How you can minimise tax without choking the life out of your business

© Copyright One Sherpa Pty Ltd 2010

How you can minimise tax without choking the life out of your business


Have you been trying to avoid the tax man and found you have no cash left in your business?


Avoiding the tax man seems to be a goal for many business people


But is it the best strategy?


Does it bring you the best results?


Could it lead to the situation where you save tax but have nothing left for yourself?


One way people avoid paying tax is by making no profit!


Another way is by avoiding paying themselves a market rate for their services to the business


Both of these achieve the objective of paying no tax but where does that leave the business owner?


If you are not making the correct margin AFTER taking a market wage from your business then you are going to struggle!


It is imperative for you to make profit and pay some tax in the long haul or you won’t be sustainable


Let me show you how to do this in One Minute Business Checkup


PROBLEM #5

NO PROFIT : CV 13.7% - TF 13.7% = 0


PROBLEM #5

NO BUSINESS OWNER COSTS


The first step to a sustainable business is to add a market wage for the business owner.


PROBLEM #5

Makes it worse and a significant LOSS


There are two measures which need to be addressed to address this situation

1. Customer Value measure

2. Transaction Flow Measure



This can be addressed by a price increase of 17.3% which increases sales by $138,000


PROBLEM #5

$138,000 increase in Sales



Alternatively this can be addressed by reducing costs by 15% which will reduce costs by $110,000


PROBLEM #5

$110,000 decrease in Costs

Transaction Flow still requires attention



This can be addressed by increasing the volume of sales through the business by 14.6% which gives additional sales of $116,667

This would also increase other costs by $93,334 to account for the additional volume


$116,667 more Sales

$93,000 increase Costs



Alternatively this can be addressed by reducing costs by 13% which will reduce costs by $15,000


PROBLEM #5

$15,000 decrease Costs


Checkout your own information now.


Using the sandbox you can ‘play with the numbers’ to make sure you aremaking sustainable profits


Go to www.oneminutebusinesscheckup.com

and make sure you avoid choking the life out of your business

How you can minimise tax without choking the life out of your business

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Transcript of How you can minimise tax without choking the life out of your business