Small Biz Matters: People, Policy, Purpose.

How to successfully implement change in your business

Small Biz Matters – a half hour program each week where you can work ON your business rather than IN it.
with Alexi Boyd from Boyd Office Management Services
Date: 11 June 2019

Flexible, adaptable and nimble: the strengths of small business and something in which we take pride in. We also know that evolving along with software is a better and more efficient way to work. So why do we fear change and the implementation in our business? Are we avoiding putting off our clients with a new process? Is it our employees who are nervous of change or is it just us… who’s stuck in our own self-made rut, avoiding change because of the fear of something new?

Change management in the corporate world is handled by entire consulting firms like KPMG or Deloitte. It’s hard enough in small business to keep on top of existing processes and procedures let alone creating what we could potentially be unnecessary change for ourselves, our clients  and our staff. But we are constantly bombarded with the latest apps, latest best practices and ever-evolving compliance changes from one govt organisation or another which means we need to adapt and change.

Good news, there is help at hand. Donnie Buchanan is an expert in his field who supports small and medium sized businesses to navigate this change and support them through the process. After working at Xero to implement complex and compliant heavy software into large accounting firms he knows the most practical way to break down the steps of change management and avoid putting all your stakeholders offside.

Welcome to the show Donnie.

Topics we’ll be covering:

Why hire a consultant when you’re undergoing change?

• Consultants offers an external point of view, honesty in the process & they’ve seen it before across different industries
• How to find one? Tap into your network, do you need someone with Industry specific experience?
• What does a transformation consultant do and why do you need one in your suite of experts.
• There is constant change in every industry and these experts are tapped in – seriously you don’t have time to explore all the options.
• They should have People skills, change management, empathy (breaking down the barriers, repau, building relationships)
• A consultant should offer a template for the process. But if you’d rather do it yourself Project management templates can be found online but they can be different so might take time to find yourself.

The 4 P’s - Product

• What are we trying to achieve with this change? Are you introducing a new product? Product improvement? Improving efficiency or processes?

The 4 P’s - Platform

• g. The difference between a crappy CRM excel spreadsheet to SalesForce
• This is crucial
• The investment isn’t in the cost of the platform, its in the TIME for your team
• Duplicated databases is a real issue
• You’re probably only going to “test’ 25% of the product
• Many people try free trials and it lasts a couple of weeks and give up
• Software vendors such as at conferences might upsell you, not mention what it’s not capable of, leads to frustration & loss of time & month
• Allow time to explore product
• Your change will affect your clients’ engagement in your product.
• How do they respond? What will this product do to the way they engage with you and your products
  • g. an accounting firm moving to Xero

The 4 P’s - People involved in implementation

• OK, you’ve made a decision. Accounting firm is Using Xero now
• Who’s using it? Who WAS the expert in the last piece of software?
• Different ways of rolling it out
  • One staff member might learn it and pass it on
  • You might go away
  • Put aside a whole day (there is where a consultant can shorten the time it takes) They analyse who’s doing what, where the efficiencies lie, and where the money can be saved.
• Perception - Fear in your workplace that this change means automation and they could be made redundant
• This is a real balancing act – an empathetic consultant recognises that people are nervous and balancing a personalities. Can I do this? If I can’t learn this in time

The 4 P’s - Process of product delivery – bouncing between people and processes

• Why you know who does what and
• Its essentially a flowchart of work
• Be kind; you won’t have a process for everything from the beginning. You need to learn the
• Find the repetitive tasks to automate that process first
• Think back to your customer impact.
  • Is it going to add more steps for the client to pay us
  • Think about customer experience

 

To find out more go to their website: http://www.entrycounts.com/

 

All About Donnie Buchanan

Known as a mover and a shaker, Donnie likes to help people transform their business and their mindset.

For over 7 years, he has helped businesses and accounting firms maximise opportunities, cut costs and achieve thier goals.

Specialising in Xero, he has worked with clients from all fields, all shapes and sizes and with all different personalities.

He uses a methodology he calls the "4 P's" to ensure the clients transformation is as successful and as headache free as possible.

He loves to see things change for the better.

Preparing your small business for EOFY

Small Biz Matters – a half hour program each week where you can work ON your business rather than IN it.
with Alexi Boyd from Boyd Office Management Services
Date: 4 June 2019

The end of financial year is looming for small business. But it doesn't have to be a burden for you and your workload. There are relatively simple checklists to follow from the ATO, great videos & videos in the small business newsroom and of course, support on hand from your trusted BAS Agent and Accountant.

But what about if you’ve not been great with staying up to date, and are a little bit lost with what’s required at this time of year?

If you keep good records and your accounts are up to date then the end of financial year shouldn’t be stressful. On the other hand if you find yourself behind with these aspects of your business the ATO is actually there to help too. Today we welcome to Small Biz Matters Justine Williams, the Acting Assistant Commissioner for Small Business with the ATO to chat about what you need to have in place to take the stress away from completing your own end of financial year checklist.

Welcome to the show Justine.

 

Topics we’ll be covering:

• What does the ATO require from small business in terms of evidence (paperwork), receipts, payment summaries etc
  • Soft copies vs hard copies
  • What happens if I don’t have an online software system?

 

Is a bank statement enough (apparently this is a big conversation among agents)

–   Records that you keep need to have enough information to support the amounts that you need to report and claim. A bank or credit card statement won’t always provide as much detail as is needed to claim an expense, so keep all the tax invoices or receipts associated with it. A statement can be supporting evidence but it’s usually not descriptive enough on its own, and isn’t enough for GST purposes. 

• What does the term "self assessment" mean with regards to the relationship between ATO and a business?
  • Why is this a requirement for small business?
  • How much trouble can I get in, if I self assess incorrectly?
• How have things changed in recent years (no longer producing documentation with tax affairs, accountants can access a lot of this without the client having to search for it - prefilling, STP)
  • What can my accountant access and with this data and why do I need to keep records if my accountant and the ATO can see everything?
    • Good record keeping for being up
    • Benchmarks - you need data to compare to others in your industry
    • Succession planning needs data
    • Mental health & good habits
  • STP -  why the change to reporting of payroll to the ATO? How will it actually make my life easier each EOFY?
• What are the important deadlines around EOFY which small businesses need to be aware of
  • Payment summaries to employees & ATO (this won’t happen next year!)
  • June BAS deadline
  • TPAR - the growing list, the success
  • How working with a BAS agent and is helpful with these deadlines
• Discussion on mental health & how the ATO has evolved its policies on this "I'm very behind in my tax and fearful of what the ATO will do. How can I handle this?"
  • Get on the front foot!
  • New approach & training from staff when answering queries on the front line
    • Working with beyond blue’s support network
  • What sort of evidence do I need to prove I need help

Mental health – what evidence do you need when you speak to us

–   Everyone and every situation is different, which is why it’s best to call us early, tell us your situation. Then we can work with you to work out the best option for you and what you need to show to us. We may be able to help you organise payment plan, defer a lodgment or payment, or fast track your tax return.

 

To find out more go to the ATO website:

https://www.ato.gov.au/Media-centre/Media-releases/Tax-time-tips-for-small-business/

Subscribe to the Small Business Newsroom newsletter

 

BIO Justine Williams, Acting Assistant Commissioner – Australian Taxation Office.

Justine currently leads the ATO’s Small Business Client Experience stream.

Justine’s role involves working closely with small business people and their advocates, industry groups and other government agencies to co-design services that help small businesses manage their tax and superannuation obligations. Justine’s role is diverse and sees her engaging regularly with the Australian Small Business and Family Enterprise Ombudsman, Department of Jobs and Small Business and the state Small Business Commissioners. She leads teams responsible for delivering on-line services for small business, the Cash-flow Coaching Kit and the Small Business Newsroom.

After beginning her career in the banking industry, Justine commenced in the ATO in 2000. Since then she has held senior roles spanning prosecutions, risk management, strategy development, IT project management and client service.

Justine is passionate about delivering client-focused solutions and people-centred change management.

The Small Business Insurance Basics & The Future Of Insurance

Small Biz Matters – a half hour program each week where you can work ON your business rather than IN it.
with Alexi Boyd from Boyd Office Management Services
Date: 28 May 2019

It’s a must. When you start a business you know you need insurance but like lots of things about starting or running a business; it can be confusing. What type of insurance do I need? What level of cover? Do I need public liability or professional indemnity, and what does that even mean?

And the biggest question of all is WHEN do I need insurance? When am I that important; making enough money or have a large enough risk where insurance becomes crucial?  And how do I even start to quantify all that I need insure?

Well who better to ask than the founder of Australia’s leading online small business insurance service, Michael Gottlieb. BizCover is an online platform that has changed the way micro, small and medium sized businesses buy insurance online. BizCover provides multiple insurance quotes instantly and the ability to select and purchase the right cover immediately, comparing cover from a range of insurers.

With over 100,000 clients worldwide (85,000 in Australia) Michael is brilliantly placed to offer his expert advice to Small Biz Matters listeners.

Welcome to the show Michael.

Topics we’ll be covering:

Are Aussie small business owners getting the right insurance?

• Always insure against the risks you can’t afford to pay. Having the right insurance is also crucial during periods of expansion. As your business grows you may also require an increased level of cover, particularly if you are taking on more employees or making more revenue. While in some industries having insurance is actually a legal or compliance related requirement.

Under-insurance is a real problem in Australia as 13% of SME’s don’t have any, and more than 20% of SME’s aren’t insured for what their business assets are worth! Why is this the case?

• A lack of education around insurance and risk is often the case, as SME’s are often triggered by an event, such as a new contract or a moment of business expansion, that prompts them to take out cover. Often they don’t know where to start. The first place to start is to look for the cover that suits your industry and profession, different industries have different risks.

What are the rules of risk? Do small business owners needs to insure against everything or are there some fundamentals to start with?

• Public liability, professional indemnity, personal accident, business contents and business interruption insurance are a good place to start. For example, if you’re a management consultant you would definitely want to take up professional indemnity insurance to protect against claims that come against you as a result of the advice you give. While business interruption insurance is the more general cover that can help in case of an unforeseen event that shuts down your business. This cover can provide you with a percentage of the income you may have needed while your business was offline to get you back up and running.
• Cyber crime is an emerging risk to consider for any business that operates or transacts online. In fact in 2017, Australia faced over 10 million cyber attacks and this number is set to keep growing. Cyber liability can cover you for data breaches, phishing and cyber fraud in the form of financial protection.

When should I make a claim and what is the process?

• There is a common misconception that a high proportion of claims are denied. In fact according to studies done by ASIC and APRA , the industry average for claims paid is around 90%.
• It’s important to remember to review your policy excess, so read the PDS (policy disclosure statement) carefully. If the claim amount is less than the excess, then it’s probably not worth claiming!
• To speed up the process, be sure to complete all the relevant information on the claims form and include any relevant documents when you put in your claim. This includes any photos, invoices or quotes. Once you’ve submitted your claim, and depending on the insurer, it can take 5-10 days for a claim to be assessed.

But what about the future of insurance in the wake of climate change?

• Climate change is a massive issue on the national agenda but also particularly topical with its connection to natural disasters and in turn it’s affect on insurance claims. Insurance companies and all business alike have an obligation to make changes, whether big or small to counteract climate change and reduce greenhouse gas emissions but also to prepare communities for the worst.

And how will digital disruption and AI impact big business and small businesses alike?

• Artificial intelligence and digital transformation are predicted to have an impact on insurance and it’s related technologies, from distribution to underwriting and pricing to claims. While small businesses may not think that AI is relevant to them, they should think again. A study by Pegasystems showed that only one third of people have used AI, while in actuality 77% have already implemented it – most commonly though an AI powered device.

To find out more go to their website: www.bizcover.com.au

About BizCover:

BizCover is Australia’s leading online business insurance service, founded in 2008, changing the way micro, small and medium sized businesses buy insurance online. BizCover provides multiple insurance quotes instantly and the ability to select and purchase the right cover immediately.  BizCover partners with leading insurers to provide cover for over 6000 occupations, transacting over 400,000 policies, and taking the hassle out of buying insurance for more than 85,000 businesses and counting.

About Michael:

Michael is an experienced 'start up' entrepreneur who has founded four insurance businesses since 2001, all of which have repeatedly won accolades in the insurance & technology arenas.  Michael’s key focus is on BizCover, which is Australia & NZ's only commercial insurance service where small businesses can instantly compare & buy their insurance online from leading insurers.

What does it take to start a business?

Small Biz Matters – a half hour program each week where you can work ON your business rather than IN it.
with Alexi Boyd from Boyd Office Management Services
Date: 21 May 2019

I always enjoy meeting with and learning about authors in our small business world. They are not only experts in their field but have further researched their area of expertise AND made sure it's clear, concise and understandable to those who want to learn all about it. And then they go through the publishing process!

One such person is our guest this week; ingrid Thompson. For the past ten years Ingrid has worked with hundreds of people to create, start and grow their own business. She is the author of “So You Want to Start a Business” and owner of Health Numbers.

This book is completely changing the way people think about getting started in their own business. When she is not spending time with her family and her 4 cats she can be found surfing at Bondi or on her yoga or Pilates mat.

Welcome to the show Ingrid.

 

What are typically the trigger points for Starting a business?

• Being made redundant, waiting for the opportunity
• 2^nd baby – stats, cost for childcare for two kids based on the expected wage for returning to work
• Can’t be bothered going back to university or just finishing studying
• Wanting to do something completely different or a professional who can say “I can do this myself”

 

What do you need before you start

• An interest in running a business
• A certain level of business acumen
• Your finances in order
• A basic business plan
  • How much do you need to earn
  • How much is it going to cost you
  • What to expect in terms of low income for the first couple of months
  • Work the NUMBERS!
  • Understand seasonality – monthly, weekly, daily – and evening it out
• Understand all the protocol in running a small business

 

Where to work

• Rise in working from home businesses – all you need is a mac and an internet connection

 

Thinking in a preventative way

• The reality – if you’re not paying yourself a wage / paying your own super and can potentially take on an employee you’re not running a business.
• What kind of reports are crucial for understanding your business & preventative
  • Making your clients visible – understanding your clients to acknowledge their attendance for example and improve retention
  • Hang on to your existing clients as well as looking for new clients
• Stop looking at what everyone else is doing and focus on yourself

 

The 7 steps in your books

• Who are you to start a business?
• What is your idea?
• Who are your clients?
• What is your brand?
  • Meet the maker
• Compliance
  • Systems
• Financials
  • How much do you want to make?
  • Revenue - How much is it going to cost you and how many clients do you need?
• Marketing & Sales
  • The fun stuff

7 steps of performance management for your small business

Small Biz Matters – a half hour program each week where you can work ON your business rather than IN it.
with Alexi Boyd from Boyd Office Management Services
Date: 14 May 2019

You run a small team, right? You’re a small business, correct? So why does it matter how your team operates, functions and works cohesively? That couldn’t POSSIBLY affect your bottom line and staff turnover is NEVER an issue for small business.

...I think I just answered my own question.

It doesn’t matter the size of your team - even managing a one-man-band takes knowledge, training and experience. So, to answer all the issues relating to team management we’re talking today to Jim Davidson. He’s a team performance coach who’s passionate about working with leaders to build better teams so collectively they can achieve better results.

As Jim says: Great teams create profitable and valuable organisations. Great culture creates competitive advantage and team chemistry.

Welcome to the show Jim.

Topics we’ll be covering:

 Busting the myth of performance management – what its NOT

• Its not only KPIs’ and terminations
• Get out of that corporate mindset

7 steps of performance management

• Recruitment
• Job design
• Learning & Development
• Retention
• Succession planning
• Performance Coaching
• Disciplinary process

We talk about pipeline in sales, how about using that in people

Distilling it down to small business

• If you’re a single director where do you start?
  • Knowing your own EQ, self awareness
  • Hybrid Vigour
• The transition to building a team
  • mindset & process
  • Creating a performance management system
    • Scaffolding first
  • The right people in the right seats
• Looking at your own systems and the new potential team

Let’s talk about great teams

• Recognising when you’ve nailed it
• Relationship trust
• Outcome trust
• Commitment, purpose driven
• Tying it back to EQ

Community approach – The Fathering Project

To find out more go to their website: https://performanceculture.com

What is COSBOA and how does it support small businesses in Australia?

Small Biz Matters – a half hour program each week where you can work ON your business rather than IN it.
with Alexi Boyd from Boyd Office Management Services
Date: 7 May 2019

Did you realise as a small business there’s a powerful advocacy team on your side? Did you know they regularly lobby federal government in relation to policy decisions which directly affect you and your business growth & operations?

Well, there is one and it's called Council of Small Business of Australia. They exist because small businesses don’t have the time, the resources and often the expertise that is required to be alert to the myriad of legislative and regulatory change that affects them on an ongoing basis.

Their passionate & fierce leader is Peter Strong; a small business owner who took his belief in the small business all the way to Canberra and now dedicates his life to supporting pretty much each and every one of us.

Welcome to the show Peter.

Topics we’ll be covering:

• Peter, tell us a little bit about your small business journey and why you're so passionate about supporting small business?
• What is COSBOA and how does it support Small businesses?
  • Is it the key lobbying group for us at the federal level?
  • Who does it report to?
  • How do you and COSBOA lobby for the interests of small business
    • Interaction with govt departments & Small Business Ombudsman’s office
  • How does it support all the different sectors in which small businesses fall?
• What’s the key points small businesses need to be aware from the 2019 Budget?
  • Debrief of Budget
  • Tax breaks
  • Increase of depreciation threshold?
    • What does that mean for cashflow?
  • Which of the announcements actually cut red tape for businesses?
• How does COSBOA consult all the different small business sectors?
  • Professional associations and how they interact and therefore the flowthrough to legislation lobbying
• So many issues facing small business are state & local government based (payroll tax, state regulations, council compliance hurdles) how does COSBOA support businesses at the state and local level?
• What new reports & Guides and comms are coming out of COSBOA to help small businesses understand legislation after the upcoming Federal Election?

To find out more go to their website: https://www.cosboa.org.au

Interview with Senator the Hon Michaelia Cash

Small Biz Matters – a half hour program each week where you can work ON your business rather than IN it.
with Alexi Boyd from Boyd Office Management Services
Date: 6 May 2019

What economic indicators should small business owners be aware of to respond to?

Small Biz Matters – a half hour program each week where you can work ON your business rather than IN it.
with Alexi Boyd from Boyd Office Management Services
Date: 30 April 2019

Whilst the economy isn’t in the driver’s seat when it comes to controlling  our business its a factor we should all have at the back of our minds. Why? Because although we Small Businesses  are the “engine room” of the economy the decisions made by the Reserve Bank of Australia mean they’re the ones with their hands on the steering wheel.

Aside from a couple of units of Ross Gittins inspired Economics at school, TAFE or Uni degrees from which we remember not much, our ongoing education around the economic drivers is non-existent. But we should have our finger on that pulse and really understand the affects their actions have on our small businesses.

Here today to share with us their expertise is Scott Shuttleworth, Founder and Portfolio Manager at Vega Capital. His background in economic analysis perfectly positions Scott to help us understand the butterfly effect the RBA’s decisions, actions and even words has on our individual businesses.

Welcome to the show Scott.

What economic factors have the biggest impact on your business?

• Firstly, Business centric factors (competition levels, your offerings, your team, your financial acumen) which are MUCH more important than economic indicators
• Economic indicators factor about a much smaller amount than the way you RUN the business

Other counctrie 9:17am

WHat does the RBA do? 9:20am

What is the RBA and how does the RBA control the economy?

• They control consumer & business patterns in a way they believe supports the long term prosperity of the nation. What’s their main factors they use to control & manipulate the economy?
  • Cash rate
  • Talking about it….

What is the RBA doing when it manipulates the cash rate?

• Raising = conditions are good, consumers spending more on average – great for consumer based businesses but the flow on effect occurs also
• Cutting – weakness, marginal improvement will happen in 12 months as this is how long it takes to
• Roughly a 12 month indicator
• How does it impact the currency?
  • g. 1.5% = the value of AUD in the bank
  • If our cash rate increases and other currencies like the USD remains steady then our dollar is more attractive. At the moment the US cash rate is 2.25 – 2.5% so is generally more attractive (mention the AUD USD currency pair)
  • Investors will “park” funds in a particular country to earn higher rates and then move dollars around as cash rates change
  • If the cash rate goes up or gives a “glowing report” of the economy its an indication that the economy is improving so more investors will buy AUD in view to invest here as the economy is on the rise. The reverse is also true.
  • More investment in the country = more jobs, business improvement through increased capital, more innovation leading to more tax revenue.
• Improvement in economy equates to controlled inventory, cater your resources to the demand which is improving if rates are going up, and the opposite is true for rate cuts.

What about the Unemployment rate?

• Less customers since they have less money to spend and therefore a downturn in business. Lower unemployment rate means its more difficult to find employees and your wage costs might go up!
• High wage costs should always be justified, by the way.

Economic theory around cash rate and employment

• Theory is lowering the cash rate = higher spending leading to greater employment

Learning from the past

• 10 years of expanding economy would suggest a turn towards recession. Typically business increases their debt when economy is good putting them in a vulnerable position.
• Lots of businesses use their family home as an asset to borrow against. What’s the bank going to take? The asset.
• Banks could take your assets (and even if you’re allowed to trade through to better times you’ll still lose those assets and therefore your business in the long term)
• You don’t want to go into a recession with a lot of business (or personal debt) because although the cash rate will fall you’ll be unable to repay the loan due to a likely downturn of your business.

To find out more go to their website: https://vegacapital.net

Learning from the Experts - Edward Zia, #1 Marketing Mentor & Coach

Small Biz Matters – a half hour program each week where you can work ON your business rather than IN it.
with Alexi Boyd from Boyd Office Management Services
Date: 16 April 2019

We don’t often on this radio show showcase people, but this journey is worth listening to; and anyone who’s met today’s guest would agree. From refugee to army captain to sales and marketing coach.

Sales and marketing. It’s a competitive industry because potentially every single business is your client. So how do you go from being relatively unknown to being one of the most well connected, notorious, sales and marketing gurus in Sydney?

He connects people, he’s passionate and he’s outspoken.

It takes time and perseverance to get to the top of your game in the competitive Sydney scene and here to share with us this incredibly interesting journey is Edward Zia.

Welcome to the show Edward.

Topics we’ll be covering:

Sales, marketing & Entrepreneurship

It’s a flooded market - How do you differentiate yourself from those who consider themselves to be an expert after writing a couple of website blogs?

Positioning – let’s face it you are one of the most well known Sydney business celebrities – what was the turning point to get noticed and known around Sydney?

• Reflecting on how I went from the highs of mid 20’s to the low of mid 30’s (I letting myself go)
• Started attending NSW Business Chamber gave me direction, client based & support, security & stability
• Then that paved the way to become the influencer that you are today.

What do you consider an entrepreneur?

Not necessarily the size of company.  It’s about the people, money means nothing. They’re ambitious, kind, generous, want to help themselves.

• Choosing your ideal client: Confidence = facts / Arrogance = ego (destructive classism)

Pulling yourself up from your bootstraps

• Your stories
• You’re honest about it, people are often forced into Entrepreneurship out of desperation because they’re lost with their career, they can’t get jobs, they’re a little bit lost.
• Part of the process is the inspiration

Self actualised after surviving – The Now What?

Knowing what you do but then extended that from achieving this job you’ve created for yourself into doing what you want to do with your life. You’ve worked out what you are good at, the business is ticking along nicely thanks to your hard work so Now What?

Becoming who you are and what you want to be deep down; once you achieve survival you can move onto that process.

• Politics – the knife’s edge of balancing your political opinion with your public profile
• Community engagement

To find out more go to their website: http://www.excellenceabove.com.au

Wills - what implications do they have for your business?

Small Biz Matters – a half hour program each week where you can work ON your business rather than IN it.
with Alexi Boyd from Boyd Office Management Services
Date: 9 April 2019

When medical, legal and government combine…. it’s a powder keg of compliance and red tape. So it’s a great time to call in the experts… your legal team. Every business should have one and today's subject reminds us why it’s so important to engage with a great solicitor who can help across a number of legal battlegrounds.

The issue of Wills is not something we often think of as small businesses but there’s a surprising number of ways NOT having a legal will can affect your business. From a direct impact on partnerships where one side is incapacitated, to the affect on your key stakeholder relationships and of course, family finance - which is ALWAYS wrapped up in small business topics.

So why should small businesses pay attention to wills? Today’s expert is David Peaston from Peaston Legal who’s passionate about empowering small businesses with great legal education and it was HE who suggested we tackle this topic.

Any legal information given in this program is general in nature and cannot be relied on by listeners as legal advice. You are advised to take your own legal advice in relation to your own circumstances.

Welcome to the show David.

Wills

1. Wills - what does a will do and what are the important roles to consider?
2. A Will - controls what happens to your estate when you die.

Your executor is entrusted with the administration of your estate when you die.

Most important role:

• Executor or executors
  • Spouse?
  • Trusted adviser?
  • More than one executor?
  • Adult children? (Not under 18)
  • Need back-up person or persons.
• Job can continue for years
• Physical location for practical reasons.

1. What should a small business person think about in particular in their Will?
2. Company or family trust?

• Control critical
• Shares to someone who can carry on the business if necessary
• Companies and trusts don’t die when you do
• Executor may need business skills.

1. What happens if I don’t have a will?
2. That is a situation called “intestacy”.

• State gets to choose
• Unexpected outcomes - blended families
• Cost and delay - especially for small business.

1. Is there anything I should avoid with my will?
2. Home made wills

• Litigation lawyers love them.

Enduring  Power of Attorney

1. What does a power of attorney do and why is it called “enduring”?
2. Financial affairs.

• Don’t confuse with USA
• Enduring

1. When does an enduring power of attorney end?
2. It ends when you die. That’s when your will takes over.
3. What are my “financial affairs?
4. Bank account

• Credit card
• Buy and sell shares
• House
• Business property

1. Why should a small business person have an enduring power of attorney?
2. There are a variety of circumstances such as:
   • Elderly
   • On holiday
   • In surgery

1. Should the power of attorney be limited? What if I only wanted my attorney to run the business while I’m on holidays?

1. Example of when David had the business.

Possible limitations:

• Time
• Business
• Property
• Medical
• Anything

1. Can an attorney step in for me as a director of a small business?

• Not automatic director
• Can vote shares
• Alternate director possible
• Check the constitution
• Take legal advice

Appointment of Enduring Guardian

1. What does a guardian do and why is it called “enduring”?
2. Health, living, “lifestyle”
3. When does does that appointment become effective?
4. Mental capacity
5. What sort of things might a guardian have to do?
6. Where you live

• Medical
• Dental
• Personal services

1. How do you know when someone loses mental capacity?
2. Obvious - coma, unconscious

• More difficult - delusional with periods of lucidity.
• Well known medical tests
• Doctor or doctors
• Hot issue in the law - ageing population
• Can’t do a will, EPOA or AEG (and can’t revoke)
• Don’t delay

1. Can my guardian instruct the doctors to stop treating me if there’s no hope - a “do not resuscitate” clause?
2. Often in guardianship documents for my clients

• May not be binding
  • Religious
  • Ethical
  • Professional liability
  • Criminal
  • Seek legal advice
• Clear indication to family and medical practitioners and should be given serious consideration.

Executors, Attorneys, Guardians

1. what should I consider when selecting people to undertake these roles for me? What should I consider if I am asked to take on such a role for someone else?
2. Consent and trust

• Skills required
• Time (length of job)
• Time (involvement) Reasonable?
• Too late to change if you lose capacity or die

1. Any particular issues for a small business person in accepting such a role?
2. All of the above

• Time poor
• Work committments
• Responsibility
• Don’t accept if can’t do it

Self managed Super Funds

Your “Big 3” could become the “Big 4”.

For a lot of people including small business people superannuation is becoming a substantial part of their assets. So ensuring that your wishes concerning your superannuation death benefits are respected is of considerable importance.

1. Is superannuation controlled by your will?
2. Trust deed
3. What happens to superannuation in your self managed super fund when you die?
4. Terms of a trust deed (often called “rules”).
5. To whom can superannuation death benefits be paid?
6. Dependants

• Spouse
• Children
• OR Estate.

1. What should a small business person with a self managed super fund be aware of?
2. Most important - Control

• Trust deed may not provide mechanism
• Amend trust deed
• Legal advice
• Katz v Grossman

1. What should people check in relation to their self managed super funds?
2. Who has the power to appoint the trustee;

Powers of the trustee

Binding death benefit nomination?

Take legal advice

1. The small business owner will often be the trustee of their self managed super fund. What happens if they lose capacity through illness or injury?
2. Ineligible to be trustee

• Power of Attorney
• Consider limitations in POA

Life Insurance

Maybe your “Big 4” just became the “Big 5”

1. Why should a small business person consider life insurance?
2. Two questions:

• Family if I die or suffer a life changing event like a total and permanent incapacity?
• Business if I die or suffer a life changing event like a total and permanent incapacity?
• Family
  • Mortgage
  • Fund to “tide over”
• Business
  • Buy/sell
  • Debt
  • Is money available?

1. Are there any issues to be aware of?

1. Like superannuation life insurance does not automatically fall under your will.

• Check policy re beneficiaries

Other considerations for small business people

1. In addition to setting up a Will, and Enduring Power of Attorney what other things should I be considering?
2. Plan for death or disability

• Will the business continue?
• Do you have a spouse or partners or children to carry on?
• How is the business owned?
• What assets does the business have?
• What about partners/shareholders
• Buy sell price?
• Where will the money come from?
• Insurance?

If you have not thought those questions through an ideal time is when you make your Will.

1. Can any agreements be drafted to cover those eventualities?
2. Shareholders, partnership or unit-holders agreements

• Can provide certainty
• Legal advice essential

NSW Trustee and Guardian

1. Should you engage with the NSW Trustee service to make your will, enduring power of attorney and appointment of enduring guardian?
2. Long established and reputable trustee company.

• If your affairs are complicated it pays to get more specialist advice.
• May be inflexible in dealing with your estate.
• Most of my clients want a relationship - not just a “one off service”.

Remember wills are not SET and FORGET.

To find out more go to their website: https://www.peastonlegal.com.au/