Before you take the first step on your entrepreneurial journey by starting a new business, you need to know the difference between ‘profit’ and ‘cash flow’. At first it might seem like they measure the same thing, but profit and cash flow are different and it’s important to know how each one affects your business.
A lot of people dream of owning their own business—doing what they love, being the boss, and making a fortune. But then the harsh reality of owning and running a business takes over. Thankfully there are ways to improve your business.
Imagine that your business is in trouble. It’s practically bleeding cash, and you’re rapidly losing customers. In short, your business is dying. And unless you find regular and profitable customers soon it’s going to flatline. Fortunately, most businesses can make a full recovery providing they receive the right treatment and it’s administered quickly.
Every business owner should have a strategy in place to increase the profits of their business. Makes sense, doesn’t it? And yet 70% of the people I’ve spoken to who own small and medium-sized businesses don’t even have a basic strategy in place. What they have instead are excuses.
As human beings, we are heavily influenced by what we see. By looking at a given situation we can see how ‘healthy’ it is, and what needs to be done to make things better. Almost like a visual health check. Unfortunately, some of the tell-tale signs your business is in trouble aren’t so easily spotted.
Success in business requires a number of essential ingredients. A sound strategy. A robust business model. Effective planning. Strong financial control and bookkeeping. A good team. Great systems. Measurement. Focus. But you know what? Even all those elements are not enough without this skill: “Getting Things Done.”
Many of the ‘dramatic’ changes that impact on mature business models were reasonably predictable. As business operators, it’s important to constantly assess the impact of trends on our current business and product range and work toward the ‘what ifs’.
Many small business owners are entrepreneurs who went into business seeking freedom, a better lifestyle, more money or simply because they wanted to run their own show. As such, it is only to be expected that business owners make financial mistakes which can jeopardize their dreams.
Most people are not surprised when a start-up business fails. But it’s not just start-ups that grow to death; it’s also a common cause of business failure for mature businesses. For the more mature business, growing to death is often the result of unplanned growth opportunities.
Many business owners don’t realise that the business has outgrown its structure until something comes up – and this something is usually something negative.
Lots of great ideas but struggling to put them into action? Here are 10 more ways we can help you to kick-start your small business.
Planning your small business right from the start will increase your chances of success. Getting the right advice creates the clear road map you need.
How can you hope to improve employee performance if you’re not talking to them? One-on-one meetings should be part of your weekly schedule…here’s why.
Profits down? That can get a business into trouble quickly so working out how to increase profits in your small business is vital. Here are the 5 top ways…
Technology is the “great enabler” but make sure it’s serving you by enabling you to increase profits. Don’t be tempted to lower prices to compete. Here’s why…
7 crucial aspects a small business owner needs to face up to, not just in their business planning but in their mindset and thinking.
If you don’t have an exit plan for your small business 12-36 months in advance of selling, you won’t maximise its value. Don’t settle for less…follow these tips.
Keep on top of your numbers in an efficient, accurate and timely manner. We advise on the systems and processes to administer this. Or, utilise our bookkeeping and accounting services to free up your time.
Paul Sweeney from Pretium Solutions was part of the team who created the Business Funding Guide, FitsMe – Essential Guide to Business Funding. This guide gives small business owners key information on how to become ‘finance fit’.
Learn more about how Australian businesses are being affected by coronavirus and what the government is doing to help out.