6 simple questions thatMulti-owner Small Businesses need to

answer

… and it all starts with one key question

So who is this presentation for again?

Small to medium business owners

Multi-owner businesses and

Business Partnerships

The simple one key question is

If you’re in business with someone else, do you have a business owners

agreement in place?

Why?

Because a significant proportion of your wealth is tied up in your small business ...

… and for many business owners the success of their business is the biggest determinant as to whether they’ll actually be able to retire so it makes senses to protect it.

So do you have a

business owner's

agreement in place?

A business owner's agreement is your written record of what the business owners or shareholders agree upon ahead of time.

It’s your own business rule book on how you’ve agreed things will be decided at a future date, just in case something doesn’t work out the way you expected.

Make your own business rule book“My experience is there are significantly fewer disputes down the track when a business owner's agreement has been set up in advance. If there’s a dispute in the future between business owners or shareholders, you can simply refer to your business rule book on how you all agreed things should be decided.

Better to have your agreed rules in place rather than let the courts force you to follow theirs”. - Drew Browne

What types of things are covered in

this agreement?

Whatever you want to agree upon ahead of time. For starters, it should clearly answer these 6 key questions...

What would happen ......if one of your business owners, key people or shareholders suffered a stroke or a heart attack, how confidently could you answer these 6 questions?

1.Would they automatically leave the business?

2.Would they be entitled to remain in the business indefinitely drawing an income, even if their health prevented them for contributing?

3.Would they be entitled to the immediate return of their invested capital?

4.Could they withdraw their personal guarantees for company loans?

5.Could they sell their shares in the business to a competitor?

6.What would happen if their partner wanted to assume their place in the business alongside you?

The risk of not having an

agreement in place ...

Puts the value and the control of your business at risk

Puts shareholders who have invested in the business at risk, and

Puts the financial stability of your family at risk

Ok, you got me, what do I need to do now?

Start a conversation with your business partner today and contact me, Drew Browne, tomorrow to help you get this sorted.

Drew @ sapience.com.au

Come see me online at sapience.com.au