It has been said that people who write their goals down, and read them every day, have a much higher success rate in achieving them.
I guess it is a little like reading a map. If you are going the same place every day, who needs a map? But if you are going further a field, beyond your current field of reference, to place you haven’t been before, you tend to watch the map pretty closely. Ask anyone who is trying to navigate an unfamiliar major city. The map is essential.
So in your business if you are going the same place this year as last year, you don’t need to refer to goals or plans – that is unless things suddenly go very wrong and to find you need a map to navigate the waters of bankruptcy. Then you would follow plans in meticulous detail – to try and get out with as much as possible.
What is your plan for the next financial year? Do you want to increase you turnover? Your profits? – by a little or a lot? Or do you simply want to find a better balance between working horrendous hours in your business vs spending time with your family? Whatever your goals, we can help! Get in touch with us at ActionCOACH North Brisbane to book your FREE mentoring meeting, where you and your coach will develop strategies for success.
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…..
When ActionCOACH North Brisbane started coaching way back in 1999, Business Coaching was fairly new and a lot of people hadn’t heard about it. Then the word got out and now it is imperative for Business Owners to have a well-trained, highly-experienced “mentor” for their business. These days, more and more people are receiving the benefits from having a Business Coach – but there are still a lot of people who are still unsure as to why they should have a Business Coach…..What a Business Coach does….and how a Business Coach can help to grow their business.