As of right now, there are almost 2.5 million different active businesses operating across the whole of Australia. All of those businesses are worth a certain amount due to revenue, employees, and profit margins. A business valuation is something many of those business owners may not have even considered doing before. This Continue reading

At the time of retiring the average business owner in Australia does not have a funded pension beyond what they have set aside in their own and their spouse’s Superannuation; most will have a personal residence that has only recently had the mortgage paid off and less will have a significant investment portfolio. Remember, these are averages so your circumstances may be better or worse off. In many situations the family business will be the most significant financial asset available to provide for the owner’s retirement years. You should be asking yourself several questions, but are you ...

The shareholders in a company determine the direction a business takes in its endeavors. They either vote the business in or out of a situation, contract or decision. Sometimes, however, shareholders may disagree on a major aspect of the firm, leading to a case of dissenting shareholders. At other times, those who own minority shares may feel that the decisions being made by those who own controlling interest may be in poor judgment, fraudulent or damaging to the business. These minority shareholders could file to leave the partnership or dissolve the enterprise because of their beliefs. In such a case, it would be necessary to sell the shares of the party in contention and recompense them. Selling of shares as a result of a shareholder dispute is not as easy as it sounds, however. There are issues surrounding the valuation of these blocks which makes determining their worth harder than the customary business valuation.

It is important to know the true value of your business at any given moment in your entrepreneurial career, but more so when you want to take your company public or sell out to a competitor. Knowing what your firm is worth could help you determine what a fair offer for your company is, or what severance package would be suitable to give a partner who is thinking about leaving your firm. As a business person, you should understand that there is no one way to determine the value of an enterprise. One person would look at the income of his firm and base his valuation on that. The only drawback to this method is that it does not take into account the trend of the future earnings of the company and is therefore rarely a true reflection of the current market value of the enterprise. You could alternatively choose to assess the market in which your product operates to determine what your firm is worth. Unfortunately, with this method, you would leave out the other factors that determine the success of your firm. Using your company’s assets as a measure of value would also be inaccurate as it wouldn’t take into account current and future liabilities. For an accurate depiction of what price tag to assign your company, you should try getting a business valuation from a CPA, accredited valuation specialist or investment banker. Here is how a business valuation can help you to better understand the worth of your enterprise.

It is not surprising for the average person to want a change in career over seven times in their lifetime. Think of the number of times you switched career or even major options in your college life. For many, career or major changes have marked fulfilling turning points in their lives. For others, however, a change in career resulted in tears, frustration or regret. As such, it is critical that you get through a shift in your occupation with a plan. A full-proof method not only ensures your change in career is smooth but also enables you to excel in the profession you choose. Consequently, you can live a better life overall and fulfill your dreams. If you are a business owner, the leap is far greater since you leave an already-stable environment to an area you are not accustomed to. However, we are here to help. Here are some tips to kick-start your campaign towards a new career.

Insurance companies have been proved notorious for setting their customers higher premiums than they ought to pay. Every business owner knows the importance on keeping a company’s spending to a minimum. Spare revenue can be used to improve different sectors of your business or be saved in case of emergencies or short-notice needs. Unfortunately, overpaying on your premiums means you are denied the chance to make these savings. Clearly, this is a situation no owner wants to be in. Insurance firms base the rates they charge you on the value of your business. If you do not know your enterprise’s value, then there is no way you can know if you are paying the right rates. Here is how you can assess your business today and ensure you do not get overcharged for insurance services.

Obtaining the equity your partner owns in your business can be a confusing or often difficult process. Perhaps your counterpart in the firm could have gotten an opportunity elsewhere that he wants to focus on or, as is also common, there has been a personal conflict, and the two of you cannot stand each other. Business partnerships could end for many reasons. Some of the endings to partnerships could be peaceful and lead to the best benefit of both flanks under the situation. Alternatively, some partnerships' endings involve pain, tears and a whole lot of lawsuits. Regardless of what kind of way the business ends, the tips below are necessary so as to ensure that you successfully buy out your partner.

The New Year is upon us and with the holidays behind us, it is time to get back to business. Living in WA in particular means coming to grips with the economic outlook for our region, which is tipped to be “difficult but not dour”. A June 2016 report from St.George Bank states that, “The (WA) economy is now larger but growing at a very modest pace. Growth is based on exports rather than domestic demand. The outlook is difficult but not dour. Another tough year ahead is expected but the economy should expand courtesy of the export sector.”

There are many reasons that could prompt you to sell your business in 2017. It could be that old age has crept up and finally made the sweet struggle of competing for customers too much for your body to bear. It could be that ever since WA lost its perch as the strongest economy in the country in 2014, you feel that it is time to get out before we slip beneath the 7th position we now occupy, only ahead of Tasmania. Whatever your reasons, there are several things you’ll need to do to ensure you have prepared your business for sale.