Tomorrow we have a meeting set up with our accountant basically to get some clarity on how to move the business forwards. Too many times in the past I just presumed the obvious was the right action and this is not always the case. The only stupid question is the one never asked.
Currently we have been developing and creating new parts of the business and in their own right could be stand alone independent businesses. I have had one eye on the new employment laws and with an expanding growing business the 50 employee mark which triggers these laws is a very big possibility. We do not need to be anywhere near that number and splitting the various businesses at this point is being proactive making sure we stay compliant on all fronts. I am sure many other businesses who are far bigger than us are contemplating similar moves. Being told who you can and cannot hire is something I will never accept and I would not comply.
The trampoline business which is the next growth area will need another 6 employees and if you include the punch bag team that is another 5 and my mind is telling me to combine these two as a separate business now rather than later. If we add another manufacturing business combined with these two then would be up close to 20 or more employees. I don't know what the implications are and this is something that needs to be ironed out. The total staffing will have us at around 35-40 once we have expanded, but with sales growth and demand the staff numbers can swell quickly. A good problem if you have split the companies and a bad problem if you haven't.
In South Africa, under the Employment Equity Act (EEA), an employer with 50 or more employees is considered a "designated employer" and is subject to specific affirmative action requirements. This means they need to implement measures to ensure equal employment opportunities for designated groups, as defined by the Act. However, the definition of a designated employer has changed, and now only employers with more than 50 employees are considered designated, regardless of their turnover.
When you presume you are in most cases guessing without all the facts which you think you know, but do not. I am not sure tax wise or cost wise splitting the business now or later. My head says manufacturing should be separate from the warehouse business and should be paying rental which takes the pressure off the warehouse business. Are there tax benefits going this route because there could be? A stupid question really, but as stupid as it sounds I will be asking this. There could be loop holes that can be gamed and with the amount of tax we pay I need or would like to think we can claw some back.
We are also planning on importing various products this year which we were not doing before so we need advice on the best routes for LCL (less than container load) or full containers.
The meeting is only 45 minutes tomorrow and I already have half a page of questions and why you need an accountant to help guide you through as they only have your best interests in mind.
