ActionCOACH North Brisbane has a wide ranging client base, including long established businesses and start-up businesses. This means that the program that each business owner starts on is tailored to their individual business needs, and focuses on exactly what the business owner wants to focus on – unlike many other business coaches who have set programs where the client only gets the information that they are given at that time.
In 2014, ActionCOACH North Brisbane clients collectively increased their turnover by $10.5 Million which was an average increase of 9.7% – where the Queensland State average was only 4.7 growth. In 2013 the growth rate was a similar 4.1% and was labelled as being “the strongest growth in the nation” by the Franchise Council of Australia. The results of our clients versus the State growth statistics alone is clear proof that coaching works. Intangibles like the personal growth of the owners and teams of the businesses that we coach, and the cultural shift of many of these organisations, all point to the need for every business owner to have a coach.
Cashflow – Most small business owners suffer from the same issues regarding this issue. If a business is to remain viable, it is imperative that the business generates positive cash flow consistently – year after year. When you have surplus cash you are better able to grow your business – and if you want to grow your business steadily – you will need to focus on profitability.
The critical signals that you may be experiencing cash flow issues include:
Non-payment or late-payment of supplier invoices.
Late payment of taxes
Late payment of employee superannuation
Dishonouring direct debits
Late payment of wages to employees
If any (or all) of these signs appear familiar, then you need to take immediate Action to address them as your business, personal life, and health may also suffer from the stress they bring.
Weak Profit Margins – In many cases, this issue starts out small, we get it – you started your business, feel the need to compete on price so you discount or low-ball quotes just to win work. However, your supplier prices increase, and pretty soon you have a cash crunch.
Solution: Determine the total cost of delivering your products and services and compare these costs against actual revenues being generated. Do this for each product or service and modify (ie: increase the prices) or eliminate programs that don’t perform.
High Overhead Costs – These are the costs associated with running your business such as rent, phone, etc. In some cases, under-performing revenues can be outweighed by these expenses, resulting in a cash-flow imbalance that can destroy your business.
Solution: Review overheads and eliminate expenses that are not absolutely necessary. For expenses that are required, then search for options that are less expensive.
Slow-Paying Clients – Clients that pay invoices slowly can be a massive drain on your cash flow. Allowing clients to pay on 30 – 60 day terms ties up cash in accounts receivable, so your business may well be profitable but cash poor.
Solution: Implement a collections system. Amend your terms to suit your business. Follow up with clients to make sure they pay on time. Consider offering an early payment incentive. Consider using a factoring service for slow-paying invoices, but only as a final option as you may incur a loss in the long run.
Bad Debt – This can happen when you extend credit to clients who then do not pay on-time or at all.
Solution: Clarify your credit terms, and do credit checks on client businesses. Only provide credit to clients with good scores. Slow-payers and those with bad credit should pre-pay before they receive products or services
Excessive Inventory – Retail businesses can often have too much product on the shelf, and not moving out the door. This ties up your funds, potentially being a risk to the survival of the business.
Solution: Ideally, run on a lean-inventory strategy. Customers are conditioned to wait for products, so order goods once sales are confirmed. Operate a “just-in-time” delivery strategy that ensures that you do not carry inventory for very long.
Want more advice on your Cash Flow issues? Contact us now to arrange an obligation free meeting, and to claim your FREE hard copy of Instant Cashflow – the first ever best-selling book by Brad Sugars. Watch Brad’s video review of the book here…..
Dave Green is doing Movember with the MOVE Challenge (he reckons he can’t grow a moustache)! Raising money for men’s health, Dave is working on increasing his movements starting with the Inspire Day game of golf.
The golf was a great, fun time with a fair amount of walking completed. Dave considers himself a ‘hacker’ and is definitely a “double par” man. In fact, he lost 3 balls on the first tee! Not letting that get in the way, he recovered to score Par on one of the Par 3 holes! Woohoo, go Dave!
Thanks to Jeanette and Tony Jifkins from Onyx Online Law and all the other business owners who attended the Inspire Day. Watch for our post later in the month to see how we went with our fundraising.
At the end of a busy week it always a good idea to reflect on your achievements, and to create a list of goals for the next week. By doing this one task, you will find it easier to relax for the weekend, and when you arrive at your business on Monday morning you will be better able to focus on the week ahead. When you make this a ritual you will be surprised at the positive impact it will have on your personal and business life.
Enjoy this short video, where business owners just like you reflect on the success that business coaching has brought to their business and their personal lives. And, have an amazing weekend!