Pricing your product or service is one of the most vital business decisions you will make. Setting a price that is to high can be as detrimental as setting it to low and at best will limit business growth. At worst it will create serious sales problems leading to poor cash flow and most probably the demise of your business...

No doubt you have heard of the benefits of Self Managed Superannuation Funds (SMSF), and most of you think that it all sounds to good to be true and you can't wait to be in control of your own superannuation! Well before you make this life altering decision you need to STOP, breathe and know what you are in for, as they are not for everyone...

Nobody likes to think about it, but it’s inevitable - one day you will leave your business. You may decide to sell up, retire or may have to leave due to health reasons. That day needs to be planned for. A succession, or exit plan outlines who will take over your business when you leave. A succession plan is a strategy which determines the best way for you to exit your business while ensuring it continues...

At this time of year the catch cry of many business owners is: 'I need to spend money to save on tax'.

This kind of thinking is inherently flawed:

• Firstly you have to spend the money, which can cause all sorts of cash flow problems.
• Secondly every dollar you spend you will only realise a saving of say 30% being the company rate of tax.
• Thirdly reducing your profit to not pay tax will ultimately stunt the growth of your business...

You've done the groundwork... you know why you want to start your own business and planned how you are going to achieve it. The check list is complete, business plan.. check. Finance in order... check. Marketing strategy... check. Business name... check?? Then the questions begin. Do I need to register the business name, and how? Will I operate through a company? Will the company name be my business name? What about GST? Legal obligations and registrations are the mundane part amongst the excitement of starting a business, but they are fundamental to your success...

Very often the difference between Profit and Cash Flow can make or break a business.

To define in simple terms, profit is what is left of revenue once expenses are paid. Many believe this is what should be in the bank... if only! More usually the profit may be used to invest in new equipment, pay loans and help expand the business. And let's not forget the “T” word, yes you also have to pay taxes out of profits. And then after all that, the owners, with any luck, will get their slither or hopefully a chunk of the pie...