Biz Law - Business Advisors

Business purchases involve complex issues which make quality advice a must. Not only can poor advice cost you money, it can also affect family relations.

It is important for you to get as much advice as possible before starting a business. Obtaining professional assistance in this process is almost mandatory. Certainly, you will face a greater risk if you decide to go it alone.

Useful advisers include:

• Accountants
• Business advisors
• Industry Associations and Chambers of Commerce
• Lawyers

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All businesses need great advisors. Chose advisors who have succeeded personally and who can assist your business to succeed. Good advisors can use their knowledge and experience to plan for survival and growth.

The best advisers are more expensive.

However the real cost of advice is not the advisers hourly rate. The real cost is the cost to you of either not accepting the advice (because you do not trust it) or actually accepting it and finding out that it is wrong. This can be far more costly.

The second cost of advice is the cost of the opportunities you and your family miss when you do not have the confidence to act on the advice. asset protection planning affects not only your future, but also the futures of your family.

Your specialist: must be able to communicate in terms that you understand. be one in whom you and your family must have confidence. If you do not, you won't trust their advice. If you don't trust their advice, you won't act. must be compassionate and understanding. must have convictions and the courage to stand behind them, even if they risk losing you as a client. must have commitment to you, your family and business. must understand that asset protection planning will affect not only control of the business and family members' financial security, but also relationships.

Ensure that your expert is offering a comprehensive business and Taxation monitoring service.

Good advisors can give an independent view of the business situation.

The following steps are a useful guide on how to chose a business advisor:

Ask for recommendations from:

• Other successful business people.
• Your bank manager.
• The advisor's existing clients.

Arrange an initial meeting and prepare a list of questions for the meeting. Ask about:

• Your business proposal or plan, is it sound and is it viable.
• Their experience with businesses similar to yours. The more experience with businesses like yours the better they will be able to provide expert advice.
• What they can offer: range of services, skills and areas of special expertise.
• How will you be charged: their hourly rate and an estimate of likely costs.
• Who will be your main contact in the firm. Identify and meet all persons you are likely to have contact with.

Feel comfortable with and have confidence in the person you choose. If you are not satisfied, get another advisor. Remember they work for you, not you for them.

Some important points to remember:

• Don't make a choice based on cost alone.
• Satisfy yourself that costs quoted are reasonable.
• Ask questions about services which can help you manage your business better.
• Don't choose someone you cannot communicate with easily.
• Don't use the adviser of the party selling you a business. A solicitor or accountant can only serve the interests of one party at a time.

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You should use your accountant for more than tax and statutory services. A good business accountant can help with:

• Evaluating a business proposal and preparing a business plan;
• Information on sources of funds and assistance with preparing applications for finance;
• Setting up a business or buying, restructuring or expanding an established business;
• Preparing a cash flow budget and advising on how to use it to manage your business better;
• Costing your products and/or services and areas where you may be able to reduce your costs;
• Pricing your products/services in a competitive environment;
• Methods to control inventories, debtors and other aspects of your business to help minimize your debt;
• Information on employing staff, remuneration packages and retirement planning;
• Comparing your actual performance with your projected performance and how you can improve.

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More frequent use of Your Lawyer may reveal areas of your business that require legal attention before problems arise.

A good business lawyer can help with:

• choosing and implementing an appropriate business structure;
• registering a business;
• contracts and other documents, e.g. warranties, supply contracts, employment contracts, service and installation agreements;
• product liability;
• legislation regulating the operation of your business (e.g. Fair Trading Act, Health Act, etc.);
• Insurance claims;
• investigating a new or existing lease;
• negotiating a lease with a landlord;
• all matters relating to identifying and purchasing premises;
• giving your company additional support by becoming a director;
• representing your interests in dispute resolution with authorities or other businesses.

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