Em Parsons

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    • Member Type(s): Communications Professional
    • Title:Marketer
    • Organization:Roofstock
    • Area of Expertise:Marketing, writing
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    What to Consider When Buying a Business

    Friday, June 28, 2019, 12:01 AM [General]
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    When buying a pre-existing business, there are certain considerations, both personal and legal, that must be looked upon before signing the bottom line. When caught up in this situation, many terms, stakeholders and laws can be overlooked in the moment, and therefore this article aims to pinpoint key areas for thought.

    Considerations When Buying A Pre-existing Business

     

    1. Reputation

    First and foremost, what do people think of the business you are buying? Whilst a good reputation can give your investment a headstart, a poor reputation can set you far back. Not only will you have to work on changing the reputation by stressing new ownership, you will also need to pinpoint and rectify the areas in which caused the poor reputation to begin with. For example, slow order delivery? You will need to change suppliers or freight. Unhelpful staff? Customer service training, job training or restaffing may apply. Areas to seek out before purchase include chatting with suppliers, existing customers, and reading online reviews.

     

    2. Assets and Taxation

    What property does the business currently own? Some assets such as current inventory may be advantageous for starting to run the business as soon as possible. However, if the inventory is outdated, extra cash flow may be needed to build up new inventory and dispose of the outdated items. It is also important to consider what new inventory must be ordered to undertake business operations, and whether the current inventory availability will adjust the business price. Confirming the taxations requirements that exist and those taxes that will be added on are also necessary to understand, such as GST on the business sale. This confirmation will need to be taken up with the Australian Tax Office prior to buying agreements.

     

    3. Intellectual Property and Business Name

    A list of intellectual property should be created prior to buying the pre-existing business. It is important you know the rights surrounding what property belongs to the business and what is available to use in new operations, such as logos and trademark products. It is also important to check if the seller has full rights to the IP and trade name, and thus whether they have full rights to transfer these over. This may include Trademarks, Patents, Copyright and even the overall business idea, all of which should be checked. A restraint of trade clause should also be considered in the business sale so that the existing owner cannot start up a similar business, in a similar location in the close future, thus protecting the business from being copied. It is highly recommended to hire a commercial lawyer, such as those from LegalVision, to protect your business. These well-established business lawyers can conduct drafting and reviews on business contracts, as well as assist with business disputes that may arise.

     

     

     

    4. Employees

    Firstly, are the existing employees staying with the business? Are you going to hire your own employees as well? It is essential to consider what new training will have to be conducted when inevitable changes will be made with a new owner. The additional time and cost of this training will need to be a part of the new business plan and budgets.

     

    Advantages and Disadvantages of buying a business

    Advantages

    • Established Clients or Customers: Acquiring new customers can be difficult, but with a pre-existing business, some of the work is done for you. There will be orders and requests awaiting with the buy, thus ongoing cash flow.
    • Supplier Relationships Formed: similar to customers, having the suppliers readily available with prenegotiated contracts makes the start of new ownership run well. Problems can arise, however, if the contract needs to be re-negotiated or you as the new owner believe a better deal would be available with a different supplier. Thus there will be new time and budget considerations.
    • Reputation Secured: the business goodwill should be transferred over with the purchase of the business.

     

    Disadvantages

    • Pre-existing Problems: Pre-existing issues may be the reason the business needed to be sold in the first place. The time and costs to rectify these issues should be factored into a potential business strategy, and may well outweigh the value in buying the business.
    • Poor Reputation: The business reputation preceding the new owner may be quite difficult to adjust.
    • Loyalty to the Last Owner: The previous owner may have existing relationships with their customers and therefore take these customers with them when they leave. Clients may be hesitant to return the business when you own it, as there is a degree of risk.
    • Hostile Staff: Changes at work can make complacent employees hostile, and not agile to new working procedures. It may also take longer to change the ways of current employees than to start from scratch.

     

    Overall, there are many aspects revolving around costs, time and legalities that must be considered when purchasing a pre-existing business. Making well-informed choices with your investments is made possible through hiring a lawyer, knowing buying advantages and disadvantages, and understanding key aspects of the buying process.

    What to Do if You Think Your Employees Are Stealing from You

    Thursday, June 27, 2019, 9:29 PM [General]
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    Falling under the Crimes Act 1900, theft is categorised as larceny and an employee stealing from an employer is a crime under the NSW law. The prospects of your employees committing larceny is not something business owners want to experience. However, unfortunately larceny occurs more than you think.

    Larceny can take many forms, from skimming from the till, trading business information, stealing from colleagues, giving discounts without authorisation and many more. When an employee steals from an employer, it can have a devastating impact on a business. often leading to significant economic loss, distrust in employees, and even worse, bankruptcy. If you believe that your employees are stealing from you, it is important to take necessary steps to ensure that the correct action is taken and that your business doesn’t suffer.


    Evaluate the Situation

    Before making any accusations, it is best to launch an investigation and evaluate the situation of the alleged theft before taking any action. Larceny is a serious offence and it is important to evaluate the situation thoroughly to understand options of action. The investigation process involves gathering evidence and information about the theft and the accused. The more information you gather, the stronger your case will be. During this process, it is often best to not let your employees know as this may cause unsettling feelings and rumours within the workspace. This could derail your investigation and the information you gathered may not be as accurate.

    Implement Changes

    If there is a belief that your employees are committing fraud against your business, the first thing you should do is to implement changes in the workspace. Doing this will not only stop the accused from further thieving from your business but will also prevent any future thieves from stealing anything. Possible changes that could be implemented include:

    • Removing staff access from sensitive business areas
    • Increasing checks on stocks and equipment
    • Installing security camera
    • Implementing administrator passwords on accessible documents

    An extensive approach towards greater safety will always benefit your business. But it is important to ensure that your process is fair, and your employees feel comfortable with the new security implementations.

    Legal Services

    Engaging legal services can be incredibly helpful if you have an honest belief that your employees are stealing from you. As experts in larceny crimes, criminal lawyers can advise you on the appropriate actions to take against the accused. Often, there is more than one appropriate action you can take. If you are unsure on how you would like to proceed, engaging the services of a criminal lawyer may enable you to find a solution.

    Prepare an Interview

    Often, confronting the thief during moments of heated feelings does not go well. It could lead to a heated argument or even physical assaults. Thus, if you are thinking of confronting the accused, make sure you are calm and have a list of the things you want to say. This process can be difficult as the accused may deny they have committed larceny. In this case, the evidence and information you have collected during the investigation process will come in handy. If you don’t feel comfortable with doing this interview alone, engage in a lawyer or an interrogation specialist to assist you.

    Have A Chat with Your Employees

    With personnel changes and increased security implementation in the workspace, there may be confusion among your employees. Whilst you do not have to inform them of the situation, it is a good idea to inform them about the new security implementations and new rules. Doing this will ensure an understanding of the new rules. Further, this allows them to ask any questions and to solve any miscommunications that have occurred. Having uniformity in the workplace is important in ensuring your employees are happy and no future larceny issues arise.

    How To Show You Appreciate A Great Boss

    Thursday, June 20, 2019, 2:42 AM [General]
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    When most of us look back on our working lives, there is always one boss that you will always remember. Whether this was the boss at your first job, or someone that you work for currently, you should not underestimate how much it can benefit you to work for a great boss. Having a great boss can make each day at work just a little bit easier, but most of us tend to forget to thank these people for having such a positive impact on our lives. Luckily, there are a number of quick and easy ways to show that you appreciate your boss, that can make you the favorite employee in a matter of minutes.

     

    Say it through your actions

    Sometimes, in order to show your appreciation for your boss, you need to show it through your actions. Sometimes, we do these things subconsciously, like by arriving to work early, putting in a few extra hours a week on a big project or helping out where you can, but other times, we do things that are more obvious.

    Having honest and direct conversations with your boss on a regular basis is another way to show that you appreciate them. This is because it shows that you trust them enough to tell them how you really feel about any issues that you may have when it comes to your work, which most great bosses, who are good at their jobs, will appreciate.

     

    Celebrate the milestones

    All of us want to be acknowledged when we do something great or have something great happen to us. Whether it’s something work related like getting a promotion or landing a big account or it’s something in your personal life, like a birthday or an engagement having other people celebrate with you is always a good thing. However, sometimes people forget to acknowledge that these things can happen to your boss too, and they do not get to celebrate these milestones with everyone that they work with.

    If you want to show your appreciation, you should be able to celebrate these big moments with boss. Companies like Snacknation are leading by example, and showing all employees that they care about them by celebrating birthdays and other milestones in unique ways to suit each individual. This way, they will be able to see how you and your fellow employees are interested in their life outside of work, as well as when they are at work too.

     

    Write them a Linkedin recommendation

    These days, almost every business professional has a Linkedin profile, so that prospective clients or employers can get a sense of the work that they have done over the years. Giving your boss a recommendation on Linkedin is like giving them a public endorsement online, so that a number of different people can understand how good they are at their job. You could do this by endorsing a skill that they have listed on their page, like managing projects or liaising with potential clients or you could write a paragraph that highlights their skills so that they can put it on their profile page.

    Showing that you appreciate their talents and recommend them to other people is the ultimate compliment that you can give someone on Linkedin, so receiving a glowing review on your page online will be a very big honour for your boss as well.

     

    Let their boss know

    Everyone wants to know that their employee is doing a good job, and letting a big boss or CEO know that their employee is doing a good job is always a good thing. If your boss has a bigger boss, like if you work for a big company or a franchise, you should let their boss know that they are doing a good job. Letting the right people know that someone in their company is doing a good job can be very beneficial to those who are receiving praise because it could mean that they will receive a reward or a promotion for their hard work.

    If your boss does not have a boss or someone higher than them to talk to about their performance, you should consider other ways to let more people know about their workplace performance. Something that you could do if you boss is exceptional is to nominate them for an award that recognises them in their field. Even just being nominated for a big award can really boost a person’s profile in their chosen field, because it shows that they care about their job and take pride in the work that they do. 

     

    At the end of the day, everyone wants to be appreciated, so making sure that you show your appreciation to your boss when they have done a great job is very important. There is no right way to show someone that you appreciate the work that they have done, because everyone is different. The key is to figure out what you think they would like, and then go from there. And anything you can do to show someone you care will be appreciated in its own time.

    Tips for Young Business Owners Purchasing Property

    Wednesday, June 5, 2019, 10:05 PM [General]
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    As a young business owner, deciding to purchase a property, either for investment purposes or to live in, might be one the most financially intelligent things you can do, so long as you make the right choices.

    However, as you'd expect, if you're purchasing a house or an apartment, there are a few tips you should know. These could end up saving you tens of thousands of dollars in the long term or even keep you from defaulting on home loan repayments.

    Take a look below at our tips for young business owners purchasing property, and you might learn a few things that could make your property purchase a lot smoother.

     

    Thoroughly Research the Market

    Our first tip we can't stress enough, you absolutely must know what the entire market is doing and determine whether it's an appropriate time to buy or not. If you've taken a look at the news recently, you'll have seen that home loan defaults are higher than ever and that house prices have virtually 'collapsed' since their peak, which means we're stepping into a buyers market.

    That said, you'll still need to be on the lookout for a few indicators at all times. These can include things such as growth potential, the state of the local market, and whether an area you're interested in has any developments on the cards that could affect the home's value – think new schools, shopping malls, highways, etc.

    It's also wise to subscribe and follow as many real estate and property blogs and forums as possible, so you're kept in the loop. Websites like realestate.com.au and Investor Assist will provide you with just about all the information you'll need.

     

    Don’t Settle for Any Loan

    A rather obvious tip is not to settle on the first loan you find online with a great rate or exciting extras.

    Do as much shopping around as you possibly can and look for a loan with low interest, low charges and more. You must make sure you’re getting as many perks with as few fees as possible, or you’re essentially wasting the deposit you worked so hard to save.

     

    Save a Deposit Early 

    As a business owner, there's a good chance you're in control of your income, which means fluctuations in your business affect your personal bank account directly. These income variances have the potential to affect your chances of getting a loan approved, which means saving rigorously for a deposit is non-negotiable.

    You absolutely must show lenders that you're capable of repaying a home loan by making regular deposits to a savings account.

    In addition to showing your financial responsibility to banks, you should also save a hefty deposit. This deposit will reduce the size of your home loan repayments as well as the interest you pay. And if you're lucky enough to have saved over 20 per cent of the home's value as your deposit, you'll no longer need to pay for LMI or Lenders Mortgage Insurance.

    In the end, be sure to do plenty of research and find some information on home loan deposit sizes, interest rates and loan to value ratios.

     

    Talk to the Professionals for Tailored Advice

    Considering that you're a business owner who's also young, there won't be too many fact sheets and guides out there tailored to you. Because of this, you'll need to speak to professionals in real estate and lending to get the answers you need.

    Take some time to speak with mortgage brokers, property managers, accountants and financial planners and let them know your circumstances. You might be able to find them online to make things a little easier.

    As a young, self-employed business owner and not someone who works and 9 to 5 job, you'll have different circumstances and requirements, and these professionals will be able to ensure you know what's to come when you purchase a property.

     

    Show Financial Responsibility

    Of course, banks look into your financial responsibility at every age when you apply for a loan, though, you can increase your chances of approval if you show that you're a trustworthy borrower.

    Work hard to stay away from ordering UberEats too often, make regular savings account deposits and reassure the banks that you can pay home loan repayments. You can do this by saving the expected home loan repayment amount in your savings account each month – this way they can see you're earning and saving enough for a loan.

     

    Choose a Property with Potential

    We're looking at falls across the board in today's market, though that's good news for first-time buyers and anyone looking to buy a family home. However, it's essential to look for a home in a location that's going to be affordable, inexpensive to renovate without over-capitalising and also outside the inner city. 

    It's in your best interest to focus on affordability and growth potential over high rental yields and the location of the home as a young business owner purchasing a property.

    How Busy Professionals Can Easily Make Investments

    Monday, April 22, 2019, 8:54 PM [General]
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    If you're a busy tech professional brought in by the tech boom in Dallas, Houston or anywhere else in the States, then there's a good chance that just the thought of adding investing to your daily schedule might push you to breaking point. Besides, who has time for watching the stock market for hours on end, other than the day traders in Chicago and New York?

    Well, we have some good news. Thanks to the recent rise of the internet's incredible investment platforms and smartphone apps, you're able to do everything autonomously and without much effort at all. 

    Let's take a look below at a few ways you can easily make investments without giving up your last few moments of spare time or sanity.

     

    Leave it to the Bots, the Trusted Bots

    If you're not one to spend hours every day scouring the web for news alerts, press releases, and other stock market news, then make the bots to do it for you! Their fees are extremely low when compared to human advisors, but they often offer the same type of information and data for you to use to make investments.

    These services are often free or require a minimal investment amount to get started, and all you need to do is follow what the robot or automated advisor says.

    All that said, if you're a busy professional in any part of the US, a robo-advisor or automated stock market analyst is going to be a godsend for you.

     

    Automate Investment Deposits

    There's no better way to snowball an investment than by automating your investment account deposits.

    If you're a busy professional looking to invest, then take a look at your investment platform and enable the automatic deposits and purchases option. In doing this, you'll be able to sit back and leave it to the platform to do the investing and depositing for you in the background. You can relax and watch your investments grow all on their own.

    The best part of these features is their ability to stop you from stressing of making rash decisions. If you've witnessed a Wall Street wobble, you might be inclined to sell immediately - losing out on all future profits. An automated system stops you worrying about this by alerting you and doing the buying, selling and depositing by itself.

     

    Invest on Property Marketplaces

    Have you ever dreamed of buying homes with the hopes of renting or flipping them, but don't have the time? Then that's where Roofstock comes in.

    On real estate marketplaces like Roofstock, you're able to purchase investment properties at the touch of a button, with no need to continually visit the homes, monitor purchasing proceedings or even manage the homes.

    The platform manages your investment property's purchase for you and offers fantastic rental yields and sales returns over time, as almost every home is selected based on growth potential. Frequently, gains over the course of five years can exceed $40,000 in most US markets.

     

    Utilize a Private Money Manager

    If there's one way to invest your cash and save time doing it, it's by having someone else do it for you. Head online and search for reputable private money managers whom you can trust with your funds.

    These managers take a look over the investment and stock markets and invest portions of your investment account across the market. This way you're depositing and earning across multiple sectors without having to do anything at all.

    The biggest perk of this is that you're not sharing the investments or returns with other investors. All of the earnings on your investments are uniquely yours and not split evenly between of other investors like timeshares.

     

    Use Your Apps

    As we all know, there's an app for just about everything, including automatic investing. Take a look at the App Store and find an investing app that suits your needs and sign up for it.

    You'll have to forfeit a small commission for these apps, but they are entirely automatic and able to make investments, deposit funds and more all without your intervention. It's the ultimate solution for busy professionals looking to invest.

    We suggest taking a look at Acorn and Robinhood as a great place to start your automatic investment journey.

     

    Ignore Stocks and Jump to Funds

    Lastly, a somewhat overlooked investment option is the ETF or exchange-traded fund. These funds are stable, often grow faster than traditional stocks and are made up of a whole range of stocks - rather than just a single one. That means, as a professional, you're able to invest routinely without the worry of any extreme volatility.

    To make this easier for you and to save you some time, you can take a look at the current best ETF rankings


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