Blog
Cashflow Strategy No. 9
Do you have Cashflow that isn’t flowing?
Are you ignoring it, or robbing Peter to pay Paul and hoping the problem will go away? None of those solves it, as you have probably found.
What to do!
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Acknowledging there is a cashflow problem, that is the first step!
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The second step is to take action and seek professional Business advice.
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Next, contact Blackburn Accounting, we offer an individualized service that helps you get and keep on top of your cashflow. Let us help you address and solve your problems.
When we talk about decisive Leaders and leadership do you see yourself?
Do you identify with the key characteristics and traits, and importantly, understand why decisive leadership matters in today’s competitive, fast-paced Business world?
Decisive leadership is the ability to make confident, purposeful, and timely decisions even in times of uncertainty. Effective, decisive Leaders start with knowledge, insights and experience and support that by involving experts when needed. They make ‘good’ decisions using a mixture of wisdom, analysis, and judgement.
Decisiveness isn’t about arrogance or impulsiveness, nor recklessness and making rash decisions.
Indecisive Leaders hesitate and risk undermining their Teams trust and jeopardising project progress and outcomes. They often handball decisions to others without due diligence or lose opportunities by indecision.
Decisive Leader Profile:
Confidence - leaders believe in their judgement, act and seize opportunities. This is gained by gathering the necessary information and supporting sound decision processes. They have the courage and conviction to balance analysis with bold decisions.
Composed – they are calm under pressure, rational and clear thinking. Acting with purpose and clarity. They balance decisiveness with reflection and critical thinking.
Timeliness – can make well-informed choices, more quickly at the right time.
Accountability – are committed, taking ownership and responsibility for their decisions. Will adapt and adjust if needed, learning from past experiences. They stand by their decisions and own mistakes if made.
The Travelling Wilbury's sang it, but what happens when it is a family Business that has come to the end of the line? There is no next generation or successors to hand over to or, those in line have no interest in running or keeping the business?
There are a number of steps involved, including winding down, preparing an exit strategy and planning for closure or sale.
Importantly, early planning and structuring your exit can help to minimise the risk of reduction in family wealth while still meeting your tax and other obligations.
Sell the Business - This can be the answer and a positive step forward by providing capital for your retirement.
This step, where applicable, will also allow younger generations to pursue their own interests. Seek professional help, including legal advice, an Estate & Retirement Planner and a Business Sales Realtor.
Liquidate the Business – this may be the only way if sale or transition are not options. Seek professional legal advice, as there are formal processes that must follow to bring about the end of a solvent company (voluntary deregistration and voluntary winding up).
5 Critical Steps:
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Assess the situation: consider all your options, pros and cons, before acting.
But a busy time for others!
With summer fast approaching, if you are a Business operator now is the time to prepare your Business!
Warmer weather, earlier sunrises and lifted spirits after winter, people, consumers, your potential customers are out and about. Get on the front foot and be geared-up, ready for this activity.
Prepare your Business with a spring-summer clean!
A refreshed website, a slick of paint, new signage are all worthy improvements. But more than just a feather duster, take this time to assess and evaluate what’s working and what’s not. Check your resources, is your Business positioned to embrace the opportunities and meet the challenges? Focus on holiday marketing, customer engagement, operational readiness and financial preparedness.
8 Tips to Get Your Business Ready
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Get your stock in order – Check inventory levels and product lines. What are customers looking for during this season? Adapt, tailor products and services accordingly. Check supply lines and delivery. Ideally, have a backup for these.
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Financial Management - check your Books – strengthen Cash flow to cover additional pressures and proactively manage by invoicing early to counter potential slowdown in January. Ensure your payment systems are reliable and ready for increased digital activity. Be vigilant, protect against scams with strong security measures. Scammers target the holiday season.
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Staffing & Operations – recruiting, training, and holiday leave. Plan ahead and have backup. Negotiate rosters, time on and time off to cover peak times. Foster team spirit to get the best results for all. Remember to acknowledge and reward effort and a job well done. Lead by example.
Structure and the right structure are critical to ensure the best for all concerned. This should reflect your family’s values, decision-making style and strategies for growth. It’s more than just tax matters, it should provide protection, legacy, relationships and control.
Types of Business structure include:
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Sole Trader
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Partnership
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Company
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Trust
Considerations when setting up will depend on your personal circumstances, the type and size of your Business and how much you want to grow or expand the Business, who is involved. Considerations include:
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Asset protection
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Any ongoing costs
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How the entity will be taxed regarding income, capital gains and land tax
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Control and succession
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Exit strategy
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Flexibility to adjust as circumstances change
Your Business structure determines your:
Your Accounting Partner
Your Management Accounting Partner
Your Expansion Engineer
Your Special Projects Partner