Building a Better Business – Step 5

Written by Accountants on Domain

Get your organisation structure right!

Your ideal structure will allow your business to become more efficient and achieve economies of scale.  This increases your bottom line returns at a greater rate than your revenue. Your organisation structure should allow your revenue to increase without creating bottlenecks.   

An organisation structure should show all ten departments in your business, who is responsible for what, and how the hierarchy works.   

Each department should have only one leader.  The same person can lead more than one department, but two or more people can’t lead the same department.  

Every organisation has 10 departments:

  • Shareholder.
  • Director.
  • Leadership.
  • Product / Service Development.
  • Operations.
  • Marketing.
  • Sales.
  • Finance.
  • HR.
  • Admin / Technology.

If you’re the owner of the business and currently lead multiple departments, ask yourself how well you’re leading each department. It’s likely there are some you don’t enjoy as much as others and procrastinate doing the tasks within that role.

Consider outsourcing or training one of your team members to take over the leadership of those departments you’ve been neglecting. They’ll likely do a better job and you’ll free up some time! Remember, overloaded team members (you included) are more likely to make mistakes. Also, paving the way for your team to grow and develop improves loyalty and engagement.

It’s important that your Organisation Chart is a living and breathing document that your team understands and works in sync with. Check in regularly to ensure your team is aligned with the structure and the hierarchy is being respected. During performance reviews, discuss whether there have been any changes to each team member’s role and update the chart to reflect these.

We can help you create the best organisation structure for your business, along with job descriptions for each role. Get in touch!

“Mission defines strategy and strategy defines structure.” – Peter Drucker

10 Hats in Every Business seminar

11:00, Wednesday, April 17, 2024 

Join Angela Brown at this 90 minutes seminar to understand how
you can improve your organisation structure and take back control of your
business.

The benefits of attending:

  • Learn how you can free up your time and achieve better leverage – without
    blowing yourself apart
  • Learn the 10 Hats and why every business has them
  • Understand which hats you’re wearing effectively
  • Learn the function, responsibility and performance expectation of each hat
  • Implement strategies so your entire team works smarter, not harder

Fixing your organisation structure could be the breakthrough you
need to free up time to grow your business.

  • Do you find yourself spread too thin in your business?
  • Does your business have a clearly defined structure?
  • Do you have job descriptions for every role?

Booking essential!

https://app.acuityscheduling.com/schedule.php?owner=24616621&appointmentType=61495788

Make a Plan!

Building a better business – Step 4

Alright, you’ve got your sights set on what you want out of
your business. Now, let’s sketch out the route to get there.

First off, fi gure out what you personally need from your business.
Let’s say you’re aiming for $100,000 a year to cover living
costs and a family holiday. And if your business overheads
are $100,000, your gross profi t target is $200,000. Crunching
the numbers, if your current gross profi t margin is 50%, you’re
looking at annual sales of $400,000.

Make sure your plan is all about how you’ll hit those personal
milestones, like that six-week getaway and hitting that $100k
mark.

Here’s some ground rules to make sure this plan sticks:

  1. Keep it simple.
    One page is the goal here, but if you need to flip, make it
    double-sided.
  2. Stick to a maximum of four main goals for the year.
    Break them down into 90-day chunks with actionable steps to
    keep the momentum.
  3. Stick to a maximum of four main goals for the year.
    Break them down into 90-day chunks with actionable steps to
    keep the momentum.
  4. Share the plan with your crew.
    Make sure everyone’s rowing in the same direction. Help them
    nail down their own actions and KPIs.
  5. Keep the plan where it can be seen.
    Track your progress and celebrate those wins with your team.
    Visibility keeps the momentum going strong.
  6. Review your plan every quarter.
    Make sure you’re hitting those 90-day milestones and update
    the plan with fresh goals. Having someone to nudge you along
    doesn’t hurt either.

Your Business Plan is your business bible. It’s your roadmap to making those dreams a reality.

Remember, your business works for you, not the other way
around.

Need a hand crafting your plan? Hit us up for more details on
our Business Planning service.

“Hope is not a strategy.” – Anon

Webinar: Ramp up your Business with Xero!

11:00, Wednesday, March 13, 2024 

Nobody goes into business with the intention of doing paperwork. Long days are made even longer by manual data entry, chasing up receipts, reconciling bank accounts, and following up customers for payment. How much time would you save if all of this was automated?

With Xero, you can save time, reduce your stress levels, and get paid faster. You’ll gain valuable insight into how your business is performing and be able to project your cashflow, enabling you to make better informed decisions.

We Invite you to join us on 13 March at 11:00 for our complimentary webinar, Ramp Up Your Business with Xero, where you’ll:

  • Discover how you can achieve more financial, mind and time freedom
  • Understand the benefits of using Xero in your business
  • Learn how to get paid faster with less stress
  • Understand how Xero provides important insights into your business
  • Identify technology in the Xero ecosystem to support business operations

Can’t make it that time? No problem, get your link before the event start to get access to the recording.

REGISTER HERE: https://us02web.zoom.us/webinar/register/WN_6EyC7ujFT3mLj8cuaHXKHA.

Building a Better Business – Step 3

Written by Bronwyn Pilkinton / BBus, PTBA

“Opportunities don’t happen. You create them.” – Chris Grosser

Introduction: In the journey towards building a better business, Chris Grosser’s words resonate profoundly: “Opportunities don’t happen. You create them.” Crafting a path to success requires an unwavering understanding of your current position – a critical step often overlooked by many. It’s akin to having a treasure map; without knowing where you are, plotting a course to success becomes an aimless endeavor. In Step 3 of our series, we delve into the significance of defining your business’s starting point, warts, and all.

  1. Alignment among Owners/Leaders: The first checkpoint on the road to success involves an honest assessment of the alignment among owners and leaders. Do they share the same dream for the business? Resolving conflicts and aligning visions are paramount to success. It is impossible to move forward cohesively if there’s discord at the top. Aligning thoughts lays the foundation for a unified journey.
  2. Analysing Current Results-Driven Activities: It is not merely about the numbers; it’s about the activities driving your results. How effective are your lead generation efforts? What is your conversion rate? Understanding these metrics sets the stage for improvement. Success lies not just in the destination but in the journey, and knowing the driving forces behind your current outcomes is the key to charting a more successful course.
  3. Team Vision and Buy-In: A great culture and an engaged team are catalysts for success. Ensure that your team comprehends the bigger picture and how they contribute to it. Without team buy-in, achieving the jackpot becomes an elusive dream. Unleash the magic within your team by fostering a shared vision and a sense of purpose.
  4. Evaluation of Measurement and Reporting Systems: Measurement is the cornerstone of improvement. If you cannot measure it, you cannot boost it. Evaluate the accuracy and usefulness of your measurement tools. Your decisions are only as sound as the information they are based on. Ensure that your reporting systems provide the insights needed to navigate towards success.
  5. Identifying Vulnerabilities: What keeps you awake at night? Identifying your business’s vulnerabilities is the first step towards super-hero level improvement. Whether it’s an industry shake-up, new regulations, weak systems, or cash flow challenges, acknowledging weaknesses empowers you to address them head-on. Turning vulnerabilities into strengths is a hallmark of resilient and successful business.

Conclusion: Skipping the crucial step of defining your business’s starting point is akin to sailing without a compass. Be honest, identify weaknesses, and take proactive steps to improve. In the words of Chris Grosser, seize the opportunity to create success. Need assistance in navigating this critical step? Reach out to us by phone or email – we are here to guide you on your journey to building a better business. Do not skip this step; your business’s success depends on it!

AOD App of the Quarter

LastPass – App of the Quarter

In the world of running a business, there’s tons of things to juggle – meetings, projects and most importantly, keeping sensitive information safe and sound. That’s where LassPass swoops in to save the day.

LastPass isn’t just any old password manager; its like a fortress guarding your digital kingdom. Here’s why it’s a game-changer for business owners like you:

  1. One Master Key: Imagine having one master key that unlocks all the doors in your business castle. That’s your master password for LastPass. It’s the only code you need to remember to access all your important passwords and sensitive data.
  2. Effortless Organisation: Last Pass is your personal vault where you can stash all your passwords, from company email accounts to project management tools. No more scribbling down passwords on sticky notes or trying to remember which password goes where.
  3. Enhanced Security: LastPass generates robust, complex passwords that are like fortresses against hackers. It’s a shield protecting your business accounts from cyber threats, ensuring that only the right people get access.
  4. Team Collaboration: You can securely share passwords and sensitive information with your team without fear of it falling into the wrong hands. Need to grant temporary access? LassPass makes it easy to control who sees what and for how long.
  5. Accessibility on the Go: Whether you’re in the office, working remotely, or travelling for business, LastPass is there with you. It syncs seamless across devices, so you can access your important data anytime, anywhere.
  6. Extra Layers of Protection: LastPass goes beyond passwords. It offers multifactor authentication (MFA) options, adding an extra layer of security, such as fingerprint or authentication apps, for added peace of mind.
  7. Audit Trails and Monitoring: You can keep track of who accessed what and when with detailed logs and monitoring features. It’s like having a security camera for your digital assets.

LastPass isn’t just a tool; it’s a reliable ally in the battle against cyber threats, simplifying your security measures and allowing you to focus on growing your business.

The importance of Shopping local & giving Feedback!

Angela Brown – Director / ACMA, PTB

The idea of shopping local often takes a back seat to the convenience and accessibility offered by large corporations and online retailers, however, supporting local businesses and utilising testimonials and Google reviews can have a significant impact on both the community and individual consumers by:

  • Boosting the Local Economy – by supporting local business, we can help nurture a vibrant community and ensure its long-term prosperity. Local businesses offer a personalised service and a sense of connection
  • Shopping locally can have positive environmental impacts as local businesses often source their products locally, reducing the need for long-distance transportation and thereby minimising carbon emissions. Moreover, small businesses are more likely to adopt eco-friendly practices such as sustainable sourcing, reduced packaging, and waste management.
  • Harnessing Testimonials and Reviews: Endorsements play critical role in the local community. By sharing their positive experiences through testimonials and reviews, satisfied customers become fans! Positive feedback from satisfied customers can help establish trust and credibility, especially for those who may be unfamiliar with the business or reluctant to try something new. Testimonials and reviews act as powerful word-of-mouth marketing tools and provide the business with valuable feedback for continuous improvemet.

So, shop local and don’t forget to give Google reviews!

Cash is not profit and vice versa

Bronwyn Pilkinton – Director / BBus, PTBA

Your business was set up to make money and that means you
need to understand the difference between profit and cash
flow.


Net profit is what you have left after you have deducted all your
business expenses from your income. You can improve your net
profit only by changing the things that affect your income and
expenses.

For example:

  • You come to an arrangement with your suppliers to get
    stock cheaper – or you reduce the amount of inventory that
    you have on hand.
  • Your staff get to know your customers better, they learn
    more about what they do and don’t like – and that
    generates more business for you.
  • You roster your staff differently so that you are able to run
    your business more efficiently.

Cash flow comes from various sources. However, it also
covers operating expenses, tax, buying new equipment, debt
repayments and distributions to you as an owner.
Having a profitable business does not necessarily mean that
you have good cash flow.
And a business with good cash flow is not always profitable.
Your business can’t survive without cash.

The following things are essential for business success:

  1. Protect your cash position by knowing what it is. Have a
    cash flow statement and keep it up to date.
  2. Create a cash buffer as an insurance against unexpected
    difficulties.
  3. Protect your cash position against revenue shocks, by
    keeping a balance equivalent to at least two months of
    operating expenses.
  4. Be realistic with your revenue expectations. Take action
    now if it looks like sales are not going to get you to your
    breakeven point.
  5. Credit check your customers up front to reduce the risk of
    not being paid. Make sure you follow up with clear payment
    terms agreed in writing.
  6. Every dollar you spend reduces your cash reserves. The
    best way to protect your cash is to create a budget for the
    spend you know you need – and stick to it.

If you would like help with understanding your business cash
flow, give us a call.

The importance of Shopping local & giving Feedback!

Angela Brown – Director / ACMA, PTB

The idea of shopping local often takes a back seat to the convenience and accessibility offered by large corporations and online retailers, however, supporting local businesses and utilising testimonials and Google reviews can have a significant impact on both the community and individual consumers by:

  • Boosting the Local Economy – by supporting local business, we can help nurture a vibrant community and ensure its long-term prosperity. Local businesses offer a personalised service and a sense of connection
  • Shopping locally can have positive environmental impacts as local businesses often source their products locally, reducing the need for long-distance transportation and thereby minimising carbon emissions. Moreover, small businesses are more likely to adopt eco-friendly practices such as sustainable sourcing, reduced packaging, and waste management.
  • Harnessing Testimonials and Reviews: Endorsements play critical role in the local community. By sharing their positive experiences through testimonials and reviews, satisfied customers become fans! Positive feedback from satisfied customers can help establish trust and credibility, especially for those who may be unfamiliar with the business or reluctant to try something new. Testimonials and reviews act as powerful word-of-mouth marketing tools and provide the business with valuable feedback for continuous improvemet.

So, shop local and don’t forget to give Google reviews!

Embracing Continuous Improvement for Small Business Success

Aimee Christensen – Head Bookkeeper & App Advisor

I recently revisited a classic business book, “The Toyota Way” by Jeffrey K Liker, and was reminded of the powerful principles that have propelled Toyota to global leadership, especially during economic challenges. Toyota’s journey into Lean Manufacturing, which involves eliminating wasteful practices, enhancing quality, and boosting efficiency, holds valuable lessons for small business owners seeking to thrive in a competitive landscape.

At the heart of “The Toyota Way” lies a key concept: continuous improvement. This principle can revolutionize your business operations without the need for massive overhauls. Let’s break down how Toyota’s approach to continuous improvement, or “Kaizen,” can benefit your small business.

Firstly, Toyota places a strong emphasis on respecting and involving employees at all levels. In your business, engaging your team in the improvement process can lead to valuable insights and enhanced morale.

Another vital aspect is mistake-proofing, known as Poka-Yoke. This means preventing errors and defects before they occur, reducing costly mistakes, and improving customer satisfaction. Simple changes can save your business time and resources.

Visual management tools, make it easier to track progress and identify areas for improvement. Going to the work area yourself, as Toyota encourages through Gemba walks, helps you understand processes firsthand and empowers your team.

Collaborating closely with suppliers, like Toyota does, can lead to a more streamlined supply chain and cost savings.

Now, let’s apply the practical problem-solving technique from “The Toyota Way” to your business:

  1. Start by grasping the situation. Identify a specific issue, like a high rate of returned product, and quantify it. This forms your baseline.
  2. Set targets for improvement, such as reducing returned product by a certain percentage. Make these targets challenging yet achievable.
  3. Dig deep to find the root cause of the problem and why it’s happening.
  4. Investigate the root cause by asking “Why” multiple times. This reveals the underlying issues. For instance, why are returns high? Because a part is breaking. Why? Because it’s not installed correctly. Why? Because employees lack proper training.
  5. Implement countermeasures at the root cause level to address the core issues.
  6. Evaluate whether these countermeasures meet your improvement targets. If not, investigate further.
  7. Standardize the new, improved process across your workflows, ensuring everyone understands and follows it.

Incorporating these principles into your small business can lead to gradual but significant improvements over time. By embracing continuous improvement, you’ll foster a culture of innovation and efficiency that can propel your business to new heights.