November 2002a- Each month this page will be updated with new tips and ideas and the previous content archived. As time goes by our archives will grow. These will always be accessible, and always without charge. Enjoy.

Welcome to the free tips page for November 2002

As we move faster towards the end of 2002, it's time to start thinking about how you are going to improve your results for next year.

What new initiatives are you going to undertake? What do you want to achieve next year? What major projects did you plan to start this year that you haven't got around to doing so far?

It's human nature - not implementing all the good ideas we generate during the year. Some of us will write them down and make a note to do something about it - but then our every day professional work seems to find a way to put obstacles in our way.

We all want to run a quality practice, where the work we do for our clients is highly valued, promptly paid for, and where clients often make quality referrals to us. The question is: What are you doing that is taking you closer to that goal?

An important tool that will help you achieve just that, is our "Towards Awesome Client Service" (or TACS) program, available at just $249.95 per module (there are 4 modules delivered over a 12 month period) for a limited time.

While these pages are not intended to be a blatant "plug" for our own products, I sincerely believe that TACS is a quantum leap in developing a better practice, where better clients naturally migrate, and where better profits for you are waiting.

For those looking to invest around $1,000 over a year in their firm, this is the one thing you should do to make 2003 your best year ever.

Those interested, please visit our sister site: http://www.awesomeclientservice.com

10 questions to ask your clients that could substantially add to your bottom line:

Here are a few simple but often overlooked questions - with some guidance on how to follow through on the responses you get - that you can ask clients that will generate additional fees for you, or create opportunities to make referrals.

1. Would you like to have more control over the amount of tax you pay next year?

If so, I recommend that we meet in the late summer or early fall this year.

By getting together at that time, we can look at the way the business is going, assess the likely level of profits, and thus the amount of tax you will probably have to pay, and provide you with some tax planning ideas that could result in substantial tax savings.

Some actions have to be taken BEFORE your financial period ends in order to be tax effective, which is why we need to meet in the fall, so, when would you like to get together? Is <time & date> good for you, or would <time & date> be better?

2. What would be the tax implications for the surviving spouse if one of you died next week, God forbid?

If you're not sure, it might be a good idea to get together and look at your tax affairs as they are right now in order to find out, and make sure that, should the worst happen, the survivor is not going to be faced with an unnecessary additional tax liability.

As Benjamin Franklin said, "In this world nothing is certain but death and taxes."

Don't let one lead to the other.

3. Do you have a will?

If Answer is Yes -

Good. When was it last revised, and do you know if it is tax-efficient?

If you're not sure if it's a tax-efficient will, why not let me have a look at it as I could tell you for sure if it is or isn't. If it isn't, I could give you some suggestions that we could help you with.

It's a complex issue that requires expert advice.

I'm sure you wouldn't want the CCRA to get more of your estate than your spouse, so when would you like to bring your will in to be assessed?

If Answer is No -

It's essential that you have a will, even if it's only to keep the lion's share of your wealth out of the clutches of the CCRA, and direct it to those you really care about.

Dying without a will is like writing a blank cheque to the Government. I would strongly urge you to get one written without delay. I could even recommend an excellent Lawyer, who I often work with to save my clients substantial amounts of tax.

Here's how it works: You meet with the Lawyer and I together and tell us how you would like your estate divided, and we will construct a tax efficient way of achieving your objectives.

After a few days, we get back together and go through our recommendations. Then your will is drafted in such a way that you are happy AND your family does not get burdened with any unnecessary tax liabilities.

Is that something you'd like to achieve?

4. Do you know how much in Inheritance/Capital Gains Tax could be saved by starting to plan ahead?

Would you like to find out?

We undertake many Estate Planning projects for high net worth clients and in many cases can save thousands of dollars with some thought and creativity. Would you like me to tell you more?

5. When do you plan to retire?

What are you doing to provide a fund that will produce a pension income for you when you retire?

Will your present contributions be adequate to support the lifestyle you deserve upon retirement?

Let's work it out….

Present value of fund $
Annual contributions $
Years left to retirement date
Assumed % growth rate, compounded
Likely value of fund upon retirement $
Likely annual pension $
Discounted for inflation, it's equivalent to an annual salary of $__________ today.
Is that going to be sufficient to maintain your lifestyle?

What would you like to do about it?

6. When you do retire, what will happen to your business?

This is called an exit strategy.

It's important to have one, because, if we structure your plan for you, we can make it very tax efficient. And that means more of the proceeds, sometimes even all of it, stay in your pocket, not the CCRAs.

So, tell me more about your idea for <selling the business when you retire< or <passing the business on to a son or daughter> or <your plans for a management buy-out> etc…

7. When did you last prepare/update a business plan?

How is the business doing compared to budget? What's your break-even point? What are your fixed costs? When will your working capital requirement peak, at what level, and how long before it comes down again? Based on what assumptions?

If you don't know the answer to any of these questions, you might find next year is going to be something of a bumpy ride for your business.

Failing to plan is like planning to fail. It's best to be prepared, know what's in store for you and, if necessary, take preventative action in advance to avoid unnecessary trouble ahead.

Do you think it might be a good idea to revisit a business plan for you now?

8. Do you have a marketing plan?

It's an important part of your business plan - you only make money when you sell goods or services, and if you don't market them well, you won't sell many.

Do you know the size of your market? What your market share is? Who your competitors are? When did you last do a SWOT analysis? How have you changed since Sept 11th?
Do you embrace e-commerce?

Understanding even only these basics and building a plan around them can help you grow your business. Is that something you'd be interested in finding out about?

9. When did you last review your insurance needs?

What has changed since then? What are your personal and business assets and liabilities? What about product liability, employers liability, third party liability?
Are you in a high-risk industry or profession where it is possible to be facing a lawsuit?

Now, do you think it might be a good idea to at least revisit your cover and assess your real needs?

10. Does your business need an injection of capital?

Maybe you're looking at upgrading some plant and equipment. Maybe buying a new building, or replacing the fleet of vehicles.

Or maybe there's a third party who would like to invest in your business to finance growth.

If you need to review your line of credit at the bank, your leasing finance arrangements or your mortgage facilities, that's something we can help you with too.

Do you know how much you need, what for, when and how much you can afford in repayments?

We can help you to determine these factors and budget accordingly.

Check out our eBooks:

Our full range of e-books is now available for immediate download. All are now available as "PDF" files AND eBook files - the choice is yours, or download both versions (no extra cost) to see which format you prefer!

Including:

For more details, see our products page

 

So, that's all for now, if you need more, sign up for our free e-newsletter, LEDGER, on our newsletter sign-up page, or look at our best-selling manual LOW COST HIGH IMPACT WAYS TO WIN NEW CLIENTS.

Thanks for visiting.
Have a great month.
Until next time.

More free tips to come as we next update our site in December 2002.