What It Takes To Be In The Top 5% Of Businesses That Survive & Thrive
Paul Roach is a business strategist and coach who has worked with hundreds of SMEs across many industries to supercharge their cashflow. Roach a CPA qualified accountant and serial business owner himself and author of Smarter Business Stronger Cashflow. In this guest post, Roach offers important tips on making sure your business is one of the fiver per cent that get to celebrate a 10th birthday…
Many try, few succeed. Around 5% of businesses get to celebrate their tenth birthday, 95% do not. Business is a long game, not for the feint hearted. Amongst the death and carnage along the journey, what is it about the 5% that keeps them alive and thriving whilst those around them disappear. After working with hundreds of businesses and business owners over the last thirty years, these are my top seven tips on what it takes to be in the top 5% and make it to your businesses tenth birthday and beyond.
You get into Business to get out of it
There is always a reason why people go into their own business. Very few have a strategy to get out of it once they are in it. Almost none have a sense of what their business looks like when it is complete. The key drivers of what you are wanting to achieve lack definition and hence then do not become the motivator you though they would. Clarity and focus will help keep you end game alive and drive your business outcomes towards it.
Cashflow
The #1 reason businesses fail is that they run out of cash. Revenue is Vanity, Profit is Sanity, but Cash is King. Business owners do not intend to let Cashflow run dry, this is an outcome of other factors in your business. Running your business by your bank balance, rather than having an updated Cashflow Forecast, is a sure sign that your business is not in the top 5%.
Looking Back-Forwards
Financial reports are great at telling you what your business has done and are not a good indicator of the future, especially in the current turbulent times. It is only after knowing what Cashflow commitments we have ahead of us can we determine what we have available now. Money in our bank does not mean it is available. The reverse may also be true, identifying a problem ahead of times gives you the opportunity to act sooner rather than later.
Profit ≠ Cashflow
A quick cursory glance at our monthly Profit and Loss might indicate a Profit for the month, however Businesses can show Profit with negative Cashflow. Alternately a business can be in a loss position with a positive Cashflow. Command over Cashflow determines your business survival, not your Profitability.
Keep some in Reserve
The businesses that had significant cash reserves, prior to these uncertain times, are most likely the ones that are most likely looking for opportunity now rather than fighting for survival. Things happen, things go wrong, and we need to expect the unexpected. This is not just pandemics; business is a risky sport. Having available Cashflow for unexpected turbulence is a key part of making sure your business sits in the top 5%.
Is there Cashflow hiding in your business
Getting a good handle on your business and Cashflow cycles will help you prioritise freeing up Cashflow hiding spots. You might not see them as Cashflow however excess stock on the shelf, on the factory floor, Debtors or surplus assets are all forms of Cashflow. Running your business at less than optimal efficiency, with a little excess capacity for growth, also can strangle your bank balance.
Is your Balance Sheet sucking Cashflow also? Do you have financing and loan repayments that by-pass your Profit and Loss to drain your Cashflow? Are you getting sufficient return on your investment here? Do you have a cash-gap in your business cycles and are you able to get it to zero or below? Using other people’s money to grow your business makes life a great deal easier!
Cashflow-ology ═ Cardio for your Business
Doctors recommend a good Cardio work out for us all each day to keep our heart in shape. Cashflow is the blood flow of business, keeping it pumping and minimizing the chance of blockages is fundamental to the health of your business. Like a Cardio workout for your heart, giving your business Cashflow a solid 45-minute workout each day helps keep your Business in great shape and inside the top 5%. A daily workout will help keep you and your business fresh, fit, focused and in the top 5%!
Please login with linkedin to comment
Paul RoachLatest News
Eyewear Retailer Oscar Wylee Fined $3.5 Million For Falsifying Charity Claims
Eyewear retailer Oscar Wylee has been ordered by the Federal Court to pay $3.5 million in penalties for misleading or deceptive conduct and making false or misleading representations about its charitable donations and affiliations, in breach of Australian Consumer Law. Oscar Wylee admitted that between January 2014 and December 2018 it made statements in its […]
72andSunny Sydney Wins Sendle’s Creative
Aussie shipping company Sendle has appointed 72andSunny Sydney as creative partner. Sendle, Australia’s first 100 per cent carbon neutral shipping service and a certified B Corporation, has tasked the creative company with developing a campaign talking to its community of SMBs in Australia and the USA. “We’re huge admirers of 72andSunny, for the bravery of […]
Mumbrella Bows To Industry Pressure & Switches Off Comments
Mumbrella has made the bold call to turn off comments on its articles, a move that will undoubtedly have a big impact for the publishing site. Mumbrella head of content Damian Francis made the announcement Friday afternoon, penning an opinion piece which will be the last article on Mumbrella to have comments. Francis wrote: “From […]
Visit Victoria Launches “Click For Vic” Via SIRAP
First large piece of campaign work that SIRAP have created for Visit Victoria (TVC, outdoor, print)
Madame Tussauds Launches Sydney TikTok Challenge
Madame Tussauds is a wonderful place to admire lifelike wax dummies. Or, most programmatic conferences.
Australian Formula 1 Sensation Daniel Ricciardo Joins Optus In Fresh Partnership
Daniel Ricciardo is the undisputed nice-guy of Australian sport. Although Adam Gilchrist could possibly dispute that.
Bankwest Unveils New Logo And Brand Identity Via WPP’s UNION
Bankwest unveils new brand identity that sadly doesn't say the Banking Royal Commission sent most of our board to gaol.
Lady Gaga Sings Her Way Through Glorious New Valentino Perfume Ad
There are no bigger Gaga fans than the B&T office. As was evident by our editor's hairbush rendition of this earlier.
“I Don’t Like That”: Trump Questions Proposed TikTok-Oracle Partnership
Consider this: if Trump were to lose the election, where will journalists get their daily dose of madness from?
80s Crooner Michael Bolton Sings Of His Love Of Mac & Cheese In Oddball New Spot
Were you slightly scarred by your parent's album collection when you were a kid? Bring back the repressed memories here.
Heinz Kicks Goals With Collingwood Partnership
Heinz has teamed-up with the most hated sporting club in the country. Yes, someone in marketing thought this had legs.
Aussie & Kiwi Icons Revisit Childhood In Nostalgic LEGO Super Mario Collab
It's often said there's no pain quite like treading on LEGO. Still, B&T's recent staff firewalk put pay to that idea.
2020’s Defining Moment? Pensioner Mistakes Slushie Machine For Hand Sanitiser!
Just when you thought 2020 couldn't get any stranger, it just keeps jumping up and surprising you, doesn't it?
Thursday TV Wrap: Bachelor & Gogglebox Enjoy A Bump, But Nine Gets Gold
Yet again, B&T's condensed 122 hours of last night's TV into a two-minute read. It's very similar to the Hadron Collider
Survey Reveals Rising Popularity Of Audio Advertising In Mobile Games
A YouGov survey has revealed that adult mobile game players prefer audio ads over other monetisation models in mobile games. The survey, which asked 1,249 players about their preferences in mobile games, revealed that consumers have a preference for audio advertising, surpassing other popular monetisation models such as rewarded video and in-app purchases. The new […]
Thinkerbell Unveils Over 55s Internship To Combat Adland Ageism
B&T would never tolerate ageism of any kind. Yet, that doesn't extend to our editor's Duran Duran & Culture Club albums.
Australia Tumbles Down iPhone Pricing List
In excellent news if you want to hock one at the local Cash Converters, iPhones are becoming more pricey in Australia.
IVE Launches Expanded Hygiene And PPE Product Range
IVE has today announced the launch of ivolve, it’s expanded hygiene and Personal Protective Equipment (PPE) offering designed to help businesses return to the workplace safely. Led by hygiene and health consultant, Shylie Smith, the offering already provides products such as face masks, hand sanitisers and anti-bacterial wipes to many of Australia’s largest businesses including […]
KitKat Engages Gaming Community In New Brand Campaign Via Connecting Plots
When the B&T office has a break, we always choose a KitKat. Well, the actual truth is we go to the pub & don't return.
Study: Aussies Want Strong Leadership From Brands To Drive Us Out Of Pandemic-Induced Recession
Aussies want brands to lead us out of the CV-19-induced recession. And here's B&T pinning our hopes on epidemiologists.
“Could This Year Get Any Better?” The Whole COVID Malarkey Spoofed In Glorious Fast Food Spot
In desperate need of a COVID-19 laugh? This will do it. Or, failing that, put chilli powder on a colleague's face mask.
Repco Supercars Pro Eseries Set For Return
Nine Virgin Australia Supercars Championship teams have confirmed their place in an expanded 2020 Repco Supercars Pro Eseries field. Repco recently announced it will take naming rights sponsorship of the Supercars Championship and the Bathurst 1000 from 2021-2025 and is the new naming rights partner of the popular eseries that will again feature a number […]
Nike Reveals Australian National Team Kit Made From 100% Recycled Bottles
B&T has to admit these new Nike shirts look quite smart. They're a horrible gaudy canary yellow, but smart nonetheless.
Half Of All Searches Will Soon Be By Voice (And, Yes, You Should Be Worried About Your Privacy)
Here, B&T tackles the tricky subject of voice and privacy. Well, not us personally, as we know bugger-all about it.
Havas Acquires US Creative Agency Camp + King
Havas' acquistion tentacles snare new agency. However, that's not to infer it's some soft-bodied, eight-limbed mollusc.
Huzzah! All The Winners & Runners Up From The 2020 Snapchat Young Lions Australia Competition
It's all the winners & runners up from the Snapchat Young Lions. And, if you're not on it, technically the losers, too.
M&C Saatchi Melbourne Further Bolsters Leadership Team
M&C Saatchi Melbourne has bolstered its leadership team. Although the carrying of ceremonial swords has been ruled out.
Suzuki Invites Customers To Book A Test Drive To A Test Drive In Latest Campaign Via Deloitte Digital
Suzuki Australia have announced that they are so confident in the experience of their own vehicles that they are allowing customers to test drive them to other test drives, at other dealers. This latest tongue-in-cheek campaign from the For Fun’s Sake platform, has launched with a TVC showing a Suzuki dealer assisting potential car-buyers to […]
Modibodi Launches Progressive Campaign ‘The New Way To Period’ Via Emotive
Get the period ad right & you may as well start writing your industry awards acceptance speech. But get it wrong…!!!
Fiverr Launches Into Aussie Market, Appoints By All Means As Creative Agency
Tel Aviv headquartered global freelance marketplace, Fiverr, is launching into the Australian market with By All Means as lead creative agency, following a four-way pitch. By All Means will be charged with leading brand growth via multiple campaigns that will begin this month concurrently with a refresh for the brand rolling out globally. “In many […]
