Who Can Assist Small Business Operators?.

BEGINNING IN BUSINESS SERIES

WHO CAN ASSIST SMALL BUSINESS OPERATORS?

Paper 01.05

Alan Lewis AAccccoouunnttaannttss

With compliments from Alan Lewis Accountants

- ESS BIZTOOLS Pty Ltd - ACN: 078 451 439 Edit by ALAN LEWIS ACCOUNTANTS Pty Ltd – ACN: 137 070 921 PO Box 4295, LAKE HAVEN NSW 2263

Phone: (02) 4390 4156 w w w . l e w i s t a x a t i o n . c o m . a u

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CONTENTS

Page

1. Introduction To Assistance Available ........................................................................................... 3

2. Professional Accountants .................................................................................................................. 3

3. Bankers .................................................................................................................................................... 4

4. Solicitors .................................................................................................................................................. 4

5. Finance Companies .............................................................................................................................. 5

6. Government ............................................................................................................................................ 5

7. Business Associations ......................................................................................................................... 6

8. FMRC Benchmarks Pty Ltd ................................................................................................................ 7

9. Universities ............................................................................................................................................. 7

10. Australian Institute Of Management ............................................................................................. 7

11. Accountancy Bodies ............................................................................................................................. 7

12. Networks ................................................................................................................................................. 8

13. Benchmarking ....................................................................................................................................... 8

14. Summary On Who Can Assist ........................................................................................................... 8




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BEGINNING IN BUSINESS SERIES

WHO CAN ASSIST SMALL BUSINESS OPERATORS

Paper 01.05

INTRODUCTION TO ASSISTANCE AVAILABLE

Problems of set-up and ongoing operation of a small business can be assisted by various persons including Accountancy Firms with experience in small business - Solicitors with commercial experience and appreciation of small business problems, Bankers, Finance Companies, Industry Groups and special Government Agencies. e.g. State Development Departments and Small Business Corporations, Business and Industry Departments, AusTrade, AusIndustry, etc.

PROFESSIONAL ACCOUNTANTS

A Professional Accountant should be involved from the very beginning of a small business.




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The Professional Accountant should be consulted on a regular basis throughout the life of the business.

To be successful, small businesspersons should consult their accountants at least four times per annum At these meetings there should be a review of the progress of the business.

This means there should be periodic accounting reports prepared and comparisons made to budgets and cash flow forecasts. The general performance of the business should be continually measured against the overall business plan.

It is envisaged that the Professional accountant would be part of the Board of Advice - which would be giving on-going advice to the small business operator and acts in a similar manner to a Board of Directors of a large business.

The professional accountant involved in small business is concerned with ‘bottom-line management’, i.e. planning for the survival of the business and for the business to meet its long-term business goals.

BANKERS

The banker should be kept continually aware of what is happening in the business. It is recommended that small business operators have a continual dialogue with their bank manager throughout the year - not just when there is a crisis.

SOLICITORS

A commercial solicitor should be consulted for advice on the establishment of the business in the appropriate entity at the beginning of the business and reference should be made to him/her of any legal matters that affect the business when they arise rather than when they are a legal problem.

The solicitor should be made aware of the business plan and should be consulted as to the directions and policies of the business and should be asked if any legal problems are envisaged.

Consultations should be held on at least an annual basis with your solicitor so that you are up-to-date on any developments within the law (either legislation enacted, proposed legislation




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or decided cases) that may affect your business. It makes sound business sense to have a commercial solicitor involved in the Board of Advice of most small business operations.

FINANCE COMPANIES

The managers of Finance Companies develop a great deal of insight into the problems of small business.

If you are dealing with a finance company through lease finance or loan funds, it is desirable to establish a rapport with the Finance Company Manager in much the same way as you do with your Bank Manager.

It is essential if you want their assistance that these persons know your financial position on an on-going basis. Do not expect help from the Finance Company Manager (or your Bank Manager) if you only contact them when you have a crisis, as you are virtually a stranger. They have no input as to your business strategy, plans, performances and how you monitor your business, because the only time they see you is when you have a crisis.

If this is how you conduct your business you will not get the best advice and assistance from your Finance Company (or Banker).

GOVERNMENT

There have been many worthwhile endeavours by various Government Departments throughout Australia to assist small business. These organizations include:

• Department of State Development and Small Business Corporations offer advice, courses etc., for people entering small business and existing operators looking to improve or expand. The Departments and Corporations provide information on sound management practices and practical training programs and access to expert professional business services.




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• State Government Departments of Business and Industry. These Departments liaise with Business Associations and Industry Sector Groups to address issues affecting the business sector.

• Australian Trade Commission (Austrade) is a Commonwealth Government organization that works with Australian companies to ensure that they operate successfully in the international market place by providing accurate and timely market and investment information and advice.

• Australian Bureau of Statistics. This Commonwealth Government organization provides a wide range of statistical information throughout the year which can be utilized for business planning purposes.

• AusIndustry is a Federal Government programme that endeavours to assist and promote business activities.

BUSINESS ASSOCIATIONS

You should consider joining the appropriate business association for the activity that your business is operating in.

This would include Employers Federations and Australian Business Chamber and Small Business Organisations.

Benefits can be obtained from joining the Chamber of Commerce, Visitors’ Association and Development Association and similar organizations that operate in your area and being active members of those organizations.

You will benefit greatly by meeting fellow small businesspersons, bankers, accountants, solicitors, etc. at their regular meetings. You will also receive newsletters which acquaint you with what is happening in business in your community.

It is important that you do not bury yourself in your own business and that you are continually aware of what is happening in the wider business environment in which you are participating.




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The contacts you make from membership of these type of organizations will prove worthwhile and it will be amazing how many answers you find to questions from discussions with other businesspersons who may not be involved in the same type of business as yours, but do have similar problems. (This can be the start of a good business network).

FMRC BENCHMARKS PTY LTD

FMRC Benchmarks Pty Ltd produces excellent industry statistics which can be used as a basis for comparing your business’ performance or for the preparation of feasibility studies as to the likely performance of a particular business. These are known as Small Business Profiles (one booklet per sector) and/or Business Benchmarks (a brief summary of key indicators for each sector).

UNIVERSITIES

Various universities throughout Australia conduct workshops, seminars, research programmes etc. of matters affecting small/medium business operations.

AUSTRALIAN INSTITUTE OF MANAGEMENT

The Australian Institute of Management operates throughout Australia and regularly conducts Seminars. The contents of most Seminars are applicable to Small Business Operators.

ACCOUNTANCY BODIES




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The Institute of Chartered Accountants, Australian Society of Certified Practicing Accountants and National Institute of Accountants conduct year round professional development activities for their members. Non-members can register for most of these courses, many of which have a direct interest for small business operators.

NETWORKS

Small Business Operators should also consider the development of local or industry networks for the exchange of information and ideas etc. Your Professional Accountant may be able to assist you to join such a network.

BENCHMARKING

It is desirable to contact other people operating in the same business as you and establish benchmarking comparisons. This will greatly assist you in the operation of your business. Your Professional Accountant may be able to assist you to find appropriate businesses with which to benchmark.

SUMMARY ON WHO CAN ASSIST

There is a wide range of Workshops, Seminars, Courses, Conferences, Networking and Benchmarking opportunities available to assist Small Business Operators.

Your Professional Accountant is available to assist you in the selection of appropriate training courses and business and government contacts to assist you in the development of your business.




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AN IMPORTANT MESSAGE

The forms and commentaries contained in this paper are provided as a guide only and should not form the sole basis for any advice in relation to the particular situation of any person without first obtaining proper professional advice.

This paper is provided on the understanding that ESS BIZTOOLS Pty Ltd (ACN: 078 451 439) and ALAN LEWIS ACCOUNTANTS Pty Ltd (ACN: 137 070 921) will not be responsible as a result of any use made by users hereof of the forms or commentaries of this paper without first obtaining specific professional advice. Neither shall ESS BIZTOOLS Pty Ltd or ALAN LEWIS ACCOUNTANTS be responsible for any errors or omissions contained in these papers. ESS BIZTOOLS Pty Ltd and ALAN LEWIS ACCOUNTANTS expressly disclaims liability whether under contract or negligence and whether to a direct purchaser of these papers or to any other person who may borrow or use them in respect of any loss or damage flowing therefrom whether direct or consequential. In particular and without limiting the extent of this disclaimer ESS BIZTOOLS Pty Ltd and ALAN LEWIS ACCOUNTANTS accepts no liability if any form or commentary contained herein, whether used in its original form or altered in some way by the user, proves not to be valid or not to attain the end result desired by the user. This exclusion shall extend both to the user and to any client of the user who may suffer loss as a result of the use of these papers and it shall apply even though ESS BIZTOOLS Pty Ltd and ALAN LEWIS ACCOUNTANTS may have been negligent in the publication or preparation of these papers. The user acknowledges that it has not made known to ESS BIZTOOLS Pty Ltd and ALAN LEWIS ACCOUNTANTS any particular purpose for which these papers are required and that it has not relied on ESS BIZTOOLS Pty Ltd and ALAN LEWIS ACCOUNTANTS skill or judgement to provide a paper suitable for any such purpose.

The authority to use all copyright, trade marks and other intellectual property rights comprised in this paper is held exclusively by ESS BIZTOOLS Pty Ltd (ACN: 078 451 439). Neither these rights nor any part of this paper may be used, sold, transferred, licensed, copied or reproduced in whole or in part in any manner or form whatsoever without the prior written consent of ESS BIZTOOLS Pty Ltd (ACN: 078 451 439).

INTELLECTUAL PROPERTY NOTICE

Who Can Assist Small Business Operators?.

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