by Paul Steel | Sep 7, 2023 | Articles, Business Consulting, Financial Management, Key Performance Indicators, Performance Management
7 Key Financial Indicators on the Profit and Loss Statement
The importance of specific financial indicators can vary depending on the industry, business model, and goals of the company. Regularly tracking these metrics and using them to make informed decisions can help a small business stay financially healthy, identify areas for improvement, and make necessary adjustments as needed.
The following metrics are important, but one must remember that they are absolute values. This means that making comparisons even one month to the next can be tricky. An example would be in Operating Expenses where one month has incidental (once off) expenses, making ‘like for like’ comparisons challenging.
- Revenue: Total income generated from sales of products or services.
- Cost of Goods Sold: The direct costs incurred in producing goods or services, including materials, labour and manufacturing overhead.
- Gross Profit: Calculated by subtracting COGS from Revenue. It indicates the profit generated before deducting operating expenses.
- Operating Expenses: All non-production costs necessary to run the business, including items such as salaries, rent, utilities, marketing expenses and others.
- Operating Income (or Profit): Calculated by subtracting operating expenses from gross profit. It reflects the profit generated from core business operations.
- Net Profit: Calculated by subtracting total expenses (including interest and taxes), from revenue. This is the final profit figure that the business retains.
- Earnings Before Interest and Tax (EBIT): this is also known as operating profit, it represents the profit generated from operations before considering interest and tax.
Six ‘need to know’ Financial Ratios on the Profit and Loss Statement
A financial ratio or accounting ratio is a relative magnitude of two selected numerical values taken (in this instance) from an enterprise’s financial statements. Often used in accounting, there are many standard ratios used to try to evaluate the overall financial condition of a business.
Ratios allow for an easy comparison of financial performance across different months, years, and even across businesses and industries. Effectively they provide a standardised way to assess financial data, making it easier to interpret the data.
Because you are taking the relative magnitude of two numerical values is also give a more holistic understanding of performance beyond just looking at individual line items.
- Revenue Growth Rate: This shows the percentage increase or decrease in revenue over a specific period, often compared month to month, or year over year. It reflects the business’s ability to expand its customer base and market share.
- Cost of Sales Margin: Calculated by dividing cost of sales by revenue and multiplying by 100. This percentage shows how efficiently a business is manging its production costs in relation to its revenue. A lower cost of sales percentage indicates that the business is able to generate revenue while controlling its product costs effectively.
- Gross Profit Margin: Calculated by dividing gross profit by Revenue and multiplying by 100. It represents the percentage of revenue that remains after covering the cost of producing goods or services. This also helps to assess the efficiency of production and pricing. This percentage helps assess the profitability of a business’s products or services in relation to their production costs. A higher gross profit percentage suggests that the business is generating a healthy profit margin from its core business operations.
- Operating Expenses Ratio: This ratio compares total operating expenses (salaries, rent, utilities, etc.) to revenue. It highlights how efficiently the business is managing its costs.
- Operating Margin: Calculated by dividing operating income by revenue and multiplying by 100. It represents the percentage of revenue that remains after deducting operating expenses.
- Net Profit Margin: calculated by dividing net income by revenue and multiplying by 100. It indicates the percentage of revenue that becomes net profit. It gives an overall picture of profitability.
Is it not your skill set?
Financial Management is often not a strong skill set for many Business Owners, and if this is the case for you, then follow the advice of Andrew Carnegie who famously suggested that his epitaph should read, “Here lies a man who was able to surround himself with men far cleverer than himself.” And that’s exactly what he did: Carnegie surrounded himself with an excellent team that helped him build and sell U.S. Carnegie Steel to JP Morgan’s U.S. Steel for a staggering $400 million in 1901.
The success formula lies in being able to recognise your own limitations as an entrepreneur and being able to tap into the skills and knowledge of those around you for the required complimentary knowledge, skills and expertise.
Andrew Carnegie knew he could not “do it alone”.
A few options to consider:
- You could start with some financial training, and this could be accessed online, you could attend a training course, or you can find someone to assist with some personalised one on one training.
- If your business cannot support or justify the cost of a Financial Manager, then look to filling this gap in the skill set through a ‘freelance’ or ‘paid per hour’ type of service.
- Find a mentor to guide you through your financials each month. The focus needs to be on what are the numbers telling you, and not on what are the numbers.
- If you are a sole owner, or even a business with two or more owners, but in a leadership team where no one has the financial skills, then find a person with the financial skills to act as your sounding board.
- Establish a Monthly Management Meeting and get an independent party with the financial skills to join the meeting and help review the financials.
- Hire a Business Coach or Business Consultant to help you set up your Financial Performance Management System. Your coach or consultant should be able to teach, guide and help you to build your financial knowledge and skills.
At 40 Megahertz Consulting we will be able to assist you to determine which approach would be best for you, and then assist you with a service that matches your requirements. Click here to chat to us today!
by Paul Steel | Sep 6, 2023 | Articles, Business Coaching
Business Coach vs Consultant – Understand the differences and advantages
Business coaches and consultants are both professionals who provide guidance and expertise to businesses, but they typically offer different types of services and focus on distinct aspects of business development and improvement. Here’s a breakdown of the key differences between a business coach vs a consultant:
The Business Coach:
- Focus on Personal and Professional Development: Business coaches primarily focus on helping individuals within an organization, such as business owners, executives, managers, or employees, improve their personal and professional skills, leadership qualities, and overall effectiveness.
- Holistic Approach: Coaches often take a holistic approach, addressing personal growth, communication skills, emotional intelligence, leadership style, and work-life balance. They work on enhancing soft skills and fostering personal development.
- Process-Oriented: Business coaching typically involves guiding clients through a process of self-discovery, goal-setting, and action planning. Coaches ask probing questions and facilitate self-reflection to help clients identify their strengths, weaknesses, and areas for growth.
- Long-Term Relationship: Business coaching often involves an ongoing, long-term relationship between the coach and the client. The coach provides ongoing support, accountability, and guidance as the client works towards their personal and professional goals.
- Focus on Empowerment: Coaches empower clients to find their own solutions, make decisions, and take ownership of their growth. The emphasis is on helping clients build confidence and become more effective in their roles.
The Consultant:
- Focus on Expertise and Problem-Solving: Consultants specialize in providing expert advice, solutions, and strategies to address specific business challenges or opportunities. They are hired to provide expertise in a particular field or area of business.
- Specialized Knowledge: Consultants often have in-depth knowledge and experience in a specific industry, functional area, or business discipline. They provide insights, recommendations, and actionable plans to solve problems or capitalize on opportunities.
- Project-Based or Time-Limited Engagement: Consulting engagements are often project-based or time-limited. Consultants work with clients to assess the situation, recommend solutions, and potentially assist with implementation.
- Results-Oriented: Consultants are hired to achieve specific outcomes, such as improving operational efficiency, implementing a new technology, conducting market research, or launching a new product. The focus is on delivering tangible results.
- Expert-Driven: Consultants bring their expertise and external perspective to help clients make informed decisions and execute strategies that align with their business goals.
In essence, while both business coaches and consultants offer valuable support to businesses, their roles and approaches differ. Business coaches emphasize personal and professional growth, empowerment, and long-term development, while consultants provide specialized expertise, problem-solving, and results-oriented solutions for specific business challenges. The choice between a coach and a consultant depends on the specific needs and goals of the business or individual seeking assistance.
Do I need a business coach or a consultant?
Choosing between a business coach and a consultant depends on your specific needs, goals, and the challenges you’re facing. Here’s a step-by-step guide to help you make an informed decision:
- Identify Your Goals: Clearly define what you hope to achieve through the engagement. Are you looking to develop leadership skills, improve personal effectiveness, and enhance your overall professional growth? Or do you need specific expertise to address some specific business challenges?
- Assess the Nature of the Issue: Consider whether the challenge you’re facing requires specialized knowledge, problem-solving, and tangible results (consultant) or whether it involves personal development, leadership improvement, and long-term growth (coach).
- Determine Your Current Skillset: Evaluate your current strengths and weaknesses. If you need to build enhance your personal leadership qualities, a business coach might be more suitable. If you are looking to develop specific business skills, then training might be appropriate. If you lack specific expertise in a certain area, a consultant might be the right choice.
- Consider the Timeframe: Think about the timeframe in which you want to see results. Consultants often work on specific projects with defined deliverables and timelines. Business coaching relationships are generally longer-term, focusing on ongoing development and growth.
- Budget and Resources: Consider your budget and available resources. Consultants often charge for their specialized expertise and problem-solving and they may be able to deliver the required work where you might lack the time and resources, while business coaching might involve a longer-term investment in personal development and growth.
- Seek Recommendations: If possible, seek recommendations from trusted sources, colleagues, or business associates who have worked with coaches or consultants before. Personal referrals can help you find professionals who align with your needs and values. Do not be afraid to check references and testimonials.
- Conduct Interviews: Reach out to potential coaches or consultants and conduct interviews. Discuss your goals and challenges, and ask about their approach, experience, and past successes. This will help you gauge if their expertise matches your needs.
- Clarify Roles and Expectations: Whether you choose a coach or a consultant, make sure to clarify roles, expectations, deliverables, and the scope of the engagement upfront. This will help avoid misunderstandings later on.
- Consider a Hybrid Approach: In some cases, you might benefit from a combination of both coaching and consulting. For instance, you could work with a consultant to address a specific business challenge and then engage a coach to support your personal growth and development as a leader. In instances your coach and consultant can be one and the same person.
- Trust Your Instincts: Ultimately, trust your instincts. Choose the professional who resonates with you, understands your goals, and offers an approach that aligns with your needs. Personality fit is also a key consideration.
Remember that the choice between a business coach and a consultant is not always mutually exclusive. It depends on the complexity of your situation and the holistic approach you want to take. Both professionals can provide valuable insights and support to help you achieve your business and personal goals.
How can we help you?
We provide both Coaching and Consulting services to our clients to help them achieve their goals. We also offer a hybrid service.
Through either a 10 Minute Introduction Call or a Complimentary Consultation, we can answer any of your questions and help guide you to the best solution for you. Click here to chat to us today!
by Paul Steel | Sep 5, 2023 | Articles, Financial Management, Performance Management
Your Financial Mindset is a key part of your Performance Management System
Far too many owners of Small Businesses are out of touch with their financials, but improving net profits sits at the heart of Financial Performance. You need to see your financial mindset of your business as being a critical and primary Performance Management System.
Measurement is one of the cornerstones of any Performance Management System. Improving performance means an improvement from where you are [point A] to where you need to be [point B]. Clearly point A needs to be defined, and you need to be able to track progress towards point B. it’s all about measurement. Seems obvious, but then why do so many Business Owners not do it.
10 Principles to get the right financial mindset
- Learn the language of finance: Like many specialist areas, financial management is packed with jargon and buzz words, and the key to unlocking some of the mysteries lies in learning the jargon and translating it into layman’s terms that you can then understand and use.
- Overcome the fear of numbers: A big part of the problem is the fear of numbers, and certainly the fear of accounting. It’s like a mystical area of the business, shrouded in secrets, leading to something that is not understood, and thus avoided. It is often seen as and remains the domain of the book keeper and accountant.
- Master the basics: Mastery is a critical success factor in business. Just as you have mastery of delivering your core product or service, you will also need to master key areas like Marketing and Finance. Mastering a new skill is not an event, it is an essential journey.
- If you don’t know – ask: You are in business for the long haul, so if you have any uncertainty about any information in your financials – ask questions. Make learning part of your mission as a Business Owner.
- Your Financials are your number one tool: The financials are the primary tools of the Business Owner to understand precisely how the business is performing, what the trends are, where the business is heading, and what impact decisions and actions are having on the business.
- You need to know where you are going: Managing your business without the basic financial tools is like driving your car without a fuel gauge or speedometer. It’s also like driving with a blindfold on. You are in for some unexpected surprises.
- Financials are not for the Tax Man: The financials are for the Business Owner, they are not for the book keeper, accountant, or tax man. It is the job of the booker keeper / accountant to provide the Business Owner with complete and accurate data to enable the effective running of the business. You need to have a strong hand in the how, when, and where, of receiving your financial information. Although there are many standard formats, there are many useful things that you can change, to make your financials work for you.
- It’s easier than you think: Most accounting software systems these days are fairly simple to use, and are very intuitive with lots of prompts to guide the correct allocations of transactions. Like most things, when you understand the basics, it becomes easier, and then practice makes perfect. As a Business Owner you can always get someone to assist with the day to day capturing of transactions, and that leaves you free to do the most important thing, understand what the financials are telling you, and then use the information to drive better performance.
- It’s a cost of doing business: In the same way as you might have to acquire machinery, or pay rent, and utilities, you should see the expense that goes with accounting software and someone to do your bookkeeping as a ‘cost of doing business’. Trying to run and grow a business without the ‘financial tools’ is going to trip you up somewhere along the line, and it will then truly cost you.
- Make it a daily habit: Capturing transactions and monitoring key indicators is something that you can and should do daily. Leaving financials until the end of the month is often leaving things too late. It becomes history and it’s too late to take any actions that could possibly change anything. Capturing transactions daily will also reduce the overwhelm of ‘month end’.
10 Good reasons why you should maintain and review your financials
Reviewing financial statements is crucial for business owners to gain insights into the financial health and performance of their business. Here are 10 good reasons why you should regularly review your financials.
- Performance Evaluation: Financial statements provide an objective measure of the company’s performance, helping business owners assess whether the business is meeting its financial goals and targets.
- Profitability Analysis: Financial statements reveal the company’s revenue, expenses, and profits, allowing business owners to understand the sources of revenue and areas where costs can be optimized.
- Cash Flow Management: Monitoring the cash flow helps business owners track the movement and timing of cash in and out of the business, ensuring that the company can meet its financial obligations.
- Decision-Making: Accurate financial data assists business owners in making informed decisions, such as whether to invest in new equipment, expand operations, or adjust pricing strategies.
- Budgeting and Planning: Financial statements provide a basis for creating budgets and forecasts, helping business owners set realistic financial goals and allocate financial resources effectively.
- Debt Management: Reviewing financials allows business owners to monitor debt levels, interest payments, and repayment schedules, aiding in the management of debt and the development of a sustainable financial strategy.
- Identifying Trends: Regularly analysing financial statements helps business owners identify trends in revenue, expenses, and other financial metrics, enabling them to respond proactively to changes in the business environment.
- Performance Benchmarks: Comparing historical financial performance against targets allows business owners to gauge how well their company is doing relative to goals that have been set.
- Investor Relations: For businesses seeking finance, loans, investments or partnerships, well-maintained and accurate financial statements inspire confidence and provide transparency into the company’s financial health.
- Compliance and Reporting: Accurate financial reporting is essential for compliance with tax regulations, legal requirements, and industry standards. Regular financial reviews will help ensure that the business stays compliant, avoids legal, and avoidable penalty issues.
In summary, reviewing financials is a critical practice that empowers business owners to make informed decisions, manage resources effectively, assess performance, and plan for the future success of their company.
At 40 Megahertz Consulting we will be able to assist you to determine which approach would be best for you, and then assist you with a service that matches your requirements. Click here to chat to us today!
by Paul Steel | Jul 28, 2023 | Articles, Building Effective Teams, Goal Setting, Performance Management
Unlocking Business Potential: Harnessing the Power of Performance Management Systems
As a Business Owner, you may be facing various challenges such as insufficient profits, underperforming teams, and inadequate returns on your time and effort.
These issues are fundamentally performance-related, indicating that certain areas of your business are not functioning optimally. Whether it’s your employees, processes, products or services, systems, marketing, or financials, they are simply not operating as they should. In order to achieve better performance and improved profits in your growing business, implementing a Performance Management System can be invaluable. This system helps identify problem areas, manage performance, and drive improvement.
What is a Performance Management System?
A Performance Management System comprises a set of tools that allow you, as the business owner, to monitor key performance metrics across your organization. Ideally, it presents a summary of areas that are underperforming and includes tools to facilitate corrective actions. Additionally, the system enables you to track progress and improvements over time. Think of it as the dashboard display for your business, providing essential information at a glance, such as estimated time of arrival, speed, consumption, direction, and other critical indicators.
Visualise your Performance Management System as the umbrella that encompasses a view over total business performance, and as such, the People Performance Management System is simply a subset of this. As a Business Owner, it is likely to be rare that you will focus exclusively on employee performance. As the role of technology and tools such as AI play a greater role in business success, the need for a broader perspective becomes clearer.
Why do Business Owners need a Performance Management System?
Many small and medium-sized business owners struggle to extract the maximum potential from their companies. It may seem that when the owner was at the centre of everything and doing most of the work, things were profitable. However, as the business grows in size and complexity, it becomes increasingly challenging to maintain the same level of success. In order to ensure that every aspect of the business functions effectively and to know where to focus attention, business owners require a Performance Management System. This system provides insights into what is working and what is not, enabling informed decision-making and driving improvement.
10 Benefits of a Performance Management System in the workplace:
- Better Business Decisions: Performance Management Systems provide information and data for making informed decisions.
- Focus of Management Attention: They highlight areas that require management’s attention and intervention.
- Early Warning Signals: Performance Management Systems provide early indications of potential issues.
- Validation of Actions: They validate whether implemented actions are producing the desired results.
- Manage by Exception: Performance Management Systems enable managers to focus on exceptional cases that require attention.
- Early Feedback for Corrective Actions: They provide timely feedback to teams, allowing for corrective actions to be taken promptly.
- Data for Future Planning: Performance Management Systems supply data for future planning and strategic decision-making.
- Accurate Costing: They provide inputs for more precise and effective product and service costing.
- Focus on Priorities: Performance Management Systems help keep teams focused on the right priorities.
- Alignment and Direction: They keep everyone moving in the right direction and aligned with the organization’s goals.
Key Components of a Performance Management System
Regardless of whether you are looking to manage employees, or processes there are a few key components that will be required for effective management:
- Setting goals and objectives. Clearly define and quantify what it is that you are trying to achieve.
- Measurement and evaluation. Ensure that you know what metrics you will use, and how you will measure them. Performance is relative, so you will need to know how you will evaluate performance.
- Continuous feedback. You will need to provide feedback into your system on the areas that require improvement.
- Constantly looking for opportunities to develop and improve employees, processes, and systems.
10 things your Performance Management System should be telling you:
While there are numerous performance indicators that can be monitored and managed in any business, here are ten critical metrics to consider if you aim to achieve growth and deliver on your Strategic Objectives:
- Marketing Spend to Qualified Leads Generation Ratio
- Lead-to-Sale Conversion Ratio
- Rate of Customer Acquisition and its Trend
- Average Sale Value and its Trend
- Gross Profit Percentage and its Trend
- Net Profit Percentage and its Trend
- Total Cost per Unit of Output and its Trend
- Employee Cost per Unit of Output and its Trend
- Employee Goals and Achievement Tracking
- Average Job Completion Time and its Trend
What is a Performance Management System for managing employee performance?
Although performance management encompasses more than just employee management, the term “Performance Management System” typically focuses on this aspect. Small business owners often operate without a dedicated human resources management team, which can make handling employee matters challenging and create difficulties in prioritizing them.
Traditional annual performance reviews are disliked by both employers and employees due to their cumbersome nature and limited effectiveness. Modern thinking has shifted toward regular performance check-ins, which involve valuable feedback and collaborative discussions. During these check-ins, you can review results, set goals, outline priorities, define work plans, manage performance expectations, and explore growth opportunities for both the business and individual.
5 Simple Steps for an Employee Performance Check-In:
- Schedule regular check-ins, ensuring they are consistent for all employees and marked in their diaries.
- Be transparent about the process, communicating openly with your staff, so they know what to expect and can prepare accordingly.
- Prepare a meeting agenda and adhere to it during the check-in.
- Keep a record of the conversation for future reference, using tools like checklists to keep it concise and focused on a single page.
- Regularly check in, ask the right questions, and follow up on conversations to hold employees accountable and maintain continuous engagement.
Just as building and growing a business requires time and effort, implementing the correct Performance Management Systems also takes time and effort. Prioritize and progressively design and implement systems that support growth and sustain it. Neglecting the necessary support and systems amidst aggressive growth can ultimately lead to undesirable outcomes, similar to the consequences of mining without proper backfill and support.
In summary, by adopting a Performance Management System, business owners can address performance challenges, drive improvement, and achieve better profits. These systems provide vital insights, help prioritize efforts, and keep the organization moving in the right direction. Embracing regular performance check-ins and effective team management further enhances performance and employee engagement, ultimately contributing to long-term success.
Do you need advice for your Performance Management System? Click here to chat to us today!
by Paul Steel | Jun 8, 2023 | Articles, Business Coaching, Mind Set
DO SUCCESSFUL ENTREPRENEURS ASK FOR HELP?
Andrew Carnegie famously suggested that his epitaph should read, “Here lies a man who was able to surround himself with men far cleverer than himself.” And that’s exactly what he did: Carnegie surrounded himself with an excellent team that helped him build and sell U.S. Carnegie Steel to JP Morgan’s U.S. Steel for a staggering $400 million in 1901.
The success formula lies in being able to recognise your own limitations as an entrepreneur, and being able to tap into the skills and knowledge of those around you for the required complimentary knowledge, skills and expertise.
Andrew Carnegie knew he could not “do it alone”.
“Good people are not just crucial to a business. They are the business!” Richard Branson believes that the real engine behind every business is people. He looks at businesses as nothing more than a group of people, and he considers people far and away the biggest assets of any business.
Like most Entrepreneurs you cannot always afford to employ all of the best people, so you have to get creative, when sourcing the right talent at the right time.
SO WHY DO ENTREPRENEURS NOT ASK FOR HELP
Reaching out for help, should be something we recognize and praise each other for.
Oftentimes, however, the biggest barrier that limits Entrepreneurs from getting help is the actual act of asking for it. So what is going on with Entrepreneurs not asking for help?
- We fail to recognise that the most common reason for not succeeding or moving forward fast enough, is ourselves.
- Our doubts lead us to question the help before we have even tried it
- Past failures in accepting help, become the limiting factor in accessing better help in future.
- It makes us feel uneasy because it is associated with surrendering control
- A possible fear is being perceived as needy.
- For some, we feel ashamed of not knowing
- We don’t want to come across as incapable, ineffective, or even incompetent – this is about our fear of other people’s perceptions of us.
- We are hardwired to want to be independent, even if we fail in the process
- Then there is the big one – In our minds. The stigma that asking for help is admitting to failure
Often, the biggest failure is that we do not know the difference between ‘good help’ and ‘bad help’, and so we default to ‘no help’, and then we wonder why others progress faster than we do.
Most entrepreneurs will at some time have been offered ‘help’ or ‘advice’ from family, friends and peers. This will often have been turned down or rejected due to the emotional connection, or perceived lack of expertise. “They just don’t get it.” “It’s not that simple”.
This then raises the question as to why not seek input from someone who is objective, independent, and does have business experience and insight.
Why you need to start asking for help
Reaching out for help or changing something in order to help your business is not a sign of weakness. It is not about failure either. It is not a negative of any kind.
No matter how humbling it may feel, seeking help is an act of courage. It speaks to your insight to recognize that there is a need. It demonstrates an understanding that it is not a matter of ‘not being able to handle it’. It is about creating and maintaining a business with a healthy balance so that you can do more of what’s important to you. How? By helping yourself and allowing others to help you.
7 THINGS TO START DOING DIFFERENTLY WHEN ASKING FOR HELP
- Change your Ask:
So here is a very simple idea: Mind set! Change the way that you define “asking for help”.
Instead of saying “Can you help me with…?” What about if you said:
- “I don’t have the time so I need extra resources to work on ….”
- “I am collecting input on …”
- “I would like to clarify my understanding of …
- “I would value some suggestions on improving a, b and c.”
- “I am looking to collaborate with someone to improve x, y, z.”
- “I am exploring different options and would like to see if “xyz” is makes sense.”
- “I could improve if I knew more about …”
- Seek help before it’s too late
Like many things in life, we do in fact see the early warning signs. You know when something is not working, or just lacking in your business. Little or no profits is one of those early warning signs. We choose whether to acknowledge or ignore.
The reality is that it is far easier to address and fix the small issues before they become big ones. With a different mind-set about ‘help’, ask for help, sooner rather than later.
- Think Investment and Value, rather than Cost
Many Business Owners will have been correctly advised to see Marketing not as an expense, but rather as an investment. You have to spend money to make money. It’s about your perspective. Consider that getting ‘help’ in your business is not an expense, it’s an investment. You have to invest in help now to get to a better business in the future.
When considering your challenges and the option of getting ‘help’, ask yourself: “What is the value to me and my business?”. “How will I benefit?”. It’s not only about the finances.
- Do think about what help you actually need
It will be very rare that good help, or quality advice will come for free, or even cheap. So, yes you must ask about what you will get for your money. Do not overlook the soft benefits like ‘clarity’ and ‘peace of mind’. Not everything is measured in monetary terms.
Look for the balance between short term and long term, and look for the balance between soft and hard benefits.
- Think Return on Investment.
Any Financial Planner will tell you that you need to invest with a medium term to long term plan in mind. That starts with at least 5 years to get a reasonable return on your investment. Short term changes and moves into and out of markets is high risk and is just speculation.
Think about this same perspective in asking for ‘help’. You want a return on your investment, but you need to start investing now for a reasonable return in the future. It is consistent long term investment and growth that really matters.
- Manage your expectations
There is often the expectation that for little or next to zero investment, you are going to get massive short term improvements and financial benefits from your business help. This sounds illogical as soon as one says it.
One of the alternatives suggests a small regular investment in smaller portions of help over a long period of time, looking for long term growth and rewards. This already seems to makes more sense. Another alternative is that if you want big results and very quickly, then the investment and the size of the change and help needs to be equally big.
Although your desire tells you that you want big results and quickly, are you and your business ready for that?
- Stay in Control
You are in control of how much help you ask for and how much help you receive. There are always multiple options on what type of help and support you can get. It is about the choices that you make.
Know what your budget allows for, and be prepared to start with a small investment.
Investing in business help is much like your personal budgeting. If you never start investing in change you will never get the benefits. If you don’t have the money, find the money. Carve out a budget for investing in your business future.
Do you need advice? our coaching and mentoring services will help and guide you through the growth of your business. Click here to chat to us today!
