There are many benefits to being a small business in Australia and why going over the threshold in turnover or wages maybe not be worth it. I am not a lawyer or an accountant, this is just food for thought. Before becoming a medium size business, have to think about whether it is worth it. When you have a business that is going great guns, stop and think if is it worth it.
Will making my business a medium size business pay off? It might pay to split the business or make changes to keep it a small business. Sometimes you find out the 80-20 rule takes effect; 50% per cent of your revenue comes from 20% of your customers.
What if I found a way to move 80 % of my customers to another company that focused on those customers and I focused on building the 20% to 40%? More money from less revenue, that can’t be a bad thing?
What sort of small business is better for me?
Some businesses can give you a great return on less than 3 million of income. One way of looking at it is to work out your return required and then look for your business. Many businesses have EBITs around the one mark. In many cases, these businesses do need experience in the area and can be quite competitive.
Sometimes small is good.
Happy to have a chat about your objectives and what I can do to help you. In business, I think it’s about finding opportunities to help each other and benefit from it.
Sometimes thinking small is good, I offer obligation-free consultations. So what do you have to lose?