Business advisory services

A business advisor is a far more invested partner than an accountant. We help you develop and refine every facet of your business by development short- and long-term plans with measurable KPIs. We’ll guide you through every stage of the business lifecycle, and will even help you set and manage your personal financial goals.

Clients need to understand how a business is valued and what methods are used to do so. By understanding the value of the business, you can see how it fits into your overall goal of wealth creation.

There are various approaches to valuing a business, and we can help you understand how it works.

Business plans are crucial for a startup as they provide a roadmap and guidance on your business journey. Getting the right person to write a business plan is essential, as they need to understand the fundamentals of your business, how you operate, and where you want to go.

When writing a business plan, you essentially need to work backwards. Determine what your end goal is, then build the plan to achieve that goal. Your goal could be one million dollars in profit or generating a personal income of $100,000 per year. Catching up quarterly with your business advisor ensures you remain on track with the business plan targets you set.

Business plans should include the following:

• Your mission statement and core values
• Financial projections
• SWOT analysis
• Staff structure now and as you grow
• Action plans
• Key drivers for your business

This is one of the most common questions from young business owners. The first step from a business point of view is to ensure you have all the fundamentals of your business in place. This is crucial because if the fundamentals are not right, your business will not be ready for expansion.

The fundamentals of a business include having your bookkeeping running smoothly, so you have accurate data to base your decisions on, having the right business structure to expand, and having the right people in your business to manage the expansion.

You also need to consider how you are going to fund your expansion. Often, a business will not be stockpiled with cash before an expansion, so alternative financing options will be required. This may involve a financial institution such as a bank, crowdfunding, or bringing in other investors to the business.

Growing your business will inevitably put a strain on your cash flow. To grow, you will likely have to invest in marketing, more staff, and resources to enable growth.

That’s why understanding and accurately forecasting your growth rates and cash flow is crucial. It should give you a clear picture of what lies ahead and when it’s safe to invest for growth.

How much you can borrow depends on several factors, including:

• Your revenue
• How long you have been in business
• If you have property you can put up as security
• Whether the loan is secured or unsecured by an asset or a guarantee from the directors of the company

Typically, an unsecured business loan will be between $25,000 and $250,000. A secured loan can be $250,000 or more.

The interest rate will depend on whether the loan is secured by an asset or is unsecured.

• An unsecured loan typically has an interest rate between 10% and 15%.
• A secured loan typically has an interest rate between 5% and 10%.

The interest rate is at the discretion of the lender; they will adjust the rate depending on how risky they assess the loan to be. If you have not been in business long and your cash flow is not straightforward, expect the interest rate to be higher.

Selling a business takes time if you want to maximise the price. While some people plan their exit strategy from day one, it typically takes at least 12 months to prepare.

Your business will be more attractive and valuable to buyers if you make it easy for them to take over. If your business can run without you being there, it will be easier for a prospective buyer to achieve the income you are promising from the business.

Once the business is ready for sale, approach a business broker who specialises in selling businesses in your industry. They will assist in making your business more attractive to buyers.

Whether it's part of your succession planning or to keep employees motivated, there are several ways to bring an employee in as an owner, including:

• They can pay cash for the shares
• They can borrow from the company or owner to pay for the shares
• You can gift them the shares
• You can offer the shares at a discounted rate

There are different tax consequences for each of these scenarios which you need to examine carefully. You should also consider questions such as whether they will be an ordinary class of shareholder or a non-voting shareholder. The best option will depend on what you are trying to achieve.

• Work with your accountant to identify which essential parts your business is eligible for and get the process started to obtain these cash flow bonuses.
• Ensuring your BAS is up to date and lodged so you can access funding.

Yes, create or update your business cash flow plan over the coming months. You need your daily and weekly planned cash position to make informed decisions, like when you may need additional bank funding, or reduce staff numbers.

Yes. Keeping your business alive means paying your employees, your key suppliers, your rent, and your accountant each week. These are the assets you use to navigate a crisis. Nothing else matters in the short term.

You may need to delay making payments of GST, PAYG Withholding Tax and Employee PAYG Tax to the ATO.

You should set up a second bank account (separate from your main trading account) and each week transfer cash for these payments across into it. If needed, you can then dip into this cash reserve to keep your business alive.

• Businesses can request a deferral of some payments (by up to 4 months), and the amount may vary in installments.
• Suppose you have under $20 million turnover. In that case, you can elect to report and pay their GST monthly instead of quarterly to accelerate access to GST refunds, but only from 1 April 2020, and must remain monthly for 12 months.
• You can request remittance of interest and penalties applied to tax liabilities incurred after 23 January 2020.
• You can also request a low-interest payment plan.