It’s challenging enough being a business owner, even more so when you’re having to deal with endless issues day after day, or trying to grow or even start your business, or simply trying to survive through tougher times.

Dealing with everything that is going on in your business can be a burden, is quite often time consuming, and something that some owners struggle with and understandably so.

Not everyone is good at everything or has the time to focus on all aspects of a business and do it well. You got into business in the first place because you were good at what you do and wanted to make something of it, but running a business quite often involves a lot more.

Most business owners quickly build a support network around them that includes lawyers and accountants, insurance brokers and bankers, to use as and when they are needed.

You may even have a book keeper too to handle the accounts and administration, a time consuming but important function.

But what about support around making key business decisions, about making changes to your business, about exploring new investment opportunities or deciding how to improve business performance and profitability.

Some accountants can take up that responsibility, but not all. I don’t mean that in a derogatory way, I mean that from the perspective of being able to do it when you want it done, not when they can free up time to do it, i.e. they work to your schedule, not you to theirs. (more…)

The break-even point is essentially your minimum target to attain. Once this target is reached, and assuming your mix of fixed and variable costs hasn’t changed, any additional sales will generate a profit. To understand at a high level what that number is, is important, because it can then be broken down into units, products or service packages that are need to be produced and sold to cover your costs.

By default, it forms the basis of your first and ongoing plans. It’s a disciplines all business owners should master.

Why is Break-even point so important?

• It gives you a point of focus, your minimum financial & operational performance level.
• It provides an insight into the characteristics of your true cost base, which costs are fixed and which vary depending on your level of income or production.
• It provides an opportunity to review what optimum mix of products or services works for your business.
• It highlights the financial performance standards that need to be reached to start making money.
• It forms the basis for key pricing decisions and volume considerations in running your business.
• Its an important consideration when looking at new investment and the opportunities that may bring. (more…)

For some business owners who have run their business for the last 10, 15 even 20 years, it’s sometimes hard to break the mould of cruising from one year to the next. New years’ celebrations are over, resolutions have been set, with some already broken. For businesses it’s not that much different, it still involves reflection and it still involves thinking about the future as you see it. It needs to be an annual ritual, but should be taken further than that and seen as an opportunity to either reaffirm previous goals that continue to provide focus, or maybe it’s time for change.

Planning affects all aspects of business, from business start-ups, to overcoming difficulties associated with growth or survival, to a desire to do things better and more efficiently, through to adventuring into new horizons with new products, services or markets, and on to setting up new projects and even planning to exit your business.

Why should it be the first thing you do?  Because it provides focus, it provides an opportunity to assess the status quo and whether that still fits with your business, it provides an opportunity to evaluate the landscape and identify potential risks or opportunities you hadn’t identified in the past, it provides an opportunity to change things, realign, redirect or discontinue.  It provides a platform to think through the pros (more…)

It should be every business owner’s objective to know where they stand in the market compared to their competitors. They should also have a mind-set they can learn things from their competitors, even if it’s to say “We’re not doing it that way”.

Benchmarking is when you compare your business activities and processes to those of your competitors.

It’s often seen as being too complicated and time consuming to undertake on a regular basis and as a result is often snubbed. But it shouldn’t be disregarded without serious thought because there is often a lot to be learned from your competitors and this process provides an opportunity for you to do that. Even if you think you are at the top of your game, you still want to know how close the rest of the pact is.

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