In a recent Business Survey, it was found that many Business Owners in Queensland now feel as though they have a ‘job’ and not a ‘business’ say Steve Wanmer and Dave Green of ActionCOACH North Brisbane. Based in North Lakes at the Business Education Centre, Steve and Dave have seen for themselves the countless business owners all over Queensland who have essentially created a ‘Job’ for themselves. Continue reading Business Survey – Business Owners feel they have “JOBs”.
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.
Addressing the following factors, and contacting us at ActionCOACH North Brisbane, will go a long way to helping with cash flow issues and securing the future for your business:
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!
A Cafe owned by a husband and wife was operated for 5 years before starting coaching with Steve Wanmer in February 2014.
12 month business and personal goals:
- Increase gross revenue by 15% to $943,000
- Achieve Gross Profit of 55% of sales
- Net profit of $132,000 or 14%
- A price increase of between 5% and 10%
- A second business to be operational
- Wife to work only 4 days per week and be home by 5.00pm each day.
- A cruise to Asia in nine months time
- 4 camping trips away during the year.
The Cafe owners far exceeded their goals!
Results after business coaching with Steve for 11 months:
- Gross revenue over $1million, an increase of 22%
- Renewed lease and will move to new larger site.
- Employed a Manager.
- Wife is now out of the business and started a home based business.
- Have had 4 camping weekends.
- Enjoyed a cruise to Asia in November.
- Husband now working on re-draft of the Business Plan for the new business and negotiating with local authorities to have all approvals in place to launch the business in early 2016.
Inspire Day on Tuesday 10 November 2015. Book Now!
What could you achieve with a Dynamic Business Plan? Do you have BIG ideas to grow your business?
You are invited to join us at our Inspire Day Business Planning Workshop on Tuesday 10 November 2015.
PlanningCLUB … is the newest group coaching program from the world’s leading business coaching company – designed to help guide you through the business planning process more simply, effectively and effortlessly than ever before! Where else can you arrive at a workshop in the morning and walk out with a complete business plan when you leave? Continue reading Business Planning…Made Simple
The Amazing Power of Identity.
The wisest man who ever lived, King Solomon, is recorded as saying “As a man thinks in his heart, so is he.”
This truth applies in business as in every aspect of our lives. Indeed who we are in life, real life, has a huge impact on what our business looks like and how it performs. Continue reading Who do you think you are?
Recently I saw this picture and started thinking what you might ask a Business Coach if you had the chance.
Well, here is a great opportunity to be able to ask a real, live business coach some questions about whatever you need help with. You could ask us about your marketing, lead traffic, advertising, staffing, business growth – anything at all!
Give yourself some time to jot down a few burning business questions or issues you want help with – you never know what you can get out of a single meeting with a business coach.
It might be the “lightbulb” moment you need to set you off in a very profitable direction.
Our guarantee to you…… we guarantee that when you implement one simple strategy that we advise you of when we meet, you will increase your profits.
If you want to get yourself some action points and goals to help move your business forward, simply click here to let us know your Top 5 challenges.
We will be in touch to arrange to meet to discuss implementing solutions for your business. It’s a great opportunity for you and your business.
When did your last take the time to assess your business’s strengths and weaknesses? Conducting even a basic assessment should be the first step in assessing the strength of your business, and a definite precursor to future success.
Complete our easy 24 question Business Health Check and find out your company’s strengths and opportunities for improvement in the areas of time management, team building, finance, and structures/systems.