Business Structures ,
Author: Harvee Pene
Paleo, vegan or Proprietary Limited? Let the numbers be your guide
Everybody is different so it should come as no surprise that everybody is different too. We each place different demands on our physiques beyond the whole heart, lungs and brain function imperative – something that came up in a roundabout way earlier last month, we met Chef Pete Evans. We talked through brands and business-building but at some point we drifted onto different ways of eating. Now if you want to set a match to the highly flammable, crude oil of dietary debate, vegan versus paleo is a great place to start. Spice your conversation with the vegetarian option and that should keep things cooking for the whole evening.
The undeniable truth is that it is up to the individual to make their own choice and they themselves will either get to embrace the benefits or deal with the consequences. That doesn’t mean that others don’t get to voice their opinion. Finding the best qualified opinion is the key though and oftentimes the quality of the questions determine the quality of the answers.
So let’s talk about your business
The same could be said of selecting the most appropriate business structure. Think back to your high school maths tests – multiple choice. Is it all coming back to you?
The teachers, the good ones anyway, would explain that out of the 4 alternatives (a,b,c,d) there would be an answer that is just dead wrong. Then there would be one that was wrong but at first glance you could be mistaken for thinking it was right. Finally, you’re left with two answers and frustratingly they would both be correct. However, one of them would be a slightly better answer. Your job, they told us, was to determine “the best” answer. And only that answer would be deemed correct even though technically there was another answer that would still satisfy the equation.
So complicated, but in life and business and diets, you’ll always derive more benefit from the best possible answer – especially over the longer term.
Think about a greater return on savings overtime with the application of compound interest.
Consider the tax savings of a trust or company structure over a sole traders arrangement.
What about the daily benefits to your knees and lower back of walking around in a body that is composed of 10% less body fat.
The benefits of selecting the best possible answer instead of one that simply fits, extend way beyond your high school test scores and into quality of life and business benefits.
So how do I find the best answer?
As I mentioned, sometimes the best answer is a simple but deceptively in-depth question. And here is the question that should be asked by your:
Accountant when talking you through effective (not just viable) business structure options;
Doctor or dietitian when assessing a change in diet; or
Trainer or physiologist when compiling an exercise regime.
“What is the end result you are looking to achieve and why?”
By focusing on the goal, having understood where you’re starting out, a logical map can be plotted between the two points. This is the difference between micro, task-oriented service and bigger picture strategic planning. If followed, you may be pleasantly surprised when you reach that destination and how many more opportunities you can see from that vantage point.
If you have a question about where and how your business is going, just ask us because our goal is to help you to reach yours, for you, your family and your future… and now for that paleo cheesecake and a run.