Crowe Ireland’s Post

*Don't invest unless you're prepared to lose all the money* Considering corporate investing for your business? It could be a path to growth, but be aware of the potential risks. Explore the benefits, challenges, and different types of investments on our blog: https://lnkd.in/de8DaSDh #BusinessStrategy #Investing #CorporateFinance

New blog on investing as a business owner!

Taking on a share of or equity in business is often an exciting prospect for individuals. It can strengthen the link between your future growth personally and that of the business you work for. The blog below details some of the considerations faced when making a decision on whether to acquire an equity or stake in a business. Reach out to Boutique Advisers Private Wealth for more information: https://lnkd.in/g8Se4rZe

The Long View You may have heard of someone who, after purchasing a business for a small fortune in the hope of raising their income, soon discovered that the business was worthless. Despite their best intentions, in the process of making a single decision they may have lost decades’ worth of income. At times, a less important goal can actually distract from what matters most in financial decision making. Investing corresponds with this analogy of buying a business -it requires the right framework and focus. It is not only what we don’t know that can get us into trouble, but also our assumptions, and what we think we know for certain. The ability to discern between conventional wisdom and what really matters is crucial. Where common wisdom directs our focus to certain things, and may uphold potential income and growth, these often form only one part of a larger equation. It is important to deepen our understanding of value -where it lies and how it is measured -in order to form a well-rounded decision. In the example above, the individual’s interest in raising of income may have distracted from what was actually occurring with capital. Some of the most significant financial decisions are made when we turn our attention to capital. In any financial decision we must ask, what is happening to capital? It is worth considering the capital structure and what capital represents. A business purchase may be based on profit estimates that are extrapolated into the future in order to determine the value of the firm. However, there may be little intrinsic value in many such appraisals. It is not just a question of the quality of an asset, but whether a price accurately represents its value. Paying the right price for a business or investment is fundamentally important, and is an outcome of a focus and decision framework that respects capital. In the same way an investment product may offer a particular return, there must be equal if not greater focus on any capital that has the potential to change in value. It is necessary to ask the right questions whenever investment opportunities become available, are packaged, when private equity deals are reengineered and floated, as IPOs arise, or other financial products listed. Questions such as, who are the agents and where do their interests lie? Is there adequate focus on capital? Are there liquidity issues? What intrinsic value exists? How accurate are the projections? What is the capital structure? Are the analysts or advisors involved impartial? Some of the most significant decisions in investing involve capital. Whilst instinctively it may seem essential to be focussed on the effect on income in the short term, a broader scope is needed to properly assess the true value of an investment. Approaching investments with the right focus can reveal opportunities to generate profits that would otherwise seem unlikely in an efficient market.

Selling your business is a big decision, and it's crucial to have a solid investment plan in place before you do. Don't get caught flat-footed like those April Fools' jokes! Here are some key points to consider: 1. Define your goals: What do you want to achieve with the sale proceeds? Secure your retirement, fund new ventures, or travel the world? Knowing your goals helps shape your investment strategy. 2. Seek professional advice: A financial advisor can help assess your risk tolerance, create a diversified portfolio, and navigate tax implications. Remember, a qualified professional is no joke when it comes to managing your wealth. 3. Research different options: Stocks, bonds, real estate, and alternative investments each offer varying levels of risk and return. Don't be fooled by get-rich-quick schemes – diversify and invest for the long term. 4. Don't be impulsive: Selling your business is a life-changing decision. Take your time, research your options, and make informed investment decisions. Remember, even the funniest April Fools' prank can have real consequences. By planning strategically and seeking professional guidance, you can turn the sale of your business into a springboard for a secure and fulfilling future. Now that's no laughing matter! 😎

Starting a business from scratch isn’t the only way to build an empire and establish a long-term financial investment. Buying an existing business comes with many advantages and is often considered a less risky investment if you’ve done your research. #NewBusiness #valueabusiness

🚀 Choosing the Right Business Entity in the USA: Key Insights 🚀 Selecting the ideal business structure is a critical step in setting up your venture. Here’s a snapshot of the main types of business entities, their characteristics, advantages, disadvantages, and who should consider each: 🔹 Sole Proprietorship Characteristics: Owned and operated by one individual. Advantages: Simple setup, minimal regulatory burden, full control. Disadvantages: Unlimited personal liability, limited growth potential. Best For: Individuals starting a small business or side project with minimal risk. 🔹 Partnership Characteristics: Owned by two or more people sharing profits and responsibilities. Advantages: Easy to form, pass-through taxation, flexible management. Disadvantages: Unlimited liability for general partners, potential for disputes, limited capital raising. Best For: Collaborators combining expertise and resources with a trusted partner. 🔹 Limited Liability Company (LLC) Characteristics: Hybrid entity offering flexibility and liability protection. Advantages: Limited liability, flexible tax options, less formal than corporations. Disadvantages: More paperwork than sole proprietorships or partnerships, potential self-employment taxes. Best For: Small to medium-sized businesses seeking protection and tax flexibility. 🔹 S Corporation (S-Corp) Characteristics: Allows income to pass through to shareholders' personal tax returns. Advantages: Pass-through taxation, limited liability, increased credibility. Disadvantages: Shareholder restrictions, more formalities. Best For: Small businesses meeting eligibility criteria, aiming to avoid double taxation. 🔹 C Corporation (C-Corp) Characteristics: Separate legal entity providing robust liability protection. Advantages: Limited liability, capital raising through stock, perpetual existence. Disadvantages: Double taxation on income and dividends, extensive regulatory requirements. Best For: Businesses planning for significant growth, capital investment, or IPOs. Conclusion: Choosing the right business entity depends on your liability concerns, tax considerations, and growth ambitions. Each option has distinct benefits and trade-offs. Need help deciding the best structure for your business? Let’s connect and explore your options! #BusinessStructure #Entrepreneurship #SmallBusiness #BusinessAdvice #LLC #Corporation #Startup #BusinessGrowth #Taxation #LinkedInPosts

⛔️ Challenges of Having No Exit Plan V’s Financial Security ⛔️ Everyone wants Financial Security - Right 🤷♀️ Business owners who decide they will work until they die likely enjoy financial security via ongoing income and cash into their businesses. However, keeping the business indefinitely subjects owners to ongoing business risks, from economic downturns to structural changes within the company’s business niche. As business owners age, it may be difficult to make constant and necessary business adjustments to deal with the fast pace of an ever-changing business environment. Especially if it was to keep your business relevant with the trends and time. With age often comes health issues, and for business owners who plan to stay in their businesses forever, poor health can affect their personal performance, which in turn can affect the performance of their businesses, which they rely on for financial security. Additionally, business owners who never want to exit often feel no need to delegate responsibilities to others, which can negatively affect their financial security if they ever become ill or seriously injured, and cannot run the business at full capacity. Are you still ok not having an Exit Business Plan? —————- Just a thought if you do want a Exit Game Plan - here you go. I’ve got one Exit Game Plan Strategy Day Available in July from £4997+ Vat. DM me if you want to make your life easier and at the same time increase the value of your business and create a smooth, seamless money making machine even if you don’t want to sell.

5 Essential Wealth Management Tips for Business Owners As a business owner, your time is often consumed by the day-to-day operations of running your company, but how well are you managing your personal wealth? Here are 5 key strategies to help you safeguard and grow your financial future: 1️⃣ Diversify Your Income Streams: Don’t rely solely on your business. Consider external investments like real estate, stocks, or bonds to spread risk and create multiple income streams. 2️⃣ Build a Strong Emergency Fund: It’s critical to maintain 6-12 months of living and operational expenses in a liquid, high-yield savings account. This will ensure both you and your business can weather any storm. 3️⃣ Optimize Your Tax Strategy: Take full advantage of Singapore’s low tax rates and available deductions. CPF contributions and SRS can help reduce taxable income while preparing for retirement. 4️⃣ Invest for Long-Term Growth: Your business is one piece of your wealth, but a well-diversified portfolio across stocks, bonds, and alternative assets will grow your wealth more steadily over time. 5️⃣ Plan for Succession: Planning for what happens when you retire, or if you choose to sell your business, is critical to ensuring both your financial future and the future of your company. Implement these today, and if you want tailored advice on any of these strategies, feel free to reach out! 💬

Help or hindrance? What should business owners and investors make of the Government's latest policy to support growing businesses? Read the article below to find out more. #PISCES #growth #privateequity