Our Services > Corporate Services > Small to Medium Business
Small to Medium Business
War for Talent
Small to medium businesses, or SME’s for short, have their own unique set of requirements and challenges. They compete in the same war for human talent as larger firms yet often without the same sized corporate wallet.
In this respect it is vital that Small to Medium sized firms utilise low cost, high perceived benefit strategies to attract, retain and reward their key staff.
Having attractive advice and service propositions wrapped around your mandatory superannuation requirements can be one such way to improve your staff benefit offering.
In addition to the war for talent SME’s often have issues relating to the concentration of key staff and the concentration of business owners within their businesses.
The other challenges of running a business
Running a small business can be both rewarding and time consuming.
As the business develops and grows, protecting your business is paramount.
If the business includes two or more owners or shareholders, ask yourself the following questions;
- What happens if one of the partners dies, is unable to work or becomes disabled?
- What plans are in place to deal with this occurrence?
- Could you afford to “buy” out your partner or their estate?
- Could you work with someone who has just inherited a share of the business?
Some basic protection mechanisms can be adopted to address these concerns. This will give business owners “peace of mind” and minimise the financial and emotional dramas that would inevitably occur should you fail to plan for such an occurrence.
Business Succession - Buy/Sell Agreements
A Buy Sell agreement is a legally binding agreement that enables business interest to be transferred to surviving owners should a partner exit the business, typically due to death or disability.
Normally an insurance policy is used to provide the funding to purchase the outgoing owners business interest.
Having the funding in place is one thing, however making sure ownership changes simply, and tax effectively is just as important.
Cornerstone are well versed in advising business clients on how to structure and establish agreements that allow businesses to continue beyond the loss of an owner. We project manage the involvement of a solicitor to ensure the legal agreements are drafted correctly.
Keeping the Business Running
Whilst the Buy/sell arrangement provides funding to buy out an owner, it is also important to be able to keep the business running should a partner or key employee die or become disabled.
The answer may be Key Person insurance.
The insurance allows your business to be compensated for the loss of a key employee. It may assist you cover expenses whilst finding the right replacement, or compensate the business for loss of turnover and profit. Key employees include sales managers, working directors or any employee with valuable skills or knowledge.
Like Buy/sell insurance, structuring the key person policy is vital to ensure tax effectiveness and efficient transfer of funds.
Corporate Super Solutions
Cornerstone specialise in the design, review and management of employer superannuation funds.
With over 20 years experience, and a client base that covers leading multinational firms, charities, and SME’s we have the skill, expertise and knowledge to strengthen your employee benefit program.
We provide advice and service to Corporate super funds which comprise in excess of 2200 employees nationally. We partner with leading product providers to ensure the right product is in place to deliver your employee benefit program.
We have developed our unique Super comparison tool. This tool allows us to work with employers to determine what the key issues are in evaluating an appropriate super fund for staff. This interactive tool allows detailed product comparisons to be undertaken tailored specifically for the needs of employer and employees alike.
We specialise in transforming your 9% mandatory super contribution into an investment in your business and staff’s future.
Corporate Risk Solutions
Another tool for enhancing your employee benefit program is the provision of group insurance for staff. The benefits of group insurance include:
- Lower premiums than individuals can acquire (group buying power)
- Automatic acceptance of cover for staff, up to pre determined limits. This is particularly good for those staff who through age, medical history or family history may be unable to secure cover on favourable terms if at all.
- Premiums are often fixed for 3 yr terms giving cashflow certainty
- Staff are able to take the cover with them when they leave your employment
- Cost of cover can be surprisingly low, whilst the perceived benefit is high
- Tax and cashflow friendly funding mechanisms.
Cornerstone are able to help you design a company insurance plan to suit the needs of both employers and employees alike. In addition to designing and advising on the correct structures for your insurance, we act as a broker to source value for money quality cover from leading providers. We also manage the claims process when the need arises.
