Self-discipline

Self discipline is the ability to motivate yourself to do what needs to be done despite what else is happening around you!

I regularly meet with business owners who want us as accountants to wave a magic wand over their business in order for that business to be successful.  While we can give ideas and advice, ultimately the success or failure of a business will often come down to the self discipline of the business owner.

A good thing for everyone in business to do is to make a list of all the things that you are doing in the business.  Add to that list anything that you think you should be doing to benefit the business.  From this list, circle the 3 most valuable activities to the growth or success of your business. 

These should be your 1st priority.  If the other things on the list are keeping you from the most important 3 things, then they need to be delegated to someone else, to ensure you have the time to do what is important.

This is where self discipline comes in.  You then need to be disciplined enough to ensure that you continually keep these things as the priority.  If you do this your business can truly rise to it's potential.

My wife will tell anyone who asks that my favourite saying is "The only person you can change is yourself".  Being self disciplined is a positive change for everyone to try to bring about!

Selling a business

One of the questions that we get from business owners is "if I am going to sell my business, do I sell the shares in my company, or do I sell the business and keep the company?"

From a business purchasers perspective, most will be keen to purchase the business and set up a new company (or other entity).  This is mainly due to the fact that if you purchase an existing company, you also purchase any skeletons that may be hiding in the closet of that company.  These can include such things as unknown creditors or an insurance claims against the company that arises years down the track.

Having said that, sometimes a purchaser will be happy to purchase either the shares in the trading company or the business.  If this is the case, you as a sellor need to put some thought into what is the best scenario for you!

Probably one of the biggest considerations in this area is the capital gains tax treatment of the business sale.  In some circumstances there are signifcant capital gains tax benefits of selling one way or the other.

The best option for any business owner looking to sell a business that operates through a company structure is to seek expert advice relating to your particular situation.  As with all these matters it is vital that you get this advice before the settlement of the business, rather than seeking advice after the dust has settled on your business sale.