Small business owners are often so engaged in the running and developing of their core business, that they can overlook other important matters that may have a significant impact on their financial stability and personal wellbeing. Please note that this list still has relevance even if you are not in business.

Insurance

A large part of Risk Minimisation is Insurance and a small business should review the adequacy of their public liability, product liability, professional indemnity, building and/or contents and business interruption insurances on at least an annual basis.

Contingency Planning

A small business should also adopt a number of other risk management strategies, one of which is Contingency Planning. You should ask yourself some key questions: How do I keep the business running when:

- a key piece of my equipment fails? This may be a computer or software program, a piece of plant, a vehicle.

-a key member of staff becomes suddenly unwell for an extended period of time. This includes you, the business owner, but for some businesses could include the receptionist, the book-keeper or the payroll processor.

-I am unable to access the business premises. Your business may not be next to a river or in a bushfire risk area, but you could easily be affected by a burst water main, a plumbing failure or an internal fire. Do you have an offsite copy of your data backup? Daily backups kept onsite are useless if the entire property is destroyed by a fire.

- the electricity or other essential services are not available.

It is far easier to consider the affect of these instances occurring in the cold light of day rather than under the pressure brought on by the event.

Legal Matters

- Do you have a current will or have your thought about estate planning? If your business is run through a company or trust, then your affairs on your passing are far more complicated than having everything just transfer to your spouse.

- Is your business still utilising the most effective business structure for tax and asset protection purposes? For example, your business may have started out with you in your garage running as a sole trader but now that you have a few staff working for you out of an office, your business structure needs to be reviewed.

- If you are running a business from leased premises the location or style of which is critical to your operations, how secure is your lease or tenancy?

- If you are using a company to run all or part of your business operations, do you know you are required to notify the Australian Securities and Investments Commission (ASIC) within 28 days of a change of address of the business or any of the directors?

- Do you need to consider registering the trademark of your logo's and business image or patenting your ideas or inventions?

Looking After Yourself

If you are operating your business as sole trader (and in some cases through a trust or company), you as the business owner are not eligible for workcover benefits if you are injured at work. Do you have alternative arrangements in place to ensure you can continue to pay the mortgage and support your family?Income protection insurance through your superannuation fund is often a inexpensive means of increasing your protection in this area.

Other Matters

Other key matters that fall into a Risk Management Strategy include environmental issues, occupational health and safety, security, financial safeguards such as cash handling and government regulations specific to your industry.

The Paid Parental Leave Scheme starts on 1 January 2011 and provides 18 weeks of government-funded pay to eligible employees. The rate of pay is equivalent to the national minimum wage. Full-time, part-time, casual, seasonal, contract and self-employed workers may be eligible.

Parents can lodge a claim up to three months in advance. The Family Assistance Office may contact you if one of your employees is eligible.

From 1 July 2011, you will be required to provide parental leave pay to your eligible employees (funds will be provided to you in advance). However, your role in the scheme can start earlier if you and your employee agree.

To get your business ready, register now at www.centrelink.gov.au and search for 'Centrelink business online services'.

Christmas Parties & Fringe Benefits Tax

Whilst the annual office Christmas party is a time of celebration and joy, the party can be ruined months later when the unexpected Fringe Benefits Tax consequences become apparent. The ATO has released a fact sheet detailing what is and is not subject to FBT and/or income tax. The details can be found be at: FBT and Christmas Parties.

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