happen….that is a certainty!

Owning your own company has its advantages... You set your own wage You create your own income which is only limited by how good a business person you are You are have responsibilities as a director but typically your personal assets are protected You (as director) can buy the things you need to earn your income... these items are generally tax deductible. What you need to know is who is going to be director, who will be shareholder, should the shareholder be your family trust Talk to us about setting up your company or trust structure.,. lets work out whats right for you.