Business coaching Brisbane – financial management 1

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The Aiki business coach

If I had to choose one business management weakness that I have observed in the many start ups and SMEs (small to medium enterprises) I have encountered, it would be financial management.  Many large companies are also guilty of poor financial management but they are no longer the focus of my attention.

Financial management is the most ignored and the least forgiving.  If you can’t maintain control over your finances then you won’t be in business for long.

One of the biggest mistakes is waiting until the accountant has finished the year end figures to find out what happened.  Most accountants do a very good job of preparing Income Statements and Balance sheets but it is old news.  By the time you see what happened, you are well into the next financial year.

Engaging a public accountant once a year does not guarantee success.  Their job is one of compliance, not financial management.  Their main line of work is reporting after the fact, and tax lodgement.  It is not that they aren’t trained and capable of assisting you with financial management, but you have to ask for it.

You really need to know what is happening in your business week by week and month by month.  Either you or someone who understands financial concepts should make financial management of your business a very regular priority.

One of the other main areas of concern is poor control over cash flow.  Cash flow simply means money in and money out of your business.  You might make a profit at the end of the year but there can be many days during the year where your business bank account is empty or overdrawn.

This occurs because the receipt of revenue and the payments of bills are patchy.  Some customers make you wait 2-3 months for your income but many of your bills need to be paid immediately.

This is often compounded by the owner taking cash out of the daily takings for personal use.  The argument is “It is all my money!”  Well it’s not really.  Your money is the part left over when all the bills, including GST and taxes, are paid.

Many people confuse sales revenue with profit and fail to understand the importance of positive cash flow.  Recognising these differences could be one simple solution to saving your cash-starved business.

Read more in my next post in the series – business coaching Brisbane; financial management.

Check http://www.aikido-secrets-to-calm-success.com for business self development tips based on the powerful principles of the Japanese art of Aikido

Until next time!

Gary

Business coaching Brisbane – think opportunity, think international

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Up until recently, my business coaching Brisbane practice has been a local practice focusing on Australian clients only.  It has meant a lot of interstate travel, lots of proposals and presentations, plus more admin that I ever wanted to do.

Things have changed.  These days I don’t do a lot of face-to-face consulting; I do most of it online.  All of my marketing, all of my communication and all of my face-to-face client interaction are done over the internet.  This enables me to travel and find interesting businesses opportunities and product opportunities in other countries.

By doing that, I am fulfilling my desire to travel and I see businesses all over the world.  I like to offer you what other business coaches can’t – and that is the real business of innovation, new ideas and different ways of doing things.

As I have said in my ‘light bulb’ moments video series, “Opportunity is always outside the house.  It is never on the couch.”  So I take my own advice and literally go see the world of business.

It was two years ago that I decided to move my entire consulting business online.  My brief to my internet marketing consultant was to help me get to the point where I could conduct my business from any café or hotel room in the world.

These days, my business is 100% online.  It has taken a while and cost me some money but it is worth it to work in an environment of complete freedom.  Now I can pursue my three passions in life – business coaching, travel and practicing Aikido; all of which I can do anywhere in the world.

Business has changed, mainly because of the internet.  We can see, talk to, write electronically to, sell to and transfer media instantly to anyone in the world either free or at low cost.  As a result, one need is superseding another.  The need to battle the morning traffic to work is being replaced by the need to have a significant internet presence.

As downtown office rents rise, the cost of parking becomes prohibitive and overpriced and overcrowded public transport continues to remove the last shreds of human dignity, I’m sure that businesses will eventually move away from the centralised CBD space concept and increasingly outsource online.

On my last overseas trip I saw some really interesting business concepts in Japan and British Columbia Canada.   There are so many products and services that are readily transferable but are not yet in Australia.  The world is simply bristling with opportunity!

In these countries, as in Australia, some of the need is driven by climate.  Shops selling warm winter clothes, winter sports equipment and a proliferation of coffee are a direct result of the very cold weather, the need to stay warm and the need for recreation.

Some products, particularly in Japan, are driven by different culture and customs.  However, there are many products and services that are not related to weather, culture or customs and are readily transferable to Australia.

Until next time!

Gary

Lightbulb moment 4: Find your opportunity

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We continue our business planning odyssey….   Finding opportunity and converting it is the creation of everything.   It is the fun part of business planning because it leads directly to growth and profit.  However, don’t wait for opportunity to fall into your lap.  You must go outside and make it happen.  The most important part of opportunity is your mindset.   Be optimistic and think abundance!

Enjoy light bulb moment 4 – Find your Opportunity

Small business marketing – internet marketing and me!

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Internet marketing enables every small business just like mine and yours to reach a huge audience for a fraction of the cost of marketing in the bricks and mortar world.

The beauty of this medium for small business marketing is that it allows our potential customers to search for, and find our products and services in their own time, day or night.

Our challenge is to get our online messages in front of them in response to their search – whenever and however they choose to search.  However not all the searching is done online.

Customers could be searching through a search engine, checking their emails, opening an envelope, social networking (online or offline), reading a bumper sticker or consulting their favourite fridge-magnets on the freezer door.

Although people like to search online, they also like to know that we the business owners actually exist in the physical world, and that we are honest, decent people.

So there are endless ways to circulate your online presence (URL).  Invariably that journey takes us offline back into the brick and mortar world, where many of us started.  Believe me the good old business card is not likely to be superseded any time soon.

Back online though, there are some incredible tools used in the online marketing process.  But if I look past the bells and whistles, the essence of internet marketing comes down to a few home truths:

  • A marketable site
  • Good content
  • Appropriate keywords
  • Traffic building
  • Sales conversion
  • Quality products and services

I have found that the best marketing tool that I have ever had is me.  I have tried to make my site look professional but at the same time reflect the ‘down-to-earth-but-know-my-stuff’ image I want to project.

More people respond to my videos than to anything I write.  That’s because I am putting myself out there.  People are getting to know this ‘old dog’ business coach with an unusual mix of business and aikido, who just wants to put the decency back in business.

My small business marketing philosophy is this – to build a fan base of people who relate to my messages.  The money will just look after itself.  It doesn’t matter what service you provide or what product you sell, people always want to buy from someone they know and trust.

Because my business is all about communication, inspiration and education, I chose a blog as my internet platform.  It doesn’t just hang there in cyberspace doing nothing like static web sites do.  I use it to broadcast words, pictures and videos.  I use it to promote myself.   Everything else that needs to happen just flows from there!

If there is one internet marketing lesson that I have learned, it is this – anonymity and invisibility will get you nowhere.  People are interested in products but ultimately they buy from real people.

Until next time!

Gary

Light bulb moment 3 – Follow demand

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We continue business coaching Brisbane style!   Demand for your product or service is a lot more than a one line sales forecast on your budget.  It is dangerous to assume that people will buy whatever you have to offer.   Following your passion or your expertise doesn’t guarantee demand.  So here are a few tips about getting to know and understand demand for what you want to sell.

Enjoy light bulb moment 3.

Business Planning 101 – lightbulb moment 2 – your mind is your most valuable business asset

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The Aiki-business Coach

In Business Planning 101 – lesson 2, you will learn that your mind is your best business asset.  It governs everything you do.  To help you I have combined the incredibly powerful principles of Aikido mind development with street smart business basics.  I share these with you online in my Aiki-business self development course.

Email me for more information at gary@garyweigh.com

Enjoy lesson 2 below

Gary

Business building tips Brisbane – Use brains not brawn

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As Michelangelo said, “A man paints with his brains and not with his hands.”

So if you are looking for quality business building tips, a great piece of advice this wise old business plan consultant can give you is to build your business with your brains, not your brawn.

Just because you slave away at your office for 14 hours a day does not necessarily mean that you are in any way building a business.  It could be that you are just filling in the day.

Activity does not necessarily equate to productivity.  Regular attendance and routinely performing your trade or profession are not necessarily your highest payoff activities.

Doing those things may cause you to excel as a self employed, labour only sub-contractor.   But that is not building a business.  It is buying yourself a job and effectively working with your hands.

You must understand the difference!  You build a business when you extend your enterprise beyond yourself.  Your aim should be to finally make it independent of you.  To build a business that you own yet it doesn’t need you …. Now that’s brains!

Even though other people are involved, building your business is still building an extension of your self.  You are its brains, so it inherently carries your strengths, your values, your preferences, and your flaws.

Consequently, you can set yourself up for success or failure before you even open the doors.  If you actively seek opportunity, value good advice and surround your self with clever people, then you are setting up for success.

On the other hand, if you are internally focused, cutting corners and trying to do everything yourself then you are in for a rough ride and could be setting yourself up for failure.

There is a certain type of business that will suit you better than others.  There is also a type of culture that you will prefer.  You will have a particular way of doing things.  Your stamp will be all over it, so you should consider planning its design carefully.

That is why a business plan consultant can only guide you and mentor you.  They may even help you out with some of the more technical stuff, but at the end of the day it is your business.  No one else can (or should) ever plan your business without you.

So instead of looking at business planning as a touchy feely exercise or as a chore to please the Bank manager, view it as your golden opportunity to ‘paint with your brains’.

For more business building tips Brisbane, read my article at:

http://garyweigh.com/starting-up-your-own-business-business-basics

Until next time!

Gary

Business plan strategy – control in small business

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Nothing says Downtown Vancouver street corner like Starbucks

One of the secrets to running a successful small business is to maintain control at all times.  In formulating your business plan strategy, there are different aspects of control to consider.

The first is operational control.  This refers to managing the processes used to produce, sell and deliver goods according to an operating plan.  The main tools used here are setting targets and using key indicators of performance.

The second is financial control.  This refers to the management of costs and expenses in relation to budgeted amounts.  The main tools used her are the budget which sets out the desired results and an accounting / recording system that accurately reflects the actual results.

The third is self control.  This is probably the most challenging of all.  This refers to an owner’s ability to steer the business in the right direction and to meet the challenges along the way with a calm mind and optimistic outlook. This is difficult for many new owners because (a) they are untrained in business and (b) running a small business can be a lonely undertaking.

The fourth is not allowing any of the control systems above to be compromised.  There are many ways to lose control, but here are 7 of the most common ways that business owners lose control.

  • Lack of planning
  • Not understanding the difference between profit, cash flow and debt
  • Abrogating all personal interest in control of a business
  • Paying no attention to risk management
  • Working in the business instead of working on the business
  • Inability to make clear reasoned decisions under pressure
  • Placing little or no value on own time.

So business is not really about battling for sales, winning or losing bids, or competing with the person down the street.  Opponents are an illusion.  The harder you try to win, the prone you become to losing.

Engaging in contests of any kind only serves to narrow your focus to the point where you make yourself believe that the person in front of you is the problem and overcoming that person will somehow enhance your business.

It won’t.  The solution you seek does not always appear by solving the problem you see.  It is usually found by widening your focus.

Although it will serve you well to be aware of other market participants and influences, competing with them or attempting to control them is not really something that you should burn your resources on.

There is no such thing as business failure when you are in control.   The only things that you are able to control are your processes, your finances, and yourself.

So when you are thinking about your business plan strategies, your focus should be on controlling what lies within your control.  For everything else, think carefully about the appropriate response.

For more business plan strategy tips, read my latest book at:

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

Until next time

Gary

Small business marketing – become a teen entrepreneur (part 2)

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Extraordinary photograph courtesy of Spiral Photography

Continuing on from my last post, here are two more innovative ideas for teen entrepreneurs to join the small business marketing process.

Techno problem solver

If everyone over 50 is like me, then they don’t have the first clue about programming the new TV, undoing the onscreen nightmare that’s created when a wrong button is pressed on the TV remote; setting up the DVD player; and what the hell does a router do; getting online with a brand new computer; creating a Facebook page; organizing the first Skype conversation; setting up Windows Outlook; and making the plethora of associated gremlins go away.

The list goes on and on!  I need my adult children around just so I can live my life without an electronic or online disaster.

Therefore if you can effortlessly take care of all this stuff then you are valuable to almost half of the Australian population.  People will pay you handsomely for your assistance and advice.

Personal concierge

Busy people who work long hours don’t have time to do anything for themselves.  The main reason is that they have no time during the week when other businesses are open.

Many are also reluctant to give up valuable weekends to do boring stuff like food shopping.  Here are just a few things that need to get done:

  • Pick up children from school or daycare
  • Make medical & dental appointments
  • Go shopping for clothes
  • Do grocery shopping
  • Make travel bookings
  • Get dry cleaning done
  • Find theatre & concert tickets
  • Find a good restaurant
  • Buy Christmas, birthday & anniversary gifts
  • Organise events and other people

People need things to get done but they don’t have time to do it themselves.  Many are willing to pay someone else to get things done so life can go on harmoniously.

The trick here is to be super-organised, good at multi-tasking, very creative, and to have great contacts around town.  There will always be the occasional difficult request which distinguishes the very good concierge from the ordinary.  Having a good personal concierge is like having a good hairdresser and a trustworthy mechanic.

If you want to read more about becoming a teen entrepreneur and tips about small business marketing go to http://garyweigh.com/recession-riches-and-wealth

Until next time

Gary