The main reason people go into business for themselves is quite simple – to have more control. For others, wealth creation is the main focus, although small business also brings with it the higher chance of failure and loss. Is the hard work and extra risk worth it?
If you are a small business owner or have dreams of becoming one, consider the following and how it might apply to you.
Earn less now to create future wealth
Research suggests that the average Australian small business owner works in excess of 35 hours per week – much more than their employed counterparts of similar age – but despite these hours, small business owners have lower levels of income. Continue reading
Today, almost every adult in the country has some assets to pass on after they die – even if it is only the balance in a superannuation account.
Most Australians will have considerable assets when their home, superannuation, insurance and other assets are taken into account. Failure to make appropriate plans, of which preparation of a will is just a part, is essential for the comfort and wellbeing of surviving relatives, or even a cherished pet, if that is your choice of beneficiary.
An illustration of the importance of this can be found in the case of an 18 year old who died without a will. Her superannuation fund paid out an insurance benefit of $80,000 to her estate and, because she had no will, it was divided equally between her parents. Her mother was upset because the girl’s natural father had left when she was only a baby and had no part in her upbringing. Perhaps if the girl had a will, she might have made a different decision. Continue reading
It’s not uncommon for business owners to take short, irregular holidays because they don’t have the backup to keep their business running without them for a longer break.
Aside from taking time off for leisure, have you considered what would happen if you were forced to take six months off work due to a serious illness or injury?
Would the business survive and how would the bills be paid? Or if you were to die, can you be sure that your business partners would give your family a fair deal? Continue reading