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Life Science Innovation

If we look at Australian startups the vast majority of those are in the software/IT industry. However, there is much smaller number of life sciences startups because they often have even higher risk of failure and require much larger upfront investment than their software-based counterparts. IT startups in Australia can leverage funding opportunities through crowdsourcing and angel investors. But majority of life science startups are deprived from these funding schemes. Except for several success stories such as CSL, Resmed and Cochlear, Australia does not have global pharma or medical device companies making partnering activities for local startups more challenging. Also,…

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Advise for your financial planning

When estimating costs you can divide them into two basic categories. Fixed costs are¬†expenses that do not vary with your sales, such as rent, utilities, insurance and other operating expenses. Variable expenses such as raw materials to be sold and direct labor will depend on your projected revenue. To account for such costs you will have to develop a sales forecast. Once you estimated both components of your costs calculate your break-even point, the sales level at which your business has neither a profit nor a loss. The break-even analysis can also be used to evaluate a business expansion and…

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Buying Franchise

Established franchise offers various advantages over independent business including brand recognition, proven processes and products, training, centralized development of promotional programs, better bargaining power with suppliers and knowledge sharing among franchise owners. On the other hand, you will need to pay franchising fees and royalties, will have to adhere to a restricted sales territory and will likely experience less freedom in your pricing strategy. As with any opportunity, both advantages and disadvantages must be examined before a decision to invest into a franchise is made. Once you completed commercial due diligence of the franchise and you remain happy with selected…

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Purchasing Established Business

Purchasing an established business can reduce startup costs, help avoiding the long lead times involved in launching an enterprise and building a customer base. Established businesses also may have existing good will such as reputation that will reduce the risk of business failure. The decision to buy a business requires careful commercial evaluation including options for financing your purchase. As a buyer you need to recognize whether you have the right experience and management skills, whether the business is in a desirable location and how much you are willing to invest. You should also perform own due diligence as many…

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