Top five management rights tips

AccomNews Tuesday, March 6, 2012

0 3 minutes read

We’re now well and truly into the swing of things for 2012! Take some time now to get your house in order by following these top tips

and you’ll be reaping the rewards all year.

1. Establish, maintain and review clear written procedures. If you haven’t already done so, keep a written record of the processes you put in place to run your business, covering how tasks are to be completed and by whom. Ensure these are maintained on a regular basis. Having written processes and systems in place will:

• Save and free up your time.

• Minimise mistakes and reduce concern over how others will perform tasks they have been delegated.

• Ensure consistency by setting the same standards for everyone.

• Reduce miscommunication.

• Help a relief manager get up to speed quickly, if required.

When it comes time to sell your business – either unexpectedly or accordingly to a carefully executed business plan – you will also benefit from your organisational effort.

2. Keep key contact details on hand. Ensure the phone numbers and email addresses of the body corporate committee, body corporate manager, suppliers, contractors and tradesmen are all written down and easy to find. This simple task will save you time and reduce stress in situations where they need to be contacted urgently.

3. Review your agreements on a regular basis. Consider whether your current agreements require any maintenance in the form of top-ups or extensions, changes to the duties schedules (tasks undertaken or their frequency) or a review of your remuneration. Talk to your solicitor about any changes that need to be made well ahead of your AGM to ensure no details slip through the cracks.

4. Maintain a schedule of annual events. Include meetings and deadlines such as:

• Annual general meeting of the body corporate.

• Business activity statement and income tax lodgement dates.

• Bank annual review

• Insurance renewals.

Set reminders in your electronic calendar or mobile phone ahead of due dates and events to ensure you have time to get organised and update or make changes if necessary.

5. Consider your financial options. Business operating conditions change all the time. If you have cash flow concerns or want to improve the conditions of your current loan, talking to your lender is a good start. Management rights specialists can and should provide assistance to you on an ongoing basis. Interest rate changes and certain market forces mean lenders are constantly modifying packages to suit clients if you are considering restructuring refinancing your existing financial arrangements. Take into account the following financial considerations:

• Interest rate. If your main concern is the interest rate, ask your bank to review your arrangements. Banks continually change and update their product offerings. Over time the competitiveness of your rate may vary, but make sure you are getting the full story when assessing the overall cost.

• Interest repayment structure. Be aware of your interest repayment structure, and when the principal repayments kick in. For example, a commercial loan may be structured as three years interest-only, followed by 12 years principal and interest, so make sure you know when principal payments are due to commence.

• Extending the loan term. Extending your overall loan term by a couple of years may be an option to consider. This can decrease monthly repayments, and help your cash flow. Assess whether your goals are short or long term, what support you are looking for and how you plan to manage the situation.

• Refinancing. Refinancing can save you money, provided you take the actual refinancing costs into account in your calculations. Depending on your individual circumstances, refinancing may allow you to save money on your loan/s, save money on other banking products (accounts/merchant facility/electronic banking) and assist if you are in financial difficulty.

• The aim of refinancing is to improve your financial position but watch for pitfalls. Refinancing because you are in financial difficulty is especially risky and if you can’t negotiate an arrangement yourself, then ask for advice from your professional advisers.

Best of luck for the year ahead.