Ian Durham – Rural Financial Counsellor
Rebuilding a Sronger Business
When building a stronger business it essential to have the right business foundations in place prior to an event.
Natural disaster events are unfortunately part of farming in Australia. With this in mind its important that the right processes are in place to withstand a disaster event.
It is important to consider if you have the right loans, equipment finance and over draft limits to effectively manage debt and the day to day costs if running the business.
Having good achievable cashflows for the business can help both yourself and the bank manager make better decisions.
When you have the right banking facilities in place it will allow the banker to have more confidence in both yourself and the business.
Keeping accurate and timely financial records is an essential component of managing your cashflow.
Having historical information is a important part of predicting future cash flows.
With the right data you can isolate income and expenses to know the profitability of the various parts of your business.
Make sure that you have adequate insurance as well as the right type of insurence for your business.
Its no good after a disaster event finding out that you didnt have the right coverage.
Make sure that you keep up to date with the lodgement of your BAS.
Keeping up to date with all of the office work is part of being a good manager.
This allows you to have a snap shot if how your business is performing at all times.
Their ar a variety of different business structures to choose from with their own unique advantages and disadvantages.
Work out with your accountant which one will best suit your business
Succession planning helps give stability to an enterprise and each member of the business can feel a little more secure about their future.
For further information on succession planning the course by Marina Skinner can help guide you through the process.