Unleash the Beast ... in your business

As Australian small businesses enter 2012, they do so against a backdrop of uncertainty. Factors contributing to this sense of unease include the European debt crisis, the looming (and as most commentators are saying inevitable) GFC2, and the announcement of Australia's weakest employment growth in two decades.

There is no doubt that budgets are tight. And it appears that the market uncertainty that is killing consumer confidence is set to continue for a long time to come and businesses will be hit harder than ever.

The message for business owners remains the same though: those who continue to seek expert advice and invest in periods of downturn are the ones more likely to reap the benefits when consumer confidence improves.  And making the right choices is an enormous part of making it through this period of uncertainty.

As business strategists we're often asked, "Why is it that some businesses achieve levels of performance that far exceed others?"  The answer is simple. It's not because they're in better markets or that they have more resources or that they are smarter than anyone else. The answer is they think differently, make the 'right' choices more often and they seek expert advice constantly.

Ask yourself, how would your business performance and value improve if you had the capability of knowing the financial outcome of every decision before the decision is even made? It's almost 'crystal ball' stuff but the technology and expertise does already exist. The adviser of the future has been doing this for their clients for years.

Competition is now becoming fierce and the high Australian dollar combined with an ever more internet savvy consumer is flooding our markets with cheaper imported alternatives.

For you to survive in business your adviser needs to be able to answer your 'what-if' questions.  This is where the real worth of an adviser comes to the forefront adding significant value to your business and bank account.  Can your current adviser do this or are they too busy doing mundane tax returns that offer little value to your business performance?  Is it time for you to find a 'real' business adviser and watch your bank balance and business value grow.

Business owners who want to galvanise for the years ahead and optimise performance by constantly making the right decisions use us for our expert knowledge on optimising business valuation, growth improvement and succession planning.  Have you already sought this advice and, if so, why not seek a second opinion from us?  Knowledge is power. 

How should you brace for the year ahead and unleash the potential in your business?

The first symptom that a business is in trouble is usually cash flow issues, but the cause often resides in unwillingness to seek expert help in crucial areas of business such as budgeting, financial modelling, strategic planning and value improvement.  The following points should form part of your focus for 2012 if you want to improve your business and be ready to maximise your sale value in the future:

  • Benchmark your business against industry competitors to identify areas of improvement using real time benchmarking figures, not out -dated or pre-GFC data.

  • Value your business today and implement a plan to increase its profitability and cash flow. Then re-value every 12 months to measure your progress and to identify further areas to improve.

  • Take advantage of 'what if' technologies to show you impact on cash flow by major business decisions before you make them i.e. increase in prices, adding or removing a product range, the purchase of major equipment, or taking on a new employee.

Collins Hume works with owners to unleash the hidden potential within your business.  Call us on 02 6686 3000 for an obligation-free business performance appraisal, including a free industry benchmarking report to identify the top 18 key performance indicators for business to excel.