Category: Business Support Services

Many small business owners avoid engaging a lawyer until something goes wrong. Understanding when legal advice is essential — and when it is not — can save you money and protect you from risk.

When You Should Always Use a Lawyer

• Business structure setup: Choosing between sole trader, partnership, company or trust structures has significant tax and liability implications requiring tailored advice.
• Buying or selling a business: Business sale agreements, due diligence and asset purchase structures are complex and high-stakes.
• Commercial leases: Lease terms, outgoings, make-good clauses and option periods all have long-term financial consequences.
• Disputes and debt recovery: Once a commercial dispute escalates beyond initial negotiation, legal representation substantially improves your prospects.

Where Free or Low-Cost Help Is Available

For straightforward matters, the Business Victoria website (and its state equivalents) provides free legal guides on contracts, employment and intellectual property. Many community legal centres also offer free initial consultations — use the Community Legal Centres Australia directory to find services in your area.

SBTC Member Legal Support

SBTC’s Business Support Services program includes a free 30-minute initial consultation with a qualified commercial solicitor from our partner law network. Contact the SBTC office to book your session.

Ask most small business owners which financial document they find most confusing and many will say the cash flow statement. Yet understanding your cash position — not just your profit — is critical to keeping your business alive and growing.

Profit vs Cash Flow: The Key Difference

A business can be profitable on paper and still run out of cash. This happens when income is recognised before it’s actually received — for example, when you invoice a client but they don’t pay for 60 days. During that gap, you still have wages, rent and supplier costs to cover.

The Three Sections of a Cash Flow Statement

A standard cash flow statement has three components: operating activities (day-to-day cash flows), investing activities (purchase or sale of assets), and financing activities (loans, equity investments and repayments).

The Australian Taxation Office provides free tools including the Business Performance Check tool which benchmarks your financials against industry averages.

Practical Tips for Improving Cash Flow

• Invoice promptly and offer a small early payment discount
• Review your payment terms and consider moving from 30 to 14 days
• Negotiate extended payment terms with suppliers where possible
• Use cash flow forecasting tools in your accounting software

SBTC members can access a free initial session with our partner financial advisors through the Business Support Services program. For general financial guidance, the Moneysmart website maintained by ASIC also has useful small business resources.

Legal costs can feel prohibitive for small businesses, which leads many owners to either avoid legal advice altogether or seek it only in a crisis. Neither approach is ideal. Here’s a practical guide to when professional legal advice is genuinely necessary, and when you can manage things yourself with the right resources.

When You Should Always Use a Lawyer

• Business structure setup: Choosing between sole trader, partnership, company or trust structures has significant tax and liability implications that require tailored legal and accounting advice.
• Buying or selling a business: Business sale agreements, due diligence and asset purchase structures are complex and high-stakes — legal errors can be very costly.
• Commercial leases: Lease terms, outgoings, make-good clauses and option periods all have long-term financial consequences that are worth having reviewed before signing.
• Disputes and debt recovery: Once a commercial dispute escalates beyond initial negotiation, legal representation substantially improves your prospects.

Where Free or Low-Cost Help Is Available

For straightforward matters, there are several free resources worth exploring before engaging a private solicitor. The Business Victoria website (and its equivalents in other states) provides free legal guides on common small business issues including contracts, employment and intellectual property.

Many community legal centres also offer free initial consultations for small business matters. The Community Legal Centres Australia directory can help you locate services in your area.

SBTC Member Legal Support

SBTC’s Business Support Services program includes a free 30-minute initial consultation with a qualified commercial solicitor from our partner law network. This service is designed to help members quickly assess whether a legal issue requires formal engagement and to understand their options. Contact the SBTC office to book your session.

Ask most small business owners which financial document they find most confusing and many will say the cash flow statement. Yet understanding your cash position — not just your profit — is critical to keeping your business alive and growing. Here’s a plain-English explanation of what it all means.

Profit vs Cash Flow: The Key Difference

A business can be profitable on paper and still run out of cash. This happens when income is recognised before it’s actually received — for example, when you invoice a client but they don’t pay for 60 days. During that gap, you still have wages, rent and supplier costs to cover. Cash flow management is about ensuring the timing of money coming in and going out remains workable.

The Three Sections of a Cash Flow Statement

A standard cash flow statement has three components: operating activities (day-to-day business cash flows), investing activities (purchase or sale of assets), and financing activities (loans, equity investments and repayments). For most small businesses, the operating section is the most important to monitor on a regular basis.

The Australian Taxation Office provides a range of free tools and templates to help small businesses manage their cash flow, including the Business Performance Check tool which benchmarks your financials against industry averages.

Practical Tips for Improving Cash Flow

• Invoice promptly and offer a small early payment discount
• Review your payment terms and consider moving from 30 to 14 days
• Negotiate extended payment terms with suppliers where possible
• Use cash flow forecasting tools in your accounting software
• Consider invoice financing for businesses with regular B2B receivables

SBTC members can access a free initial session with one of our partner financial advisors through the Business Support Services program. For general financial guidance, the Moneysmart website maintained by ASIC also has useful small business resources.