To People That Want An Amazing Small Business But Can't Get Started

INTRODUCTION:

Most of us that are in the game want an amazing business. One that has the following characteristics:

• Extremely profitable;
• Healthy cash flow;
• Makes money whether you are there or not;
• Very saleable; and
• A pleasure to be involved with.

We're not asking for much are we?! However, believe me it is possible to have these types of businesses. By being disciplined and following some simple tips and continuing to religiously work on some strategy might not always get you the "ideal business" but it should make your life much easier.

So what do you need to do? Let's have a look.

Give yourself a score out of 10 for each question in each section.

Figure 1: A successful enterprise does not need to be a bridge too far. Photo courtesy Scolari Comerford Small Business Accountants Sydney

1. profitable business

To get a highly profitable enterprise you need to:

• Do your research and work out what customers want;
• Be willing to study the best in your game and see what is working for them;
• Have a point of difference;
• Monitor your numbers through a reputable cloud accounting system such as Xero;
• Get yourself the best small business accountant who will do more than just tax and numbers;

Your score:   /50.

2. Healthy Cash Flow

If you want a business with great cash flow you need to:

• Perform a 3 way budget;
• Have a business plan that is aligned with your cash flow forecasts, profit & loss and balance sheet budgets;
• Review trading terms (customers and suppliers);
• Be profitable (refer Number 1 above);
• Have minimal debt or loan terms that will impact less on your bank balance;

Your score:   /50.

3. Can run by itself

For a business that will run by itself:

• Has an organisational chart;
• Has the right people on the right bus;
• Team members have clearly defined roles and responsiblilties;
• Reports for each section of the business are reported daily/weekly/monthly religiously;
• Has a solid operations and procedures manual;

Your score:   /50.

Figure 2: Enjoying the ride! Small business can be invigorating. Photo courtesy Scolari Comerford The Best Accountant Sydney TM

4. easy to sell

A business that is easy to sell has:

• An owner who understands the real business valuation Sydney or has used business valuers to find out;
• Profits above the industry average;
• Business growth (i.e. it is growing and is not stagnant);
• Little owner reliance; and
• Regular reports and great presentation (inside and out).

Your score:   /50.

5. Fun to be around

A business that is fun to be around has:

• A small business owner who shows real leadership (problems are fixed and takes accountability for business performance);
• A business plan that can be explained to the team and goals set to then aspire to;
• An owner who knows exactly what they want the business to look like ("business by design" not a "business by default");
• A culture recognising and rewarding team members' performance or achievements; and
• An owner who implements ideas not ignores them.

Your score:   /50.

Figure 3: Working together with your team will get you the results you need. Photo courtesy Balmain Baz & Lara Scolari Gallery

CONCLUSION:

How did you go?

0-100/250 - You are most likely not enjoying yourself right now. Time to implement - it's never too late!

101-150/250 - You are enjoying the business some of the time. The signs are there but there is more work to do.

151-200/250 - Your business is going well in most areas but could be better. Just a bit of focus to fix the minor things and you will get it from good to great.

201-250/250 - Congratulations - you have an excellent business! Don't get complacent and continue to enjoy the rewards (not just financially)!