Today more than ever, risk reduction in business plays an increasingly important part in strategy for small and medium-sized companies. Uncertainties abound, and the path forward is often not clear, but with a strong and realistic plan for your business, developed in consultation with a trusted professional adviser, business risk can be reduced, and you can reach your goals.
Taggart & Partners is ready to help your business get to the next level and beyond. We have more than 20 years of experience as business and tax consultants. In an ever-changing world, we have seen what works and what doesn’t. We would like to speak with you about your unique situation and your needs. The best time to get started is now – by calling (07) 3391 1188, e-mailing enquiries@taggartandpartners.com.au or getting in touch online.
Setting a plan into motion also allows you to prepare for your retirement ahead of time, meaning you can start working towards this goal today to avoid problems in the future. But what are the necessary components of a financial plan, and how can they be implemented into your current business?
Get started on creating a financial plan for your business by speaking to Taggart & Partners, the business accounting firm small and medium businesses in Brisbane trust. Give us a call on (07) 3391 1188, send an email to enquiries@taggartandpartners.com.au, or get in touch online.
Categories of Risk Reduction
We define risk and risk reduction in business with three major categories – initial structural setup, ongoing asset protection, and ensuring value when the business is transferred or sold. Let’s look at each of these business risks and mitigation strategies.
Initial Structural Setup
Based on years of experience, we can say with confidence that most businesses are not optimally structured. In the absence of good professional advice, many business owners are not aware of the options available, or their differences and relative advantages. There is a world full of questions to be answered and problems to be solved for a business owner, particularly during the start-up phase.
Risk reduction in business and structural setup may not seem like pressing issues when there is so much else to think about, but business structure can have important effects throughout the life of the enterprise, particularly in questions of taxation. We find that more than 90 percent of our new clients are not properly structured, and are paying more tax than they must. Business structure advice pays for itself over and over.
Asset Protection
This is an effort that will be ongoing from the first day to the last. Specifics may change over time, but there is always the need to protect private and business assets that may represent years of effort in building. Risk reduction in business never ends. The longer a successful business lasts, the longer it is exposed to risks of market downturns, the rise of competition, loss from fire and natural disasters, loss from adverse regulation, and even family issues and disagreements and as a business becomes more valuable with time, the greater the magnitude of potential losses.
Business risk can be reduced but never eliminated completely. This is just the reality of an uncertain world, and why your business needs protection. A comprehensive asset protection strategy looks at all risks, and it changes and grows with the business. Asset protection advice is one of the most valuable continuing inputs your business can have.
Ensuring Value on Exit
When the owner or owners decide it’s time to exit the business – selling it or passing it on to family – it may be the culmination of a life’s work. There is often substantial unrecorded and unrealised value in the enterprise, not visible or hard to see with the many important issues of the day-to-day running of the business. This needs to be brought out and accounted for to create a fair transfer of the business and its assets. An independent assessment by trusted professionals is the best way to capture true value.
Their guidance will also be of great help in maximising tax savings, defining business risks and mitigation strategies, and ensuring compliance with regulatory issues. They will answer the many questions that will come up, and smooth the way to a successful transition. Business exit strategy planning is something to be thinking about from Day One.
Mitigating Business Risk for Your Enterprise
Taggart & Partners has advised and assisted a great many small and medium-sized businesses on risk strategy planning. We are in Brisbane, and we have been doing this for years. Our expertise and resources are at your disposal with a simple contact. Call us on (07) 3391 1188, e-mail your questions to enquiries@taggartandpartners.com.au or get in touch online. We are ready to help your business fulfill your vision.