Blog from the Bridge

The following blog has been prepared by Don MacNeil for the exclusive use of his clients. It necessarily contains broad generalisations which should not be implemented without specific guidance from Don. Nevertheless, the blog should prompt you to think about certain aspects of your business model and whether changes are needed moving forward. There is a ‘river’ of economic/technological changes happening every day so you must adapt and continue to learn ways to become more resilient and sustainable in order to win this economic game that you are playing. Don will help you to survive and prosper.

WISDOM IN TAX MATTERS

All too often business owners consult with technically very competent tax accountants who have absolutely no WISDOM when it come to tax minimization. By that I mean, adopting a technical solution to a tax problem whilst running headlong into a fight with the ATO. Tax is just like any other cost of doing business, it must be minimized within the law. But beyond a certain line you will begin to cross into very dangerous territory and start a fight with a government agency that has deeper pockets than you have and it has much more time to scale the fightRead more...

08/04/2017 8:26 am

WHAT ARE SOME MATTERS TO BE CONSIDERED WHEN REVIEWING YOUR BUSINESS STATUS

Each one of these issues could be the subject of separate papers in and of themselves. But for now, we will consider summaries only: free cash flows tax position proactively [ income tax, GST and others] relationships with partners, suppliers, employees, ATO, banks, advisors, community, government departments, creditors, debtors etc demographics/markets/products back office systems/ IT/ internet/software & hardware culture 360 degrees current strategies/ tactics profit trends and ROI/dividends/drawings adequacy working capital issues and Balance Sheet strength competition vision and moving goal posts exit strategies work/life balance superannuation in the broad sense capacity to change endurance/adaptability/ life long learning buy intoRead more...

07/04/2017 6:21 pm

HOW DO YOU KNOW WHAT IS GOING WRONG IN YOUR BUSINESS??

A proper ‘due diligence’ should be undertaken by an independent expert accountant. There is very little to be gained by doing this vital work yourself because of the inherent subjectivity and bias carried into the job by the proprietor. Issues such as leadership, health issues, matrimonial matters and skill deficiencies  are unlikely to be given the weight they deserve if they are avoided or hidden. Exit strategies are very often not considered deeply enough along side succession, key man insurance and buy sell agreements. So its important to engage an independent expert who can conduct the analysis in a fearless,Read more...

07/04/2017 6:04 pm

John Ruskin 1819 – 1900…..the price of everything and the value of nothing.

‘its unwise to pay too much for something, but its worse to pay too little. When you pay too much, you lose a little money – that’s all. When you pay too little, you sometimes lose everything because the thing that you bought was incapable of doing the thing it was bought to do. The common law of business balance prohibits paying a little and getting a lot – it just can’t be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will haveRead more...

13/08/2014 3:26 pm

THE BEST LAID PLANS OF MICE AND MEN……what would Robert Burns know about your bank’s assessment of you?

The small business sector often have rigorous reviews undertaken by their bank before new loans are approved. Here are some of the business characteristics they look at in making their decision as to whether you are worthy of support or you might [as Burns might put it] go astray: sales trends profit record over 3 years at least [ there are industry data bases that can overlay your results that will put you in a strong/good/poor cohort] working capital, cash reserves, unused overdraft facilities and debtor/creditor ratios policies to control trade debtors, provisions for doubtful debts etc inventory turnover, policiesRead more...

13/08/2014 1:53 pm