Business Entity Selection
Buying or Selling a Business
Management Advisory Services
Budgeting/Financial Analysis
Cash Flow Management
Business Entity Selection
You want to start a new business with a new idea? You believe your idea and new company will be better than the competition. The way your new company will make and or sell the product will be different. It will be so different that it cannot fail. With this drive, you can’t wait to go into the office each morning. Well, this enthusiasm will be the driving force in your new venture. But wait, there are so many issues that must be considered before you begin.
The first and foremost important aspect is protecting yourself, your family, protecting your bank accounts, your cars, your house, your savings. So many new entrepreneurs open a business full steam ahead without considering how to protect themselves and their family from liability. This must be addressed in the beginning to guard against any unknown and quick surprises. Surprises like a customer falls down in your office and hurts themselves. They blame the way the office is setup. Can they sue you personally? Would they have a good chance of winning? Protect yourself and your family, consider whether you should incorporate the business. Incorporating the business, if “maintained” properly after inception, could shield your personal assets from judgment or seizure from outsiders. Our firm provides incorporation services. We will walk you through the tax issues associated with each type of choice. Be ready, be prepared!
Buying or Selling a Business
Buying or selling a business is complicated. On the surface, it seems simple. If your are buying a business, there is one for sale, It “seems” like a good price. (but, compared to what?) You like the seller, she seems nice. You like the product or type of business; and you met the employees.
So, everything is a go, right? No, absolutely not. There are many issues to consider. Most of the issues, the average buyer will not even know to ask the right questions. There are tax issues of “how” to purchase the business. The seller want to sell her common stock. Should you buy her stock? Or, should you try to buy the assets of the business? If I buy the stock, what about unknown liabilities that are not disclosed? Would you be liable for those liabilities by buying the seller’s stock? What if she has unpaid payroll tax liabilities from three years ago? Are “you” now liable? If only the assets were purchased would you be liable for those payroll taxes? Are there any issues with the employees? Back overtime pay might be outstanding. Call Christian Scott & Associates for professional advice through the maze of unknown issues.
If you are on the opposite side and want to sell a business, do you sell the stock or the assets? What are the tax issues related to both? Can the sale be structured to protect certain employees that were loyal to you over the years? How much should I sell the business for? Call Christian Scott & Associates for professional advice through the maze of unknown issues.
Management Advisory Services
There are many issues that come up in a business owner’s day to day operations. The issues are endless and seem like they never end. Once the current is resolved another one surfaces. Understanding how to manage those issues so the overall momentum is moving forward demands skill and patience. Each new issue creates questions and the desire to resolve positively. Our firm can assist with those issues. We can help you guide the business through whatever comes your way.
Many tough questions come up like how do I manage the change our company is going through? The change might be a result of the overall economy or the immediate marketplace. People change their buying habits, their likes and dislikes. Should I expand or buy another business? Should I sell the business because some buyer can do a better job pulling the company through the hard times? As the business grows, so do the challenges that demand resolution. Are you ready?
Budgeting/Financial Analysis
Budgets? I never have had budgets. They never work. Many businesses think that budgets do not apply to them. The fact is budgets are created by management to “guide” them. They are not designed to be the perfect bridge between today and next week, next quarter or next years. Their purpose is to guide the business. Budgets will enable management to see if the business is starting to veer from the target. Are adjustments needed today to allow us to obtain our objectives?
Cash Flow Management
This is on everyone’s mind. How much cash do I have? Some businesses operate on the notion if there is cash in the bank today, we are open today. Of course, this is very stressful running a business like that. If the business consistently does not have enough cash, something is wrong. Could it be the prices are too low? Are we giving away too many discounts? Are we giving away product or services for fear of losing the customer? Every business must be able to generate a profit which in turn generates cash. It is the life blood of the business. It can be managed, but how? After many years of dealing with cash flow, we can assist in showing you how to better manage cash flow and have more of it on hand. It takes skill, patience and sometimes tough decisions about certain customers. However, it must be managed in order to stay in business.