In order to be aware of how well/bad your business is doing, as a business owner you need to be able to understand your financial reports and what they represent. It doesn’t do to just keep trading and hope for the best. One of my former clients was a family run business. The wife handled the office administration while the husband ran the operations. She could never understand why their business always struggling financially. She knew that there was something…
This is an old post from the old blog site. I felt it important enough to repost here as I will be disabling the old one.
Many small businesses fail because of poor cash flow. Cash flow is the process between your incoming and outgoing cash. For small businesses and start-ups it’s a constant juggling act to ensure that you have enough money coming in to meet your obligations. When outgoing cash is more than the incoming, this is where many businesses start to crumble.
Planning your cash flow is integral to running a business. It allows you to plan how much cash you require in order to operate and grow as well as highlighting times where you may need to tighten the belt a little. Continue reading Cash Flow and the small business
Being a business owner can quite often be a lonely journey. Unless friends or family members have had the experience of owning a business themselves, it’s very hard for them to relate to the issues that I have to deal with on a regular basis. The pressures of managing cash flow, the regulatory requirements of employing people and the process involved in running the day to day operations of a business are not easily understood by those that haven’t been through it themselves.
Continue reading Networking – why i think it’s important
My husband was recently given a new Playstation 3 through a promotion from one of his suppliers. So of course, this meant a trip to our local game shop to buy a new game to play on it. No, we didn’t go to EB Games or JB Hi-fi. Not even Big W or Kmart. We went to a small local business called Sunbury that my husband has been a customer of for the past 21 years.
Yes folks, you read it right. 21 YEARS. He has been buying games from this shop since he was a teenager. From his Atari console (remember them?) to his most recent game purchase for the new PS3, he has purchased them all from this one store. Sure, we’ll go to the big stores and have a look at new releases, but we will always go to Sunbury to make the actual purchase.
As business owners, we all dream of finding that client who is loyal and stay with us for years. In today’s competitive environment, price seems to be the key to getting new customers. Consumers are given so much choice that they can afford to shop around and tend to go the business that gives them the best price. If they think that what you’re offering is too expensive or someone else gives them a better price, they switch.
For anyone providing a service or selling a product, this means that it’s now becoming more difficult to retain customers for the long term. So I decided to find out from my other half what keeps him coming back and how this store has managed to instil such unswerving loyalty in such a fickle industry.
Continue reading Instilling customer loyalty