Thread: Career Change - tips anyone?

Clinton,

I have just gone through a sort of carear change recently, (early Mid life crisis... ). Spent 15 years working in financial markets. Got sick of the !@#t that I had to put up with from the newcommers with degrees, who thought they knew everything cause they had a degree and I didnt...

Jupped ship into IT within the same organisation (Joys of a large global business). Couldnt have made a better decision. Having the time of my life, getting paid more than I would have where I was, and getting respect for my years of experience.



So Clinton, go for it. Just make sure you do your homework with the accountants, etc. From your post it looks like you will. I believe that TAFE (At least down here in Melbourne) run courses for people that want to start their own business. If not try your local small business org, or the state Govt should have a small business department, they will have stuff and may even be able to offer advise.



Good luck, from your posts, you seem smart enough to make a go of it, sometimes you just have to go for it.

Originally Posted by ozwinner

They are crying out for cabinet makers here In Melbourne....

Al, which part of "the second lowest paid trade" didn't you understand?

Originally Posted by Toolin Around

You've never been a cabinetmaker have ya. According to TAFE it's the second lowest paid trade, lowest was hair dresser.

And hairdressers are prettier too

Originally Posted by Clinton1

Peter - other than seeing an accountant and lawyer, where can I find the resources to educate myself so that I can understand the pro's and con's of the proposals that the accountants and lawyers will put up as options?
This is one thing that I know that I don't know enough about. ( a strange sentence but an important concept)

Without knowing the details this must be of a general nature so as the banks say get a product disclosure statement to see if this advice is suitable for you.

Most Tafe have short courses to help you to start a new business. Some government departments may also advise on what is needed. Whilst that is very good and essential for someone starting out they are more concerned with the statutory obligations and requirements of a business.

What they won't go into is what happens if it goes wrong. Usually people start of as a sole trader trading under a business name. Then they involve their wife/partner in the business as a partnership.

Changes to that structure can cause problems and would be better to avoid in the first place. But if it goes belly up you/they will have to pay all debts and possible sell their house to cover these debts. The exception is if the house has a War service loan mortgage on it. ( )

To avoid that it is usually to incorporate and trade through a company. Companies are distinctly different legal entities from the shareholders and directors. Thus if the company gets into difficulties only the company's assets are at risk and not the assets of the directors or shareholders. It also stops the business being ripped apart in the case of divorce by the correct issue of shares.

Because of this Bank's will require personal guarantees from the directors if they are lending money (unless there are sufficient assets in the company) so it is essential to ensure that borrowings are limited and repaid as soon as possible to reduce your exposure to them. It is better to have many unsecured creditors and no borrowing from a bank then the other way around.

Further, you should only put in the minimum amount of share capital. If further funds are needed lend it to the company but not as directors or shareholders loans but as secured loans covered by a charge over the assets and undertakings of the company. Then if it goes wrong you are one of the secured creditors of your own business.

Whilst this may seem cynical I keep on recalling the words of a well known company liquidator that I had dealings with and he used to say that secured creditors deserve to get their money back but unsecured creditors, being stupid enough to remain unsecured, deserve to loose their money.

I hope this helps a bit and remember to take care of the details. Often the difference in outcome is decided by the little technical details. So get good ongoing professional advice.



Peter.

Thanks Peter.

It seems that you know what you are talking about, and I fully agree that I need to have a long discussion with an accountant and lawyer... I only seem to get onto accountants that offer a service of:
setting up the business structure essentials (names, ABN, trading permits and the like);
setting up an electronic and paper based accounts management system (aimed at them picking up a residual accounts management service), and
doing, and promising to teach you to do, the first 1/4's accounts.

Standard quotes for this run to between $1300 - 1800 to 'establish' a business, with no offer of making sure I understand whats being offered.

I have not met one (an accountant) yet that offers to discuss various business structures, and to discuss the pro's and cons of each, i.e. sole trader versus Inc.
I must not be running into the 'right' ones, or they have enough 'platinum' clients on the books.

Do you know if there is a good Australian book that discusses the various business structures, or a business mentorship scheme in Victoria... or the number of a good accountant?

Go and talk to a N.E.I.S. scheme provider.
(New Enterprise Incentive System)
The training is a Certificate 4 in small business management and is excellent.

You will learn far more than any accountant can teach you.

Centre Link can tell you where the nearest ones to you are

Originally Posted by Clinton1

Thanks Peter.

.

I have not met one (an accountant) yet that offers to discuss various business structures, and to discuss the pro's and cons of each, i.e. sole trader versus Inc.
I must not be running into the 'right' ones, or they have enough 'platinum' clients on the books.

Do you know if there is a good Australian book that discusses the various business structures, or a business mentorship scheme in Victoria... or the number of a good accountant?

Clinton,

Sometimes it might be the person you are seeing and sometimes it might be the questions you are asking. Most Accountants will give you that advice but may have missed what you are really after. Sturdee has given a pretty good rundown, although I would just add that you can still end up liable for company debts which is why you were pointed to getting live advice. That does not detract from what is a good summary.

If you book an hour of someones time, take in some written questions to keep yourself on track you should be right. It is really business structure, then how to keep the books, or more to the point how to get started. It is the ongoing relationship that counts remembering it is a resource to use frequently (more so when getting started) from which you hopefully gain enough information to allow you to run that side of the business to enhance your profits and keep on the right side of the tax office, regulators and everyone else who has a vested interest in what is going on. The buck stops with the operator, it is how he/she extacts the needed information that has a lot to do with future success in any venture.

John.

Originally Posted by Clinton1

Do you know if there is a good Australian book that discusses the various business structures.....?

Hi Clinton,

"An Introduction to Accounting" by Carrick Martin is not a bad book. It was the prescribed text for the first accounting subject I did as part of my MBA. I have an engineering background so I was fairly unfamiliar with accounting when I started the subject and I found the book fairly easy to follow. It discusses accounting entities such as sole proprietorships and partnerships. It disscusses heaps of other stuff as well.

It is an Australian book as you requested. Carrick Martin, the author, is an academic at Macquarie University. You should check your local library to see if you can borrow a copy.

Originally Posted by ozwinner

Yeah, DONT DO IT, the grass isnt greener on the other side of the fence.

Al

Cant disagree with your more Al (and I usually like your comments)

I have just this year changed jobs after almost 14 years in one job. I have taken a considerable pay cut and am happier than I have ever been. Its not always about the cash.

I was working afternoons and sleepovers as a carer for 13 odd years and totally lost my social life (but it was great for woodworking) I was starting work at 3pm each day and finishing at either 7pm that night or mainly 9am the next day. I was working 3 out of 4 weekends.

Now I work as an intergration aide working 9am-4pm each day. I get a flat salary which means that I get paid for the 12/13 weeks off each year the teachers have!!! I enjoy the work more and am far less stressed,

I know what your thinking and you have to ask yourself just one question! is the cash always worth the stress??? Well is it punk, go ahead make my day

Clinton,

Read the book that Ian S. recommended, do the course that Bob suggested and then you'll be prepared for detailed discussions as John advised.

If you do the above you'll be in a great shape to survive unlike the majority of people that go into business with a great idea without knowing how to cope with actually running the business.

Peter.

Hi Clinton

i suggest reading the "emyth revisited" by Michael Berger (PM and i can send you my copy). In an nutshell it suggests that being an expert in the field of the small business is in some ways a hindrance.

IE: You are a master mechanic, you open a mechanic shop, the hard thing to running a mechanic shop is actually running the shop, doing the business stuff, but it is easier to fall back into doing the mechaniching and not the running of the business.

It also talks about running the business as a system - this is how we do things here, heres the manual, this is how it gets done everytime. You should therefore be an expert at the system, not the product. Must have knowledge of the product and how to achieve it but thats not where the expertise should be, because when it gets hard you will fall back to what you are comfortable with.

Its the system that is foolproof.

This is a very different way to look at small business. this may mean that if you have an understanding of the product already then perhaps focus on the system of delivering the product as a manager.

The other thing is a small business course. I am 1/4 through a small business course through tafe and it is reaaaaally slow. I would not do this again and would only target what you need to know to run the system.
A lot of the course is not really of use IMO to run a system.

My (disjointed) 2c

good luck


dazzler

All the best on what you decide, Clinton.

When it comes to careers or business or even money, I've pretty much useless. These sort of things have me frowning as soon as I hear them. Thank god the wife deals with it all. A blessing that, even though it makes me a feel a little whipped on occation.

But I do believe.....that one should retain the important simple things in life as apart of your daily routine, no matter what you decide....

I mean, make sure you get enough sleep, and eat well. For me, life starts to run me down when lifes so busy that I can't even find the time for these simple things. And I think that happens to plenty.

And kids.....for me, that changed everything. Starting to believe, that its quite difficult to be a 'good' dad and be successful in business at the same time. Hoping life will change when my kids grow up a little. So it probably a good idea to keep that wallet full of contraceptive devicesat all times,,,,. Love me kids, but jesus, their expensive little buggers.

Anyhow, all the best. I think we all need a little change on occation to spice things up.

Clint

As we have previously discussed, with great respect to all other posters on your thread, all pales into complete insignificance compared to:

Do you have enough customers for your product or service?
If not, are you confident that you can attract them in a time frame that keeps you from starving?
Why do you think you can convince your prospects (thats assuming you can attract them) that you are better than the competition, given you have no track record?

Not being negative, just realistic.

Whats kills 'start ups' is not anything to do with their product or service, nor (as is a popular theory) cash flow - that comes later. What kills the new business is not getting enough punters!!

As to how to get them, thats another, much longer (War & Peace), essay.

As to how to get them, thats another, much longer (War & Peace), essay.

Feel free to talk about getting those customers, feel free.