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Overwhelmed by Your Business? 3 Strategies to Get Your Groove Back

Overwhelmed by Your Business? 3 Strategies to Get Your Groove Back

 

3 simple strategies to get your groove back

Being a small business owner can be lonely. You’re often on your own, controlling your own ship. Some people function well in this environment. But others struggle when there’s no one to bounce ideas off.

Regardless of which one you are, there’s one thing I’m sure about. To have a more fulfilling existence, you need to love what you are doing.

Find your ‘why’

Simon Sinek is well known for speaking about the importance of understanding why you do what you do. Sinek believes that people do not buy what you do; they buy why you do it. He also says that if you want to attract the right employees and customers, you must convey your ‘why’ to them.

Very few business owners truly understand why they do what they do, or what gets them out of bed in the morning. When you sit down and seriously think about it, it will often be about more than making money.

When I ask this question at workshops, I usually get responses like:

  • To provide a high standard of living for my family
  • To help customers
  • To solve problems
  • To make a difference
  • To do something worthwhile in my community
  • To challenge my brain

Whatever it is that drives you, it needs to be crystal clear to you and be expressed in everything you do.

Get things done – get an accountability buddy

The feeling of not achieving at work, not doing what you said you were going to do, can suck your joy. Einstein explained it by saying: The definition of insanity is doing the same thing over and over again and expecting a different result.

An accountability buddy is an excellent way to force implementation. Someone to whom you make commitments, on a weekly or monthly basis.

Your buddy must be someone you respect and trust. They need to be able to give you harsh feedback and haul you over the coals to you focused again. You can do this in three ways:

  • Join or create a mastermind group. These are quite common, and you will likely find one in your area. Before you join, do some research. You need to find a group that will challenge you and hold you accountable but which also has people who can teach you new skills. If you can’t find a suitable group, think of three or four successful business owners who you respect and approach them to discuss the idea. ProfitSmarts runs Masterminds as part of their coaching programs.
  • If a larger group does not appeal to you, then pick one person. Perhaps you know of another small business owner with similar frustrations to you. Respect for this person will see both of you benefit from two-way accountability.
  • Find a trusted advisor to hold you accountable. They can help you work out why you are off track and what you need to focus on to achieve your targets.

Put yourself first

One of the reasons you went into business was to have control over your time. To be able to do your own thing, spend more time with your family or take more time off. Sadly, too many small business owners become so involved in business ‘busy work’ that they end up creating another job for themselves. Just because you are a business owner, it doesn’t mean you need to work 24/7, 365 days a year.

You need to grasp the concept that real wealth is how much discretionary time you have. Though money can buy happiness, what’s the point if you have no time to spend it?

If working too many hours is your big problem, start by blocking out half a day per week when you do not work. It’s your business, so it’s your rules. Then work your way up to block out a decent amount of holidays a year in advance. If you have young children, block out the 10 weeks of school holidays. I don’t always take the whole 10 weeks, but nothing significant is scheduled during that time, so I can choose whether to take them or not.

If you think this is impossible for you to do, then I can guarantee that nothing will change until you try it.

As you increase your time from half a day per week to 10 weeks a year, systemise your business so that it is no longer dependant on you. I promise that you will find yourself having much more fun.

 

Top 5 Tips to Manage Your Business Finances, Without Going Broke.

Do you want to learn how to read you business numbers and get you “financial” act together?  Our Top 5 Tips guide will also show you the 5 essential reports every business owner needs to find the hidden profits in your business.

My name is Amanda and I’m the founder of ProfitSmarts.

Being good at what you do is no longer enough. Your long term survival odds are very slim if you don’t understand and manage the numbers in your business.

But when you get business right, the results are simply amazing.

Amanda Dyason, Founder of ProfitSmarts

We help Australian business owners increase profits, accelerate cash flow and master their financial management. We believe life is too short and precious to be stuck in an under performing business delivering mediocre results.

ProfitSmarts gives you more Profits and consistent Cash flow, putting you back in Control. Because when you get business right, the results are simply amazing.

Three Fundamental Challenges Faced by Every Small Business Owner

Three Fundamental Challenges Faced by Every Small Business Owner

 

Running a small business is tough.

Often competition is from larger, often better funded operators. And finding time to work ON your business, rather than IN your business, can be a real challenge.

As an international consultant, I have noticed three challenges that many small business owners face. They are:

  1. Most small business owners fail to plan. I’m sure most clients spend more time planning their holidays than planning their business. In planning sessions with clients, I often hear that it is the first time they have set aside specific time to think about their business. The planning enables them to gain focus, direction and have something to aim for, which allows them to step up within their business.
  2. Many small business owners find it hard to understand their numbers. The reason I wrote my book, Building Profits the Smart Way, is that (not surprisingly!) many small business owners are not very good with their numbers, and they need help to learn these skills to create real value in their business. This often starts with a business performance review and helping them put together an action plan for the next 12 months.
  3. Small business owners often do not have anyone to talk things through with. We know that accountability gets things done, so it is vital to have an independent, unreasonable friend to keep you on track.

By addressing these challenges, any small business can develop a valuable competitive advantage. It never ceases to amaze me how business performance can be transformed. It’s as simple as figuring out where you are going, putting some clear measurements in place to show your performance and building accountability into your day-to-day processes.

It doesn’t matter if you are a manufacturer, a retailer, a builder, a winemaker or even a large corporate company. These principles apply to any business, and with discipline and focus, they will make a positive impact.

Decisions + Actions = Results

Take action – you’ll be glad you did.

 

Top 5 Tips to Manage Your Business Finances, Without Going Broke.

Do you want to learn how to read you business numbers and get you “financial” act together?  Our Top 5 Tips guide will also show you the 5 essential reports every business owner needs to find the hidden profits in your business.

My name is Amanda and I’m the founder of ProfitSmarts.

Being good at what you do is no longer enough. Your long term survival odds are very slim if you don’t understand and manage the numbers in your business.

But when you get business right, the results are simply amazing.

Amanda Dyason, Founder of ProfitSmarts

We help Australian business owners increase profits, accelerate cash flow and master their financial management. We believe life is too short and precious to be stuck in an under performing business delivering mediocre results.

ProfitSmarts gives you more Profits and consistent Cash flow, putting you back in Control. Because when you get business right, the results are simply amazing.

Show Me The Money – 4 Simple Strategies to Keep Track of Cash on a Regular Basis

Show Me The Money – 4 Simple Strategies to Keep Track of Cash on a Regular Basis

 

“Where did all of the cash in my business go?”

I’ve lost count of the number of times I heard from clients.

At a recent workshop, I asked the business owners in the audience if they ever had the thought “I can see a profit on the profit and loss account, but where has the cash gone?” and almost 100% of hands went up.

And a recent ASIC report cited cash flow management as a leading cause of business failure.

So, what can you do to keep track of your cash on a regular basis? At a minimum, you should put together a cashflow forecast by month and better yet, by week. At the end of each month (or week) compare the forecast to actual cash and compare your bank balance to your forecast. If your forecast is out of sync with your actuals, you need to find out why.

Some things you can check include:

  • Is your profit below target? If yes, how can you increase sales or reduce costs (without impacting your customer service or sales and marketing capability)?
  • Are customers taking longer to pay you? Do you need to put in place a more rigorous collections system?
  • Is inventory blowing out? If yes, do you have an inventory management system, or could you benefit from implementing one?
  • Is the business short of working capital? If yes, have you drawn out excessive amounts of cash?

The key to effective cash flow management is to design a system that makes sense to you, the business owner. Regularly review it to ensure you manage your business and, ultimately, your cash flow.

For you to do this, your information needs to be in a format that you, the owner, can easily understand. I am a big believer of presenting your financials visually.

The move towards cloud technology is another way to help business owners to keep track of their cash. Most cloud accounting packages have bank feeds. This means you can log in each morning and instantly see your cash position displayed in graphical format.

You should then be able to drill down and see what is causing significant movements. With the ability to track actual versus budgeted performance in real time, you are much better placed to take fast action when things go wrong.

But cloud accounting and bank feeds are not the complete answer.

Small businesses are nimble, able to make quicker decisions and often innovative. But the biggest challenge lies in the ability to understand and interpret the critical numbers in your business.

It’s not your ability to have the numbers. It’s all about your ability to understand the numbers and interpret them.

Business intelligence and technology are essential for small business owners to understand and explain what is really going on. And when you actually ‘get’ it, your cash flow worries will start to become a thing of the past.

 

Top 5 Tips to Manage Your Business Finances, Without Going Broke.

Do you want to learn how to read you business numbers and get you “financial” act together?  Our Top 5 Tips guide will also show you the 5 essential reports every business owner needs to find the hidden profits in your business.

My name is Amanda and I’m the founder of ProfitSmarts.

Being good at what you do is no longer enough. Your long term survival odds are very slim if you don’t understand and manage the numbers in your business.

But when you get business right, the results are simply amazing.

Amanda Dyason, Founder of ProfitSmarts

We help Australian business owners increase profits, accelerate cash flow and master their financial management. We believe life is too short and precious to be stuck in an under performing business delivering mediocre results.

ProfitSmarts gives you more Profits and consistent Cash flow, putting you back in Control. Because when you get business right, the results are simply amazing.

4 Simple Strategies to Improve Your Profit

4 Simple Strategies to Improve Your Profit

 

To improve your cashflow, you need to take a look at your business and make sure you’re earning a decent profit.

If you are not making a consistent profit, then better cashflow management (while helpful) is no better than a Band-Aid on a fatal wound.

If you are making a profit, could you be making more? Does every single product or service pull its weight and contribute to your profitability? Does your pricing cover all of your costs?

A surprisingly large number of small business owners can’t answer these basic questions. But, addressing them is a critical step in improving your profit.

Careful analysis is vital

A thorough review of your business is necessary to find the right solutions. Struggling businesses often suffer from more than one problem. This can make it difficult to identify and fix all the problems.

4 simple strategies
Below are four simple strategies to focus on. These strategies can be used to improve the profit in your business.

  1. Revenue
    Is your revenue enough to cover all your expenses and produce your desired profit? If not, why not?A possible reason is you have a new product line or are in the start-up phase of your business.It’s important to be realistic about how long it will take your revenue to catch up to your costs. You may need money from savings, financing or an investment to tide you over.

    An established business may also run at a loss because of declining revenues. It’s important to determine the specific reasons and address them.

  1. Pricing
    Does your pricing cover your costs? Unfortunately, many small business owners don’t know for sure. It’s very common for small businesses to price their products and services based on what the competition is charging. But that can be a big mistake.It’s important to know all of your costs and your target profit margin. You need to take these into account when you set your prices. It’s not bad for your prices to be higher than those of your competitors. In fact, this is entirely appropriate, if your pricing is based on value or you offer a unique or specialised product.Estimating software can be used for quotes and job bids. The software takes into account your overhead costs, the price of material and other expenses as well as your targeted profit margin. This ensures that every job is priced for maximum profit.
  1. Efficiency
    Are you as efficient as you can be? This is imperative if you are using a low-price strategy to gain competitive advantage.Benchmarking your costs against your industry is important. Look at areas such as labour, materials and overheads. If your costs are above the industry average, you are not as efficient as your competitors and action is required.To improve efficiency, it’s also worth exploring tech tools. They can offer affordable and straightforward ways to improve productivity across your business. Areas to look at include inventory, operations, accounting, human resources and customer service.
  1. Margins
    Do you know the profit margin for each of your products and services? Analysing each one individually can reveal some problems that you hadn’t picked up yet. Loss-making products will drag down your profit and impact your cashflow.Ensure you are chasing profitable sales instead of just chasing more sales. Dropping loss-making products will speed up your inventory turnover, free up cashflow and floor space. This will enable you to generate more returns from your profitable products.

To improve your cashflow, take a look at your business and make sure you’re earning a decent profit. A thorough review of your business will find the right solution.

 

Top 5 Tips to Manage Your Business Finances, Without Going Broke.

Do you want to learn how to read you business numbers and get you “financial” act together?  Our Top 5 Tips guide will also show you the 5 essential reports every business owner needs to find the hidden profits in your business.

My name is Amanda and I’m the founder of ProfitSmarts.

Being good at what you do is no longer enough. Your long term survival odds are very slim if you don’t understand and manage the numbers in your business.

But when you get business right, the results are simply amazing.

Amanda Dyason, Founder of ProfitSmarts

We help Australian business owners increase profits, accelerate cash flow and master their financial management. We believe life is too short and precious to be stuck in an under performing business delivering mediocre results.

ProfitSmarts gives you more Profits and consistent Cash flow, putting you back in Control. Because when you get business right, the results are simply amazing.