Month: September 2020

An important decision to make before you start a business is what structure your business will run under. This will reflect into all facets of your business, so you should spend time understanding the implications of each structure.

Sole Proprietorship

• You have complete control of your business.
• Your business assets and liabilities are not separate from your personal assets and liabilities.
• Personally liable for debts and obligations of the business
• Low-cost structure

Partnership

• Share control and management of business
• Each partner pays tax on the share of net partnership income each receives
• Minimal reporting requirements + Inexpensive to set up
• Requires more documentation

Company

• Separate legal entity from its owners – all profit, tax, and legal liability is directly to the corporation
• Members not liable for company’s debt (only liable if you breach legal obligations)
• Complex business structure + Extensive documentation and record-keeping
• Wider access to capital

Trust

• Expensive set-up and operation
• Formal trust deed outlining operation required
• Trustee responsible for yearly administrative tasks

An interview can be intimidating even if you are the perfect person for the job. Improving your performance during an interview can be a matter of learning to alleviate your anxiety.

Preparing for your interview can be extremely helpful.

• Read about the company and what they do
• Prepare your responses to common interview questions (strengths, weaknesses, plans for the future, etc.)
• Remind yourself of the achievements that make you worthy of the job

Change your mind-set about the interview

• Remember that the interview is the best time to understand whether the company culture aligns with your values
• Think about it as an opportunity to learn more about the organisation, and not just an opportunity for them to interview you

Small details

• Get a good night’s sleep
• Avoid caffeine
• Set aside the clothes you’ll be wearing (Dress for success!)
• Plan to get to the interview 15 minutes ahead of time

During the interview

• Focus on your breathing to calm yourself
• If you need, ask for a second to gather yourself
• Take water with you and take small sips between questions

Businesses working from home due to social distancing restrictions can take the opportunity to learn from the experience and consider new work structures coming out of COVID-19. This could mean increased flexibility for employees when it comes to working remotely and adaptable hours. Here’s why flexible work arrangements with your employees may be beneficial for your business in the long term.

Increased productivity

Flexible work arrangements can increase the productivity of employees by allowing them to work when they feel most motivated. Some people may naturally be more productive at night time and do their work then, which would not be possible with regular office hour restrictions. Remote work also saves time on excessive staff chatter and workplace distractions, such as ringing telephones and colleague drop-ins. Offering flexible work arrangements can show your employees that their lives are valued, which can lead to higher levels of performance and hard work to justify the flexible arrangements.

Reduced expenses

When employees are working from home more frequently, it means that your office doesn’t have to sustain as many people and you can reduce rent and utility expenses. This doesn’t mean that your employees have to pay too much more; the ATO has introduced an easier way of deducting work from home costs during the COVID-19 period called the ‘shortcut method.’ This allows employees to deduct 80c per hour they work from home to compensate for running expenses.

Attract talent

Businesses that exclusively depend on employees being physically present may be missing out on ideal workers who live too far or require more flexible arrangements. Modern job seekers are often on the lookout for positions that offer greater flexibility, rather than the regular 9 to 5 in the office. Highlighting workplace flexibility in your job advertisements can attract more prospective talent as physical barriers are eliminated.

Improved wellbeing

Remote work can improve the overall physical and mental wellbeing of your employees. One perk is that they may be able to be better rested and eat a proper breakfast in replacement of the morning commute. Work flexibility will also enable them to work around family commitments, which can boost their quality of life and happiness. This can raise morale and improve their quality of work by reducing the risks of fatigue and burnout.

Employee retention

Workplaces that allow employees to maintain a healthy work-life balance are more likely to retain their employees for long terms. This can benefit businesses by reducing the frequency of hiring and training periods, which can save a lot of money and productivity while continuing to grow corporate knowledge in existing employees.

It is a tall order to ask for a business owner to manage everything alone, much less lead their business into success. This is why many successful businesses are born from partnerships.

Partnerships can be advantageous to business owners looking to balance their complementary talents and personalities. Sharing the experience of running a business can make the whole process more enjoyable, especially with a partner who is liked and respected.

However, partnerships are not without their disadvantages. Disagreements are bound to happen over time so it is important to formally structure the relationship. To ensure business success and the longevity of your relationship, there are a few important steps to take when laying out the groundwork for your partnership.

Sort out the basics with your partner first
Be sure to cover issues such as:

• Business ownership division. Who owns what percent?
• Decision-making processes. How are business decisions made? Who has final authority? How are disagreements settled?
• Partnership responsibilities. What are each partner’s responsibilities? How much time and money will each partner contribute? Can partners work in other positions at the same time?
• Partnership breakdowns. What happens when a partner wants to sell? What happens when a partner dies or becomes disabled? What happens if you want to bring on an additional partner?

Draw up a written partnership agreement
Solidify all the key issues that you have discussed in a legally binding contract. This is to ensure that parties involved are held accountable to the agreed-upon terms of your partnership. Also make sure that contract is drafted with professional legal advice and assistance.

Choose an appropriate business structure
Discuss with an accountant what legal form your partnership should take. This is important to determine your level of involvement in a partnership. For example, a simple partnership does not provide protection for any party’s personal assets.

Consider a buy-sell agreement
A buy-sell agreement acts as an insurance policy for partnerships in the event that a partner dies or becomes disabled, wants to sell their share of the business, or leaves the business. Buy-sell agreements can resolve disputes or differing goals by transferring business ownership and reducing the risk of business failure after a partner leaves. Always seek professional advice before drafting a buy-sell agreement to ensure all situations are covered and the contract is neither too advantageous or disadvantageous for one party.

As businesses are looking to bring their employees back into work, it is important to ensure that your workstyle practices allow you to seamlessly integrate into working from the office. Try adopting these changes to make your transition into the office space easier.

Structure your daily routine
Working in an office space structures your day, and this is an important feature to bring into your work day even when you’re working from home. Create a work-based routine that will work for you at home and at the office. For example, you may find that using the first hour of the day to respond to emails and enquiries, and using the later part of the day for meetings works best for you. It is important to stick to that routine as best as you can to then provide yourself some structure when you go back into the office.

Prepare for distractions
Without the common distractions that an office space comes with, employees may find that they are more productive at home. Consider incorporating collaboration meetings and calls into your work day when working from home. Brainstorming sessions and daily stand-ins can be great ways to reintroduce socialisation with your colleagues to make social interactions productive and less distracting. Consider setting boundaries if you feel that you need to reserve portions of your day for important tasks, and let your colleagues know so they don’t distract you.

Maintain stability
Working from home has left employees with a lot more free time during the day, allowing them to pick up new hobbies and interests. These are activities that may have been a source of relaxation when working from home so try to continue indulging in these activities once you transition back into working from office. Upskilling for personal fulfilment can be rewarding and even contribute to better mental health and wellbeing.