14 ways to control cash flow and maintain liquidity [cheat sheet]

Posted by James Price | JPAbusiness on 20-May-2020 02:00:00

[This blog has been republished in the wake of COVID-19 developments, as having the liquidity necessary to continue operating effectively is critical in these times.]

As business valuers and brokers, and in advising clients on business performance and financing, there is a critical thing we look for: liquidity.

Liquidity is effectively how much cash a business generates and how stable and frequent that generation is. That ability to generate cash is a critical component of business value.

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Topics: Advice, Cash flow, Working capital, Running your business, cheat sheet, Business advisor, James Price, JPAbusiness, Parramatta, Orange NSW, COVID-19, coronavirus, liquidity

Business valuation or market appraisal – what is the difference? [video]

Posted by James Price | JPAbusiness on 18-Mar-2020 02:00:00

Business market appraisals and valuations are both robust assessments of a business’ worth and are appropriate for use in different circumstances.

In this video I explain the difference between a business market appraisal and a business valuation, and when each should be used.

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Topics: Business Value, Advice, Valuations, Video, Business valuation, market appraisal, valuing a business, Parramatta, Orange NSW

How your inventory management impacts business sale price [case study]

Posted by James Price | JPAbusiness on 11-Mar-2020 02:00:00

A few years back the JPAbusiness team facilitated the sale of a business involved in import and distribution.

It was a well-known, independent brand that had been established for well over 50 years and had solid bottom-line performance.

Unfortunately, when it came time to exit the business, it soon became apparent there was too much inventory (stock on hand).

We negotiated a price for the goodwill, plant and equipment etc, based on a multiple of Business Maintainable Earnings (BME), which is essentially the cash flow of the business.

Then it was time to address the stock value.

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Topics: Business Value, Selling your business, Advice, Cash flow, Inventory, selling a business, Business advisor, JPAbusiness, Parramatta, Orange NSW, cash flow management

15 strategies to reduce employee fraud risk

Posted by James Price | JPAbusiness on 11-Mar-2020 02:00:00

Small businesses (under 100 employees) lose almost twice as much to occupational fraud – per case – as large businesses. [Source: ACFE Report to the Nations: 2018 Global study on occupational fraud and abuse]

And according to the PWC Global Economic Crime Survey 2016, seven out of 10 organisations believe the biggest driver of internal economic crime is opportunity.

What you can do

While business owners can’t do much about a fraudster’s personal drivers, we can definitely limit opportunities to commit employee crimes and create a work environment that actively discourages fraud.

Listed below are 15 strategies to minimise the risk of employee fraud occurring in your business.

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Topics: Free download, staff management, Checklist, Employee fraud, business advice, eBook, Business advisor, JPAbusiness, Parramatta, Orange NSW

5 tips for buying a business [video]

Posted by James Price | JPAbusiness on 26-Feb-2020 02:00:00

The following video features 5 tips that will help you take a planned and measured approach to what may well be one of the biggest financial investments of your life.

They're each important in their own way, but I must admit Tip 2 – 'Have passion for the opportunity' – is a key one for me.

Owning a business can be difficult at times, but it's easier to withstand those challenges if you have a 'fire in your belly' for what you do.

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Topics: Buying a business, Business Planning, Video, business advice, Business advisor, Parramatta, Orange NSW

How to create a Professional Development plan [template]

Posted by James Price | JPAbusiness on 26-Feb-2020 02:00:00

Staff professional development (PD) needs are best identified through a formal performance management and evaluation process.

I recommend owners/managers sit down with their staff members once every 12 months, as part of their annual performance review process, and develop a PD plan jointly, with each individual.

This review process will identify where already skilled employees need information to support their growth to gain more advanced knowledge, and further develop their own business and leadership skills. 

You can create plans from scratch, or download our free Professional Development Plan template to get you started.

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Topics: Template, business advice, professional development, Parramatta, Orange NSW, managing employees, staff training

Capital gains tax issues when transferring a business to a family member

Posted by James Price | JPAbusiness on 19-Feb-2020 02:00:00

The following information comes from our updated eBook: Capital Gains Tax 2.0 – Issues to consider when selling your business.

The key CGT issue when transferring assets in a non-arm’s length transaction (i.e. the sale price may not be at fair market value) is the market value substitution rules.

These rules basically mean when you’re selling assets and the transfer is deemed to involve parties not acting on an arm’s length basis, then the CGT rules impose what would be a fair market value on the transaction.

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Topics: Capital gains tax, business advice, eBook, Parramatta, Orange NSW, taxation

How to get good staff and keep them [eBook]

Posted by James Price | JPAbusiness on 19-Feb-2020 02:00:00

We often hear business owners and managers say “it’s so hard to find good people – we’ll just do it ourselves”.

But as we’ve discussed in many blogs and eBooks, critical to building business value is having the people resource that allows the business to deliver sustainable returns and earnings.

If you find yourself throwing your hands in the air and saying ‘I’ll do it myself’ because you can’t find someone suitable for a role, or you’ve hired three people in 18 months and they’ve failed to stay or deliver the outcomes you were after, you need to reconsider your recruitment process and what you’re trying to achieve.

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Topics: Business Value, Employment and recruitment, eBook, staff recruitment, business management, Parramatta, Orange NSW

Why good information is critical when selling a business [infographic]

Posted by James Price | JPAbusiness on 12-Feb-2020 02:00:00

When selling a business, it's important to put yourself in the position of a buyer.

Ask yourself: 'If I was considering buying this business, what would I want – and need – to know in order to make an informed decision about the opportunity?'

As advisors, we understand that good information on a business opportunity is critical to a successful sale.

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Topics: Selling your business, infographic, business advice, Business selling, business broker, Parramatta, Orange NSW, sell a business

Create an Annual Business Plan with our free template

Posted by James Price | JPAbusiness on 05-Feb-2020 02:00:00

Business planning is about making your business as robust as possible, so it can take advantage of opportunities and also successfully withstand inevitable shocks.

Annual business plans don’t have to be weighty documents, but they do need to contain some key information, with the most important being:

  • frank and honest appraisal of resources
  • analysis of your competitive environment
  • SWOT analysis
  • targets
  • budget.
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Topics: Free download, Business Planning, Template, Succession planning, Business advisor, business management, Parramatta, Orange NSW

 
Disclaimer: The information contained in this blog is general in nature and should not be taken as personal, professional advice. Readers should make their own inquiries and obtain independent, professional advice before making any decisions, taking any action or relying on any information in this blog. 
 
 

 

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