5. Money Management Secrets
for Small Business
Recession
• When times are good running our businesses is easy!
• Good times can often hide the real weaknesses and underlying strengths.
• Is this time an Opportunity?
• Is it time to drive home your advantages. Is it time to lift the bar?
6. Money Management Secrets
for Small Business
Working with your customers
• Pricing
• Identify your best customers and most profitable service/product
• Be reluctant to give credit
• Reduce your credit terms
• Charge all new customers COD or get a deposit in advance of a project
• Progress payments
• Accept Credit card payments
• Invoice on bright paper and send chocolates or movie tickets or some reward to an accounts
dept. if your client is a corporate and the bill payer is not the person you are doing the work for
7. Money Management Secrets
for Small Business
Financial Focus
• Strengthen your balance sheet
• Too much debt incorrectly balanced
• Shareholder distributions/drawings too high
• Receivables/inventory not correctly managed
• Under-utilised assets
• Claim all tax deductions
• Bank and credit card fees – smart use of bank A/c’s and credit cards.
8. Money Management Secrets
for Small Business
Financial Reporting
• What you can measure you can manage
• Utilise an accounting software package – in-source or out-source
• Set a series of KPI reports with your bookkeeper, that work for your
business
• Build a cash flow and a budget, avoid surprises in seasonal
fluctuations and cash flow holes.
9. Money Management Secrets
for Small Business
Core Business Focus
• Be absolutely clear on what your core business is and focus only on
that.
• In tough times people look for non-core business to try and boost
revenue, distraction from main business.
• Stick to improving the productivity of existing processes around core
business.
10. Money Management Secrets
for Small Business
Overheads/Expenses
• Don’t cut back on discretionary exposés without good reason.
• Get a suite deal - find serviced office suites.
• Download free forms online.
• Get free software.
• Buy used equipment.
• Use independant contractors.
• Commission your sales force.
• Clean up your mailing list.
• Shop around for an overnight courier.
11. Money Management Secrets
for Small Business
Work with your suppliers
• Have great relationships with suppliers
• Make credit comparisons
• Form a buying alliance
• Pick up your own orders
• Time your payments
• Seek at least three bids on everything
12. Money Management Secrets
for Small Business
Advertising
• Piggy back advertising
• Be a Good Neighbour and split advertising and promotion costs
• Work your network
• Do you have a happy customer?
• Make a special TV appearance
• Offer expert advice
• Write a free column
• Start a blog/wiki
13. Money Management Secrets
for Small Business
Consultants
• Get the most from other consultants
• Hiring temporary employees
• Get free or low cost help
• Query your consultants – time/price/delivery
14. Money Management Secrets
for Small Business
Your Team
• Keep them in the loop – you don't want them jumping ship for lack
of info on business conditions
• Involve them, be honest, they are your key to success – involve
them in key strategy policy/decisions. If they feel secure and
involved they will blow you away when they step-up.
• They know your best clients who you can up-sell to/where costs can
be saved
• Not only will you grow, the bottom line, your staff will grow too.
15. Money Management Secrets
for Small Business
Networks/Other
Join an industry association for discounts etc.
• ABN – work your network, join a Goals Group , get focused and
accountable. Get supported, get out of the isolated lonely
wilderness.
Learn something new – Can you do it yourself?
• Or outsource….if it’s taking you too long, delegate it to an expert
use your valuable time to bill/generate income!
16. Know-How Now! the Online Community
What’s Next?
• Join the the Know-How Now! Community
• Start a discussion
• Participate
• Network
Thank you!
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17. MentorNet
Grow Your Business with the Help of a Mentor.
Imagine the success your business could
achieve with the help of a Mentor.
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18. Know-How Now!
Business Success Webinar Series.
National – 12 November 2008
Get a Life
Survival Strategies for Busy Businesswomen.
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19. Know-How Now! 2009
Business Success Webinar Series.
What do you want to learn in 2009?
Vote for the subjects youmost want to hear about.
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