How do you conduct your business?
Most of us adhere to a simple “think, plan, act” model.
However, there are flaws in the model as a lot of times we’d overlook essential planning for our business. A proper business financial plan goes a long way to providing security for your business.
So what are the things we need to look into when it comes to business financial planning?
Setting up of business structure
To ensure a proper way of running a business.
Cash flow management
To have enough cash liquidity for your business.
Debt cancellation & Liability management
To offer protection and reduce the burden of the shareholders in case something happens to you or your business.
Key management program
To retain good staffs and core employees
To achieve mutual understanding and agreement among the shareholders for the entire business operation.
Including voting rights, appointment of directors, quorum requirements, financing methods, investment strategy, business direction, profit sharing and dividend policy etc.
To have mutual understanding and agreement.
Including buy-sell agreement, selling off shares to existing shareholders,
Merger & Acquisition (M&A), Initial Public Offer (IPO) to get company listed, preserving of respective shares to heirs, sell off and buyer company etc.
Also, tax planning is an important part of business financial planning. Often we see business owners not maximizing government grants and incentives given to businesses, resulting in unused tax advantages and unclaimed tax rebates. Thus having a proper tax planning would yield benefits for the finance of your business.
That’s not all, if you’re a business owner, you should always have a proper personal wealth plan as well. As mentioned in the “Personal Financial Planning” section, whether “something happens” or “nothing happens” to us, we shall always be prepared for the various situations.
Via family trust and estate planning, the hard-earned money from your business or personal investment shall be preserved and locked in for your family as a legacy. Via a proper will and trust structure, you’d create/ensure wealth preservation for your family and heirs.
By now, it’s pretty clear running a business is not as straightforward as expected, and it’s vital to have a good business financial plan. If there’s anything mentioned above that you’re currently lacking, immediate action is needed. Too much information and you’re not sure where to begin with?
Just refer to our friendly advisors. We are ever-ready to assist you.