Separating assets from business operations.
Being in business brings with it risk.
Being sued for your personal and or business actions may occur or simply through business or market cycles your business fails. Such risks need to be assessed as part of any strategic planning. The threat is the exposure of assets of value to settle the financial effect of any claim or business wind up.
As business owners, it is your responsibility to mitigate risk. For example, keeping the assets that help you run your business separate from the day to day operations of your business. The usual is that separate entities exist for:
- fixed assets, real estate, IP/trademarks
- Day to day trading
Further, how you hold your personal assets is an important consideration as well as who is the director of the company.
Naturally, your ability to apply asset management strategies depends on the size of the business and the stage of its life. What we suggest to our new clients is to begin to consider asset management. That is, assess who holds, how you hold your assets and review the security that has been given for borrowings as well as think twice before deciding security offered and which entity holds future assets.
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This site provides no advice - the comments are general in nature hence cannot be relied on as the circumstances of your situation varies case by case. You must seek individualised advice specific to you and or your business circumstances