27 June 2016
The Canberra Metro Light Rail Network offers many opportunities for local businesses, but also challenges.
“Major contracts can help a business grow, but as we have seen in other large infrastructure projects, if businesses don’t have capability in contract and financial management, these same contracts can also create considerable risk,” Ben Maguire, Light Rail Business Link Program Manager said.
“The Light Rail Business Link Program offers a variety of training to help local businesses secure work connected with the light rail project and minimise risks.”
Financial and strategic planning is a key foundation for managing a contractual relationship. Three issues businesses should concentrate on, according to Nexis Accountant and Business Advisors’ Director, Michael Talevich are:
- Focus your strategic planning time and energy on the things that keep business owners up at night – cash flow, staff and growth.
- Prepare your cash flow forecasts beyond the life of the project. If the light rail project delivers a significant boost to your income and/or requires significant upfront investment, you need to consider what will happen after the project is complete.
- Review your structure to deliver the best tax outcomes. If you forecast increased profit during the project, it may be advantageous to utilise a further developed legal structure to provide more efficient tax outcomes and provide further planning opportunities.
“If you consider the most successful businesses in the world, they are surrounded by trusted advisors,” Mr Talevich said. “Smaller businesses shouldn’t compromise on the advice they receive. Utilising the networks of the Light Rail Business Link Program will ensure that your business is able to access high quality advice so as to make informed decisions about the growth of your business and your role in delivering a light rail to Canberra.”