Archive for category Risk Management

Evaluating Your Small Business Strategy

Jul 8

Posted by Bren Ryan in Excellence!, Growth, Innovation and Creativity, Planning, Risk Management, Starting out in business, The Board Room, The Operations Dept | 1 Comment

Countless people set themselves personal goals in life, but in many cases, small business owners don’t do themselves the same favour. Without setting time aside to consider, plan and implement a solid strategy for any business, its success can be often hindered or compromised.

In these tough economic times, owners are struggling to make their business grow, but strangely enough, there is great opportunity for companies to make leaps and bounds while the market is down.

Take a Step Back

Being in the day-to-day running of your business can alter your perception of how effectively it is run. Take the time to look at every facet of your business to gain the most unbiased perspective.

What kind of relationships do you have with suppliers? Is there any way you can leverage the associations you have with them to gain better pricing or additional extras (like longer trading terms to increase cash flow) that they don’t usually provide?

Do employees see their position as a job or a career? One of the most difficult tasks an employer can face is motivating their staff so that they are more productive. Try to introduce creative, cost effective ideas to improve staff morale, which will ultimately allow your business to be more successful in so many different ways – higher customer satisfaction, increased work output, less mistakes and a much nicer place for everyone to work.

What are your sales margins? Taking a realistic look at how much you are making on your products and services is crucial to allowing your business to grow. A small increase in sales margin may not seem like much in isolation, but calculated over a year, this additional profit can make quite a difference to your bottom line.

In many cases, customers will expect to see increases in prices every few years, purely because of inflation. If you do apply increases, be transparent to your valued clientele – it will only reaffirm why they should continue to spend their money with you.

What are your competitors doing? If they are blazing trails in your area or industry, find out why and how. Start to follow their lead and see where you can even improve on their practises. But another, far more powerful way to knock down competition is to find out what they are doing badly. By being exceptionally great at what your competitors do badly, it will soon put you miles in front.

Planning – What to Consider

After all the research has been done, it’s important to spend some time planning how you will turn all of these findings into meaningful actions. There is a fine balance between continuing to maintain a high service level in your business and being able to implement new processes, procedures and projects. Figure out what elements can be immediately implemented into your business and what will take more time and resources. Once you’ve determined this, you can then allocate timelines to these more lengthy projects so as not to interrupt the flow of your business. Many strategies tend to stretch over several years, so make sure you build some level of flexibility in to allow for changes in your business, the economy and the marketplace.

Implementation – Getting Your Hands Dirty

It’s all well and good to research and develop business strategy, but sometimes the hardest part can actually be doing the work involved. The best way to avoid being overwhelmed with implementing the strategy is to break up each task and set key goals and milestones. Once you have completed the task or project successfully, make sure you take the time to look back on what you have done and be constructively critical. If you have an upcoming project of a similar nature, it will allow you to become more efficient in implementing your business strategy.

All in all, developing a business strategy gives you the chance to recognise opportunities and shortcomings that may not have been realised otherwise. While each business can be very different, the foundations of a solid business strategy are ultimately the same and can be applied to most companies, regardless of their service offering or industry.

An article provided to us by one of our site sponsors – NRMA Business Insurance

Tags: economics, employees, implementation, margins, Planning, relationships, suppliers

Do you have staff? STOP NOW!

Jun 9

Posted by Steve Gray in Health and Safety Dept, Risk Management | 1 Comment

Pay attention people, all hell could break loose with your staff and you may not even know it! Ok I may be exaggerating a little but the thing is you could have a potential problem so stop now and read on…

Here’s the issue, you figure the people you employed will have some common sense and do the right thing in your business, know their skills, apply them well and be a productive part of your business community. But wait, what if you learned they may not have so much common sense after all, don’t feel bad (just yet) many people seem to fall into this category…

The specific issue this time is OHS, lets set a scene to explain why. You explain the OHS system when you employed a person and figure they will remember to let you know if an incident happens, even if it is a minor one or even if it has the possibility of happening. But over time they forget.

Lets go a step further, the staff member in question, twists quickly in the course of doing their job, no lifting of an object… just a twist, lets say to change direction while walking… In an instant they feel some pain in their back, a strain or sprain of some kind.

They think to themselves, “I wasn’t doing anything at the time, and even though I am at work there is nothing to report.” well not true, they have an injury which took place at work, not due to work but AT WORK. Therefore it should be reported. In this case however it wasn’t.

The issue becomes greater as the person decides the next day to take time out to se a Doctor as the pain is worse and needs to be seen to. Their Doctor is busy so they go to another, see a long waiting list and decide to give it a miss, they have missed a day of work and will see if they can sleep it off. The next day they return to work still a little sore from the ordeal.

Chances are it may never turn out to be an issue for the person or the organisation, but what if it did.

Lets say the person does have an issue, and on advice they get legal advice, the solicitor tries to pin down what took place and the OHS records at the business show nothing reported, then they close the book and say “Sorry it’s doubtful there is any case for the company to answer as there are no records of an incident taking place, was there a witness? No, oh well then there is nothing to make your story stick…”

Interesting story, but in real life such a situation can be tragic for the employee if they can not pursue any action, tragic for the company if they lose an employee or end up with one who may be able to only do some of their original duties, which could be tough all round. Or imagine they just spread the word your organisation is lousy for not looking after people, more mud, and some will stick.

The moral here is to keep training and reminding your staff to be highly aware of safety issues, making it a number one priority always, and reporting the simplest thing, actual or potential, which could be a risk to the organisation or a person. Lets hope the subject of our story has no further issues and the sprain gets better soon!

Are you really insured?

May 17

Posted by Steve Gray in Planning, Risk Management | No Comments

Are you really insured?

When business does not go as planned the owner can end up in a serious bind, this can be the case when an event like a storm ruins things, in some cases even wiping out the business. But lets take the idea a bit further… what if you didn’t have private health insurance and you needed medical attention now and not some time in the future when the Government scheme can fit you in? Or you are on a business trip and did not get travel insurance?

In business as in life things can go wrong fairly quickly and people find themselves saying “If only we had…” or “Are you sure we paid that last premium?” The peace of mind they may have once had fades fast. When disaster strikes you want to be sure you covered your bases. Private health insurance exists: to give you a fast personal health service when you need it most and the team at http://hbf.com.au may be one of the providers you turn to for a starting point.

You will have seen news reports of natural disasters tragically affecting lives, and some of you will appreciate the follow on effect a disaster can have on the wider community when the shock of a nasty event subsides. Sure our current medical support services can help out in a crisis (Australia) but when the follow up or specialist services are required you can be at risk if you don’t have private health cover. Imagine if you are overseas and are caught with a medical situation, you want to make sure the travel insurance is in place.

In many communities small businesses make a huge impact on local employment, and the provision of so many necessary services. Not only does a disaster wipe out these things, but the potential income loss for the owner can be huge, good business cover can help out there but on the personal side health cover is often overlooked and it can be at the peril of the business if you are not able to be there to run things.

I guess Insurance is about peace of mind in knowing that should a situation arise where it’s needed it’s there to cover you. For those into business speak, it’s about risk management and finding ways to minimise those risks wether you are here or overseas getting the right cover can make a world of difference.

Perhaps insurance should be seen more like a good friend, often not seen until needed, but, when needed, they are worth their weight in gold. On the books of the business the “expense” of insurance would end up in the liabilities column, but when you need to make a claim you might soon view it as an asset. Your health is all that matters and nowhere does that matter more than when you’re overseas http://hbf.com.au/travel/ can be the answer to your travel insurance needs.

Let’s face it often people pay for the their business, car and home insurance with ease (they are used to that) but their health and travel insurance may be seen as an expense at the time. I’m not sure that would give me peace of mind, how about you?

Remember it’s an investment to make your life easier by giving you peace of mind in knowing you are covered if disaster strikes and you need the support and protection of a good friend!

Workplace Bullying Policy

Jun 14

Posted by Steve Gray in Health and Safety Dept, Human Resource Management, Leadership, People!, Planning, Risk Management | 1 Comment

Don’t turn off and stop reading because you are a small business, Don’t stop reading because you believe you have all the bases covered on this one, and just because your people in the HR department say there is no need for such a thing due to no cases of it at this point be wary of that.

Imagine you employ a bright eyed graduate or fresh faced school leaver brimming with interest and potential, then after a few weeks you see them with less of a smile, less of a pep in their step. For most people watching this person they might say, yep the realities of being in a job have kicked in, he he!

That can be the case, but what if they have found their supervisor or a co-worker has given then some grief, a few terse words, a few statements which have impacted on their esteem. This might seem like petty stuff but the impact of this sort of situation can get out of hand very quickly, the worker may feel powerless, in a bind, awkward, berated, useless and so on.

Your business has a duty of care, you have a duty of care and this needs to be stated up front that everyone in the organisation also has a duty of care. Therefore that being the case guidelines need to be in place to clearly out line what actions are taken in situations like this and to spell out some basics as to what might constitute bullying, harassment and other situations which might impact a persons esteem.

Okay so now a bunch of you are saying “Hey the hell do I have to care about a persons esteem? Heck I pay them to do a job, they should do it and put up with the situation, they should harden up, the world is a tough place…”

My view on that is how can you not care about a person you employ… If you are not into caring, avoid being in business. If you don’t care, your customers won’t either and then your staff will soon disappear. Yes it’s that basic, and you need to ensure you have the situation covered or you could be caught out VERY QUICKLY.

So do the right thing and have one ready to implement now, I suggest at the very least you do a search on google and see what comes up, grab one that suits and use it. for a rock solid start try the public service in your country and see what they have you can edit to make it your own. one I looked at recently had a 44 page doc you could download easily enough and it had various examples as well. http://www.apsc.gov.au/ethics/respect.pdf

To finish, imagine this, you are interviewing people for a job, on telling them about the organisation you are able to show them a copy of your bullying policy. It shows you care, it shows you will not tolerate people who don’t care, it shows you want to have happy people enjoying being part of the team, together everyone feels safe and in a organisation which values people, enough said…

Tags: bullying, HR, Leadership, Planning, Risk Management, workplace safety

Basics are basics…

Jun 1

Posted by Steve Gray in Finance, Growth, Leadership, Risk Management, Starting out in business | No Comments

It’s June 2009 the global financial crisis is still happening. Watched a documentary on Chinese businesses going under, huge factories closed down, lots of out of region migrant workers now displaced. Sure this was one province (Guangdong) and particularly one city Dong Guan, so probably not a big cross section to measure by. The show was on SBS Australia’s Dateline (May 31) and showed a range of businesses closed and gutted out.

Here’s a quote from the show “In Guangdong province alone, 60,000 factories have now closed down and millions of migrant workers are searching for work.”

My first thought was what were they making? well it’s interesting the businesses included a printing plant, toy factories, and jewelry manufacturing… My second thought was do they make for the local market or export, export… third question, is the product a need or a want, mainly want.

So it comes down to the basics if the majority of what is produced is not for needs when a downturn comes the wants are dropped first. When an external order from overseas is pulled then the whole thing can collapse quickly. as the local economy is hanging on wants, the failure of one is felt across all.

Learn from this huge scale disaster and make sure you have a balance of income from needs based sources as well as wants based sources. If you have shares in a grocery company Co for example it seems logical that they supply the needs of people, then take your own business think about how you can supply to the needs based customers. Think carefully about this as a form of insurance to ensure you can balance your wants and needs to ensure sustainability.

Business is…

May 23

Posted by Steve Gray in Excellence!, Growth, Planning, Risk Management, Starting out in business, The Board Room | No Comments

There are many types of business primary, secondary etc… but I have just had a thought about other “types” of business and felt it useful to share.

In the most part a business is about creating a device to provide a product or service and make a profit from it, however it goes a bit further than that. I feel it’s important to make a few distinctions.

Job – not a Biz – Turn up – do work – go home – repeat.
Low level Biz Operator – as above – not much scope to get ahead – Some franchises can feel like this.
Low level Biz Owner – Some growth as the biz operator gets some leverage by having staff do the work, with input from the owner.
Mid level Biz Owner – Better growth limited input to the biz as the staff do it all with a manager in place or similar – perhaps develops other businesses or franchises of one business.
Upper level Biz Owner – As previous but developing assets to utilise the growth’s potential.
Top level Biz Owner – Utilises others to do the work, from developing more assets to creating more businesses.

Which level do you want to be at and what will it take to get you there? Notice it’s all about growth and profit leading to leverage, with leverage you can do more. When you learn the skills and mindset required to do this you get to play at a new level each time learning more skills and mindset tweaks to assist you. Note at each level and with more leverage you can assist more people, develop greater security and achieve more.

Companies shirk responsibilities

Apr 18

Posted by Steve Gray in Excellence!, People!, Planning, Risk Management | 1 Comment

Ok so this is my view… but how dare a company employ people and not cover their entitlements when the whole thing goes belly up…

Here’s an example from our local newspaper, on Melba Industries.

The company does not have the funds to cover their staff entitlements now they are being liquidated. As business go along they find the money (put it away earlier) to cover tax requirements, and allegedly the same with Superannuation payments etc… so why not put away an amount to cover entitlements.

Or at worst I guess it could come out of a DRF (Debt Reserve Fund) of some kind. How about some form of insurance they have to pay into, or a compulsory savings plan for employee entitlements, that way the real profits could show through and the issue could not be so big.

Hey folks don’t hold your breath waiting for the government to do something about it, do the right thing from the start, take the whole duty of care situation more seriously and cover those entitlements.

Sustainability, a thought or two.

Apr 8

Posted by Steve Gray in Excellence!, Planning, Risk Management | No Comments

In tougher economic times the idea of sustainability may take on a fresh meaning, the big car guys didn’t get it, they have put their hands out… many other companies are down the tubes to, they also have their hands out.

Before a revolution kicks in and angry mobs demand “jobs and justice” I am reminded of a “trend” a few years back which offered some promise but seemed to rarely deliver.

A friend was telling me about grants his organisation was applying for (not for profit) one of the criteria was based on “making the project your grant will be used on, sustainable.” simply put he said on discussing the issue with work colleagues, the best they could do was come up with a few ideas around energy efficient office equipment, using recycled paper and that sort of bent on sustainability.

I said, “It’s funny but I get the view they want you to take the $$ and be able to sustain those $$ for as long as possible.” Simply put if they give you $100K towards a worker and some resources, you would then get at least double that return from that workers output, therefore sustaining their job and building more resources.

He went wide eyed for a moment, first thought was “How do you get $200k from a $100k ‘investment’ in a person?” while his second thought was “But we would have to do some project which was going to make us money from sources other than the grant…”

He was stuck, or at least his current paradigm was stuck, he had to now think outside the square as to how either of these might happen.

Sometimes we have to look out for fresh ways to tackle things so we can make our organisations more sustainable, and whichever way you look at it both are useful. In tougher times those that made the transition to being more fundamentally sustainable will reap the benefit, those who created a “want type” business where people walk away when spare cash is not about, will (in the main) feel the “pinch”.

Forum down… but not out!

Mar 30

Posted by Steve Gray in IT Dept, Risk Management, The Board Room | No Comments

A huge apology to all who want to view our Business Forum… We have had an issue with a “hacker”, and have to wait for the “rescue squad” to put back the pieces, I guess it will give people a break from their “forum fix” and give them a chance to read the main articles and comment in here!

It makes things hard when on Saturday I handed out a bunch of FBT cards at a business function, rather annoying!

Conservative or smart…

Mar 26

Posted by Steve Gray in Excellence!, Finance, Innovation and Creativity, Planning, Risk Management | No Comments

As more companies go down, and an unrepentant writhing takes place as people follow the sense of fear pervading workplaces, I am left to ask… Were these big companies not smart, or perhaps should they have been conservative?

Ok a boom is a boom, bust is what it says and no one wants to go bust. So how then do you even out the ride and make things settle down into a form of business which can handle the tougher times. Get conservative, get smart.

There is heaps of info on business smarts, same probably for being conservative (chat to your accountant if you don’t follow…) the idea is to put in action plans to ensure you cover your butt. Meaning put some cash away for a rainy day. If you have more than enough then you can invest some of the rainy day money (preferably into things which you can sell and turn back into cash readily.) then as the investments grow you might be in a position to take on some longer term assets which return an income (read rental property)

By taking this sort of stance you make sure your business has a back up plan and a solid foundation to build security with.

I guess it all comes down to the aim of the business, do you aim to be in business for the long haul and reap it’s various rewards, or simply take risks and live in the fast lane for a while… Conservative or smart, perhaps it’s both.

Down up, left right which way & what next!?

Mar 12

Posted by Steve Gray in Finance, Growth, Risk Management | No Comments

Positives and negatives abound in the new found financial meltdown news, some people have lost value but not $$ (Big business CEO’s who find their stock options are “a little short on value”) while others have lost $$ but not value (e.g. work has dropped off for some contractors).

Despite all this the average “Joe” is now fighting to keep their jobs or hoping to get another one where the boss is not giving them grief and so the applications for positions has gone down but the number of applicants has gone up. Strange times call for strange answers…

Ages ago I wrote about a tourist town in New Zealand doing Ok, but what would happen in tough times? they supplied to the “wants” of the world and not the “needs” of the world. This put a few noses out of joint, but unfortunately the minute things went haywire so to did the tourists… bye bye, back another day when things pick up.

It comes down to balance (yeah too easy for me to say huh…) if the overview of the situation is too much one way (providing just wants) then hassles occur… if you provide to just needs then there are no want type situations to be taken advantage of. (imagine a supermarket, which just provided basics and NOTHING else… It equates to all work and no play.

So much for macro economic theory (of which I know little formally) what about Micro? Well the situation is this. You are in charge of the $$ at home and the things under your control, so you had better figure out how to balance things there (strangely similar? yep!)

Basic investing 101 says “Have a balanced portfolio” so you buy shares across a range of areas, resources banking etc… This helps to balance things if one goes up and the others go down, but if the HWOLE share market goes down, stiff luck. What it really means is, have some $$ in shares, some in business, some in Investment properties, some in the bank. In tough times you can shift things about to suit.

For most people the balanced portfolio idea outlined is nice but few have the ability to fund this many investment options. Challenging and frustrating all at once, so this is where a BIGGER picture plan comes into being. If you have just shares what are you saving for? An investment property… or the chance to put profits into the bank. Either way your plan should show you the way.

Lets face it many people have been caught out by the current financial dilemma and many more will feel pain before it’s over, but there are those who have taken a balanced approach and will not be doing things so tough as others. Half their luck. let’s hope in the positive future we can all heed their wisdom and build a sustainable portfolio for long term financial support.

Jobs slashed, businesses fold… NEXT!

Feb 26

Posted by Steve Gray in Excellence!, Growth, Planning, Risk Management | No Comments

Pacific Brands Australia announced over 1800 jobs to go in the next 18 months.. jobs to go off shore.

Those who are regulars here will know I have sprouted wistfully about the doom and gloom, however this time I want to take a “positive swipe” at the situation and ignore the nay sayers cutting jobs and propping up the shareholders (or so it might seem).

I have long been a proponent for the Cooperative business model, it has shareholders like most businesses however they generally have a vested interest in the business and provide a “different” backbone or foundation for the business, as opposed to a seemingly “slash and burn” approach of some public organisations.

So I ask…

What if the workers were able to form a cooperative and take over from where their employer has left off.
What if the Company was to utilise the strength of unity of the workers and explore sourcing the goods from a Coop they assist to set up to keep the jobs here and not ship them OS.
What if people were put down as a profit and not as a liability…

Lots to explore, but in the end we let this stuff happen, perhaps it’s time to take a stance, set up some great business models to be able to handle these situations better. After all 1800+ jobs can be a bit much.

Crunch time is nigh…

Feb 18

Posted by Steve Gray in People!, Planning, Risk Management, The Board Room | No Comments

On the news this morning more jobs lost 600 here 400 there and that’s just in Australia… so where to from here?

Well people will pull their heads in then even more slowly let them out, I guess the smart money is on businesses, which provide a need for customers, then there’s those which put a spin on their want type of business so it sounds like people need it. (check out any of the infomercials selling “stuff” on the TV…)

The challenge as I see it, is being able to overcome the time factor in the ongoing “recession” just how long will it take to get beyond the tipping point and back to reality? The last recession we had was in the late 80′s and once revealed I guess it was 9 – 12 months before things bounced back.

During that recession, I was delivering Pizzas and attending my second chunk of Uni. So I was more or less out of the loop so to speak. One thing, which stood out, was, although there were plenty of people doing it tough, there were still people with cash to spare (Most nights of the week our little Pizza store had upwards of five drivers zipping about the burbs delivering $15+ hot and tasty pizzas… ok more luke warm and barely tasty…).

So now we are starting to see the jobs fall, and people panic a little what really happens in the background?

Well, bigger businesses have less exports, then they put off workers in big chunks, that causes the local community those people come from to hiccup… Once previous solid communities reel under the instant burden of a whole bunch of homes coming onto the market, the good people from those homes scramble to find work, relearn, redeploy, retire, relocate or rest… The real estate and share prices take a beating and things stabilise as they find their value.

In the scramble the majority of folks and businesses will be running about screaming “the sky is falling!”, while at the top of the heap, (read top 3 – 10%) a bit of shuffling takes place in their seats, buttons are pushed, memos are sent, meetings are held and a dip in their finances is about all that shows as they adjust the position of their sails, nudge the tiller and head for clearer open water. It seems these businesses have different GPS devices to the rest…

The lesson from the top of the heap is to cover your butt and make sure that during the up times you let your profits run, so in the lean times you work the profit margin hard so it shows it’s true worth in the lean times. The lesson from the bottom of the heap is “PANIC!, push and shove, the fastest and fittest will survive…”

Tough times show the real side of people and businesses I guess, lets just hope there are more of the top of the heap types about, so we can learn from and heed their advice.

Bushfire innovation

Feb 12

Posted by Steve Gray in Innovation and Creativity, Planning, Risk Management | No Comments

For many this might seem like a curious title but I hope it makes sense as you read on.

For many the horror of the Victorian bushfires will be an ongoing battle as they come to terms with personal loss on an unimaginable scale. For those watching from a short distance they are living the horror with some degree of distance from direct involvement but perhaps with some knowledge of friends or relatives affected in some way… Then there are those further way from involvement but still seeing and hearing about the issues those on the “front line” are facing.

Each time a bushfire of any magnitude does it’s thing various changes take place in policies and procedures at various levels of government. in the 1936 fires they created the CFA (Country Fire Authority) then with the Ash Wednesday fires in the 1980′s they got better at disaster and fire management. This time around I feel sure there will be changes yet some of the things that could have been done are really simple and no brainers, let me explain.

In many of the fire areas houses were old and made of timber with metal roofing, over 1,000 of these were burnt to the ground.

Over 800 people have died, having no where to run when they could not fight the fires.

Both of these challenges could have been dealt with.

There are earth houses, these are simply structures cut into a hillside, then a “shape” is formed out of concrete slabs or poured forms with windows across the open slope of the hill, on top they put about 1 metre of dirt to cover the structure. the dirt forms a great insulating layer both from the std elements as well as the extremes of fire.
A few people survived the ravages of the fire by having a cellar or basement to retreat to which was made from concrete and provided protection. Simple structures like a concrete style tank made for this purpose could provide relief similar to a panic room built into some modern homes for security conscious people.

Both of these options do not suit everyone, of course! However they are existing devices which have been proven and could be very useful in the future.

What it boils down to is having the ability to innovate, think creatively and develop a range of options to suit our situation, so living in areas where this level of risk is apparent can be minimised. Perhaps it will provide a business opportunity which can revitalise the building industry as many builders will be kept very busy re building. Hopefully the haste to re build will not force people to build unsustainable structures, which will cause difficulty when the next fire comes along.

and now….

Feb 10

Posted by Steve Gray in Planning, Risk Management | No Comments

Your are in the midst of the economic whatsit… and you are doing what?

perhaps you are planning what to do… Pulling your hair out as prices alter before your eyes, competitors cut their margins to keep afloat, petrol prices go up (again) staff are nervous and looking elsewhere, your partners and or shareholders are asking questions, your accounting team are fudging (oops read working with) your numbers, suppliers want to be paid…. and so forth and so on.

STOP!

Ask this one question… Is it any different (REALLY) to “normal business”, so someone turned up the volume on a few things… Amazing how that makes you think, worry, get nervous/anxious.

As the pressure rises, do you think “Can it get any worse?” Do you feel humbled by the bushfire and flood crisis in Australia thinking so many have lost so much and you are ok… Is all this pushing your threshold to the limit? If it’s not, what will!

Note folks this is the status quo, if it’s not the environment – financial crisis – staffing issues – bushfires – floods – customers pulling their heads in etc… (the list goes on) then it’s something else.

Therefore the resultant writing on the wall is “it’s getting tougher to do business” so you had better have heeded the warnings the business guru’s put out ages ago and innovate. (Read the ability to go left not right, or up not down.)

If you can do that chances are you can make some headway.

Stimulus package 09

Feb 3

Posted by Steve Gray in Finance, Growth, Innovation and Creativity, Risk Management | No Comments

The Australian Government is due to release details of it’s next economic stimulus package today 3/2/09.

The previous stimulus package drew bad reviews from what many saw was a flawed package (handouts to family’s). The feeling seemed to be that the money went to frivilous purchases (gambling among them) while some saved the money for “A rainy day”.

The answer? Well the new package will be interesting to see, however the view from my side is this… Support and stimulate those with the most to give back to the community (in long term possible effect) the smaller business sector.

Imagine if they provided a range of effective support services to allow them to sustain their businesses through the challenging times, and then provide a platform to grow from when things pick up. In short training the business community to survive so they can thrive.

Over time the statistics on business failures has never been favourable so perhaps now is a great chance to address this issue. For too long it has been too easy for people to THROW away their hard earned dollars on a business idea they figure will bring them riches beyond compare, yet many find they have to work harder than ever to attempt to survive let alone thrive.

There are already all sorts of support packages available to those in the know, however a more coordinated approach beginning with an online overview of successful business practices etc might be a start, then follow this up with enterprise training packages aimed at giving the end user short sharp answers to pressing business challenges.

I know it may not happen, however the resultant flow on to the community could be immense.

Are you taking part in the economic downturn?

Feb 1

Posted by Steve Gray in Excellence!, Growth, Planning, Risk Management | 1 Comment

If you are listening to the news you are, doom and gloom at every turn.

Many businesses will give up, walk away and say things like “It was out of our hands…” “We were at wits end…” “It wore us down…”

So make a decision, to stand and deliver or fold under the pressure. The key thing is MAKE A DECISION.

Is what you have still useful? – If for instance you are selling out of date fashions you were able to “buy for a song” you may be pushing uphill. Being relevant, researched and ready is a big part of the battle, so know if what you have is viable.
Set solid goals – Where do you want to be headed? If you don’t know where you are going, how will you know if you get there? Goals for cash-flow, profit margins, staffing levels, marketing, management etc… make those plans ROCK SOLID then implement them.
Make your systems work – No systems (or few) then get them up to speed. Some systems but not working, go for a tune up so you can reach full speed. Do some research find out if what you have is suitable, effective etc. You are on the net so start here.
Get the team on board – You want to succeed? So do I… here’s the plan, sell more, smile more, do more with less, watch out for the competition, be great at what you do… (To name a few) now have a heart to heart with the team, and keep them on board! Now is not the time for mutiny.
Chat to the Stakeholders – Thats the team, the customers, the banks, suppliers anyone connected to your business. Keep them quietly confident your business is here to stay, then use any chat to research what you do, is it good or great? Then use the info to make things work more effectively.
Measure – How does your business measure up with the competition? What do they do better? Now ask if you can match it AT LEAST, or better it with ease.

Innovate now…

Jan 31

Posted by Steve Gray in Excellence!, Innovation and Creativity, Planning, Risk Management, The Board Room | No Comments

Economic indicators for the global downturn etc are rocking the ‘system’ to the core, now more than ever we need to innovate rather than blindly continue to do what we always have done.

Businesses need to reevaluate where they are at, what capacity, scope and skills they have. Instead of running scared and waiting for the “sky is falling” syndrome to kick in, they need to come up with their own answers to the challenges that lay ahead and tackle these with dogged determination.

I guess the same can be said of governments, innovate now so they can lead the way.

A possible example is the way the Australian Government is handing out what I will call “recovery packages” allegedly a whole bunch of people took their handouts and went straight to gamble it away on poker machines… not very useful to some, but a spreading of the good will nonetheless. Innovative, hmm hardly but it was to be expected I guess.

What if the government had taken those millions and put it into “capacity building” such as training small business, training redundant workers with short sharp and to the point sessions to give them options, and not just options that lead to longer course pathways… Imagine a place where people could readily brainstorm future paths to personal and professional growth, where business ideas could be readily explored and evaluated, Where open thinking paved a way to overcome closed minded “that will never work” thinking.

Any time is a good time to innovate, now it seems we need to work on it more than ever, but let’s face bare facts, are you prepared or even trained to innovate? Chances are no… Perhaps now is the time to take matters into your own hands, to take positive action.

Think outside the square and come up with ways to turn the situation from a capitalist nightmare to a capitalists dream. 6 billion people with a dream beats 6 billion with a nightmare…

Change Happens, Handle it…

Jan 23

Posted by Steve Gray in Growth, People!, Personal Development, Planning, Risk Management | No Comments

With lots of things happening in the world it makes sense to get a perspective on things, some change you are experiencing may be good, some the opposite. Here are a few things which you may find of value in changing times.

Be positive and have a sense of optimism – So things are changing… You can say “Oh woe is me…” or you can say “Whoa! Things are changing WOO HOO!” the choice is yours, an optimistic approach generally works out for the better, it puts your “spirit” somehow into the right frame to handle and accept things.
Change can be good – Ignore it and it can be bad too… – You need to decide fast what’s happening and what fits to your core values and beliefs, if it fits well then go for it, if it doesn’t consider taking another path.
You have a range of skills to handle change already – You’re an adult right? You have fallen over and picked yourself up from an early age, some of us may seem to fall over more often, so some of us may have more skills to deal with the situation. Reflect and remember all those things you have overcome, were you stronger at the end of it? Chances are yes… Tally up the skills you have, now put them into action.
Not letting excuses and negative emotions stop you – Feel the fear and do it anyway can be useful at times, and this may be one of them. Ask yourself what are my excuses and negative emotions around this issue and what would I prefer them to be? Go on write them down so you can tackle them HEAD ON.
The more you resist change, the more things may not happen how you want – I am not saying this is always the case but often it seems this way, and have you ever met someone that said “I should have done this earlier?” uh huh… and where would you prefer to be, starting out early or late? And ask this was anything I resisted in a change way in the past ever really that bad?
What stories are you telling yourself? – Your self-talk is the one thing, which might just be holding you back, check out No: 4 again… is it your self-talk trying to “protect you?” from what? The unknown? Is it really unknown? Or is your self-talk wanting to “set you free” and explore everything this new change may bring…
Deeper meaning, is it part of that? – Some of you will have a faith, which may suggest you are part of a bigger plan, some of you may have figured it out for yourself… Some of you look at the chaos and challenges and say meaning is impossible, check out No:1 again and ask “Which do I want to be part of, a bigger plan or not, Chances are your “gods” (or demons…) will make sure it happens for you the way you want.
Get a support team – Ask who can help me, who will understand? Then take a leap of faith to get them on board, they might be an email contact, a person to call on the phone, a buddy you can catch up with live. Whoever and however, carefully consider getting a team, a rock solid positive team of people who can hold you to the standard you want to be held to.
Create a plan and take action – If you have not started jotting down things from the above list already I would be surprised. I care not for what sort of plan it is, but write it down! Perhaps keep a plan journal, consider reading your key plan points daily, or a wall plan, gather photo’s and collage a new you lifestyle plan on a wall chart… Keep it simple, real and vibrant. It’s your life, live it the right way, the way that makes the most sense to you. Oh and yes, take action, all the best thoughts in the world are worthless without action.

Hard Financial Reality

Dec 13

Posted by Steve Gray in Finance, Planning, Risk Management | 1 Comment

How many times have you heard terms like, “Never give up”, “Play hard”, “It’s all about taking risks…”, “Put your money where your mouth is”, “To make money you need to spend money” “If only we can make it through this rough patch”, “Set lofty goals to get results”, “Put it on the plastic…”, “It’ll be alright on the night”, “If only I had a bit more credit..”

And of course a whole lot more. Many of these are to do with life in general and business as well (often there is a strong connection with both!). The issue, being able to ensure your business is in good position so the above “terms” don’t effect you.

Easy to say but hard to do so lets look at some basics… You sell services or products, your business must therefore make money, you pay for things with that and have some left over all going well. If not you are running a charity and are waiting for the next “grant” to prop you up, if you are in private business this can only happen for so long before things get too bad to continue.

Running out of cash happens, running up a credit card bill happens too! Often too easily, you max the card out, the bank gives you more, the monthly repayments get stretched and before long its out of control. If you have become dependent on it, it becomes a drug.

Over the years I have seen drugs claim lives, and the credit drug seems to almost be just as strong as any substance around! The aim therefore is to ensure you can run without the credit card.

I have had to cut up about three credit cards in my life so far and have now vowed to not have a personal credit card of any kind, a mortgage, or line of credit for an asset sure, but only if I know I can service those loans and do my darndest to reduce the amount owing. My wife first alerted me to my “addiction” and cut up the first card, I owed $1,800 and it was creeping out (doesn’t seem much now but back then I could barely make the repayments if at all.) She looked at the monthly account and there was not a purchase on it for the past four months, I was just paying off things well in the past and not keeping up. The third time… you DON”T want to know… (And I am not telling!)

The next time was a card my wife was offered (special deal in the mail..) she wanted it, she got addicted slightly, I closed the account, I had a card for that account as well and it was not long before the bank was offering us a higher limit… that was the signal to get out so we did. Note it was MUCH harder to close the account than it was to open it.

In business however the stakes can be higher, a big loan to do capital works, buy new stock, the list goes on, but the ability to pay the loan/s back should be a critical factor in doing these things. At the time of writing this we are in the depths of a big financial downturn, the government is handing out cash to families etc to prop things up so more than ever having a good approach to credit risk is vital.

Oh and if you think you can have a credit card account and not tell your partner, think again… they will figure it out at some stage, and the proverbial will hit the fan, and don’t think for a minute it will be evenly distributed.

Here are a few points to stop the sleepless nights, constant worry and hassle credit can bring to some.

Use it wisely – If you must have credit, never increase the limit past a reasonable amount you know you can readily repay.
Cut it up – This piece of plastic is probably killing you slowly, the stress, the hassle. GET RID OF IT cut it up NOW. Then make repayments to reduce it’s stranglehold NOW.
Re finance – avoid high interest payments, scrap the card but get a personal loan with less interest to take the pressure off the higher repayments, Ok it’s still a loan but at least the repayments are less and you can’t “dip back in and use it”.
Some people have the strength – Chances are you don’t have the strength to use it wisely and it will creep up on you like some form of insidious cancer, whether you can handle it or you can’t, decide now! AND TAKE ACTION.
Evaluate your position – If you have to pay it out can you? Is it really for emergencies and what constitutes an emergency? Is it just for business or other use as well? Can you up your profits or turnover to make the repayments if you do max it out?
Plan – To make your business profitable, so you can avoid getting into a credit crunch. If you keep not making a profit, then something needs to alter. Prices up? More sales? New products or services? Better service? Better customers?
Get advice NOW – There are financial support and counseling services available, USE THEM. If you have to hire a business coach to help you I guess that could be useful too (Just don’t put it on the credit card!)

Take action to get your business and or personal life in order so you can avoid being stretched, stressed, hassled and have sleepless nights that don’t help your performance at all. “Stop worrying and start living…” Oops! Another term for the list!

Asset protection

Nov 7

Posted by Steve Gray in Finance, People!, Planning, Risk Management, The Board Room | No Comments

In turbulent times there are the basics that need to be looked after like revenue needs to be more than expenses, but then again that should always happen, but in doing the basics an asset protection policy is always good too, who would like to loose a good performing asset right? but I am seeing too much of organisations not looking out for their assets, in particular the employees. So check this article out, It has a few clues.

Even in our own site we have lots of articles on employee engagement to give you more clues.

In closing I think that the basics are often underrated, so ask yourself what are the basics of a successful business and how can we maintain and then build on the basics, provide protection (security) and communicate that your organisation is here for the long haul, in an environment of fear, the security or sense of it will be well worth it in the long run.

Change, innovation and pure survival…

Oct 29

Posted by Steve Gray in Excellence!, Innovation and Creativity, Leadership, Planning, Risk Management, The Board Room | 1 Comment

In the tumultuous financial crisis and the uncertainty it causes, there is one thing for certain, Change is happening. Sure it’s not a change that organisations implemented, and for many it’s a change they did not have a contingency plan for but it’s happening and if your organisation needs to do something about it, then your training in innovation will put you in good stead… What’s that you have no training in innovation… ooh.

Well lets get one thing straight the ability to handle change is important, the attitude, the planning, the stance the leadership skills, they are all important in an age where Improvise, adapt, overcome becomes the hallmark of a survivor.

If you need to be able to think about new strategies and brainstorm with others, then petty office politics and ineffective interpersonal communication needs to be put aside. In a crisis it can be “every man for himself” or “Lets get the team together and nut out the best way forward NOW…”

Either way it probably comes down to you the leader to find a way forward, to make the right moves (or at least have a go) sure you might make mistakes, sure the road might be tough, sure there can be unexpected thing pop up, but if you don’t face reality then you might be wondering what’s happening next.

Wonder no longer, and be the one that sets the team up to thrive, if they fall short of that they survive, so the high goal needs to be there to ensure things go on. It’s up to the senior people in the organisation to provide the leadership, to use innovative and creative techniques.

In sot if you are not providing the right environment, skills, attitudes and mindset to make it through then folks the end is nigh, but if you are putting you best feet forwad, then if the grim hand of failure comes your way you will have known you put in a top effort to weather the storm. I guess the decision to act and make a stand is up to you, or not…

On the edge…

Oct 27

Posted by Steve Gray in Excellence!, Franchisees, Innovation and Creativity, Leadership, Planning, Risk Management | No Comments

When tough times strike my heart goes out to those businesses on the edge, and of course instead of talking about daily things that can trip up a marginal business, we are now talking about bigger fundamental global meltdown type trip ups.

So when the going gets tough how many of the businesses on the edge have a debt reserve fund, or a plan b, or an innovative structure, system, marketing plan etc to get them out of the jam? probably too few. Then on the business front, if they are a “want” type of business do they have their fingers in the pie of a “needs based” business to be able to handle the changing spend patterns of consumers… probably not.

Here’s 8 quick points to give you the edge in tough times.

Have a plan A, then have a plan B, just in case!
Have some reserves, stuff happens so be ready for downturns.
Needs based V’s Want based, if you sell gifts for example, you might want to look at developing a needs based business to complement it, this way you cover your butt when customers walk away from the niceties. Consider diversifying into an online business of some kind that is easy to manage from your want based business, get busy while it’s quiet.
Keep marketing, but make sure it’s making you money, don’t throw money out and get NOTHING back, measure it carefully, get smart about how it works.
Keep the team informed, fear can run deep and fast, let them know what you are doing or plan to do to weather the storm. Batten down the hatches but make sure they know where the exits are…
Lead, now more than ever the team needs you, teach them GREAT customer service, if people get picky you need to have the BEST people upfront, with the BEST service, now more than ever. Get out on the floor and look for gaps, are they smiling, are they happy, do they know the products and or services inside and out? No? train them…
Be nimble, change is a given so learn to love it, zig when the others lag or zag. This way you can be there when the others have fallen by the wayside.
Improve your systems, now is a great time to tighten up on how things tick over, ask hard questions like “Are we doing things the best way?” “How can I jump start and or utilise my peoples collective intelligence to give us a lasting edge?”

You get the idea, make a difference, a poisitive difference so your business can take on the challenges tough times provide and see it through successfully. So jump up to the whiteboard and make a start NOW!

Banks and the meltdown

Oct 10

Posted by Steve Gray in Finance, Planning, Risk Management, The Board Room | No Comments

An interesting letter to the editor in a local paper about Ben Chifley’s (past Australian Prime Minister) idea of a nationalised bank being a must have.. Well we had that in Australia with the commonwealth bank then that was privatised…

Okay so what if We had a bank that had some form of Co-operative approach or structure. One where the people had a say in how it worked, one where the idea of prudency was revered, where cash (and the customer) were king, and other assets were of value too, but the cash side kept building (perhaps to a debt reserve fund or similar). A bank where the people really cared because the bank was the people. A bank where you as a customer felt like the service team really did care, a bank where the service team not only handed out loans for building houses and businesses but turned up to see it finished…. In short a bank that set it’s own highly rigourous standards without the Government having to intervene, as the bank not only met the stds set but exceeded them with ease at every turn.

In a time of greed, money grabs, plunging values and challenges a co-operative approach could make a world of difference.

Your business and the flurry of market meltdowns

Oct 4

Posted by Steve Gray in Excellence!, Innovation and Creativity, IT Dept, Personal Development, Planning, Risk Management, The Marketing Dept, The Operations Dept | No Comments

An interesting article in the Melb Age newspaper on the flow on effect to smaller businesses.

In an interesting basic view, if the big banks can’t get money to lend, or they are pulling their heads in “Just in case” then your chances of getting credit of some kind may well be hampered, in the short term maybe not a big deal, but in the bigger picture the squeeze could be on!

It’s risky, get over it and move on…

Sep 23

Posted by Steve Gray in Finance, Franchisees, Planning, Risk Management, Starting out in business, The Board Room | No Comments

I have seen a range of TV current affairs shows recently pointing out businesses (reasonable sized ones on occasions), going under and taking investors with them. If you invest in a business it is risky, any sort of business (and I don’t care what glossy brochure or figures they show you…)

So there are risks involved and you can lose money, you can also gain $$ to, and of course that’s generally the aim for an investment. Look I feel sorry, deeply sorry for anyone that loses hard earned cash in a business deal of some kind, and perhaps there should be a leaflet that people have to hand out in any transaction that may involve risk to explain there may be a risk.

The thing is let the buyer beware (Caveat Emptor) but also understand that people are losing day in day out, and the opposite is also true! In a capitalist society like ours the aim therefore is to have more wins than loses.

So guys, harden up, the road ahead is loaded with potholes and challenges, don’t get angry, get smart and find better ways of evaluating a deal or investment in terms you can understand.

Think Globally, Act Locally

Sep 21

Posted by Steve Gray in Excellence!, Growth, Leadership, People!, Planning, Risk Management, The Board Room | 1 Comment

I have just been to see WALL•E the animated film, it was fantastic, the graphics, the story, the whole concept was exceptional. So the environmental message? Yep there was one, and as such I figure on a local basis we can be doing things to prevent a “Wall – E – World” from happening… (hey that’s not new is it…)

I know our “Local Authorities” have a long term plan, is it all about growth or does it take into account looking after things, being the guardians of the planet at a local level. If “all hell broke loose” Could our region survive? Would we have enough of the “right resources” to keep going?

Chances are the long term plan is laced with “Innovation” and “Leadership”, “growth” and the such like, yet down on the ground realistic local action that I can tangibly say “Yep they’re doing something…” is not visible.

Lets take it to our businesses, do we have the ability to diversify in a way that gives us a support base if things go bad? A Debt Reserve Fund of some kind? A range of other “business interests” that allow us to fully serve the wider community? Mostly… No.

I figure that if I went to the local “Planning guide for the next 50 years” created by local authorities and searched in there for business “goals” or “ideals” to assist my business I might go away a bit befuddled by the academic language, the jargon and the rhetoric, however I probably should be silent until I see the “beast” and let it prove me wrong, (or right…)

I urge all business people to act responsibly and find ways they can make positive impacts at all levels of “stake holder interaction” (there’s my chunk of jargon for the day… ) so our future can stand the test of time.

If I fail will the Govt pick me up?

Sep 21

Posted by Steve Gray in Finance, Growth, Risk Management, The Board Room | 1 Comment

So what were the Risk Managers telling the management at Lehmans bank… maybe they should be fired… GROSS Negiligence perhaps? or did their “leaders” not listen…???

I have often said that organisations should have a “Debt Reserve Fund” large or small, if they had a range of assets (cash is a start) then they would have been able to say “Our core business is falling, but our back up foundation is solidly in place.” Instead the US Government comes a ridin’ in, all guns blazin’… “Yahoo! here comes the cavalry!!!”

So if my business fails will the Government give me $$ to prop it up? Hardly, and I barely call the aged pension a payout for years of challenges and ups and downs.

So fellow business people ask yourself what are we putting away to buld a foundation in case of challenges like this, and I don’t mean insurance…

Finacial markets in meltdown…

Sep 17

Posted by Steve Gray in Finance, Growth, Planning, Risk Management, The Board Room | 1 Comment

The USA banks, the market slide, you name it the financial markets are taking a battering with trillions of $$ in value lost… The media is alive with speculation, and sensational headlines.

WOW the guys with the money seem to be in a squeeze, now watch as the rest of us suffer in the aftermath.

But hey, I remember hearing (back when Australia had the “recession it had to have”) that since the “Great Depression” (what was great about it?) That financial markets world wide had a range of stop gap measures in place to avoid a meltdown… Oops it looks like someone failed to read that section of the operations manual, oh well what’s a few trillion lost…

The banks are able to gear themselves to the hilt, meaning they have little cash and a lot on the “never never” so they are in a great but precarious position. Anything they make in profits seems to go into real estate (check out their multi-storied head offices) or CEP perks (I’m just jealous!). Yet little seems to build their “cash reserves” to be able to handle challenging times like these.

The same of smaller businesses, many are only a few weeks of “challenge” from real disaster and have to hope that their strategy of “run on a wing and a prayer” will hold up if things go bad (now try and tell me that’s not the case with your business?!).

Really we are all in a similar boat, never far from the dirt we eke a foundation from.

Probably the one thing that rings true in the fullness of time, is clarified by my memory of migrants that saved their pennies and stashed them in tins in the back yard, they paid cash for everything and probably still do. These guys know that a slight breeze can bring down a house of cards, and as such have an insurance plan to cover it, a real one… CASH, not a trumped up piece of paper with terms and conditions designed to trap the unwary.

Who’s responsible?

Aug 29

Posted by Steve Gray in Excellence!, Franchisees, Franchising, Planning, Risk Management, Starting out in business | No Comments

In the “topsy turvy” world of franchise contracts, agreements etc, (which many franchisees have little understanding of) it’s painfully obvious that many of these documents ask the franchisee to jump through hoops, but how about working things the other way?

Over time the franchisor will build a “watertight contract” and expect the franchisee to know a lot of things about business and how to get results, but if the result in the business for the franchisee is less than spectacular, where is the “Duty Of Care” by the franchisor in all of this. It’s far too easy for them to throw their hands in the air and say things like “You knew what you were getting into” or “You had the disclosure documents…” “You had the info” and a whole list of other statements/excuses.

When a franchisee is experiencing challenges (not enough customers, not enough turnover, not enough full stop!) then the franchisor says “Well ask us for help” So some do, they drop their pride and call for help. Often the answers given relate to “Put more into your local area marketing” Hello! if I am down the “tubes” and have less cash, how can I put in to make things “better”.

I figure the franchisor should establish a “Duty Of Care” policy and or procedure for the good of the franchise, and the good of the franchise industry. In fact the duty of care policy should state. (For example) That a franchisee must keep a reserve float of emergency cash (in a bank account) that ensures they are able to pull out some extra to make things go “voom”, and over time add to that so it grows to cope with inflation etc.

I also figure they should be held accountable for the marketing… If they put an advert in a publication, was it designed by a marketing expert or the copy room at the local paper…? Then making sure the results are clearly and effectively measured so you can know how well the marketing $$ are spent and you are definitely getting a respectable return on the investment.

If the franchisor is working at building a robust organisation that can provide an effective system for the franchisee, then they need to make sure the people investing in the business are developing their business and financial accumen as well. Okay some have an annual conference, the people go and have a great time, but how many put the information into action? Is their “area supervisor” following up on that? Are their business plans reflecting that development? In many cases no.

Watch out for more “Duty of Care” observations, as they arise and franchisees become savvy to the idea and franchisors get caught out.

So far it’s a one way street with the contracts, but a savvy organisation will ensure they provide avenues to ensure a franchisees ongoing success and what a selling point that will be.

Wisdom comes in many forms…

Aug 28

Posted by Steve Gray in Chill out!, Innovation and Creativity, Leadership, Negotiation, People!, Personal Development, Planning, Risk Management, Starting out in business, The Board Room | No Comments

Fast thinking and wisdom can work wonders, I saw this today and thought it’s well worth reproducing here, enjoy!

A wealthy old lady decides to go on a photo safari in Africa, taking her faithful aged poodle named Cuddles, along for the company.

One day the poodle starts chasing butterflies and before long, Cuddles discovers that he’s lost. Wandering about, he notices a leopard heading rapidly in his direction with the intention of having lunch.

The old poodle thinks, ‘Oh, oh! I’m in deep doo-doo now!’ Noticing some bones on the ground close by, he immediately settles down to chew on the bones with his back to the approaching cat. Just as the leopard is about to leap the old poodle exclaims loudly, ‘Boy, that was one delicious leopard! I wonder if there are any more around here?’

Hearing this, the young leopard halts his attack in mid-strike, a look of terror comes over him and he slinks away into the trees. ‘Whew!’ says the leopard, ‘That was close! That old poodle nearly had me!’

Meanwhile, a monkey who had been watching the whole scene from a nearby tree, figures he can put this knowledge to good use and trade it for protection from the leopard. So off he goes, but the old poodle sees him heading after the leopard with great speed, and figures that something must be up. The monkey soon catches up with the leopard, spills the beans and strikes a deal for himself with the leopard.

The young leopard is furious at being made a fool of and says, ‘Here, monkey, hop on my back and see what’s going to happen to that conniving canine!

Now, the old poodle sees the leopard coming with the monkey on his back and thinks, ‘What am I going to do now?’, but instead of running, the dog sits down with his back to his attackers, pretending he hasn’t seen them yet, and just when they get close enough to hear, the old poodle says ‘Where’s that damn monkey? I sent him off an hour ago to bring me another leopard!

The moral of this story….

Don’t mess with the old .. age and treachery will always overcome youth and skill! Knowledge and wisdom only come with age and experience.

I am in no way insinuating that any of you are old, perhaps some are just youthfully challenged!

Over time I have come to respect the wisdom of the more “mature” around us, and as I get older I hope I can benefit more from my own wisdom and have the good sense to draw more on the wisdom of others.

In business it can seem like we know it all, (or we think we do) but the reality can be different. I guess the point being to know the difference and profit from it.

How much are you really making?

Aug 27

Posted by Steve Gray in Finance, Growth, Risk Management, Starting out in business, The Board Room | 3 Comments

Maybe you have been in business for quite a while and have most things figured, but how much are you really making?

With so many variables, fixed costs, and “things that challenge your earnings” it can be hard to tell what the take home earnings are.

If you have fixed costs it pays to make sure you have those covered, and knowing how much you need to earn per day (min) to cover these. Recently I met a business person that was sure he was making a profit but in reality he had a surplus, and with added costs from variables he was actually only making a very small profit.

Your business requires you to know if you are making a profit so that longer term planning can take place, otherwise you may find yourself in a tricky business position and wonder how on earth it happened.

Take care to measure carefully what’s happening so you too can get ahead and explore the growth possibilities your business can offer.

How much will you start with?

Aug 25

Posted by Steve Gray in Finance, Planning, Risk Management, Starting out in business | 1 Comment

Starting a business is a great idea, you think about the possibilities, get emotionally wrapped up in it and then make a start… But there are a few things you may not have thought of, namely how much money you will need to get started and how long you will need to “feed the beast” until it starts to pay for itself.

Starting with the bare minimum is called “boot strapping”, it works on the premise that with what little you have you will generate income and a profit from day one. It has worked for many in the past, however it has also failed many…

Another thought is to start with enough savings to pay wages for a given period (as well as all the other start up costs) until you things to a point where the earnings provide a solid return and can take over from your savings to cover the outgoing costs.

Whichever you choose prudent planning is required (sounds boring doesn’t it…) to ensure you have a lower stress start up to your business. The aim of any plan is to provide you with a guide to ensure success, so go ahead and plan out which one you will use and how to get ahead, after all business is about making a return on the time and money you invest.

Their vision v’s your vision…

Aug 22

Posted by Steve Gray in Excellence!, Human Resource Management, Leadership, People!, Planning, Risk Management, Starting out in business, The Board Room | No Comments

How about this, an organisation has the following core values as part of it’s vision.

Responsibility and Leadership
Achievement and Excellence
Citizenship and Community
Initiative and Commitment

Sounds great, things to aspire to… one problem they don’t do it, well not all of it, here are some points…

Staff are failing to take responsibility, citing they do not have the resources to do their jobs fully.
Leadership is lacking, no one sure as to who they should follow or what they should do… whose roles is who’s and where do the ‘borders’ stop.
Excellence… again resources or the lack of them are cited as an issue… Systemic issues are cited… not enough time… not enough support…
Initiative and commitment… A stakeholder took initiative and they basically shunned it, the same stakeholder is working with another stakeholder to build commitment… guess what shunned again.

Not much left except for the third point and they probably have issues with that too…

The vision statement goes on to make a lot of claims about excellence in the provision of service etc… It’s all interesting but they are failing at it. My view, they are failing to hold up the core values and use them as a solid foundation to work from, instead it has become a blame game.

Here’s the irony if you like, this organisation is a school.

A bit deeper look will show that it’s not a simple organisation as there are various stakeholders, parents and students, teachers and admin/managerial staff, so the connections between each, if tenuous, can create a nightmare approach to communication, who said what, when, why, how and so on.

I would love to share the details but the story still has depth despite names and specific issues, but basically a parent supporting their child to achieve, have a commitment, and be accountable has come across some barriers in being able to make this happen.

The big point here is that a symbol has been created (the vision statement with core values) but not followed or fully utilised. I suggest the school (or any organisation for that matter) could alter this disasterous set of situations simply by making sure at every step that the foundation is used to build on, not to branch out from with tenuous connections.

Learning opportunity, if you have a foundation to work from, your role as a business operator, principal, teacher, owner operator, director or whatever. Do your best to work with that foundation, in this case the foundation extols excellence as a hallmark and so it should, but to have a range of stakeholders pointing at each other blaming and shaming, then the end result is far from excellent. By the way, you can “rest assured” the parent is sticking to their guns and will be holding the school accountable to their foundation or core values and hopefully the end results will be worth the rigour and affront.

500 fail…

Aug 21

Posted by Steve Gray in Planning, Risk Management, Starting out in business, The Board Room | No Comments

In our local area, the media are reporting that 500 businesses have failed during 2006.

Even if half of that is true it’s too many, some might be secondary businesses that are operated by a family or an off shoot of a group of investors. Some might be moves to new locations, others could be re branding, or upgrades from sole trader to Pty Ltd etc… Any way you look at it however, in a community of 200,000 people there are still a lot of out and out failures.

In a world of readily available information, of resources to assist people, of courses on business etc, etc. We still have failures.

Imagine if each of the 250 (half the reported number) lost $20,000 each that’s $5,000,000! that’s too much in personal pain for me to contemplate. Lets face it, it would not be difficult to lose that amount in shop fittings, advertising that failed, paying out staff, the list goes on.

I hope the number of failures is a lost less than that, but in the cold hard light of day any failures are bad news.

Lesson 1. Do your homework, lesson 2… Get great information on how to build a robust business and keep it that way! Lesson 3… Just because there is an empty shop, factory or warehouse, does not mean there is automatically capacity for another business to fill that space

Source: Geelong News Aug 20 2008 Page 5.

The important parts of business

Aug 4

Posted by Steve Gray in Excellence!, Growth, Innovation and Creativity, People!, Planning, Risk Management, Starting out in business | 4 Comments

In the “game of business” it would pay to know about the important things, what they are. To me my list is fairly short. To you they might be different altogether.

Product and or service – You better have something of value to offer or they won’t buy.
Leverage – Your time, you work hard, then over time you create a business system that leaves you out of it so others can do it for you, you get the big rewards for the risk taking.
Leverage – Your money, If you started with little or a lot you want to end up with more.
Leverage – Your passion/ideas, You want to get into business perhaps because you have a passion, it may have started as a hobby or an insight into a possible business and now it has you in a tight vice like grip, and as time goes on it becomes even more compelling. So use it to your advantage and let the passion provide the energy drive to motivate you to make it work.
leverage – People. Just because you have an idea or passion doesn’t mean it can’t be improved on, so utilise others to either work directly with you or to gain more information from to make your product/service all they can be. People are the soft resources that make the hard resources a reality.
Systems – At first they might be crude systems to get you going, but over time these should evolve into more elegant devices to make a positive difference (save time, save money, improve health and safety).
Get creative – Note I did not say “Innovate”… Creativity can assist with problem solving and give your business the edge, there are lots of ways to do it. Having an idea is just the beginning, getting things to evolve into practical outcomes might take some harder work, that’s where other practical problem solving might come into the equation.

There that’s a start… do you have any other points to add?

Don’t yell at me lets chat first…

Aug 3

Posted by Steve Gray in Chill out!, Negotiation, People!, Risk Management | No Comments

Many of you know I have a business seminars listing service on another site, I have a bunch of events put in there as a service to the wider business community so people can find events in a “one stop shop” approach for aussie businesses.

I list only publicly available events and have done for about 6-12 months now.

This weekend I got a nasty note “take down our events off your website or we will take legal action”… whoa lets not get too pushy now. So I sent back a note, apologies for not asking permission but hey can we now have permission?

Short answer no… Okay so I pull the events off and send back an apology for creating hassles.

1. There is no need to shout (offering legal action straight up is a bit much in my view) I hear you okay…

2. If the guy had said, “Hey Steve, thanks but no thanks, please remove within 24 hrs as it upsets our measurement systems etc, hope you understand…” I would have been more than happy to do so. Now it just gives me a chance to write another blog entry on communicating.

Ok… so it’s not a big deal but why should he “shout”, when a “chat” would do it just as elegantly and effectively.

The “Ideal” business

Jul 11

Posted by Steve Gray in Excellence!, Planning, Risk Management, Starting out in business, The Board Room | No Comments

If like myself and other business people I have come across you probably have thought about the ideal business and what it might be like.

Well here’s a list to get you started on thinking about it, feel free to add any points via the comments.

1. It provides value – The product or service is needed or highly wanted.

2. You can charge readily – For whatever you are offering you know the price is good and you feel quite okay about how much you charge.

3. You make a profit – And that profit makes sure you can develop the business further and create a “device” that provides readily well into the future.

4. It has low overheads (costs) – You don’t want to wake up in a cold sweat wondering about when the next customer will buy… you want to wake up refreshed and happy in knowing the business is ticking along merrily.

5. Service – Value – Price – All of these are to a high standard, because you set it up that way! and you make sure it stays that way… Great service, Great value, Great price.

6. You know who to target to – Your customers are vital to your business and you can specifically pinpoint their characteristics and know how to get to them with your marketing.

7. You know how to target them – The customers are marketed to with ease and they respond readily.

8. Your plan works! – You have a plan that is written down and you pay attention to it, you follow it, you alter it to suit and you make sure things happen on time.

9. You have the funds to make sure it gets a great start – And that it can carry on past the “honeymoon period” If you want to last (and who doesn’t?) you will fund it properly right from the start.

10. You look after the M.O.M. P.E.C’s – this is the Marketing, Operations, Management, People, Operations and Culture of the business, If you don’t who will?

11. Research is constant – You check your competition and are easily a few steps ahead of them, you know why and how that is the case. Before you started you did some research into the viability of the idea you had.

There, that’s the list thus far, if you business has all of those then pat yourself on the back and keep on going! Remember becoming an overnight success can take some time to accomplish!

Did you have enough cash?

Jul 4

Posted by Steve Gray in Finance, Franchisees, Planning, Risk Management, Starting out in business, The Marketing Dept | 4 Comments

When you got started in business you probably didn’t figure on how much it would cost to get started, I guess no one really knows until they have done it. and for so many people in business they find they just don’t have enough to really cover their marketing costs to get a decent response.

There is an old saying that I think came out of the dot com crash… “Want to make a cool million in IT? Start with 2 million and wait 12 months…”

But seriously if you want your business to have its best chance of being seen, being heard, or just plain known… then learn more about marketing so your business idea can reach more people than just your family and friends. Want to know more about how to do just that, then chat to your friendly branding expert.

When it gets quiet… you???

Jun 25

Posted by Steve Gray in Chill out!, Excellence!, Franchisees, Planning, Risk Management | No Comments

So what do you do when things get quiet in the business?

Do you…

- Wonder why?
- Start to do all the little things that you mean to do when you are busy?
- Start marketing?
- Sack some staff!?
- Sit and wait…
- Check how things were this time last year?
- Ask what’s happening?
- PANIC!
- Change things?
- Go back to the business plan?

Or a combo of the above…

Whatever you do when things go quiet make sure you do SOMETHING other than panic, as that usually leads nowhere fast.

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