Who do you think you are? What is it that you are wanting to attract? What are you dreaming of creating? In order to achieve those goals and become who you want to be, attract what you are desiring and create what you imagine; as a business owner question yourself – are you being a Director or a Leader?

One of the advantages of owning a business is the many tax deductions that aren’t available to employees. Most of these deductibles are well known, like vehicle and home office costs and other basic business expenses.

Do you have a personal budget? You might be surprised to know that when we talk with business owners and we ask “how much do you need pout of the business to live off”, they don’t actually know. Then when we ask further “well, how much does it cost to run your household”, they are unsure.

Having too much inventory is pretty high up on the list of no-nos for retailers. In addition to taking up precious backroom or shelf space, surplus stock ties up capital and can keep you from re-investing in your business or buying things you actually need.

You’ve had your initial business idea and written a plan. But do you know WHY you’re creating this business, or HOW you’ll deliver your end product/service? What will the company’s underlying purpose be and how will your core values drive the business?

I know, I know..…..I get it! You went into business because you are good at what you do, right? Now you need to know your debits from your credits and your P+L from your balance sheet! Sounding like another language?

When did you last review your accounts payable process?  Your accounts payable process relates to when and how money is spent in your business, including your Terms of Trade with suppliers. 

There’s a massive difference between profit and cashflow. Profit increases when you create an invoice for work you’ve done or goods you’ve sold; cash increases when you bank the money. 

If current sales levels can’t support your overheads and other cash demands, your business isn’t viable in its current state. It might sound obvious, but it isn’t to many business owners.  

Don’t let poor margins destroy your cashflow and working capital. Small changes can have a massive impact on your gross profit margin and put more cash in your bank account.  

Are you in control of the spending in your business?  Do you set budgets and monitor them monthly?  This isn’t typically a place where you’ll find a lot of wastage.  

The right debt and capital structure makes a huge difference to the cashflow in your business. Often a reduction in interest charges as well as significant cashflow improvements can be achieved with a regular review of existing debt. 

Are your stock levels stifling cashflow in your business? Low stock turn means full shelves and an empty bank account.  Carrying stock for too long means full shelves but an empty bank account.  

One of the simplest ways to grow your bottom line is to tighten your belt and spend less. As the business owner, you get to choose what you spend, with who, how often, and how much. However, as simple as this seems, reducing overhead expenses can be a double-edged sword. 

Your cost of sales are the direct costs in producing a product or service. We will show you some examples of efficiency gains which will lead to a decrease in costs and increase in margins (sales price less the direct cost related to that sale) and subsequently increase your net profit (margins less overheads) 

When you know your average transaction value, you’ll start to see the value of getting your customers to buy from you more frequently.  If only 50% of your customers buy from you one more time per year, your sales will increase significantly. 

The endless pursuit of new customers to grow a business often distracts us from looking after our existing ones. Did you know that it’s six times cheaper to sell products and services to existing customers than selling to new customers?

It’s all very well to grow your business by generating new leads, but if you can’t convert enough of them into customers, you’ll waste a lot of money on marketing.  The higher your sales conversion rate, the higher your return on your investment in marketing. 

No one can deny that to grow your business you must attract new potential customers (or leads).  

It’s how you generate these leads that’s important though. 

The simplest and most cost-effective way to grow your business is to retain your customers by keeping them happy. Unfortunately, we often take customers for granted and overlook this strategy. Did you know it’s six times easier and cheaper to sell to existing customers than new ones?