John Harriot

How Much Is Your Business Worth? If you’re a small business owner, knowing what your business is worth can open doors to smarter decisions—whether it’s selling, bringing in investors, or planning for the future. Business valuation helps you get a clear financial picture of your company.This guide explores key drivers of value, business valuation methods, […]

  What Businesses Need to Know In June 2024, the Australian Taxation Office (ATO) introduced updates to Practical Compliance Guideline (PCG 2021/4), affecting how professional firms allocate profits. These changes bring stricter requirements and focus heavily on businesses proving their profit allocations are based on genuine commercial rationale, aiming to prevent tax minimisation through complex […]

Buying a franchise? See this due diligence guide first Buying a franchise can be an exciting way to jumpstart your business journey, especially if you’re a first-time entrepreneur or small business owner. But before diving in, it’s crucial to do some thorough homework — otherwise known as due diligence. Think of it as your roadmap to ensure you’re making a smart, well-informed decision before deciding to bet your capital on a franchise. Here’s a simple guide that walks you through internal due diligence before you buy a franchise. Which franchise to buy and what options are available Start by evaluating yourself. What are your interests? How would you assess your entrepreneurial skills? What are your goals for buying a franchise? Keep in mind that it’s best to look at as many options as possible before deciding on which franchise you should invest in. Compare your options based on costs, responsibilities, and franchisor reputation.  Can you afford to buy a franchise? It’s not just about the initial franchise fee. There are also other costs, like equipment, marketing, and ongoing fees, that you need to think about. Before you take the plunge, it’s a good idea to assess your own financial situation. Doing some simple financial planning now can save you from headaches down the road. Understand your legal obligations and those of the franchisor Make sure you understand what franchising is and what it is not before deciding to buy a franchise. While you will be using your personal resources to run the business, franchisors guard their brands very closely and can dictate how you run your day-to-day operations even if it means it will cost you more. The Franchising Code of Conduct is a mandatory industry code that governs franchising in Australia. It lays out the obligations for both franchisors and franchisees, including disclosure requirements, cooling-off periods, and the processes for dispute resolution. As a prospective franchisee, it’s crucial to familiarize yourself with the legal framework for franchising in Australia to ensure compliance as well as to protect your rights. Review the Franchise Disclosure Document The FDD is the foundation of your relationship with the franchisor. It outlines the terms and conditions of the franchise, including your responsibilities, fees, and the duration of the agreement. Seek legal advice to understand the agreement fully, along with other disclosure statements and information sheets the franchisor will be sharing with you. Watch out for clauses mentioning termination, renewal, and dispute resolution, and make sure to review these thoroughly. If you spot anything you think is important or that may be a cause for concern, make sure it’s stated on the contract before you sign. Investigate the franchise Make an assessment of the financial health of the franchise system before buying a franchise. Ask for financial statements and historical performance data of both the franchise network and the specific location you are interested in. Understand the fee structure, including upfront costs, ongoing royalties, and marketing fees. Find out how much it will cost you upfront, any unforeseen or hidden costs, and other potential circumstances that could compromise your ability as a franchisee to profit from this business. Find out more about the franchisor and the team behind it. Do they have the experience to run a franchising business? Check the news, even ask other franchisees and company employees, to find out more about how the franchisor runs their business and their relationship with franchisees, suppliers, and customers. Check the systems, operations, marketing, and training Find out more about the franchise’s day-to-day operations. Evaluate it against your personal skills and plans to find out if it’s the best fit with how you want to run your business. Look into the franchisor’s systems, supply chain, and how they handle marketing. Are these processes efficient? Do they make sense for you? Franchisors typically provide franchisees with access to their branding, intellectual property, and marketing strategies. Ensure that the franchisor has clear ownership and protection of these […]

Small business owners and entrepreneurs often feel anxious upon receiving an SRO or ATO audit notice. However, understanding the process can help you navigate it smoothly and stress-free. Preparation is key to managing an audit effectively and ensuring compliance. What is an SRO or ATO Audit? SRO and ATO audits are routine tax compliance checks. […]

Financial distress: Signs & Remedies Running a business comes with its ups and downs. But when the downs hit hard, particularly in the form of financial distress, it can feel like everything is falling apart. The good news is that financial trouble doesn’t have to mean the end of your business. With the right guidance, […]

A Handbook for Entrepreneurs: Crucial Actions for Obtaining Funds Among the most crucial things an entrepreneur does is get capital for their business. Even while it could appear like a difficult undertaking, it can be divided into crucial parts that, when executed correctly, can result in success.This guide aims to provide a comprehensive overview of […]

Transforming Opportunities: Utilising Mergers and Acquisitions to Drive Business Growth Recognising acquisitions and mergers in business In today’s competitive market, business mergers and acquisitions are becoming more and more typical. It is crucial for business owners to comprehend the meaning of these terms and how they might help their company. An acquisition happens when one […]