This may have been a line out of Lewis Carroll’s, Alice’s Adventure in Wonderland but it applies equally to business. “Would you tell me, please, which way I ought to go from here” said Alice. “That depends a good deal on where you want to get to”, said the Cat.
If you didn’t keep to your New Year’s resolutions last year, you’re not alone. A national survey conducted by finder.com.au found that 58% of Australians – an estimated 11 million people – broke their New Year’s resolutions in 2015 . But, the good thing about setting yourself New Year’s resolutions
A successful exit strategy is dependent on numerous elements, from what industry you work in to the nature of your business and of course, the scale. The way you choose to exit your business is a very important and personal decision and one that shouldn’t be taken lightly. The type
If you are considering selling your business, either now or in the future, it’s important that you understand how to value a business. The challenge for many small business owners is that emotions often play a big part in their assessment. And that’s often for good reason: a passion for
The start of the new calendar year has brought with it a never-ending number of corporate collapses with the likes of Dick Smith, Laura Ashley and Australian Renewable Fuels all being reported in recent weeks. I was recently asked why this was the case. Was it the time of year?
As business owners we all want to create a growing and thriving business. However the reality is that some of us manage to achieve this while others seem to potter on in a hard-earned but stagnant existence. I recently ran a workshop with 15 high growth businesses and we discussed just
“If you don’t know where you’re going, any road will get you there” In my view there are two major problems facing small business when it comes to strategic planning. The first is not knowing where they’re going. This means not taking the time out from “doing it, doing it,
There can only be three reasons why these businesses find themselves going into administration. Either they are getting poor financial advice, are getting good advice and not implementing it, or are not seeking the appropriate advice in the first place. Most of my experience has been with the latter. It’s
In business management guru, Stephen Covey’s, best-selling book, The Seven Habits of Highly Effective People, beginning with the end in mind was a top habit of his. This got me thinking. Why is it that so many business owners don’t have a clear picture of what they want their business
Just like in our own household, waste costs the average family business tens if not hundreds of thousands of dollars every year. However, the business owner doesn’t just incur the yearly cost, but the multiple of that cost when a business is sold. Let’s assume that through a waste audit
For many small business owners, superannuation can be a confusing and complicated place. This needn’t be the case. It is best to break things down into various “buckets” and tackle them one at a time. If you would like to learn more about how to get the maximum benefit from
One of the reasons businesses run out of cash – and generally go broke – is that they grow too fast. What a paradox – the business is growing too quickly and is therefore too successful for its own good! Not surprisingly, in situations like these you also find that
I’ve often been asked by clients to assist in a trade sale of their business or a sale or hand over to the next generation. These all take different forms depending on the motivation of the parties concerned. While there seems to be an increasing awareness of the need to
The Federal Government has indicated that they are very keen to support innovative businesses. There are a number of funding options available by way of government grants for businesses that can meet the Government qualification requirements. If your company has been “experimenting” to try and solve a problem in your
So often we read or hear in the media about the latest fast-growing business. Everyone seems to focus on the growth of the business but what is the real measure of business success? When I review the financial performance of a business, the primary measure I look at is Return
I was recently asked by a client whether they were holding too much cash in the business. My answer was – it depends. It depends on a number of things as well as the reasons for the cash build up. There are economic, commercial, financial and structural issues to be
I’m often asked by business clients whether a certain dollar profit is good. My answer is always the same – it depends. The fact is, no one can tell you whether a specific dollar profit figure in isolation is a good result or not. It’s just like asking someone whether the
In a recent article, Planning to Take Control of the Family Business, I talked about the reluctance of family and privately owned business to plan. I opined that “time pressures” and “not knowing where to start” were two of the main reasons for this reluctance. However, I believe there is
The recent collapse of the Dick Smith chain highlights the fact that no business is immune from potential catastrophe. But it begs the obvious question – how can a company as big as this and turning over $1.3 billion – a listed company – fail? No doubt we’ll hear more
There’s an old saying – profit is opinion, cash is fact. That’s because despite making a profit, some businesses still don’t have enough cash to pay the bills. At the end of the day, a lack of cash will kill a business. Since the GFC, banks have been paying increased
We’ve all heard the saying before: Cash Is King! But what does it mean and why is it so important? Cash is essentially the blood that pumps through the veins of a business and keeps it alive. In most businesses, both small and large, problems occur when their cash flows
A new year is traditionally seen as a time to make resolutions for change. I therefore thought it might be useful to provide you with my top tips for good financial health. In a previous blog, Three Key Ratios for Business Success, I talked about the need for any business
In over thirty years advising family businesses, the most successful succession plans I’ve seen have been the ones where there was solid stakeholder engagement – in other words – good communication within the family. Even if you think everyone is aware of what is going on and generally on the
Barriers to succession I’m often intrigued when I read in the press about rather large family-owned businesses which are impacted by family and succession issues. Someone commented to me recently about the issues surrounding Bob Jane’s family and his business and how these have been in the media in recent
It seems like every second day I read about another business going into liquidation. This past year has seen a number in the transport and logistics industry, the most recent being Gregorys Transport. This begs the question – why? Businesses in this industry operate on small margins and invariably have
It’s usually easier to look back after a business has failed and identify why, than it is to save a business from failing in the first place. In my view there are a number of reasons for this, not the least of which is the fact that everyone is always
I often read about businesses that don’t last the distance – businesses that look like they have great potential but just somehow can’t be sustained. I can’t help but think that many of these organisations mustn’t give any thought to “future proofing” their business. So what is “future proofing” and
Every business owner should have a specific strategy in order to push the business to greater success. The plan itself must be a living document that can be easily massaged and adapted as time passes. External factors such as fluctuating economic conditions and consumer trends mean that this plan has
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MGI Perth Financial Services Pty Ltd, Rocco Fazari & Brenton Burke are authorised representatives of SMSF Advisers Network Pty Ltd (www.smsfadvisersnetwork.com.au, ABN: 64 155 907 681, AFSL Number: 430062) and are licensed to provide superannuation advice only through SMSF Advisers Network Pty Ltd.
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