Your 1-page action plan

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Business planning in Australia should be a straight forward and practical exercise.  Although you need to aware of many potential traps, there is no reason why you can’t write down the heart and soul of your business plan on one sheet of paper.

Preparing a business plan is basically deciding ‘what’ you are going to do and ‘how’ you are going to do it.

One of the main problems with business planning is that new starters follow other people’s templates.  They focus on rigidly following the format of the template.  This means filling in text and diagram boxes.  There is no light and shade and no emphasis on the critical stuff.

Instead of producing a 300-page document that is so detailed that you’ll never read it, distil the important parts down onto a 1-page action plan.

The important stuff is this:

  1. The ‘what’ – your main goals
  2. The ‘how’ – your main strategy
  3. The ‘payoff’ – the all important results

Now let’s look at each in a little more detail.

1. Start with your main goals

The most important feature of your plan is your goal setting.  Although dreaming up a few goals sounds easy, this is the part of business planning that most people struggle with.

I will show you in my next post how to go about setting goals.  In the end, regardless of what others say, your goals are yours.  You must live your truth in business and your goals must reflect that.

2. Be clear on your main strategy

In order to be clear on the ‘how’ of achieving your desired results you must have a good understanding of your customers and their demand.  For example, why will they buy?  What problem are you solving?  Why buy from you instead of any one of fifty other look-a-likes?

Make sure this ‘how’ part of your plan is ALL ACTION.  Any procrastination in executing strategy is deadly.  I recommend that you decide this!  “Out of all the actions I could be doing, which ones will give the highest payoff (i.e. better results sooner)?”  Do those actions!

Business cards, brochures and static websites are tools, not strategies and in isolation, won’t work.  Customers won’t go out of their way to seek you out.  You must act to go find them, and to put your message in front of them, clearly and simply.

3. Finish with the pay-off

The pay-off is what keeps you in business!  So it is important to monitor it.

You must have a measurement system to know if the pay-off is actually achieving your goals within your desired time frame.  However, what you specifically track and measure depends entirely on the type of business you have.

Some people track calls and sales appointments; others track weekly sales and gross profit.  Some people track units produced and fault rates; others track online click rates.  Many old-timers still track cash at bank – the only figure that they trust.

Your one-page action plan

The beauty of a one-page action plan is that you can carry a copy with you, pin a copy on the wall in front of your desk, circulate it easily to employees and outsourcers or fax a copy with your monthly results to your business banking consultant.

Until next time!

Gary

Brisbane floods – what a difference a day makes

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Brisbane flood 2011 – Jindalee

When I posted my last blog entry a few days ago, I had no idea about the natural disaster that was about to befall us.  Most of Queensland has been severely flooded with tragic loss of life and disastrous damage to houses, property and businesses.   On Wednesday and Thursday, Ipswich and my hometown of Brisbane were deluged.

I was so lucky that the water did not reach my house but many of my neighbours and friends were rendered homeless.  Today I have been doing what I can to help these folks with the massive cleanup task.  Parts of Jindalee, Mt. Ommaney and Westlake look like bomb sites.  Spirits are generally high but in some parts, it’s a sea of misery.

The smell of the slimy mud that covers everything is foul and overpowering.    Toads, lizards, eels and snakes have taken up unwelcome residence after being driven  into the submerged buildings by the rising flood water.

Thousands of people are without a home.  Many have lost everything except the clothes they are standing in.  In many cases, buildings are electrically unsafe.  It is so gratifying to see people helping their friends, family and, in many cases, perfect strangers. Offers of accommodation, hot showers and food come from everywhere.

Unfortunately, hundreds of cars slowly cruise past the disaster sites with occupants gawking at the misery and misfortune, all the while snapping photos.  Not of these carnage tourists ever stop to help.  It’s a human disgrace!

Even though you may not be able to lend assistance directly, you can help in a very tangible way by supporting the Premier’s Flood Relief Appeal.

Make a donation at the Queensland Government floods website: https://www.qld.gov.au/emergency/dealing-disasters/flood.html

Thank you for your help.  It is much appreciated.

Gary

Check out this home video which starts with 1-hourly time lapse photography as the flood water rises and ends with a tour of a house about to be submerged.

Go on your 2011 mini retreat

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For many industries, early January is a very quiet time.  Customers and suppliers are on annual holidays.  The kids are home from school.

So if you are not busy in January, consider making use of this down-time.  Give some serious thought to getting your self away for a while on your 2011 mini-retreat.

An hour, a day, overnight – it doesn’t matter.  Find some quiet YOU time!

The main aim is to get some privacy, feel relaxed and tap into your creativity.  Ideally, you will also want to return feeling invigorated and ready for a good year.

There are many choices of where to go and what to do.  Get creative but here are seven (7) ideas to help you:

  1. Overnight in a city hotel
  2. Overnight in a country B&B
  3. Go on a picnic
  4. Have a quiet restaurant lunch
  5. A few drinks in a quiet corner of a pub
  6. Sit on a beach
  7. Sit in a park or on a local mountain top

Whatever you decide to do, make sure you take a pen and paper with you to record your thoughts and ideas.

Whatever your budget and your choice of experience, decide in advance what it is you want to review, and what is it you want to do.

Apart from the financial investment, the biggest investment here is your time.  The real problem is tearing your self away from your business.

The other important choice is who to take with you.  The answer is whoever helps you get the job done.  Whether you want to retreat alone, with a friend, a colleague or a group is entirely your decision.

Your choice will depend on your budget, your business circumstances and perhaps child minding options.  Whatever you decide, there will be advantages and disadvantages.

Just be sure that whoever you take with you is ‘like-minded’.  If the others just want to have a party, then the retreat will not achieve your goals – unless of course your goal is simply to let off steam.

Business planning in Australia?  Happy retreating!

Until next time

Gary

Check out these great sites:

http://www.aikido-secrets-to-calm-success.com

http://www.griffithaikido.com.au

Financial management 4 – Breakeven point

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Once you have made some realistic estimates of your sales and expenses, it is time to move to the next important financial management tool.   That is your ‘break even point’.

Break even point is that point where you stop making losses and are about to make a profit.  Break even point is different for every business because no two businesses are the same.

I will show you a simple example:

Let’s say you make $80,000 sales for the year.  Whatever it is you sell, there is a cost of making it, creating it and delivering it.  The total cost includes things such as raw materials, parts, the cost of your time or someone else’s time and freight in and out.  Even if it is only your time and expertise involved, there is still a cost.

So let’s say that the total of the costs directly related to making / creating / delivering your product or service is $50,000 for the year.

That means your Gross Profit for the year is $30,000 (i.e. $80,000 – $50,000).  Before you go thinking that this is your profit for the year, this amount left over must now be used to pay your overhead expenses.

All businesses have overhead expenses, and yours will be no different.  These are expenses incurred in running your business but are not directly related to making / creating / delivering your products and services.  Overhead expenses include things like rent, telephone, vehicle expenses, leases and other financial commitments that you must pay whether you make a sale or not.

So let’s say your overhead expenses are $30,000 for the year.

Recall above that your Gross profit (contribution to overheads) was $30,000.  If your overheads are more than this figure, you make a loss.  If your overheads are less than this figure, you make a profit.  (Profit is a strictly defined accounting term but let’s not complicate the example).

In this simple example, your overheads are $30,000, equal to your Gross Profit.  You make neither a profit nor a loss.  This is your breakeven point!

So the way your business is currently organised, and with your current pricing and cost structure, your break even sales are $80,000.  If you make any more sales, the Gross Profit from those sales (i.e. deducting the cost of the sales) will fall straight to the bottom line because your overhead costs are paid (providing they remain fixed).

This is great information to have – to know that if sales fall below $80,000 (or $6,667 per month, you are in trouble.

You can achieve gains either by increasing price, increasing sales volume, or by reducing your overhead costs, or by reducing the costs of making / creating / delivering what you sell.

Any change in these variables will of course affect your break even point.

You must check out these sites:

http://www.aikido-secrets-to-calm-success.com

http://www.griffithaikido.com.au

Until next time!

Gary

Financial management 3 – forecasting sales

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In recent posts in business coaching Brisbane, I highlighted the need for regular accounting and for comparing actual results against your budgeted target.

Now for the really tough part of your budget!  That is forecasting revenue.  This is difficult because any realistic revenue forecast depends on what your plans are to attract potential customers and convert their interest into sales.  Most people do not have a clear idea of this because they are inexperienced.

If you have no real plan, or you adopt a shotgun approach to see what works and what doesn’t, then your budget revenue is probably going to be low.

In my experience, the majority of people make the mistake of assuming sales will somehow just happen, as if by magic.  That’s the ‘rose coloured glasses’ effect.  You can’t be complacent!  You have to make sales happen and you must have a clear plan of action.

So forget about assuming a one line sales figure in your budget.  Dig in behind the figures and think about what specific actions on your part will generate sales.  Any financial forecast should be merely a reflection of your intended actions.

The sales equation is ‘Sales Revenue = Price x Volume’.  Now there are two variables but even this is too general.  You must dig down further and determine the day-to-day drivers of ‘price’ and ‘volume’.

Get specific and assume nothing.  Get real with your pricing and take off your rose coloured glasses when figuring out where your sales volume will come from.  You must build your sales budget from the ground up, group by group, customer by customer if necessary.

This is the only way that you will be able to find out why your actual sales, in any month are under or over your budgeted sales.  Knowing where you over-performed or what you need to work on next month is priceless management information that can only come from taking the budgeting process seriously and building a useful sales history.

So why do I give you this valuable information free?  Because I know from experience that only a handful of the 40,000 readers of this blog will take any notice at all.  But to the few who do, it will put you one step closer to controlling your business, instead of allowing it to control you.

Check out previous Financial Management 1 & 2 posts by business coaching Brisbane.

Two interesting sites I highly recommend you visit are:

Spiral Photography at http://www.spiralphotography.com.au

Griffith Aikido Institute at http://www.griffithaikido.com.au

Until next time!

Gary

Start up your own business

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Is 2011 going to be your year to start up your own business?  Have you got something a little different to offer?  Have you got what it takes to survive and grow?  Here are the top 7 traits that I am looking for in my business coaching Brisbane – online class of 2011:

1. Is your motive true?

If you are frustrated with your job or have visions of easy money then you are doing this for the wrong reason.  You need to be passionate about the value of a product, a service or a cause.  You business will reflect who you are; it will become your life – so make it count!

2. Do you have an ethic of hard work?

Most people in business work hard until they learn to work not so hard, but a lot smarter.  However, if you think that business means easy money and that all business people are rich, then you are clearly not cut out for this.

3. Do have persistence?

You are more likely to succeed if you have the determination to keep going especially when things get a little tough.  Business is a journey and success, regardless of how you measure it, is not an overnight achievement.

4. Do know your own strengths and weaknesses?

It is important to have an honest appreciation of what is lacking.  If you know what you are not good at then you can outsource to someone with the desired expertise.  Similarly if you know what you’re good at then you’ll be doing what you do best.

5. Are you a planner or an impulsive leaper?

In business it pays to be a planner.  That is not to say that you shouldn’t take risks.  Planning simply takes the needless risk out of a venture.  Good people, good advice and a thorough understanding of your market will remove a lot of risk.

6. Are you optimistic and opportunistic?

If you can see opportunity where other people see problems, business is probably for you.  You will encounter plenty of problems along the way so having a ‘cup half full’ attitude is desirable.

7. Can you enlist others to your cause?

This is where shallow motives will bring you undone.  If you are living your truth then you will have passion and belief.  They will radiate from you in all directions.  Passion and belief are infectious and people will follow.  Without it, you will be just another struggling merchant.

Until next time!

Gary

For 100 ideas to start up your own business and valuable knowledge that every entrepreneur should have, read my latest book at:

http://garyweigh.com/recession-riches-and-wealth

From the Aiki business coach – Your top 7 financial resolution sliders for 2011

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As we approach 2011, it is resolution time once again.  It is natural that we wish for a better year than the last. If it comes to pass, it is a reassuring sign of development and growth.  So if 2011 is your year and you are contemplating a change or a new start, here are the Aiki business coach’s top 7 resolution sliders to help you.  Use them any way that works for you.

1. Snap out of your financial coma

If you want to turn your financial life around, firstly recognise that things are not perfect and that you really want to make a change.  Sometimes it is hard to break out financially because you are held back socially by friends and family.   So you may have to keep them all at arm’s length for a while.

2. Adjust your lifestyle and start saving

You need to start by setting a money goal here.  Figure out a realistic amount you can save and a realistic time frame in which to save it.   Reducing your personal debt is also a form of saving.  Perhaps save to pay out a loan or credit card.   You just have to trim your household budget and personal spending to suit.

3. Kill off that credit card debt

Almost 100% of people experiencing financial problems have significant credit card debt.  You are not alone but you will be so much better off without it.  Whilst folding money is not quite as available and convenient as your plastic card, it will re-introduce you to the real value of money and old fashioned concepts like ‘saving up to buy’.

4. Buy things that are likely to go up in value

Instead of watching your money disappear on lifestyle / feel good / self image purchases, try preserving your money in another form by purchasing ‘assets’ that typically go up in value.  While real estate, shares and managed investments are some traditional investment assets, there are other options, such as gemstones, jewellery, artwork, old coins and stamps.  Seek advice, but if it is something that you enjoy, you can have a hobby as well as boost your wealth.

5. Establish a second income source

There is no rule that says all your income must come from one source.  In fact it is smart not to be reliant on just one source.  Eggs should be spread further than just one basket.  Sickness, accident or unemployment could be just around the corner.  A second job is fine if necessary, but it is far better to secure a source of passive income, such as investment income or internet marketing income.  That way you have free time and money in your life.

6. Maintain financial independence

Always retain your own identity and some level of financial independence when you are in a live-in relationship.  It is reasonable to maintain your own separate bank account as well as a joint account with your partner.  There are plenty of examples of people being left with nothing without warning after months of planning.  Those caught out never saw it coming.

7. Success is a team effort

Week 1 of any resolution is easy while you have plenty of motivation and enthusiasm.  However, week 2 is where it starts to slip away.  So buddy up with a friend and keep each other focused on your goal respective goal journeys.  You don’t have to be doing exactly the same thing.  The purpose is encouragement, support and a little ‘talking-to’ when necessary.

My best wishes for a prosperous financial journey!  We will resume our coaching journey together in 2011.

Happy New Year!

Gary

Your Aiki business coach

Make money work for you in 2011 – get your money hat on!

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Gary Weigh making money work for you

In my experience, the majority of people have some seriously bad attitude to money; rich and poor alike.  Socio-economic group makes little difference.  It just makes it easier to predict what the specific problem is likely to be.  To help you make money work for you in 2011, here are my top ten (10) money symptoms.  Are you on this list?

1.      Don’t have enough to survive or thrive

2.      Enough to thrive but not enough to keep up with the Jones’s

3.      Have more than enough to keep up with the Jones’s & now messing with Jones’s heads

4.      Obsessed with hoarding money

5.      Obsessed with spending money

6.      Have money but still not happy

7.      In rampant debt by spending more than you earn

8.      Won’t save but must purchase now

9.      Money dysfunctional (e.g. addicted to gambling)

10.  Aversion to any form of investment or management

The root problem is focusing on money as an end, not a means.  Focusing on money as and end in itself rather than a means is a negative mindset.  This negative mindset can create a preoccupation with lack, overabundance, hoarding and over-spending,

The answer is to maintain a calm and optimistic mind towards money.  And never (never, never) focus on money as the source of your problems.

Make no mistake!  You are the cause of your financial problems.  You put yourself in the position you are in and the key to making it better is already in your hands.  You simply choose not to use it.

It sounds harsh and unfair, I know.   But sugar coating the truth won’t help you.

If you want to take the first steps to make money work for you and your family in 2011, try this:

  • Stop taking financial advice from your family and friends
  • Seek financial advice from a reputable professional and don’t focus on the cost
  • Stop comparing yourself and your financial situation to others
  • Focus on goals and positive action, not on money; money follows positive action
  • Stop including Centrelink as a significant part of your New Year financial strategy.  It is a backstop institution, not a mainstream funding source

Your financial situation is a reflection of your state of mind.  If your mind is stressed, distracted, angry, jealous or resentful, your finances will reflect the negative energy you generate.

So try some positive thoughts followed by some positive action.  And don’t slip back into your old way of thinking just because your plan hasn’t worked after one week.

Until next time!

Gary

My favourite portrait and action photographer can be found at http://www.spiralphotography.com.au

Business coaching Brisbane – Financial management 2

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Keeping your receipts in a shoe box and handing it over to the accountant once a year is financial madness.  Don’t be surprised if you are out of business after your first year with that attitude to financial management.

Regardless of what business you are in, you need to keep a close watch on money coming in and going out; and know what your bank balance is on any day.  The least you should do is to buy a small business accounting package.  This will enable you to keep track of revenue coming in and expenses paid out on a monthly basis.

There are plenty of available accounting software packages out there that will do the job.  Just make sure that the one you select is set up for an Australian business.  Our GST, BAS and tax system is like no other.

So once you have your accounting software installed and working, you can now monitor the performance of your business on a monthly basis.  If you input your revenues and expenses daily then you can monitor your business on a ‘month-to-date’ basis.  This is only the first step on your financial management journey.

You need a benchmark to compare against each month.  It is great knowing how your business is going but to be able to see a comparison against ‘forecast performance’ would be even better.  The better quality packages allow you to set up a budget and to design ‘budget v actuals’ reports.

Now you need to prepare a budget.  A budget is really the financial translation of all your plans and strategies.  Your expense budget should be reasonably straight forward because most expenses are known in advance.

The trap to be careful of is that expenses are not the same each month.  Some bills have to be paid weekly, others monthly and some annually.  Take into account the ups and downs of your forecast expenses.  That’s what helps create a realistic cash flow forecast.

I will continue in the next post of business coaching Brisbane with the tough job of forecasting revenue.

Until next time!

Gary

Check out my Aikido Secrets blog at http://www.aikido-secrets-to-calm-success.com

Grab my new book http://www.garyweigh.com/recession-riches-and-wealth

Christmas and New Year – reflection, decisions and resolutions!

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It’s Christmas again.  It’s the holidays and a time when families gather and reunite.  It’s a time of prayer and thanks.  Unfortunately, in the lead-up to Christmas, it is also a time of frenzied shopping, high stress, strained budgets and extreme personal debt.

In some ways Christmas is a lull before the reality of the New Year looms large.  So what awaits us in 2011?  Without doing anything differently, the certainties include – increased food costs, fuel costs, utility costs and mortgage costs; plus credit card debt that will reach a new high.  And 2011 is only 10 days away.

This time of the year is a period of reflection; of introspection – of another year past, of relationships with partner, children, family and friends, of home; of money, and of career highs and lows.

Christmas – New Year is a time of decision making and choice.  Will next year be the same as this year?  Is this where I want to be 12 months from now?  How can I improve my life, and that of my family?  What can I do differently?

With the heralding of the 2011 comes a strengthening of resolve.  The New Year always brings new hope – the hope that this year will be better than the last.

One decision; one action; one thing done differently, is all it takes to change the course of your life forever.  Change doesn’t have to be a complete and drastic overhaul.  It is easiest to manage when it consists of baby steps.

In making your life’s decisions this year, try take one step closer to living up to your true capability.

You might want a new relationship but you may conclude that to be happy within yourself, you need to give up smoking first.  You might want more money but you may realise that first you need to acquire more work knowledge and pull together a professional resume.

Set your goal but remember that you are on a goal journey.  Your first step is not your last step.  There is usually a few obstacles to remove along the way.  No goal worth achieving is ever going to be blitzed all in one go.

What matters is taking the first step on your goal journey; and then being reminded to take the second step; and so on, until you can find the way on your own.

No matter what your circumstances; no matter how locked-in, out-of-your-depth or helpless you feel there is always someone who can help you take the first step.

So whatever Christmas means to you, I hope your thoughts lead to positive action in the New Year; and that the one forward step you decide to take in 2011 enhances your own wellbeing and respects the lives and choices of others.

For a good ole’ fashion Aiki-Christmas read check out http://www.aikido-secrets-to-calm-success.com

Until next time ….. Merry Christmas!

Gary