31 THINGS

THAT HOLD

BUSINESS BACK...

AND THE WAYS TOOVERCOME THEM

LET'S GET YOURBUSINESS

MORE PROFITABLE ANDSTART

HAVING SOME REALFUN.....

LET'S GET YOURBUSINESS

MORE PROFITABLEAND START

HAVING SOME

REAL FUN.....

As small business owners we have dreams ofcreating great businesses, being the best in our fields

and making enough money to provide a lifestylewith flexibility and comfort to account for the risk,

effort and stress that comes with running abusiness.

So why is it, that when you ask business ownersabout this they respond with quotes like “I’ve never

worked so hard for so little in all my life.”

LET'S GET YOURBUSINESS

MORE PROFITABLEAND START

HAVING SOME

REAL FUN.....

After working with many businesses over the last 20years in a consulting capacity it occurred to us to

study why this is so and how to improve the situationfor business owners.

We wanted a simple solution because there is so

much clutter in the space surrounding the running ofa small business.

LET'S GET YOURBUSINESS

MORE PROFITABLEAND START

HAVING SOME

REAL FUN.....

Over the years of consulting we have worked in detailwith over 150 different businesses. So we have seen

the internal workings, financial models andmanagement challenges that exist in them.

In most cases business owners usually just see

one business in detail – their own business. So we aregoing to apply the learning from the best of those

observations to the issues you face in your particularcase.

LET'S GET YOURBUSINESS

MORE PROFITABLEAND START

HAVING SOME

REAL FUN.....

The starting point is to understand what it is thatholds small businesses back from realizing their

potential and then systematically removing thoseroadblocks and creating a clear path for the business

owner so all they have to do is “join the dots” tosuccess. ie take the small, planned action steps thatare all aligned to getting to the destination of more

profit with less stress.

LET'S GET YOURBUSINESS

MORE PROFITABLEAND START

HAVING SOME

REAL FUN.....

The origin of this journey is where you are right now.But to see the benefit of embarking on a journey youmust understand two things. What the destination holds, and why you would takethe journey if you think you are quite happy whereyou are. We analysed the issues that we have faced (andsolved) in those multiple businesses and the resultsare detailed below.

31 THINGS

THAT HOLD

BUSINESS BACK...

AND THE WAYS TOOVERCOME THEM

SOLUTIONJob split – Pass off any tasks that you don’t have to do. Soundssimple but just try it! There is a definite formula to getting thistransfer of responsibility done effectively. And the scary bit: onaverage about 40% of what business owners do, they don’t have to. Job Descriptions – Clearly define what staff should be doing andthen surprisingly they stand a better chance of doing what you thinkthey should, rather that what they think they should be doing.

CHALLENGE 01

Not enough time. There are so many tasks involved in runninga business that they never get done. And it’s even morefrustrating when there are great new ideas to implement andthe days are already full.

SOLUTIONStrategic Business Plan Tool – If you ask the right questions a plan canemerge quickly. But don’t confuse a dream and a plan. The plan has themethod to get to the result from the starting point. Most businessowners just have the dream.Goalsetting – a brief set of outcomes that can be clearly seen andmonitored are far more motivating than some bullet points handwrittenon a piece of paper in a file somewhere. They also have much morechance of being achieved. When you have done this once and xperienced the motivation of success, you’ll do it every year.

CHALLENGE 02

Business drivers can’t get their business plan fromtheir head onto paper.

SOLUTIONSo do none, or some when things are quiet or sign-up when an email offercomes calling. Why not create a proper Marketing Plan. Over timeanalysis of results of the plan get better value for each dollar spent.Discuss the options with other businesses to learn from their experiencesthrough online Teleforums.

CHALLENGE 03

Don’t know what marketing to do?

SOLUTIONA Sales Process gives a formulated way to guide a prospect to a saleout come on a consistent and predetermined basis. It gets repeatedlybetter results than the random approach and makes the processtrainable and therefore it can be delegated from the business owner.

CHALLENGE 04

Can’t close a sale often enough.

SOLUTIONA Financial Business Model forces you to understand how to buildprofit into your business. It’s “doing the maths” in a way you’ve neverseen. This is the focal point for all the other business actions as it setsthevolume of business required which dictates staff levels, marketing etc.

CHALLENGE 05

Many businesses have a business model that ismarginally profitable.

SOLUTIONJob Split – a careful analysis of the tasks that require execution andthe economics of how expensive the resource is that should becharged with that task will uncover the need for changes in mostbusinesses.

CHALLENGE 06

Business owners often say that they do many menial tasks thatwould otherwise not get done. “If I don’t do it, no-one else will”

SOLUTIONCash flow projections and monitoring the way professionalaccountants set them up is well within the reach of any business if theyhave the template set up for them.

CHALLENGE 07

They do not manage cash flow effectively, leading tostress when there are insufficient funds to pay allcreditors.

SOLUTIONUnderstanding the difference is the first step to managing each type oftask. Then having some external support such as the Accountability of theregular interaction of the Systems4Business.com.au events continues themomentum.

CHALLENGE 08

They don’t prioritize important vs urgent tasks such as theallocation of time to business development or marketing.

SOLUTIONJob Descriptions set the expectations, but a proper and regularAppraisal System then ensure staff understanding of the specification oftheir job role and the business owners understanding is aligned so eachget and deliver what they want.

CHALLENGE 09

Staff do not do what they are supposed to in the eyes ofthe business owner.

SOLUTIONA special thought process and template to assist business owners createthe correct and most efficient staff structure for the future is used bysuccessful businesses. The outcome highlights where staff requiretraining, career modification or they are simply the wrong people foryour business. The Organisation Chart of the Future then underpinsthe selection of the correct staff to make your business buzz.

CHALLENGE 10

Some staff adopt “no care and no responsibility” attitude.

SOLUTIONTraining in financial accounting is not a prerequisite to starting orrunning a business. It is however, a valuable asset to any businessowner. You will find plenty of short videos on this topic on YouTube sotake 10 minutes of education and help your business long term. Once you know how to read the accounts you can see what actions theyare telling you to take to improve your business.

CHALLENGE 11

Business owners often report they have no realunderstanding of reading the financial accounts as they havenot had any accounting training.

SOLUTIONBusinesses are constantly changing and consistent monitoring isimperative. Having a system to do this such as our proven “BarbadosReport” helps a business person keep their eye on the ball and reallycontrol their business on a monthly basis. This involves more than justthe profit numbers but also includes a number of business KeyPerformance Indicators.

CHALLENGE 12

Many businesses do not produce a regular status report ofhow the business is performing.

SOLUTIONA structured Sales Process will include the reasons why yourbusiness is different or better than competitors and thereforediscounting is less likely. Prices must be justified but people willalways pay for value.

CHALLENGE 13

Those charged with the sales responsibility sometimes feelforced to under-price or cut corners to win the business.

SOLUTIONJob split. When clutter is removed from the business owners dailyroutine their effectiveness is increased and their stress reduced. Theyachieve more even without support staff because their focus isharnessed.

CHALLENGE 14

Most small business owners don’t have a personal assistantor direct support staff so they “drop the ball” i.e. occasionallymiss appointments or deadlines.

SOLUTIONAnnual Planner lists linked to outlook, paper diaries or in onlinecalendars all work but there is a little used failsafe to ensure theseitems are regularly reviewed. People walk by a planner on the wallevery day and still miss the items on it so linking the review to ameeting agenda provides the double check.

CHALLENGE 15

Diary systems are not always used well so things likeinsurances, vehicle registrations, Government certificationand licensing get missed.

SOLUTIONSetting up a Marketing Plan that works within a budget and to a timesequence is great. But part of the value is the recording andassessment of which methods worked and what was the financialpayback to each marketing dollar spent is an important component ofthe successful plan.

CHALLENGE 16

Often small business owners cannot clearly identify whatmarketing will work so they don’t do any, or do very little.

SOLUTIONOnce a clear Marketing Plan and Budget is set it is easy to say no torandom calls from telemarketers and sales representatives becauseyour commitment has already been made. It is much easier to askthem to resubmit their case a month before you set the next MarketingPlan than just having a half baked excuse as to why you will not buyfrom them. Once you have a budget and marketing plan it is much easier to stickto just the expenditure that is predetermined.

CHALLENGE 17

They get pressure from good sales people selling marketing methods, new phonesystems with bonus deals and they buckle under the pressure and buy themThey cannot be all things – they do not understand IT – databases in particularand often have no- one on the team who can do this

SOLUTIONSpreading all your written and graphic material on a table in front ofobjective independent business owners for their comment often yieldssuggestions that can improve the presentation of an organization andtherefore its brand.

CHALLENGE 18

Graphic design and presentation is not well done – as oftenprofessionals are not used

SOLUTIONThe web is evolving and smarter websites are proliferating. Manybusiness owners just can’t keep up with the pace of evolution butdiscussions online can be helpful in this regard and linking to goodmarketing consultants. You need to carefully allocate your timebetween running your business and some aspects of marketing. Socialmedia for example can become addictive – but is it actually generatingrevenue?

CHALLENGE 19

Websites are underutilized and of poor quality – no SEO or webpromotion, or social media presence.

SOLUTIONIt costs a lot of time and money to generate a sales enquiry but it iswasted if the opportunity is not driven through to conclusion. You don’twin them all, but there is no point letting a potential sales slip away.Create a Sales Process that gives you the best chance of success bykeeping you in control of a potential client and their interaction withyour company.

CHALLENGE 20

Ad –hoc follow-up process for leads

SOLUTIONBusiness opportunities come and go but when they arise they taketime and application to apply due diligence in order to determine if theopportunity is the correct one for your business at that time. Havinggood professional advisors around is a must. Many an opportunity hasbeen missed because of slow reaction or uncertainty about how toproceed.

CHALLENGE 21

No time to consider and chase mergers and acquisitions and how tofinance them.

SOLUTIONIncentive schemes that motivate staff and link in to a mathematicalformula that only shares profits over an acceptable return to thesuppliers of the business capital will provide stability and financialcontentment for staff.If the payment structure for these schemes also has a lag period builtin then there is added incentive to staff to continue their career withthe organisatiion.

CHALLENGE 22

No incentive schemes for staff that tie them into the business

SOLUTIONFor a business to be a good saleable propositionit should operatesmoothly and profitably according to a set of operational proceduresthat are documented and without reliance on the business owner (orany other single person) for continued viability of the business. Toachieve this a sound Financial Business Model should be in placeand a Procedures Manual specific to the actual business should alsoexist.

CHALLENGE 23

Most businesses not built into a saleable money making machine

SOLUTIONJob descriptions describe WHAT each staff member should be doing.Procedures Manuals describe HOW they should carry out those tasks.Thus the standards are set. Then the only outcomes are that someonecan’t do a task, (training can usually overcome this) or won’t do a taskin which case their place in the organisational structure must berevisited.

CHALLENGE 24

Inconsistency and ad-hoc ways of doing things because noprocedures. Running a business this way relies on stuff in staff headsand often repeated reference back to the business owner.

SOLUTIONOver time a business builds many proprietary documents and formsand templates. Consistent use and application of them gives rise totheir evolution to more efficient methods and consititue the intellectualproperty of the business. This assumes they are well managed.Otherwise the business is constantly reinventing their own systems.The logical directory system and sometimes an Online documentmanagement system can be the answer.

CHALLENGE 25

No clear place to store all the documentation and forms – so things like collectinge-mail addresses from customers only works for a while and then stops

SOLUTIONHaving a board of independent advisors or a consultant or coachprovides a sounding board to assist with tricky decisions, a source ofadvice from a different range of experience and also a level ofaccountability that you can’t achieve by yourself.

CHALLENGE 26

Often the business owner has no objective outsider with whom todiscuss the business issues with – it’s lonely at the top

SOLUTIONInclude a review in your Goalset and Busness Development plan, andalso in your budget. Computer systems can be managed reactively (ie Fix it when it goes wrong) or Pro-actively ( Create a plan for whatyou need, budget for it and then put it into place). Find the bestcomputer support around by discussing with others and cross-referring good IT support.

CHALLENGE 27

Can’t afford to pay for enough IT and network support to get thesystems running perfectly so bits are missed eg perfect back-ups, viruschecks etc

SOLUTIONStaff appraisal systemOpen branches or divisions in partnership

CHALLENGE 28

No growth path for staff careers figured out so they settle into a comfortzone – no training, no advancement – but still want regular payincreases.

SOLUTIONA clear and logical way to set up your computer or network DirectorySystem will save countless hours and frustration. Not only fromquickly being able to locate files and data, but also from maintaining aconsistent set of documents because latest versions will be clear.People will not re-invent things they cannot find and data back-up isalso likely to be more comprehensive as well.

CHALLENGE 29

Stuff all over the place on the computers that make documents hard tofind and scattered across the network

SOLUTIONThe outcome of scheduled regular stocktakes is usually to provide avaluation of stock in the balance sheet. But comparing your stock levelson hand with previous results will show a trend that will be having adirect impact on your cashflow. Scheduling your stocktakes morefrequently may be required if you identify the trend heading in thewrong direction or getting out of hand. Integrate this with your regularreporting by making stock levels a KPI.

CHALLENGE 30

Stock Control inefficiency; everything from stationery supplies to stock-in-trade, – chews up cash-flow.

SOLUTIONExecutive Maintenance is all too often overlooked. It is a toughmental job to run a business, but like many other things we have asystem to ensure the staff are kept fresh and mentally alert bymanaging their “recharge times”.

CHALLENGE 31

Mental exhaustion and no holiday planning for the business ownercan lead to little excitement left in running the business

"We hope the details here help you assess your business and take moves to create a betterbusiness and lifestyle.

The solutions are there and yet you can’t put them in by yourself! You see you lack a few

vital components. accountability, objective prioritizing ability and templates and structuresto

provide the shortcuts so you actually get results from the limited time available."~ Jasmeet & Wayne (Lessons At Startup)