My magnificent seven tips to improve Return on Capital Employed (ROCE)
So often we read or hear in the media about the latest fast-growing business. Everyone seems to focus on the growth of the business but what is the real measure of business success? When I review the financial performance of a business, the primary measure I look at is Return on Capital Employed (ROCE). Generally, […]
Top five tips and traps for developing an effective succession plan
I’ve often been asked by clients to assist in a trade sale of their business or a sale or hand over to the next generation. These all take different forms depending on the motivation of the parties concerned. While there seems to be an increasing awareness of the need to prepare for transitioning the business, […]
Family business succession strategy – communication is the key
In over thirty years advising family businesses, the most successful succession plans I’ve seen have been the ones where there was solid stakeholder engagement – in other words – good communication within the family. Even if you think everyone is aware of what is going on and generally on the same page, don’t leave things […]
How to add thousands to your bottom line
Just like in our own household, waste costs the average family business tens if not hundreds of thousands of dollars every year. However, the business owner doesn’t just incur the yearly cost, but the multiple of that cost when a business is sold. Let’s assume that through a waste audit we can identify $100,000 in […]
Three reasons businesses don’t have cash
There’s an old saying – profit is opinion, cash is fact. That’s because despite making a profit, some businesses still don’t have enough cash to pay the bills. At the end of the day, a lack of cash will kill a business. Since the GFC, banks have been paying increased attention to the cash flow […]
Superannuation strategies: a comprehensive guide and tips for small business
For many small business owners, superannuation can be a confusing and complicated place. This needn’t be the case. It is best to break things down into various “buckets” and tackle them one at a time. If you would like to learn more about how to get the maximum benefit from your superannuation, or how to […]
What are the main barriers to effective succession?
Barriers to succession I’m often intrigued when I read in the press about rather large family-owned businesses which are impacted by family and succession issues. Someone commented to me recently about the issues surrounding Bob Jane’s family and his business and how these have been in the media in recent years. I was asked: “Why […]
Beginning at the end…9 step process for achieving your exit plan
In business management guru, Stephen Covey’s, best-selling book, The Seven Habits of Highly Effective People, beginning with the end in mind was a top habit of his. This got me thinking. Why is it that so many business owners don’t have a clear picture of what they want their business to look like when it’s […]
Use your customers to fund your business growth: debtor financing explained
One of the reasons businesses run out of cash – and generally go broke – is that they grow too fast. What a paradox – the business is growing too quickly and is therefore too successful for its own good! Not surprisingly, in situations like these you also find that the largest “creditor” of the […]
Funding options available for innovative businesses
The Federal Government has indicated that they are very keen to support innovative businesses. There are a number of funding options available by way of government grants for businesses that can meet the Government qualification requirements. If your company has been “experimenting” to try and solve a problem in your business for which there was […]