Last time, we discussed the five essentials for capital raising. This week, we’re going to hone in on the first part, which is a good account. It is essential when you’re setting up your business, which is often referred to as a vehicle that you get the right one for the right business that you’re going to run. And you need to also think about the future of your business. So if you’re looking at massive expansion, your accountant will guide you on the right vehicle, whether it’s a company proprietary limited, whether it’s a trust, they’ll actually guide you on the right principles.
We know you’ve got the right account because that’s essential, then when you talk to your account you’re going to be digging into your financials and you’re going to be doing projections into your financials – that’s called a profit and loss statement. So you’re going to look at what you’ve done in the past and analyze that with your account, and then formulate the right plan of the authentic future for your business. It is essential that you actually get this right, because this is what your investors are going to look to invest in. So please be conservative with your figures. We all get super excited. I’ve done it many times myself, and failed to lack in and the variables that can happen to your business. There could have a fire, there could be damage to a property, all sorts of things that will impact on your forecasts and your financials. So please be as conservative as you possibly can.
I can tell you a funny story about accounting. When I was four years old, my neighbor came to me and said that he wanted to buy my Lego, he was a little bit older than me. And in my mind, I didn’t really know what to do. So I spoke to my mother, my first accountant. She actually said to me, Stephen, don’t sell the box of Lego sell, and buy the piece, because buy the piece will get you more money. So it’s like took that advice from a mom went back to them a neighbor, I think I made $3.22 at the time, and then was the richest kid in the kindergarten that day. That meant more lollies and that was an invaluable lesson learned. So thank you for your time today.
Good luck finding the ideal account for you and feel free to contact me on the details given below.