BEST PRACTICE BEHIND THE SCENES MANUAL 1
Copyright © 2017 Global Success Institute
BEST PRACTICE BEHIND THE SCENES 1. NOW WE’RE GETTING CL EAR ON THE WAYS WE C AN GO TO MARKET, AND WE’RE TH INKING ABOUT WHO TO DO BUSINESS WITH, AND WHY, WE NE ED TO BE SURE THAT W E ALIGNED WHEN IT COMES TO TAKING CARE OF OUR OWN LEGAL AND ETHICAL OBLIGATIONS BEHIND T HE SCENES.
It’s upon us to take care of our ‘stuff’ when it comes to the right bits of paper in the right place. We don’t get to let other people down, because we didn’t have our ‘behind the scenes’ stuff together. A LOT of this content is covered in your manuals and in the online course work. It won’t be repeated here, but you will need to go find the resource that pertains to that piece of content to complete the questionnaire provided in the template document.
1
Copyright © 2017 Global Success Institute
BEST PRACTICE BEHIND THE SCENES – TYPES OF BUSINESS STRUCTURES 8. TYPES OF BUSINESS ST RUCTURES The basic structures: Sole Proprietor/Trader Partnership Company Trust
2
Copyright © 2017 Global Success Institute
BEST PRACTICE BEHIND THE SCENES – YOUR INSURANCE 9. YOUR INSURANCE It is a requirement, in many professions, that to do your work, you must be insured. And not just during the duration of your career… for many professions, the insurance must be maintained for five years after retirement. This is smart. And many of our coaches are smart, and are insured. Insurance is for the day something goes wrong. It protects us and the level of risk we have financially to face, personally. It means that should something happen – a client sue us, for example, for a fall on our property – we are not going to have to find the money to fund the law suit or potential damages from our personal account. The insurance will cover this, and us, so we don’t go bankrupt, or have to sell our house to pay the legal bills etc. Mostly, nothing goes wrong. Insurance is for the ‘flash flood’ of coaching – it’s whole point is for the day something does go wrong. The moment you have 100 hours of coaching training under your belt you qualify to get insurance through the ICG, with Aon. The 100 hours can be made up of hours in classes and self-study. Please contact the WOW Team about this, before you coach. I had insurance before I coached one hour of coaching. You can get covered for workshops, too. You will have three types of insurance.
Professional indemnity Product liability Public liability I would aim for at least $10million of coverage, but this is NOT legal advice, and you must seek your own expert advice before acting. Again, I repeat, that is my personal opinion only.
3
Copyright © 2017 Global Success Institute
BEST PRACTICE BEHIND THE SCENES – YOUR FINANCES 10.
YOUR FINANCES
Obviously, we each need to get our own professional advice on how to arrange and conduct our financial affairs. Here is what I suggest (and it’s a suggestion, NOT financial or legal advice – we are each responsible for our own financial situation.): Set a financial target! Get coached, if needed, on having a mature attitude about money and wealth Understand the difference between cash flow and wealth creation Get an accountant Get MYOB or similar into your computer Get a way to collect clients’ fees ie credit card machine, Payway, or similar Understand and know how to generate invoices Understand and know how to reconcile invoices out with due dates and money in Get paid in advance for all coaching Get paid 50% in advance for workshops for businesses, and the balance within 7 days of completion Expect many businesses to work on 30 day, 60 day or 90 day payment cycles Don’t expect to be an exception Understand the difference between cash flow and profits Understand the difference between turnover and profits Understand the difference between profits before tax and after tax Know what expenses your business has Know the difference between retainer clients and by-the-hour clients
4
Copyright © 2017 Global Success Institute
BEST PRACTICE BEHIND THE SCENES – YOUR TAX REQUIREMENTS 17.
YOUR TAX REQUIREMENT S
Tax. Firstly, and this can be taken as any level of advice you choose… pay all required tax, and have a plan for doing so. We never accept ‘under the table’ cash for discounts. We put EVERYthing through the books. We do everything we can legally, to minimise our tax obligations, and do nothing to ‘avoid’ tax. They’re two very different things! Pay your tax. Now, what tax… If you’re an employee, you pay PAYG tax. As a self-employed coach, you need to be across the various taxes that may impact you. Firstly, talk with an accountant. Go online… there is so much there to help you. And get across the following, at a minimum. Personal income tax GST What are legitimate expenses? When does your tax documentation have to be lodged? For what period? If you are a sole trader, how does that impact your tax, versus if you’re a company? Consider whether to add GST to your services invoices, or include GST.
“IF YOU HAVE NO CRITICS, YOU’LL LIKELY HAVE NO SUCCESS” MALCOLM X
5
Copyright © 2017 Global Success Institute
GLOBAL SUCCESS INSTITUTE Suite 40, 37-39 Albert Road, Melbourne, VIC 3004, Australia. Phone: (+61) 3 9645 9945 Fax: (+61) 3 9645 7002 Email: w ow @ g l o b a l s u c c e s s i n s t i t u t e . c o m Website: www.globalsuccesinstitute.com
SHARON PEARSON BEST PRACTICE BEHIND THE SCENES MANUAL Ultimate Coach – Business Skills Edition 1 | Version 1 |AUGUST 2017 Published by Global Success Institute Copyright 2017 © Global Success Institute All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, mechanical or electronic, including photocopying and recording, or by information storage and retrieval system without permission in writing from the publisher. In some instances, people or companies portrayed in this book are illustrative examples based on the author’s experiences, but they are not intended to represent a particular person or organisation. NOTE TO READERS All products and services by our company are for educational and informational purposes only. Use caution and seek the advice of qualified professionals. Check with your accountant, lawyer, professional advisor, before acting on this or any information. Connect with WOW Team today at wo w @ gl oba ls uc ces s ins t itu te . co m to get mentoring on how to take your coaching to the next level
ACCESS YOUR EXCLUSIVE ULTIMATE COACH MEMBERS AREA www.globalsuccessinstitute.com/members DISCOVER MORE COACHING COURSES & RESOURCES www.globalsuccessinstitute.com JOIN THE GLOBAL COMMUNITY ON FACEBOOK www.globalsuccessinstitute.com/community
READY TO TAKE THE NEXT STEP ON YOUR COACHING JOURNEY? Connect with WOW Team today on (+61) 3 9645 9945 for support.