A Partnership business structure is made up of two or more people or entities. Most small business Partnerships are what is termed ‘General Partnership’ – this means that all of the partners are equally responsible for the management of the business, and each has unlimited liability for the debts incurred.
A Trust business structure is where there is an obligation imposed on a person (Trustee) to hold property or assets (such as business assets) for the benefit of others (Beneficiaries). The trustee is legally responsible for the operation of the Trust and you may have a company act in this role.
A company is a form of business structure. It is an entity that has a separate legal existence from its owners. This means it has the same rights as a person and can incur debt, sue and be sued.
Sole Trader business structures are quite easy and inexpensive to set up. As a sole trader, you are personally responsible for all of the operations (including debts) of your business. You also pay tax personally on the profits at your marginal tax rate.
When running a small business it can be easy to fall into the trap of feeling like you have to do it all, which can be overwhelming for even the most seasoned business minds. But while we may be used to wearing multiple hats, the question we must ask ourselves as small business owners is… how well are we wearing those hats?
We’ve been looking at how visualising your business numbers can help you make strategic decisions in your business. In this article we’re looking at how to decide where you should grow your sales.
For many businesses, the two major costs they experience are: Cost of Sales and Wages. Understanding how each of these main costs impact your business means that you can make better decisions to move your business to the next level.
Free cashflow is the lifeblood of business, not only is it a sign of profitability but also provides a resource to help you grow your business into the future. Free cashflow is what’s left after all your expenses – think rent, wages, finance repayments, taxes. Having enough free cashflow in your business eliminates one of the most common business owner headaches – and taking control is not so difficult – it just requires a little planning, enlightenment and system changes.
