Golf In Business? How A Small Business Accountant Should Advise!

INTRODUCTION

My business partner Phil Comerford is from a very strong golfing family. In fact it is a family strong in sport generally with Brad Haddin being his first cousin so the genes (not the ones he wears with holes in them) must be in there somewhere.

Just recently Phil's son Jones won the 2016 Junior Victorian Masters golf tournament at the age of 16. Not only was it an amazing achievement by this outstanding young man but at the time of writing this he is currently tied for third in this week's senior Victorian Open and is equal with last year's winner Richard Green! Few would be aware that in the tournament he won, he managed to fight back when all seemed lost on the back nine to get his name engraved on a trophy that boasts past winners such as Jason Day and Aaron Baddeley.

This made me think about how golf can sometimes be imitated by business. Things can be swinging along nicely one week but struggling the next. So what are some of these lessons golf can have application to when running an enterprise and how should your small business accountant be acting as your caddy?

Figure 1: World at his feet. Local Dubbo Junior Golfer Jones Comerford with the Victorian Junior Masters Trophy. Proof that skill is important but that mindset is the key to success in golf and in business!

1. Visualise where you want to be before you take the shot

The great golfers visualise in their mind where they want their shot to end up before they take it. They will often close their eyes for a couple of seconds and imagine standing over the ball, executing a smooth swing and watching it land on the fairway or green. Now does this mean it will go where they want every time? Of course not! However, having a picture of your goals and a mindset that will help achieve them is no different to the business owner who has thought ahead and actually written out their business plan with a cash flow forecast. Small business accountants as trusted business advisors should be there to assist with these plans and be a sounding board before each major decision is made.

Close your eyes now and imagine what your business will look like in 5, 10 or even 15 years' time. Examine how you intend to play your next shots and whether they will achieve what you just visualised.

Or do you prefer to just walk up to your ball and hit it and hope you get a great result one day? Small business growth rarely occurs by default. A vision created through the business planning process will give it a much better chance of success. A better business and better golf game will always have a plan before the round and shot commences.

2. What to do when caught in the rough

When a golfer gets into trouble, they will usually recognise danger and naturally adjust their next shot accordingly. They will often play a completely different shot with a different club to what they would have played off the fairway. When times get tough, just continuing on without adjusting your game plan could have disastrous consequences.

In business you may have to make decisions you would prefer not to just to limit the damage. Making adjustments to your existing business plan and cash flow forecast or 3 way budgets is critical to survival. As they say, not recognising the need to change will certainly almost end in extinction.

Having a plan is one thing. Being able to adapt quickly is another and this is where your small business accountants who work closely with you on a regular basis can assist. These days with cloud accounting making it easier to see where clients are financially means there can be no excuse for not staying in contact regularly and helping them to keep on track.

Figure 2: What a Barry Croc(ker)! Better to stop and work out a plan rather than just walk up & hit!

3. using the right equipment

Golfers are very particular about certain clubs they feel comfortable with and what they need. Does your business have the right equipment to help it succeed or is it using old plant or technology that has seen your competitors leaving you behind?

Performing cost benefit analyses on alternatives are a must to see if your business can create efficiencies that will give it a competitive advantage.

When was the last time you looked at your equipment and compared it to the latest? Have you considered new technology such as cloud accounting or applications that could not only make you more profitable but see you enjoy better cash flow and a much higher business valuation when the time comes to sell. Does your team have the right equipment to help them do their job better (e.g. dual computer screens)?

Sometimes the answer may even be overseas but you need to do your homework and find out your options.

4. Keeping an eye on the leaderboard

I'm a great believer that keeping an eye on your competition regularly is crucial to any business. Those who play golf and then just see where they end up on the leaderboard may mean less pressure but what is the point of that if you could have taken a bigger risk to win the tournament?

Success leaves clues. Examine the best in your field and see what they are doing differently.

Shouldn't you be doing at least the same?

Figure 3: "How in the hell did I get here?!" 

Figure 4: And the result? It was never going to end well particularly after missing a one footer to win the 2 man Ambrose (partner not happy).

5. Marking the scorecard correctly

Getting your numbers right is crucial or you could end up being disqualified. Do you have the right accounting services in place to make sure you get an accurate picture of where your business is at? Your profit and loss should tie in with your balance sheet and your cash flow statement. If any one of these does not reconcile with the other this will usually mean they cannot be correct.

Does your accounting section of your business have the right reports with reconciliations and workpapers? If you don't have an accounting section consider using a virtual CFO to ensure accuracy and timely reporting. Most accountants Sydney offer this service. You just need to ask.

6. working on your game

Jones Comerford and any great golfers will tell you that you need to constantly work on your game. It doesn't just happen! You need to work hard and in the right areas. For greater success, countless hours will be required. If necessary consider business coaching to keep you on track.

Figure 5: Sometimes as any small business accountant might tell you, you just have to improvise! 

CONCLUSION:

I love golf as much as the next person but even if you don't, it can be a good guide as to how to approach life and business.

Follow the above with the right mindset and with great advice from your accountant you stand a much better chance to get your name on that trophy.