At Latitude Accountants, we believe the small business owner is the hero of our community. You are the risk-takers who provide jobs and keep the Australian economy moving, often being the last one to get paid while carrying the weight of the world on your shoulders. But even heroes need a guide to navigate the complex journey of business, money, and tax.

In this episode of the Latitude Accountants Podcast, founding partner John Saade sat down with Jacob Fahmy to share the raw, unfiltered story of how Latitude grew from $0 in revenue on day one to a thriving seven-figure firm. Whether you are just starting out or looking to scale your existing operations, these insights into grit, systems, and Australian business strategy are for you.

The “Grit” Factor: Why Your Background Matters

John’s journey didn’t start in a corporate boardroom. It began in Western Sydney, shaped by a competitive upbringing in a large Lebanese immigrant family. From captaining rugby league teams to meeting high academic expectations, the “work hard and earn everything” ethos was instilled in him from a young age.

In business, “grit” isn’t just a buzzword; it is the ability to finish what you start. John’s advice for those suffering from “analysis paralysis” is simple: don’t wait for the perfect passion to strike. Jump in, get excellent at your craft, and the passion will naturally follow as you become more competent.

“The better you get at something, the more passionate you’ll be. Accounting was my vehicle to help get where I wanted to go.”

Transitioning from the “Scrappy” Phase to Sustainable Growth

Every business starts in a “scrappy” phase where you do whatever it takes to survive. For Latitude, this meant taking on high-risk clients that established firms wouldn’t touch. John recalls an early client who hadn’t lodged a tax return or Business Activity Statement (BAS) in five years, owed employee superannuation, and was being chased by their franchisor.

While this hustle is often necessary to get the wheels turning, staying in “survival mode” indefinitely is a recipe for burnout. To truly scale, you must transition from simply “doing the work” to building a business.

Strategic Steps to Scale Your Business:

• Acknowledge the Risk: Early on, you might work in risk profiles you wouldn’t accept later, but you must have a plan to stabilise.
• Knowledge Over Dollars: Especially in your early career, prioritise acquiring knowledge and “know-how” over a high wage. As John puts it, “profits are better than wages”.
• Expert Guidance: Don’t guess your way through growth. Seek mentors or consultants who can help you define a clear direction.

Systems and Processes: Protecting Your Legacy

A common trap for small business owners is keeping every process “in their head”. John learned the danger of this firsthand after a life-threatening accident. Because he and his partners, Tufic and Richard, had begun documenting their systems, the business continued to operate while he spent three months in the hospital.

How to Systematise for Success:

1. Document Every Task: Write down exactly how things should be done, from onboarding to invoicing.
2. Tabulate and Formulate: Don’t just leave notes in a drawer; organise them into a searchable internal manual.
3. Record Your Training: Instead of repeating the same instructions to every new hire, record your training sessions and store them in the cloud.
4. Lead by Example: If you are an accountant or professional, your own operations must be perfect before you can advise others on theirs.

Navigating the Australian Tax Landscape

When operating a business in Australia, understanding your obligations to the Australian Taxation Office (ATO) is critical. Whether you are managing Goods and Services Tax (GST), Pay As You Go (PAYG) withholding, or Superannuation Guarantee contributions, staying compliant is the foundation of a healthy business.

A Note on Interstate Variations

It is important to remember that while federal taxes like GST apply across the country, other business costs are managed at the state level. Payroll Tax, Land Tax, and Stamp Duty vary significantly between Australian states and territories. The thresholds and rates in New South Wales may be entirely different from those in Victoria or Queensland. Always consult with a specialist who understands the specific regulations of your jurisdiction to avoid unexpected liabilities.

The Power of Partnership

While many entrepreneurs start as “one-man bands,” John credits much of Latitude’s success to his partnership with Tufic and Richard. Partnerships allow you to share the load, diverse skill sets, and provide a support system when things go wrong.

“If you want to go fast, go alone. If you want to go far, go together.” 

Frequently Asked Questions (FAQ)

What is the “scrappy phase” of a business?

The scrappy phase is the initial period where you focus entirely on generating revenue and taking on almost any client to survive. While necessary for day-one growth, you must eventually transition into building documented systems and processes to ensure long-term stability.

Why should I document my business processes?

Documenting processes ensures that the business can function without the founder being present. It allows for efficient staff training via recorded sessions and provides a clear manual for quality control, protecting the business in the event of an emergency or owner absence.

How do I manage tax compliance for an Australian business?

Compliance involves meeting ATO obligations such as lodging your BAS, managing GST, and ensuring Superannuation is paid for employees. Additionally, you must stay aware of state-based taxes like Payroll Tax or Land Tax, which vary between different Australian states and territories.

Is it better to have a business partner or work alone?

While working alone offers more control, a partnership provides shared risk and a broader range of skills. Partners can support each other during personal crises or “crying on each other’s shoulders” during periods of business distress, allowing the firm to keep its doors open.

Take the Next Step with Latitude Accountants

Are you ready to stop “borrowing from the future” and start building a legacy? Whether you are drowning in unfiled returns or looking for the strategic systems that will take you to your first seven-figure year, the team at Latitude Accountants is here to help.

We don’t just “do tax returns”—we act as a guide to help you navigate the “skin in the game” risks of business. Contact the expert team at Latitude Accountants today for strategic accounting and business advice tailored to your specific situation.

Contact Latitude Accountants today:

• Phone: 1300706597
• Email: info@latitudeaccountants.com.au
• Book online via our website.
• Sydney Olympic Park | Marrickville | Melbourne | Loxton

Disclaimer

The information provided in this blog post is general in nature and does not constitute personal financial or tax advice. Australian tax laws and state-based levies are complex and subject to change. Readers should seek professional advice regarding their specific circumstances and jurisdiction-based obligations before making any financial decisions.