In our experience dealing with clients over the years, we've found many businesses start as side projects.
In this video, James tells the story of a client whose 'side project' became a multi-million dollar transport business.
He also points out some risks to watch out for regarding goverance and business structure issues when a business starts this way, and how to ensure they don't negatively impact value down the track.
Topics: Business Value, Family business, Business Structures, business advice, Business advisor, Governance
Good business structures should be effective in:
Topics: Business Structures, cheat sheet
Trusts are a very popular structure for owning and operating businesses, particularly where there are multiple business partners and significant tangible assets associated with the private business, along with the going concern trading business.
The popularity of trusts among business owners relates to benefits associated with asset protection and income distribution, among other things.
All types of trusts have the same essential structure, with minor variations in their rules (i.e. trust deed) to distinguish the trust and allow it to perform different functions.
The infographic below sets out the essential structure of a trust, along with the key pros and cons of this type of business structure.
Topics: Buying a business, Advice, Business Structures, Starting a business
Companies are very popular business structures and offer a number of advantages over Sole Trader and Partnership structures, particularly in the areas of asset protection and finance raising.
However they are also more complex structures, and cost more to set up and administer.
This week’s infographic takes a look at Companies: their key features, pros and cons.
Next week we’ll bring you the final in our Business Structure infographic series: Trusts.
Topics: Buying a business, Advice, Family business, Business Structures, Starting a business
As we mentioned last week, we have created a series of infographics to illustrate the pros and cons of different business structures.
Last week we examined the Sole Trader structure.
This week’s infographic takes a look at Partnerships: their key features, pros and cons.
Topics: Advice, Business Structures, Starting a business
There is generally no perfect structure that covers all wish-list items for a given business structure proposal, so the goal is to achieve a structure of ‘best fit’ for your business.
We are creating a series of infographics to illustrate the pros and cons of four common business structures: Sole Trader, Partnership, Company and Trust.
First up is the Sole Trader infographic – keep an eye out for the others, which will be published over the next three weeks.
Topics: Buying a business, Advice, Business Planning, Business Structures, Starting a business
We were recently asked for advice on the best way to bring an additional partner or shareholder into an existing business.
Golden rule 1: Understand what value the partner or shareholder is bringing to the business. Is it specialist expertise, an entry point into a new business line, strategic opportunities, funding… or all of these?
Golden rule 2: Understand the motivations and intentions of the new partner or shareholder – now and moving forward. It may help to seek some advisory or facilitation services to tease out and clarify these motivations.
Topics: Advice, Legal, Partners, Running your business, Business Structures, Shareholders, business advice, business partners, shareholders agreement, JPAbusiness, Parramatta, Central West NSW
The JPAbusiness team has recently received a number of separate requests from clients for advice on joint ventures, including a partial shareholding transaction (for succession, growth and exit).
Over the years we've been involved with setting up and facilitating a number of successful joint ventures, and we have also been called upon to sort out arrangements where things have gone wrong or haven’t been set up with adequate planning and foresight.
Topics: Selling your business, Advice, Partners, Running your business, Business Structures, Shareholders, Mergers and Acquisitions
