SBA Insider Secret #6

Continual Change

Today there are two types of businesses, those that change and those that disappear.

  • Leaders must have a high level of dissatisfaction and motivation to make change
  • Business leaders must be ready to make change
  • Business leaders must know what changes need to be made to improve the business
  • Business leaders must have a plan and proven process that involves people within the business

Change must be continual and become a culture not a task.

 

Simply Business

www.sbasuccess.com.au

+61 3 9790 0590

 

Personal productivity in the workplace

What could you do with an extra 100 minutes per day?

I attended a session last week facilitated by productivity expert Glenn Tranter, which I found very informative and a wonderful reminder on how important productivity is in the workplace.

It got me thinking that if my session with Glenn motivated me, I should share some of the conversation with you my SBA ‘profit tippers.’

But before I delve into some tips on how to gain more time in your hectic schedules, let’s start with a definition of what productivity is;

“Productivity is the effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input.”

In this application output equals results from what you set out to do and input is the time it takes to do them. To improve productivity, the objective is to achieve more (especially the important things) in less time.

The reality is there are many things we can do about improving productivity, and importantly don’t forget the benefits which can be achieved from improving your personal productivity.

In our conversions, Glenn stated that the average improvement from attendees of his program is gaining 100 min per day. So ask yourself, what could you do if you had an extra 100 min a day to focus on the things that matter? I asked my colleagues this same question and the answers varied from better work-life balance, less stress and improved financial results-so who wouldn’t want to improve their productivity!

Now let’s move onto the list of tips that Glenn and I would like to share with you as a starting point to improving your productivity;

  1. Mindset shift - If you think you can you can, if you think you can't you can't. You have to want to make changes to improve productivity.
  2. Make changes - Behavioural changes are essential, you cannot improve anything without making changes.
  3. Prioritise - Be clear on what really matters, generally the most important things aren't urgent and don't get priority.
  4. Learn to say NO - If you don’t control your time others will do it for you.
  5. Determine when your peak energy period is - Complete the most important things in your peak energy periods.
  6. Plan your week – Plan your week on a Friday so your productive first thing Monday and this also helps to keep your weekends free.
  7. Schedule – Be sure to schedule your actions.
  8. Set clear goals – Set clear goals for 30, 60 and 90 days.
  9. Accountability – If you’re having trouble getting things done, have somebody hold you accountable. This will make an enormous difference to your outputs.
  10. Establish your rhythm – Set your rhythm or routine so that over time it changes your behaviour.

My ‘phil-osophy’ is you will be remembered for what you achieve not how busy you are –so let’s focus on achieve results, not excuses.

Review the above tips and select a few that will give you maximum results, and start making some changes today. You will be surprised at how quickly you see the benefits!

I’m looking forward to working with Glenn next month when we run a productivity session for some of my SBA clients. If you too would like to speak to Glenn about any of his programs for you or your business, you can email him on glenn@glenntranter.com and let him know I sent you. I also highly recommend you subscribe to Glenn’s productivity newsletter at www.glenntranter.com.

If you would like assistance with how to make changes in your business or any of our leadership and mentoring programs, simply contact us at;

Simply Business Australia

Philip Coombs

phil@sbasuccess.com.au

M 0419 834 678

The difference between an entrepreneur and small business owner.

 

I am often asked what exactly is an entrepreneur and how does it differ from a business owner? The answer is very interesting and understanding the difference can help you increase your sales and profitability and improved your work-life balance.

For context purposes I like to start with what my definition of a business is;

“A business solves a persons problem, or satisfies a want or need at a profit” and the key point which I would emphasis here is at a profit!

Secondly I would like to provide a definition of an entrepreneur which is found in my book “Profit is not a dirty word” (which can be purchased on amazon).

“An entrepreneur is a person who sets up a business and takes on the financial risk in the hope of making a significant profit.”

In other words an entrepreneur sees the potential or opportunity in the market to make a profit. Again I would like to emphasis the importance of profit, and what makes the difference between a successful entrepreneur or business owner and an unsuccessful one, is the ability to generate acceptable profits from your business venture.

In reality, by definition, every business owner starts as an entrepreneur however over time they become a business owner as the start up characteristics disappear over time and the business enters the maturity phase. I believe to be a successful business owner long term you need to continually reinvent your business and yourself which means you must reignite your entrepreneurial spirit.

To do this I believe a business has to review its business model and evaluate the market potential or opportunity you are perusing. My observation is that every business and market changes over time and the original potential or opportunity is often no longer there or may have shifted. The result is usually stagnation and reduced profitability over time, which is where many businesses stay because they haven't adapted or changed in response to a rapidly changing business environment.

If you are suffering from a lack of mojo, reducing sales and or profits, start by re igniting your entrepreneurial spirit by revisiting your business model and evaluation of the market potential. The purpose of this exercise is to identify where the opportunities are today and reposition yourself and your business accordingly to capitalize on the new or changed opportunities.

The benefits will be increased sales and profitability, improved work-life balance and the joy of having your mojo back.

If you would like some help to review your business model and reignite your entrepreneurial spirit simply contact;

Simply Business

Philip Coombs

m 0419 834 678

e phil@sbasuccess.com.au

Tick tock, tick tock…… Time is of the essence!

 

Why is June so important?

As we quickly approach the end of financial year, now is a good time for business leaders to not only review your 15/16 results and achievements but to also get a head start and refocus and reignite your vision, objectives and goals for the upcoming year.

It’s a common complaint of many of my clients, “where has the time gone?” And I’m sure you’ll all agree that it seems time is flying by faster and faster, so let’s use this month wisely- take a big breath and re-focus on your key priorities to ensure we create a better future for you and your business.

Financially, June is a very important month for many reasons especially for accounting firms responsible for the end of the financial year accounts for Australia’s $2.0m businesses.

If you haven’t already done so, June is also an important month to finalize budgets for the upcoming financial year, which means evaluating facts including this year’s results, fiction (expectation that others want) and reality (what good budgeting should be).

To me it is also a time for leaders to reflect on the year that was including asking some hard questions such as;

  • Did we achieve budget profitability?
  • Did our revenue grow?
  • Did we achieve our objectives both financial and non-financial?
  • Did we make the changes we needed and wanted?

If you answered no to any of these questions, you must be experiencing a level of dissatisfaction or frustration. In business to improve profitability or performance you must start with a high level of dissatisfaction or frustration, then decide on a clear vision on how the business should be, then finally develop a plan outlining how to get there.

As a starting point we recommend that you identify your number one frustration and then think about the benefits to you and your business if you were to fix this frustration. It’s important that you also consider the implications if you didn’t fix the frustration, as combined, this should provide the motivation necessary for you to prioritize and improve in the upcoming financial year. And something I would like you to keep in mind is “your frustrations are an opportunity, and where there is opportunity there is profit.”

As I mentioned earlier, time is of the essence. When we think of successful leaders, we think of strong, decisive communicators with a clear vision, so let’s make sure we use June wisely.

If you are have a frustration that you are determined to rectify but you’re not sure how, simply give me a call to arrange a complimentary opportunity assessment so I can show you how.

 

Simply Business Australia

Leadership-Profit-Growth

Phil Coombs “The Profit Coach”

M (0419)834-678

E phil@sbasuccess.com.au

W www.sbasuccess.com.au

Change equals profit

Change is the only way to improve profitability in business.         

In business we have never seen an environment where the rate of change and the need to change has been so great and experts predict that this rate of change will increase significantly over the next five to ten years. With this in mind, my phil-osophy is “there are two types of businesses, those that change and those that disappear.”

I strongly believe that many companies struggle with their financial performance simply because they stopped adapting and changing in response to both the internal and external environments in which they operate.

The key drivers for change are factors such as digital disruption, mature markets, increased level of competition, margin squeeze and the changing needs and pressures of your key customers.

Owners and leaders must know how to manage change if they are to guarantee current and future success. To assist business owners and leaders, I have identified what I call the secrets to successful change management;

Secret number 1- Leadership - Leaders must create a high level of dissatisfaction and provide the motivation within the organization to make change. To do this owners and leaders must clearly identify the benefits the changes will make, and be responsible for driving the change.

Secret number 2 - Involve your people – Long term success will be determined by continual change and for this to occur you must build a change culture within the organization where change becomes the norm, it is the way you do business and becomes a core value. When this happens you have a change management culture which becomes very powerful. To build this culture requires engagement with your people so they have ownership of the process and its outcomes.

Secret number 3 - Vision – The business must have a clear vision on how it will work or look after the changes. You need to clarity what you are changing to.

Secret number 4 - Change success model – Is the organization ready and able to make the changes necessary? Change success is a formula made up of the organizations readiness, its capability and its beliefs. Very early in any significant change process, this needs to be evaluated and strategies put in place to ensure barriers to change are addressed.

Secret number 5 - Identify the changes required – Use a tool such as a “magic wand approach” to identify the most important things that need to change. Select the top three and simply start with the number one priority. If you are not sure where to start ask your people, as often they know what needs to change and how to do it.

Secret number 6 - Adopt a proven process – A business must adopt a process that if followed will work and produce desired changes, and if you don't know how, seek advice. There are only two ways a proven process will fail, that is to NOT START or STOP.

Secret number 7 - Develop a plan – A key part of the process must be to develop a plan which includes where you are at now (things that need to change), where you want to be (what you need to change to), the gaps and the strategies and actions on how to bridge the gaps.

Secret number 8 - Embed changes – When you have fixed the gaps in your business, significant changes would have been made, and these changes must be embedded into the way the business now operates or the business will slip back into the way it used to do things. This is done by writing new, or making changes to existing procedures and fully implementing, followed by continual monitoring.

Secret number 9 - Repeat the process – When the process has been completed, start again as this is how you build your change management culture.

A company must develop a process that works for them to make continual changes in the business. A business will not improve its performance and profitability without making changes and often significant changes.

Do you need to make significant changes in your business? Do you believe you can successfully make the changes necessary?

If you are having problems and would like to be shown a simple and proven change management process, please contact us for a no obligation meeting where we can show you how to build a continual change culture in your business and the associated benefits.

 

Simply Business Australia

Philip Coombs “The Profit Coach”

0419 834 678

phil@sbasuccess.com.au

www.sbasuccess.com.au

 

Change equals profit

Change is the only way to improve profitability in business!

In business we have never seen an environment where the rate of change and the need to change has been so great and experts predict that this rate of change will increase significantly over the next five to ten years. With this in mind, my phil-osophy is “there are two types of businesses, those that change and those that disappear.”

I strongly believe that many companies struggle with their financial performance simply because they stopped adapting and changing in response to both the internal and external environments in which they operate.

The key drivers for change are factors such as digital disruption, mature markets, increased level of competition, margin squeeze and the changing needs and pressures of your key customers.

Owners and leaders must know how to manage change if they are to guarantee current and future success. To assist business owners and leaders, I have identified what I call the secrets to successful change management;

Secret number 1- Leadership - Leaders must create a high level of dissatisfaction and provide the motivation within the organization to make change. To do this owners and leaders must clearly identify the benefits the changes will make, and be responsible for driving the change.

Secret number 2 - Involve your people – Long term success will be determined by continual change and for this to occur you must build a change culture within the organization where change becomes the norm, it is the way you do business and becomes a core value. When this happens you have a change management culture which becomes very powerful. To build this culture requires engagement with your people so they have ownership of the process and its outcomes.

Secret number 3 - Vision – The business must have a clear vision on how it will work or look after the changes. You need to clarity what you are changing to.

Secret number 4 - Change success model – Is the organization ready and able to make the changes necessary? Change success is a formula made up of the organizations readiness, its capability and its beliefs. Very early in any significant change process, this needs to be evaluated and strategies put in place to ensure barriers to change are addressed.

Secret number 5 - Identify the changes required – Use a tool such as a “magic wand approach” to identify the most important things that need to change. Select the top three and simply start with the number one priority. If you are not sure where to start ask your people, as often they know what needs to change and how to do it.

Secret number 6 - Adopt a proven process – A business must adopt a process that if followed will work and produce desired changes, and if you don't know how, seek advice. There are only two ways a proven process will fail, that is to NOT START or STOP.

Secret number 7 - Develop a plan – A key part of the process must be to develop a plan which includes where you are at now (things that need to change), where you want to be (what you need to change to), the gaps and the strategies and actions on how to bridge the gaps.

Secret number 8 - Embed changes – When you have fixed the gaps in your business, significant changes would have been made, and these changes must be embedded into the way the business now operates or the business will slip back into the way it used to do things. This is done by writing new, or making changes to existing procedures and fully implementing, followed by continual monitoring.

Secret number 9 - Repeat the process – When the process has been completed, start again as this is how you build your change management culture.

A company must develop a process that works for them to make continual changes in the business. A business will not improve its performance and profitability without making changes and often significant changes.

Do you need to make significant changes in your business? Do you believe you can successfully make the changes necessary?

If you are having problems and would like to be shown a simple and proven change management process, please contact us for a no obligation meeting where we can show you how to build a continual change culture in your business and the associated benefits.

 

Simply Business Australia

Philip Coombs “The Profit Coach”

0419 834 678

phil@sbasuccess.com.au

www.sbasuccess.com.au

 

 

Profit is not a dirty word!

Phil-osophy “A business must make sufficient profit to make the efforts, energies and risks of being in business worthwhile.”

There is one fundamental question I always ask a business owner, “what are you in business for?” Although there are many and varied responses, all owners generally include an element of financial betterment. The reality is you cannot achieve financial betterment without your business being profitable enough to meet your goals and in turn you won't be able to achieve many of your personal goals without your business being successful.

Unfortunately reality is that most business aren't as profitable as they could or need to be, and running a SME business is a lot more difficult than perceived. Many find that they can't grow and the harsh reality is that 90% of businesses don't sell and those that do may find that they don't get anywhere near what they expected.  Although this may not be painting a wonderful picture, it is the reality that some 2 million registered businesses are facing today.

From my 30 years of experience, the biggest issue I see is that SME owners are not talked enough about profit. Unfortunately owners and business leaders rarely ask for assistance and don't do enough about improving their profits. Many find excuses, cross their fingers and hope next year will be different.  Profit has become a dirty word.

The good news is that the formula for success and resultant profitability is constant across industries, size of companies and once understood there is a lot a business owner can do to improve their own profitability.

Firstly let's look at some simple profit theories by starting with my definition of business. This will simplify the concept and provide a clear understanding of what business is all about.

“A business solves another person’s problem and satisfies a want or need at a profit”. Many business owners do a wonderful job of satisfying their customer’s wants or needs or can solve a problem, but unfortunately in many cases do not do so with sufficient profit.

 So let’s look at Profit. Contrary to popular belief there are not one but two types of profit in business.

Firstly there is Operating Profit, which is the lifeblood of an organization and provides return to investors, looks after employees and provides working capital for future growth. Equally important, a business must grow. Growth provides the oxygen that breathes life into the future of the business. “If a business is not profitable it will disappear, if it doesn't grow it will eventually disappear”.

Secondly there is, Profit on sale which is the ultimate prize or reward for owning a business and can only be achieved once. The process to build a business that will return a significant profit on sale should start at the beginning of the life of the business or if you have been in business for many years then the process to maximize profit on sale could take 2 to 5 years prior to the sale, which will maximize the financial return for the effort.

To obtain a significant profit on sale requires the owner and its leaders to spend regular time working on the business not just in it. All of this must be achieved in an environment of acceptable work life balance which was discussed in last week’s Profit Tip Article.

Owning a SME is a tough and lonely place at times and starting a business and registering a company does not mean you have the license to drive it. The formula for success is at hand, so if you are having trouble with your profitability, work life balance or growth please contact me to show you how.

One of the greatest leadership traits is asking and getting the right help at the right time.

Over the next couple of weeks we will be publishing articles on “the secrets to sustainable profit growth in business” and the “secrets to achieving a significant profit on exit”.

It must be remembered that making sufficient profit is required to make the efforts, energies and risks of being in business worthwhile and a core ingredient to improving work life balance.

If you would like to improve your profit please contact;

 

Simply Business Australia

Philip Coombs “The Profit Coach”

0419 834 678

phil@sbasuccess.com.au

www.sbasuccess.com.au

If you’re a business owner, make sure you always keep the end game in mind.

Did you get into business and don’t know how to get out?
 
Its sounds like a simple question, but I’m constantly surprised by the response when I ask business owners “why are you in business and what is your end goal”?
 
The answers are varied, but it’s obvious that many people are in business without a clear understanding of the end game.
So let’s make sure you follow my important phil-osophy and don't find yourself" in business not knowing how to get out"!
 
In business there are two types of profit, operating profit and a profit on the sale of your business-the ultimate prize and reward for being in business. As an extension of my phil-osophy, the end game of business should be to make a significant profit on the sale of your business.
 
Unfortunately statistics clearly indicate that most businesses don't sell or can’t make a reasonable profit on the sale. So if this is your goal and you don't achieve this, we need to ask ourselves why?
 
The answer is very simple- the business was not ready to sell when put on the market.
 
The secret is that an owner needs to understand that the end game is to make a significant profit on sale and that they need to continually work on making their business sale ready, as a sale ready business is worth a lot more than one that is not.
So if the secret is to make a business sale ready what does a sale ready business look like?
 
The definition of a sale ready business is “a business where the value placed on it by prospective purchaser meets or exceeds the value placed on it by the vendor”. To maximize the value of your business, and improve profit, you have to build your business to what a prospective purchaser might be looking for.
So what does a prospective purchaser look for?
The following are the key attributes a sale ready business will have;
  • A clearly defined business purpose
  • A history of profit growth
  • An industry leader in terms of profitability
  • Highly systemized i.e. processes and procedures for key functional areas
  • Under Management, not owner controlled
  • A Business Plan with clearly identified growth drivers
  • The X factor
The process of making your business sale ready is in effect your business journey, from start to finish, and not something that just should be considered when you are ready to sell.
And remember “a good business ready to sell is also a good business to keep”!
If you would like to know how to make your business sale ready please contact;
Philip Coombs “The Profit Coach”
Simply Business Australia 
0419 834 678 
phil@sbasuccess.com.au / www.sbasuccess.com.au

Many baby boomers struggling to sell their small businesses

Republished from The Age, Monday 23 March 2015 - Adam Courtenay

If you are in your 50s and 60s and trying to sell your small business, join the ever-lengthening queue. Never before have so many tried to sell so many nest eggs at such short notice.

There are a record 41,200 businesses for sale across Australia as at October 2014, the BizExchange Index shows; a 23 per cent rise on the preceding quarter.

Many point the finger at one group: ageing business owners. There's an oversupply of desperate "seniorpreneurs" flooding the market with the nest egg they created and nurtured over 30 years.

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