Budgeting - Keeping Your Business On Target!
Many small businesses only think about doing a budget when they have cash flow problems. A financial budget is like a financial scorecard for your business to which you can compare actual results throughout the year. Without it, how will you know where your business is financially?
Not having a realistic budget is a bit like driving along a straight road with your hands off the steering wheel. At some stage, your business will start drifting off the straight and narrow. When planning a budget, start with the vision you want your business to achieve for the year. What does the vision mean for profit, sales and cash flow? How will it impact your margins, fixed costs and variable costs?
If you think this is all too much effort, think again. By just going through the process you will get a good understanding of your business and where it is heading. If you don’t understand your business, you can’t expect it to be a success.
So where do you start when setting a financial budget? Sales which is the engine of your business. You should look at industry and economic cycles, not just what you sold last year. What has changed and what is likely to change? Next you should consider your costs taking into account your business objectives, price increases, promotional campaigns etc. Talk to your staff, they will be able to provide business insights and they are more likely to commit to the plan if they are involved it its development.
Budgets and forecasts are about planning for profit. But just as important is planning for cash flow. A cash flow forecast is necessary for you to foresee likely cash shortages. Knowing when they could occur allows you to plan to borrow cash or reduce inventory to cope with any shortfalls. Do you have genuinely useful financial and cash flow budgets? They are essential management tools!
Plus a couple of quotes:
Action
A good battle plan that you act on today can be better than a perfect one tomorrow.
General George Patton
Motivation
People often say that motivation doesn’t last. Well, neither does bathing – that’s why we recommend it daily.
Zig Ziglar, motivational speaker.
Nigel Hobbs
Small Fish Business Coach Sydney
www.smallfish.com.au
Equation For Success
Andrew Carnegie was one of Americas richest millionaires at the turn of the century. His formula for success almost 100 years ago is still valid today.
1. Direct energy towards achieving your goals
2. Always have a positive mental attitude
3. Have faith in your own capabilities
4. Give more service than expected
5. Take initiative to turn desire into action
6. Seek new and better ways of doing things
7. Discipline yourself
8. Organise your thinking
9. Learn from your defeats and mistakes
10. Have underlying enthusiasm to achieve
Nigel Hobbs
Small Fish Business Coaching Sydney
www.smallfish.com.au
What Would You Do?
This is a moral/ethical dilemma that was used as part of a job application. You are driving along on a wild and stormy night. You pass by a bus stop, and you see three people huddling on a bench, waiting for the bus:
1. An old women who looks as if she is dying.
2. An old friend who once saved your life.
3. The soul mate about whom you have always dreamt.
Your two-seater sports car allows for only one other passenger. It’s a difficult choice, but choose you must. What do you do? Think before you continue reading.
You could pick up the old lady, because she is going to die, and thus you could save her life.
Or, you, could take the old friend because he once saved your life, and you owe him a major favour.
However, this may be your only chance to meet your soul mate and dream lover.
Strictly because of their answer, one candidate separated himself from 199 other outstanding, completely qualified applicants, and was chosen for the job on the spot. Their response, you ask?
After several contemplative moments, they replied, “I would give the car keys to my old friend, and ask him to drive the old women to the hospital en route to his destination. I would stay behind and wait for the bus with the woman of my dreams.”
Amazing things are possible when you are able to break free from the stubbornness of our limited thinking and open our minds – along with our hearts – to all options!
Nigel Hobbs
Small Fish Business Coach Dee Why
www.smallfish.com.au
Taking Putting Lessons- Sales Lessons Learned From Golf
The big money winners of golf follow some fundamental rules for putting. They can also be applied to score a sale. They are:
1. Never use a putter until the ball is on the green. Salespeople who apply a closing technique before the customer is ready will rarely get a chance to conclude the sale.
2. Study the roll of every green. Salespeople need to carefully survey the emotional landscape of the prospect. It is better to read the prospect’s intentions, motivations and emotions that it is to analyse and dissect the logical content of the customers statements.
3. Never use force. Pros putt with an easy, effortless, pendulum like swing. A professional salesperson doesn’t force a close on a customer.
4. Keep your eyes directly over the ball. Golf pros visualise the path the ball will travel from the putter to the hole before they strike the ball. Top salespeople always keep their eyes squarely focused on the customer’s position in relation to the close.
5. Don’t rush. If the putt has too much speed, the ball will bounce right over the hole. A fast talking salesperson has little chance of turning an open minded prospect into a customer.
Nigel Hobbs
Small Fish Business Coaching Manly
www.smallfish.com.au
Spending Time Doing What You Do Best
The reality is that most of us do the exact opposite. We spend 80% of our time doing unproductive and meaningless things, and by the end if the day we feel exhausted, frustrated and angry. Wasted time! Wasted effort! Wasted energy! So let me ask you: How much time you spend doing the things – or participating in activities – that are important to do? You know, those things that move you forward in your business and your life. And how much time do you spend doing “stuff” that keeps you busy, but not the important things that make you successful. “Stuff” that takes up your time, energy and resources, but doesn’t move you forward as you try to achieve your goals and live your dreams.
We’re busy, but are we productive? We’ve got much to do, but not enough time for our family, friends, or ourselves. We’re working very hard, but our business and careers aren’t moving forward like we know they should. We’ve got it backwards. We’re spending 80% of our time doing unimportant things and only 20% doing the things that have value.
Here are three things that can turn it around:
1. Spend your time doing the most important things
Every day, identify the most important things that need to be done, and do them first. Don’t put them aside until later.
2. Get better at everything you do
We’re hired to perform the skills, talents and natural abilities that we’re good at. Spend your time using those skills, talents and natural abilities. But work your tail off to get better at everything you do. The things you do well, and the things you need to get better at. We all have something that if we did it better would dramatically improve our daily performance and results. What is that one thing that you need to do better?
3. Stay Focused
Don’t allow yourself to get distracted. Start your projects while you have plenty of lead time. Give yourself more time to think. Spend 80% of your time doing the things that enrich and add value to your life. Use the remaining 20% to do the “stuff” you don’t like doing. Or better yet, see if you can delegate it to someone else, or eliminate it all together.
You’ll have more fun, less stress, and become more successful.
Nigel Hobbs
Small Fish Business Coaching Manly
www.smallfish.com.au
Monkey Business in Your Business?
Could this be happening in your business? Do you have habits, work actions, traditions or expectations that no one really knows why they are required? Maybe...the Monkeys know a thing or two about it!
Start with a cage containing five monkeys. Inside the cage, hang a banana on a string and place a set of stairs under it. Before long, a monkey will go to the stairs and start to climb towards the banana. As soon as they touch the stairs, spray all the other monkeys with cold water.
After a while, another monkey makes an attempt with the same result – all the other monkeys are sprayed with cold water. Pretty soon, when another monkey tries to climb the stairs, the other monkeys will try to prevent him.
Now, put away the cold water. Remove one monkey from the cage and replace it with a new monkey. The new monkey sees the banana and wants to climb the stairs. To his surprise and horror, all the other monkeys attack him. After another attempt and attack, he knows that if he tries to climb the stairs, he will be assaulted.
Next, remove another of the original five monkeys and replace it with a new monkey. The newcomer goes to the stairs and is attacked. The previous newcomer takes part in the punishment with enthusiasm! Likewise, replace a third original monkey with a new monkey, then a fourth, then a fifth. Every time the newest monkey takes to the stairs, they are attacked.
Most of the monkeys that are beating him have no idea why they were not permitted to climb the stairs or why thay are participating in the beating of the newest monkey.
After replacing all the original monkeys, none of the remaining monkeys have ever been spayed with cold water. Nevertheless, no monkey ever again approaches the stairs to try for the banana. Why not? Because as far as they know that’s the way it’s always been around here.
And that, my friends, is how a company policy begins.
Nigel Hobbs
Small Fish Business Coaching
www.smallfish.com.au
Fishing Mirror
A fisherman from the city was out fishing on a lake in a small boat. He noticed another man in a small boat open his tackle box and take out a mirror. Being curious, the man rowed over and asked, “What is the mirror for?”
“That’s my secret way to catch fish,” said the other man. “Shine the mirror on top of the water. The fish notice the spot of sun on the water above and they swim to the surface. Then I just reach down and net them and pull them into the boat.”
“Wow! Does it really work?”
“You bet it does.”
“Would you be interested in selling that mirror? I’ll give you $100 for it.”
“Well, okay.”
After the money was transferred, the city fisherman asked, “By the way, how many fish have you caught this week?”
“You’re the sixth,” he said.
Nigel Hobbs
Small Fish Business Coaching
www.smallfish.com.au
The Surprising Truth About What Motivates Us
We all have our preconceived ideas on what motivates our staff to work hard and achieve excellence. Most of us would answer the question with money, but there are many other ways to motivate our employees. The reality will surprise you and make you rethink how you reward your staff. The following animation is both entertaining and illuminating and is a must see for all employers and supervisors.
Click here to watch the video clip posted on YouTube by RSA Animate.
Nigel Hobbs
Small Fish Business Coaching
www.smallfish.com.au
