Where does ACMI 2013 think SMEs fall short?

ACMI 2013 rates SMEs better than big business in all categories but one
The 2013 Australian Management Capability Index (ACMI) conducted in Australia turned up some interesting results when the highlighted findings were published this month by the Australian Institute of Management this month.

The second national online survey was completed by nearly 500 chief executives, business owners or senior business leaders who rated their management capabilities across 10 categories that impact operations and profits.

Surprisingly managers in companies with 25 or fewer employees outscored those working in larger organisations with 500 or more staff. Small business rated well in integrity, corporate governance and financial management.

They also rated above national averages in managing external relationships, applying technology and knowledge and being innovative with products and services.

However the only category where bigger organisations performed better was monitoring and measuring their results.

Collins Hume's Peter Fowler said, "I think SMEs fall short in this area perhaps due to a lack of understanding of the figures."

"On the positive side, the Index can help small business owners to benchmark and track their performance and identify areas they need to work on."

By utilising a Business Optimisation Session with Collins Hume, business owners can learn how to turn numbers into knowledge and make informed decisions by allowing them to see the financial impact of every decision they make in their business. Click here to read more about Collins Hume's Business Optimisation services or call us on 02 6686 3000.

Click here to read full ACMI 2013 highlights.
Shine a light on strategy in your business by joining the discussion at SS Strategy

Business Planning 2013

Personal planning for business owners

Our key questions worth asking yourself in the Business Planning Review process relating to personal planning as a business owner: 

  • What sort of lifestyle do you want? 
  • Do you have a current Will?
  • When do you wish to retire?
  • Have you signed an Enduring Power of Attorney?
  • Will you have sufficient capital to live the way you wish to live when you retire?
  • Who are your Executives?
  • Are they still appropriate to be your Executives?
  • If not, what changes need to be made?

These are some of the questions to be considered in the review of a business owner's personal plan relative to the business plan for the business. Contact or call us on 02 6686 3000 to find out more.
Shine a light on strategy in your business by joining the discussion at SS Strategy

What's it mean?

Store Profile

'Store Profile' describes characteristics of volume, size and location of a retail store. The synergy of these characteristics measures the strength of the business in a non-financial sense. Some of these characteristics can be further developed to enhance the success of the business. Unique features of the store include:

  • Location and operating conditions.
  • Factors which affect customer traffic include:
    • convenience of the store
    • competition
    • product offered
  • Items to be measured under store profile include:
    • Average number of customers per week - Trading days per week - Total floor m2
    • Average number of sale items per customer - Trading hours per week - Sales per m2
    • Average sale per customer - Trading floor m2

If you would like any assistance in establishing 'Store Profiles', please do not hesitate to contact us on 02 6686 3000.
Shine a light on strategy in your business by joining the discussion at SS Strategy

Insurance

Devil in the detail

In reviewing your insurance policies, you need to be aware the policies normally contain 'averaging' or 'coinsurance' clauses. These clauses will come into play when the sum insured is significantly less than the value of the insured property.

What this means is that any of the claim you make will be reduced in proportion to the amount of the underinsurance. Many people have been caught out on this clause of an insurance policy.

For example, if you agree on the sum insured for contents insurance of $70,000, whilst the total value of the contents is, say, $110,000, the insurer will be entitled to reduce the amount of any claim made by the percentage which reflects the value by which the property was underinsured. If the amount of damages incurred is worth $44,000, the insurer may be entitled to rely on the averaging clause to reduce its liability to 63.6%, being the percentage by which the contents were underinsured, resulting in the payment of only $27,984. Where averaging clauses exists in an insurance policy, it is important to maintain a current valuation of the property and confirm that the insured amount is close to the actual value. It will assist you to keep a proper inventory of the assets you wish to cover and their value to compensate against the possibility of having an insurance claim adjusted under the averaging and coinsurance clause.

If you would like us to review your insurance covers, please do not hesitate to contact us on 02 6686 3000.
Shine a light on strategy in your business by joining the discussion at SS Strategy

Business Change

Adapting and responding to business change
Whoever said 'change is the only constant' probably didn't realise how far-reaching that comment would resonate as we reiterate it now.

So we found ourselves relating to Danny Davis' recently published insights into how business owners should continue to adapt and respond to change so much so that we wanted to share a summary.

Undoubtedly, with technology moving at the incredible pace it is, it cannot be ignored that many businesses are still struggling and falling behind. Yet the future of your business depends on your ability to advance and keep up with the ever-changing business landscape.

If you are reluctant to embrace change in your business, or you find yourself procrastinating, you'll find very quickly how out-dated you'll become, to the detriment of your business.

However rest assured there are way to help you adapt and innovate so your business can continue to update and grow into the future: Read more…
Collins Hume
is a CPA Business