Empowering Smes

This week the Australian Taxation Office has released rules relative to the calculation of alternative decline in turnover for the JobKeeper payments and confirmation has been issued on JobKeeper payments that can be claimed for people other than employees.   Read more: https://www.esssmallbusiness.com.au/index.php?option=com_zoo&task=item&item_id=254&Itemid=639

Greetings – we hope you’re staying safe and still operating your businesses or, if not, you're able to think about some business strategies to implement when you to recommence business operations again. The Australian government, through the Stimulus Package Number 3, which was unanimously passed by Parliament last week, has implemented a number of significant strategies to assist many small and medium-sized enterprises that are struggling with the challenges of COVID-19 Coronavirus. Read more: https://www.esssmallbusiness.com.au/index.php?option=com_zoo&task=item&item_id=253&Itemid=639

This Australian government has now released three stimulus packages to assist small businesses and medium-sized enterprises to survive the COVID-19 coronavirus. Most small and medium-sized business operators will require the proactive assistance from your accountant/business advisors to guide you through these challenging times so as to ensure that your business is intact and able to operate efficiently when this crisis is over.   Read more: https://www.esssmallbusiness.com.au/index.php?option=com_zoo&task=item&item_id=252&Itemid=639

What sort of Small Business or Medium Sized Enterprise do you envisage operating or working at in 2020? Does your business have a “vision” for the next three to five years? Have discussions been held on the development of policies and strategies to assist in attracting outstanding people and retaining the good people that you already have?....   Read The Full Article Here

The good news on the equity capital scene for small businesses and medium sized enterprises continues with the Federal Treasurer Josh Frydenberg, confirming that the Federal Government’s election commitment relative to the establishment of the Australian Business Growth Fund official launch is imminent. This is great news for small businesses and medium sized enterprises because it will make it easier for these enterprises to access equity which will allow these companies to grow and employ more people. The Government has acknowledged that improved access to equity capital will reduce risks for small businesses and medium sized enterprises because it will reduce reliance on debt funding. The government anticipates that the Australian Business Growth Fund will approve equity investment in 30 to 50 companies annually.   Read the Full Article Here

Crowd Sourced Funding Equity Raising might be able to help your business. For the last twelve months private companies have been able to utilise the Crowd Sourced Funding Equity Raising sections within the Corporations Act to raise up to $5 million every twelve months from the public. By 31 October 2019, 55 companies had taken advantage of the amendments to the Corporations Act to raise $39.9 million shareholders capital direct from the public. Read full article: https://esssmallbusiness.com.au/index.php?option=com_zoo&task=item&item_id=249&Itemid=639

This is something to celebrate because the biggest change in financing arrangements for small businesses and medium-sized enterprises – private companies turned one on 19 October 2019. Crowd Sourced Funding Equity Raising could be of significant benefit for your company, if you meet the basic eligibility requirements: group turnover under $25 million annually group asset value under $25 million not registered on a Stock Exchange anywhere in the world Do you want to grow your business? Have you got a good business? Do you have a vision – energy – enthusiasm? If your business meets these characteristics, you could be able to raise up to $5 million in a 12 month period from the public... View The Full Article Here

“Attracting and keeping the right people is a key component of the life-cycle for most businesses” (Verne Harnish – Scaling Up) The other three essential components are: Creating a truly differentiated strategy (empowering SMEs047) Driving flawless execution (coming soon) Having plenty of cash to weather the storms (coming soon) Your accountant could assist you in identifying the characteristics of people who could assist your business to add value.  If your accountant is not available to assist you because of other work pressures you are invited to contact us and we will introduce you to an accountant/advisor who is able to assist you with this very important component of assistance on your business journey i.e assisting your business to create a “Talent Development Team.” Where do you start? Who is responsible for “Talent Development” in your organisation at present?   Read the Full Article Here

Does your business have a strategy that differentiates your business from your competitors? A “ Differential Strategy” is one of the key factors in creating a successful life cycle of a business. Have you talked to your accountant about assisting you to develop an update of your strategy and to make sure that your strategy has important differences incorporated which will differentiate your business from your competitors? Where do you start? Why not lock yourself away for a couple of hours of “quality time” and identify the key ideas that you have relative to the operation of your business.  The items that you are noting should cover the key aspects of your business including:....   READ THE FULL ARTICLE HERE

Have you ever had a critical look at the financial accounting information that your accountant is providing to you or that your accounting system is delivering to you? Do your Financial Accounts give you the information that you need to be able to effectively manage your business and add value to your business?...     READ THE FULL ARTICLE HERE

Recently a business operator wrote an article in “Accountant’s Daily” that pleaded with his accountant to provide a broader range of professional services not just taxation services. The small business person wrote “the truth is that while I’ve been patiently waiting for you to escape the compliance cubicle, I cannot hang around much longer.” “Over the years, I’ve sat through meeting after meeting with you about my tax returns. To be honest, I do this under sufferance – tax does not light me up!” “It is time to spell it out….Help me run a better business!” The writer then asked his accountant to meet with him quarterly with appointments set twelve months in advance – “know that I’ll look forward to our meetings and be interested in what you have to say...   READ THE FULL ARTICLE HERE  

The Crowd Sourced Funding Equity Raising Scorecard produced by ESS Small Business / ESS BIZTOOLS as at 31 July 2019 has identified that 31,141 investors have invested an average of $1,207 each in the 44 companies that have raised $37,586,246. (Click here to view the Scorecard) This uptake indicates that after a slow start Crowd Sourced Funding Equity Raising is starting to raise much needed capital for small businesses and medium-sized enterprises operating their businesses all over Australia.  Crowd Sourced Funding Equity Raising has been established in Australia following amendments to the Corporations Act by the Australian Government....     READ THE FULL ARTICLE HERE  

What is in it for a company? Ability to raise up to $5 million in a 12 month period direct from the public This is not a loan therefore: No loan application required No security required No personal guarantees required No monthly repayments of principal and interest required The company issues ordinary shares to the investors What does your client want to achieve for their company?....   READ THE FULL ARTICLE HERE

Accountants can assist companies to prepare the documentation that they will require: Business Plan Budgets/Cash Flow Forecast Customer analysis Identification of unique competitive advantage Business valuation to determine the number of shares to be offered and pricing Company directors and managers will benefit from advice on how Crowd Sourced Funding Equity Raising operates including:....     READ THE FULL ARTICLE HERE

Based on information contained within the Crowd Sourced Funding Intermediaries’ websites we have prepared the following scorecard as at 19 June 2019: Link to Crowd Sourced Funding Equity Raising Intermediary’s Scorecard Sample of business activities of companies which have raised capital include:...     READ THE FULL ARTICLE HERE

Companies need to have their “House in Order” - Andrew Geddes Chair of Greencross Ltd for 11 years (former ASX top 200 company) and a consultant to the Australian Accounting Industry for the last 30 years. “To raise capital SMEs have to go through all the disciplines of getting their “house in order” before investors will even consider supporting them, and in many ways that is a good thing.” “To put a Crowd Sourced Funding Offer Document together a company needs:....   READ THE FULL ARTICLE HERE

Crowd Sourced Funding Equity Raising is not the same as “Crowdfunding”. Crowd Sourced Funding Equity Raising is governed by the Australian Government’s “Corporations Act” which specifies strict legal requirements for the company to abide by. The company has to appoint an Intermediary from the businesses which have been appointed Crowd Sourced Funding Intermediaries by ASIC....     READ THE FULL ARTICLE HERE

When the then Australian Prime Minister, Malcolm Turnbull announced the Coalition Government’s Innovation Policy in December 2015 he indicated that two new types of corporate entities would be established. These entities were: Early Stage Innovation Company which required amendments to be made to the Income Tax Act Crowd Sourced Funding Equity Raising which required amendments to be made to the Corporations Act An Early Stage Innovation Company status can grant to eligible investors the opportunity to be able to claim a tax rebate on the value of their investment (subject to limitations) and these original investors may be entitled to avoid Capital Gains Tax on their initial investment in the company....     READ THE FULL ARTICLE HERE

Crowd Sourced Funding Equity Raising represents the biggest improvement in business financing for small businesses and medium sized enterprises in the last 35 years! Australia is playing catch up – Crowd Sourced Funding Equity Raising is already proven in overseas countries United Kingdom United States of America Canada New Zealand have had Crowd Sourced Funding Equity Raising (or its equivalent) for the last seven years.....   READ THE FULL ARTICLE HERE

Former public company director, Andrew Geddes, is hopeful the recent $3-million capital-raise by the women’s ride-sharing company, Shebah, will encourage more female-owned companies to begin using Crowd Sourced Funding Equity Raising for their growth capital. Mr Geddes, the former Chair of Greencross Limited, believes Crowd Sourced Funding is likely to become the preferred way for the small and medium sized business sector to raise capital in the near future. He claims the traditional alternatives of bank loans and angel investors often place stringent obligations on the company, its directors and loan guarantors that limit the potential for growth....   READ THE FULL ARTICLE HERE