Business Structuring is (a very necessary) art form!
Your business structuring can literally save your house, your relationships and your own self worth
It has been a rather difficult, stressful and heart breaking few weeks here at CapitalQ as we have attempted to assist a new Client to avoid their business going into liquidation and as a result of that, the eventual loss of their home. It has been a very stark reminder, and reinforcement, of why we recommend putting a lot of thought, effort and yes, financial investment, into each and every Clients’ business structuring.
Correct business structuring can make a “huge” difference
There are no certainties in life, and in particular when it comes to asset protection, no one can guarantee any structure, or any action or strategy for that matter, will ensure for certain that your personal assets will be protected in the event of business difficulties.However, one thing we are certain of, if you don’t take your business structuring seriously and you do face business difficulties, you will lose everything financially AND it will greatly impact your personal relationships AND it will greatly impact your own feeling of self worth and personal confidence.Getting your business structuring right can substantially increase your chances of protecting at least some of your accumulated wealth, but by the time you think there might be an issue, its almost always too late!!!
Yes, correct business structuring comes at an initial cost
We totally get it, no one wants to spend money on something they think they only “may” need. But taking this attitude too literally can be perplexing. Because every single person we see has insurance on their motor vehicle, they all take out professional/business liability insurance where they can and most take out personal insurances like Life, TPD, Trauma and Income Protection. And so they should.Business structuring is simply another form of insurance. The asset protection element of business structuring is insurance against a possible downturn in business fortunes (which often will be out of your control). It can be the difference between being able to hold your head up and being able to get back on the horse or suffering a very dark time.
How we approach business structuring
We place the most value on the business structuring advice we can provide, rather than on the actual establishment of that structure. (Strangely sometimes this can be in contrast to what a potential Client wants to pay us for.)The advice, including getting to know your situation and then coming up with a structuring strategy and conveying that strategy to you, is the most valuable part of the process. So we charge a fee (usually we can agree that fee in advance) for this component of our service. Where possible, this will include at least one, initial fact finding meeting with you, followed by our strategising (usually as a collective of our advisers).Once we have conveyed our recommendation, and ensured you fully understand the proposed structure and the pros and cons we seek “go ahead” from you (if need be, subject to fine tuning as required).Only then do we proceed to the actual establishment process (which has a large administrative element to it). At this stage we aim to keep the cost of our time to a minimum, while of course passing on the disbursements that are incurred including ASIC Fees, Solicitor Fees and other incidentals.
Don’t compromise
So please, if you are considering starting a business, or your making a significant further investment, or you just have doubts about your current structure, get in touch, and let us do all we can to sure up your position.Oh, and if you have seen another accountant, and they have made the structuring of your business sound easy and/or simple, please seriously consider getting a second opinion. I know my Client referred to above, would give anything for the chance of a second opinion and for the chance to go back and invest that modest (and now insignificant) extra amount of time and money before it became too late.