We would you to join us in welcoming Yulia Barabanova to the team. Yulia joins us with a Bachelor of Business (Accounting) and has 4 years commercial experience. She enjoys travelling, yoga and hiking.
Developing Succession Planning Strategies
Developing a list of questions to consider, as part of a succession plan review, will assist in the determination of a succession planning strategy for a business.
The key questions to be answered could include:
· What do you want to achieve from the business?
· Are you building the business for a lifetime of activity for yourself or for an exit in the near future?
· Have you identified your fears relative to succession planning?
· Have you thought about options for the existing business?
· Could a partner buy you out?
· Could you introduce a new partner into the business and then exit?
· Could you hand the business on to a family member?
· Could you appoint an external CEO/General Manager to run the business on behalf of the family, especially if you want to "skip a generation" and retain the business within the family?
· Do you think the business is "exit ready" or "succession ready" at this stage?
· What are the greatest concerns you have for the operation of the business?
· Can the business survive with less reliance on "you"?
These are some of the questions you should be considering in detail, in planning a succession strategy for the owner or senior manager of a business.
If you would like to have a discussion relative to the development of a succession plan, please don't hesitate to contact us.
Rejuvenating A Business
Businesses need to regenerate "start-up energy" to unlock growth, to rejuvenate the business. Businesses that have "planned growth" can be great places for managers and team members to work at grasping the opportunities for personal development and growth that a growing business presents.
In Australia there are 2 million businesses, yet only:
· 300,000 have $1 million+ sales;
· 10,000 have $10 million+ sales; and
· 2,000 have $20 million+ sales.
Does your business have a business growth culture to grow to a new turnover milestone?
Changes are occurring everywhere at a fast pace. Where do you start at rejuvenating a business?
· Renovate your business' systems. This is the quickest way to get a competitive edge.
· Identify the important Key Performance Indicators (KPIs) that you require – hourly, daily, weekly and monthly – and ensure your system can deliver these KPIs.
· Analyse debtors, stock, and work in progress – can the systems be improved to reduce investment in these items?
· Analyse creditors – are creditors being paid in accordance with the negotiated payment terms? In some instances, a team member may be paying the creditors faster than what management negotiated.
· Expense analysis – can costs be reduced? Are quotations being sought from alternative suppliers?
· The key strategy should be to tackle one project at a time.
· Determine the business' health:
- sales per full-time equivalent person
- gross profit percentage, preferably divided into products or departments
- net profit percentage
- debtors' days outstanding
- stock days
- creditors' days outstanding
· Compare these figures to benchmarks for your industry – how does your business compare against your peers?
· You need to be receiving regular departmentalised financial accounts and regular cashflow forecast reviews on a monthly basis.
- Do you have a CRM (Customer Relationship Management) system to record all details relating to your customers?
- Have you identified "A-class" customers?
- Do you communicate with your customers regularly?
- For your key customers, do you measure:
frequency of transactions;
average size of transactions; and
gross profit earned per transaction,
to determine ways and means these key items could be increased?
- Do you have a CRM database for prospects?
- Does the business have a social media policy?
- Do you have a website?
· Team training:
- Do all team members participate?
- Do you need technology upgrades?
- Do you need skills upgrades?
- Should you apply for an Industry Skills Fund grant?
· Management training – is further training needed in corporate governance, business management and company directors course?
· Risk management:
- Are insurance covers adequate?
- Have you instigated strategies to protect intellectual property?
- Are the business assets and transactions protected on the Personal Property Securities Register?
- Is the location still suitable for the business?
- Can your customers park their vehicles in close proximity to your premises?
· Exporters/Importers – are you taking currency covers to protect against currency risks?
· Government assistance for exporters – have you thought of applying for an Export Market Development Grant?
· Government assistance – have you thought of a Research and Development Rebate, Accelerating Commercialisation Grant and a Business Growth Grant?
Every business will eventually run out of "gas", unless a regular program of rejuvenation is incorporated into the business' culture. If you would like any assistance in rejuvenating your business, please give our office a call.
Government Grants For SMEs
Research and Development Registration
If your company undertook research and development in the financial year ended 30th June 2014, you spent more than $20,000 (irrespective of the number of projects) on research and development, your turnover was under $20 million and you wish to claim the research and development rebate of 43.5% of expenditure (for turnovers over $20 million, a rebate of 38.5% applies), the registration deadline is the 30th April 2015 or the date that the company's income tax return is lodged, whichever is the earlier.
The registration form has to be lodged with AusIndustry.
Business Growth Grant
The "5 S" system (a structured, systematic approach to housekeeping and a cornerstone of any world-class manufacturing) can assist a wide range of businesses, not just in manufacturing.
"5 S" involves creating an organised workplace, incorporating the following:
· SORT – sorting and removing unnecessary items.
· SET IN ORDER – a place for everything and everything in its place.
· SHINE – cleaning the work area.
· STANDARDS – establishing the rules and standards for the business.
· SUSTAIN – maintaining the standards in a disciplined way.
The "5 S" system can assist businesses to improve efficiency, which should then flow through the profitability.
If your business operates in one of the Australian government's "priority industries", your business could be eligible for a Business Growth Grant, which could assist in the implementation of the "5 S" system to improve efficiencies within your business.
2014-2015 Family Energy Rebate
The Family Energy Rebate helps to cover the cost of energy bills for NSW households with dependent children. The rebate gives:
· Up to $150 credit on electricity bills for eligible applicants who hold an account with an electricity retailer
· Up to $165 direct payment to nominated bank accounts for eligible applicants who live in a residential community (caravan or mobile home park) and receive electricity from the park operator.
To be eligible you must:
· Be a NSW resident; and
· Have been assessed by the Federal Department of Human Services (DHS) as being eligible for the Family Tax Benefit (FTB) A or B at any time during the 2013-2014 financial year, and have received an FTB payment in respect of that eligibility; and
· Be an account holder of an electricity retailer, or a long-term resident of a residential community (caravan or mobile home park), whose name appears on the electricity account for supply to her or his principal place of residence.
What do you need to do before you apply?
Before you apply, here's a quick checklist. Have you:
· Lodged your tax return for 2013-2014 with the Australian Taxation Office or informed the Department of Human Services (DHS) if you are not required to lodge a tax return?
· Received confirmation from DHS as to your eligibility for Family Tax Benefit A or B for 2013-2014?
How to apply?
ONLINE – it takes just two minutes to submit an application. Processing starts immediately. www.resourcesandenergy.nsw.gov.au/info/familyenergyrebate
PAPER – download a form from the website, complete and submit by email, fax or post. Use this form if you receive your electricity from the operator of the residential community where you live.