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SAP Business One – Giving Your Business the Direction It Needs!

We are currently living in a world where advancement is being witnessed in everything. Whether it is technology or business, fashion or theatre, nothing survives without reviving the way things are done. In order to match the pace of the rapidly growing world, one needs to be up to date with all the latest trends and progressions in the world. This also applies for businesses.

A number of business management software are being created to help firms around the world achieve their goals. No matter if you are a small scale, medium or a large scale enterprise, adapting to change is important for all businesses.

Small business software is also there to meet the needs of this particular sector. This means you have to adapt with the latest technology and one way of doing so is to implement SAP Business One.

What SAP Business One is all about

There is a huge array of business management software being provided by SAP which guides a firm to integrate their business functions and helps them to survive in the industry.

SAP Business One focuses on the key issues of any business like customer relationships, relations with suppliers and distributors, inventory management, sales, operations, finance and the likes.

These issues persist in every business firm whether small or large so anyone can enjoy its benefits. Its small business software is solely for small scale enterprises which guide them to spread their roots with the passage of time. As a newbie, one needs all the help they can get.

And Business Management Software can serve as a backbone to your newly growing business and will help you in making some valuable decisions.

Why go for SAP Business One?

Now you must be wondering why this is so important. Well to reach the top and then to maintain that leader position you need to be different and more innovative than rest of the companies operating in the same industry.

If you are not enthusiastic enough then other companies may take your place in the blink of an eye! For the companies who are fresh and have just started, it is all the more important to manage the business according to the latest trends.

Once you start well, then problems occurring in between can be dealt with! All of this is possible with the implantation of SAP Business One.

Customers of today do not settle for just anything and thus to adapt with their needs and requirements you need to be the best at what you do as a firm.

Business Success Coach to Make Your Small Business Last

If you want your small business to last, it would be advisable to hire the services of a business success coach. As very few small business startups make it beyond the first five years of their operations, you need to focus on the problem areas that make the successful ones emerge victorious. With the help of a business success coach, who has extensive experience of making small ventures work, your little venture can turn out triumphant amidst all odds.

Only 20% small business survive till 5 years of operation

So, what separates the successful ones from the rest? Research has shown the following to be the most important factors pertaining to success of small businesses:

• Employing the right tool and resources for ensuring that your business is executed just right.
• Employing a scalable system for running your organization efficiently.
• Having a smooth system that runs without the stress and anxiety for 24 hours of the day.

If your business can boast of the above features, you can be rest assured of having a proper business in place and not just a substitute for a job.

Some other important factors for ensuring that your small business succeeds include:

• Realizing that you cannot get everything done on your own and taking the help of tools and resources that are specific to meet the most urgent issues with your business that are holding it back from being successful.

• Get advice on whether your business is viable in the current market place dynamics with a clear business vision, strategic plan.

• With anticipation of challenges and clarity of business vision, you would be able to launch an attack for securing the market share.

• As the business process is not an impersonal thing, the business owners need to make it customized for each and every customer.

With the help of a business success coach, you would be able to strategize well, and also implement the strategized initiatives better. As you are able to prioritize and organize your business activities, it would help you manage your work and life much better. This is an important part of ensuring that you are able to sustain your business.

Pay heed to the instructions given here if you want to make the most of your small business venture. Make sure you hire a business coach, and not a certified executive coach, or any other type of career coach. Women business coaches are also available for those ventures which need a feminine perspective.

Superannuation Strategy: Transfer Business Premises Into a Superannuation Fund (Australia Only)

What you should have.

  • You or a related entity owns the property your business operates from
  • Superannuation Balances of $150,000 or greater

How it Works.

  1. Your superannuation balance (and your partner’s), are rolled into a Self-Managed Superannuation Fund (SMSF). You are trustee and in control of the SMSF.
  2. The Superannuation Fund (utilising a Bare Trust) borrows sufficient funds to enable it to purchase your business property.
  3. The property is purchased and the funds transferred to you to invest as you wish.
  4. Rent is now payable by the business to the superannuation fund.

Why is this Fantastic?

  • The balance of your superannuation fund (less costs of the transaction) is now in your hands and able to be utilised to reduce debts, invest in the business or other opportunities which may not be permitted if these monies were held in a superannuation fund
  • Rent is now payable to the superannuation fund and you can fund your superannuation faster than otherwise possible
  • There should be significant tax advantages as the net rental income is likely to be taxed at 15%.
  • As less tax is being paid, more funds are available to reduce debt, therefore the debt can be repaid quicker.
  • Should you reach retirement age and draw a pension from the superannuation fund, it is possible that the tax rate on future net rental income will be NIL and any capital gain made on the sale of the property may also be free of income tax

What are the disadvantages?

  • There are several costs involved in the transaction (including establishing SMSF, Bare Trust, Stamp Duty and Legal costs transferring the property, possible Capital Gains Tax and Others)
  • The superannuation fund regulations are complicated and we strongly recommend you OBTAIN PROFESSIONAL ADVICE on your specific circumstances before entering any arrangement


John and Judy own their factory, which is currently valued at $350,000. They have a bank loan for the property of $240,000, and their superannuation balances are $140,000 in total.

The business struggled after losing a large customer 12 months ago, and to keep paying debts on time, John had to use credit cards which now have balance of $50,000 and are incurring 20% interest ($10,000 per year). The business is back to breakeven profitability but they are unable to free up enough cash to repay the credit card debt. John also has a great opportunity to win a large contract but he would need $50,000 to fund the initial stock purchase.

The bank is unwilling to lend further money due to the recent trading results, the increase in credit card debt and 2 months credit card repayments were missed 6 months ago.

What can John & Judy do?

  1. John and Judy decide to roll their superannuation into a SMSF.
  2. They set up a bare trust under the SMSF and it enters into a contract to purchase the business property for $350,000. A bank agrees to lend $230,000 to assist with the purchase.
  3. The bank also agrees to a “same day” (temporary) loan of $240,000 which is used to pay off the existing property loan and ensures the property is not encumbered at the point of sale.
  4. John & Judy receive the $350,000 ($230,000 from the new borrowings and $120,000 from the Superannuation Fund)
  5. John and Judy use the $350,000 as follows
    • $240,000 to repay the “same day” loan on the property
    • $50,000 to repay the credit card debt
    • $50,000 to fund the profitable new contract
    • $10,000 extra cash to reduce other debt/invest/holiday
  6. Note that the SMSF has $20,000 cash remaining, some of which will be used to pay the costs involved in the transaction.

What is the end result for John & Judy?

  1. Their $140,000 cash that was in superannuation has now been utilised to
    • $50,000 to repay credit card debt (and saving $10,000 interest per year)
    • $50,000 to fund the new contract (which will make a significant profit)
    • $10,000 extra cash
    • $10,000 debt reduction on the property
    • $20,000 remains in the superannuation fund, however some of this would be required to pay the costs of the transaction
  2. The property is now owned by the superannuation fund, therefore
    • Rent will now be payable by the business to the superannuation fund. This rental income will only be taxed at 15% (the business will receive a tax deduction, likely to be at least 30%
    • As less tax is now payable on the rental income, more funds are available to reduce the bank debt. This will in turn reduce future interest.

    DISCLAIMER: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their circumstances. The author expressly disclaims all and any liability and responsibility to any person, whether a purchaser or reader of this publication or not, in respect of anything, and of the consequences of anything done by any such person in reliance, whether wholly or partially upon the whole or any part of the contents of this publication.