What is Profit Growth?

Profit growth is the result of making decisions and then working towards making those decisions a reality. Profit growth is often difficult to achieve because many people don’t realise that profit is an outcome – it is the result of making decisions then taking action, making more decisions and taking more action, making more decisions - and so on. As you know, the process never stops. As with all things in business, the two key steps are decisions and action.

Why focus on Profit Growth?

Growing your profit is the best way to get a financier to loan you more money to grow your asset base. Profit growth is not an accident and will not happen by magic – planning, decision making and taking action are the keys. Like all things in life, what you focus on will give you results and the greater the focus the better the result.

How we can help:

  • We can work with you to identify the drivers that cause profit growth.
  • We can set up a monitoring and reporting structure that focuses on those drivers that cause profit, and reduce the focus on activities that do not contribute to profit.
  • We can also develop sound plans which will help to convince a potential lender to provide you with funding that is repayable with your new increased level of profitability.
 

What is Cashflow?

Cashflow is the key to business success. Cashflow is what enables you to borrow money to expand your business, borrow money to increase your asset base and spend on the finer things in life. It is also what will make or break your business. There are many aspects of Cashflow, but the most important one is how quickly you collect the money owed to you.

Why focus on Cashflow?

Knowing, managing and focussing on your Cashflow is the best way to succeed in business. Regardless of your technical skills or how well you market your business, it is management of your Cashflow that will determine your business success. It is also good to be aware of potential cash shortages in advance (e.g. the off season) so that these can be planned for – reduction in drawings, temporary bank overdraft extension.

How we can help:

  • Develop a spending budget that allows you keep control of your outgoings
  • Help you implement and be accountable for plans that increase your Cashflow
  • Work with you to identify the best sources of borrowing to match your business needs. An interesting point here: sometimes borrowing to fix a problem is not the best solution.

What is Financial Control?

Financial Control is a term used to describe the way that a business tracks progress and evaluates results. While Financial Control should be an integral part of the regular reporting that a business undertakes, often financial control is ignored because it is seen as too difficult.

Why focus on Financial Control?

Financial Control enables a business owner to use an objective measure to determine whether the financial results being achieved are meeting the targets set by the owner.

How we can help:

Most people ignore financial control, thinking that it is only for accountants. In truth, financial control is for any business that wants to succeed. We can help you by initially setting up a simple financial control system that progressively gets more detailed over time as your knowledge and confidence increases. No matter how you look at a business, the ability to manage the finances is crucial to success.  

What is Benchmarking?

This is the process of comparing the results of your business to others in the same industry. As well as financial indicators such as turnover per staff member, gross profit, profitability and level of borrowings you should also be looking at non-financial indicators.

Why use benchmarking?

At some point every business is either shut down, sold or transferred to other family members. Your objective should always be to sell your business for as much as possible. We also want you to make more profit while we continue to run the business. If your business is performing better than the average for your industry you can expect to get a better than average sale price. If your business is performing worse than average, you may not even be able to sell your plant and equipment. Every business can carry out its activities more efficiently. Benchmarking allows us to see the results of best practice so that we can target those achievements in our business by adopting similar or better work practices.

How we can help:

  • Compare your business results to others in the same industry
  • Develop a plan of action to increase your ranking relative to others in the same industry.
  • Put in management systems to ensure you stay at or near the top of your industry ranking

What is Planning and Management?

Business planning and management is the process of writing on paper the goals you want your business to achieve. Without planning you cannot manage – it is not possible to compare the result to the plan if there is no plan. A business plan does not have to be a massively complex document that runs to pages and pages. A document that has your key points, bullet points or large scale thoughts will do fine to start with.

Why have Planning and Management?

Having a plan enables you to compare the result with what you wanted to happen. It enables you to ask that all important question: Why haven’t things worked out as I planned? From there, you can take steps to make the plan a reality – that is the management part. Business planning and management is one of those business phrases that is the right way around: you need to plan before you have something to manage. At some stage we have all heard or read statistics showing the link between a failure to plan and business failure. What we don’t know is how much better an existing business may get if plans are made and management steps are taken to implement those plans. Logically though, a business that has a plan and takes steps towards implementation of that plan will do better than a business that just bounces from job to job with no idea of whether they are being effective (doing the right thing) or whether they are doing their business efficiently (as practically as possible).

How we can help:

  • First step is to have a planning session that helps you determine what your business goals are
  • Second step is to document the practical financial steps can be taken to achieve those goals.
  • Third step is to actively monitor and review the results against the plan
  • Fourth step is to take corrective action if the results to not match the plan
  • And then back to the start again. Planning should be a continuous process.

What are Systems and Processes?

Systems and processes are two terms used interchangeably but in reality are very different. A process is a series of steps that enables the business owner to deliver their services to a client. Remember, a client can be internal or external. A system is a series of steps used to implement the process. In non-business speak, this means that Systems and Processes are the standard tools that a business used to ensure consistency and efficiency in the operation of a business, from the production of internal reports through to delivery of a major customer order over a period of six months.

Why focus on Systems and Processes?

A standardised way of running a business enables less time to be spent on a task – we have yet to come across a business that has too much time and not enough to do. Getting your (financial) systems and processes working efficiently and effectively will enable you to spend more time on delivering your service, while being confident that your financial operation is delivering the reports you need to make the decisions needed to run your business profitably.

How we can help:

  • Develop the right reports so you know the financial performance of your business
  • Ensure your reporting system captures the correct information so that the reports can be relied on.
  • Help you find or develop systems which integrate various parts of your business – e.g. sales, production, invoicing - so that there is no duplication of work when jobs move through the sections of your business.

Who we work with


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The businesses we help usually have turnover of between $1m - $5m and have at least 5 or more staff. If your business meets these criteria we are happy to have a discussion and determine if we can be of assistance to you. Our assistance is usually provided for between one and six days per month.
Larger businesses, those with turnover of over $5m and under $15m, will generally use us for one day per week.


Complimentary Business Financials Health Check

Contact us for your Complimentary Business Financials Health Check (valued at $197). We analyse the key financial benchmarks of business performance and produce a high level report on the current state of your business, together with showing you the opportunities for improvement and growth.

Claim your Free Business Financials Health Check

How do we work?

  • We identify areas of your business which can be improved
  • We suggest strategies for addressing these across your business.
  • We can show you the benchmarks
  • We help you to move away from working in your business

We publish regular articles on financial and business management. If you would like to receive these, please enter your details in the "Request for Articles" box, just to the right.

We publish regular articles on financial and business management. If you would like to receive these, please enter your details in the Request for Article box.