A NEW YEAR- A GOOD TIME TO PLAN AHEAD FOR YOUR BUSINESS
Preparing a Business Plan
is a valuable tool for the
development, expansion and ongoing operation of a
business, whatever the sector the business may be in
helps the business to work smarter, not harder
will be necessary when you are selling the business to investors and
specifies the objectives of the business and how these are to be
enables you to think through your ideas and exposes possible
shortcomings (such as lack of sufficient market research) that you need
forecasts the assets that
will be required by the business to achieve these objectives (plant,
vehicles, buildings, staff, cash)
enables the businessman to establish what commitment he is prepared to
make to the business.
helps build commitment because you have publicly named your objectives.
gives your business a sense of direction and action timelines to reach
as a measure against which actual results can be measured and
appropriate steps taken for variances
allows you and your staff to measure progress towards targets, which
leads to a shared sense of achievement (and makes recruiting more good
It builds credibility and convinces others (including lenders) that you
know what your doing and where the business is heading.
significantly increases chances of success. It enables you
to perform better than you would without a plan. Research
shows that businesses that undertake regular business planning have
higher profit margins than those that do not.
Components of a Business Plan
information e.g. business name, address, principals
the business plan, its major objectives, how these objectives will be
accomplished and the expected results
is just a summary so should be reasonably short
Table of Contents
headings and page numbers for contents of the plan
about the principals- their positions, experience, skills,
to be employed and in which job functions
premises be sufficient for business plan
of lease agreement if applicable
of its products and services.
trade marks, patents held
and future development of the product or service.
suppliers of raw materials
trading area and customers.
who they are, their strengths and weaknesses
the expected cash flow, profit and loss and balance sheets, financial
asset purchase requirements, funding required
show prospective investors and lenders why they should provide funds,
when they can expect a return, and what the expected rate of return on
their money is.
of the key staff and directors
STEPS TO PERSONAL FINANCIAL FAILURE
Want to face endless financial
difficulties during your lifetime? There are a few simple things you can do.
For all of you who are sick of hearing all the talk about ways to improve
your financial position, you are not alone, judging by the popularity of these
7 easy steps to financial failure.
1. Pay no
attention whatsoever to where your money goes
Keeping a budget, tracking spending and knowing how much is in your bank
account could all potentially make you realise that you are frittering away
your hard earned money on unnecessary expenses. This might lead you to feel
that you need to cut down on these areas, so try to avoid any knowledge of
your financial affairs.
credit cards for anything and everything
Of course, you want to be
sure that you never pay the card off in full, and of course rather than shop
around for a card that suits your spending, make sure that you choose one
with high interest and fees and no rewards. This way you can be sure to pay
interest close to 20% on everything that you buy, while getting nothing in
If you can possibly spend
everything you earn, then do. The last thing you want is to have money lying
around tempting you to invest it – that would only achieve financial
Invest in last year’s winner
If, despite all your
efforts above, you do wind up with leftover money (we can hardly call it
savings if it is purely by accident that you have it at all) then try to
invest in whatever performed best last year. Since financial and investment
markets move in cycles, the odds are against you doing well with this
Pay no attention whatsoever to asset allocation principles, or the level of
risk you can tolerate. Five years to retirement? High volatility is the name
of the game if you want to lose the lot. If you are still young, go
ultra-conservative to make sure your investments don’t keep up with
inflation and lose spending power over time. Ideally, keep it all in a bank
account that pays 0% interest.
6. Put all
your eggs in one basket
Diversification would only reduce the risk of you making a poor decision on
one investment, or increase the chance you’ll pick something of high
seek professional advice
A professional should make sure you avoid steps 1-6, and they’ll probably
find other ways for you to save more, invest wisely and be financially
secure both now and in the future.
Of course, if the idea of sleepless nights, paying endless amounts of
interest, and living out your retirement solely on superannuation doesn’t
appeal, then maybe financial failure is not for you – in which case you
would want to ensure that you avoid the suggestions in steps 1-7 above.
GOODS AND GST
For GST, secondhand goods are goods previously used and paid for by
someone else. It doesn't include:
- new goods
- primary produce (unless previously used)
- goods supplied under a lease or rental agreement
- secondhand goods consisting of any fine metal of any degree of purity.
Land is considered to be secondhand goods.
The same rules for GST and tax invoices apply to secondhand goods as for
all other goods liable for GST.
Secondhand goods if seller is not GST-registered
If the seller is not registered for GST or the goods are private
(exempt), there will be no tax invoice or GST charged. However, if the
purchaser is GST registered they can claim a credit for GST purposes.
Regardless of the accounting basis you use, you must make a payment
before you can claim the credit for the purchase.
In these cases the purchaser must record:
- the name and address of the supplier
- the date of the purchase
- a description of the goods
- the quantity of the goods
- the price paid.
You'll also need to keep details of the transaction if you are going
to make a claim for income tax purposes.