Diversifying your income stream and protecting your Business

20 November 2023

Diversification isn’t possible if you don’t protect your assets and income earning base first. Having sound, real-time, relevant information is number one in protecting those assets. This is where we come in. 


Cashflow

It’s difficult to protect your business after you have run out of cash. It is much easier to address if you know the cash crunch is coming. Knowing immediately, and at all times, what your cash flow is, or will look like now, and in 30 days, 90 days or one year from now, is critical to ensure your survival. 


Profitability

The next area you should look at is profitability. Are you making profits from your business. Is it run efficiently? Here at Gunson McLean we suggest there are a number of questions you need to ask yourself about your business, which include: 

• are your costs monitored 

• is productivity of the team where it should be? 

• is income maximized and billed per the contract 

 If you answer these questions honestly the answers may be a stark reminder that your business is not where you wish it to be. 


Pricing

You should regularly look at your pricing model. It is extremely important that your debtors and creditors are monitored, and that you don’t let overdue invoices - either to you or from you - slip through the cracks and blow up your budget. What is your debt level – do you have too much debt, or maybe too little. The same goes for inventory, if you have it – you should maintain strict controls on what is coming in and going out each month. 


Once you have all this information and your business is running smoothly, there are others areas you then should also look at such as:

  • Is your business structure effective - should you set up a company, create a partnership, limited partnership or a trust?
  • What are the tax effects of your structure – can you do better?
  • We have experts who can help you decide what is best for your circumstances. 


Your Team

Are you doing your best to protect your biggest asset, your team? Your business cannot succeed without your team and their health and safety must always be at the front of your mind. Every worker deserves to go home safely to their family every night! How often do you review your insurance, does it cover everything and at the correct replacement values? 


Only once all of these areas of your business are set and functioning well can you look to diversify your opportunities. 


Diversifying within your industry is good, as you know that industry. However, you can end up putting too many eggs in the one basket. Diversification outside of your industry into well understood, long term investments helps to supplement any savings you may have. Personal preference and risk profile dictates where that diversification could be – shares, funds, other non-related businesses, property, carbon – to name a few. Regardless, getting money out of your main business into non-related investments helps to protect overall wealth. 


Gunson McLean can assist you with business purchases, business planning, cash flow planning, property purchases and business structures. If you’re thinking about diversifying your assets, get in touch with us.

4 December 2025
The Christmas season can create payroll challenges, but understanding the rules can help you stay compliant. Annual Leave: By law, employees are entitled to four weeks of paid leave per year. To avoid last-minute staffing problems, set clear deadlines for leave requests. Holiday Pay : Employees must be paid for public holidays that fall on their regular workdays. Keeping up-to-date employee records and rosters ensures accurate payment. Christmas Closures : Plan ahead for any business shutdowns. You must provide at least 14 days' notice before a closure. If an employee doesn’t have enough leave, they must be paid 8% of their gross earnings since their start date or their last leave entitlement, minus any leave paid in advance if agreed upon. Cashing Up Leave : If it’s part of the agreement or you choose to allow it, employees may cash up to one week of annual leave each year. However, you cannot pressure them into doing so. Casual Workers : Casual employees should receive an additional 8% on top of their earnings instead of accruing leave, and this must be clearly shown on their pay slips. With careful planning, you can keep payroll running smoothly, allowing both you and your team to enjoy a stress-free holiday season. Feel free to reach out if you need any assistance or clarification.
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To discuss all your account matters please call us on 09 438 1001