Why do so many people jump to conclusions and judge others so quickly?

The following questions might make some people think more carefully:

Question 1:
If you knew a woman who was pregnant and already had 8 children (3 of whom were deaf; 2 were blind, 1 was mentally retarded) and she also had Syphilis, would you recommend that she have an abortion?

Please read the next question before looking at the response for this one.

Question 2:
It is time to elect a new world leader, and only your vote counts.

Here are the facts about the three candidates. Who would you vote for? (more…)

Over the last few weeks, many of our clients have expressed their deepening concern over their bank’s attitude to helping them through difficult times.

During the recent good times, many of them were “courted” by their bankers to take out bigger loans; given credit cards with high limits and nothing seemed to much to ask.  Money was rolling in for the banks.  How different it is now.

It appears that now the “going” is getting tough, many small business owners face a much different attitude from their bank manager.

I used to work for the Barclays Group in the UK before moving to New Zealand, so understand that the banks are commercial enterprises that need to charge for their services.

But how many of you feel that the balance has shifted too much and when you need help from the banks, they simply turn their backs on you?

I recently experienced my bank manager ”kindly” opening a current account for me (without my permission); charged me account opening and monthly fees and then hounded me when I refused to pay them!  She was shocked when I asked her who I should send my bill to for the time I had wasted contacting them to sort their error out!

Whilst not trying to undermine the affect the current economy is having on many small businesses, I thought that a little light relief was in order.  The following video from the Monty Python team offers a few practical tips on raising finance in testing times!  Click here for 4 minutes of tips

The current world wide economic downturn has, again, highlighted why small business owners must actively scrutinise their finances.  Many small business owners still rely on old and/or out of date information.

Last week, I recently met with a new client who had experienced a 25% decline in their sales.  When I asked them about their cost structure, they admitted that they had no idea and hadn’t had any financial statements prepared since 2006!!

Not only had they ignored the tax man for 3 years, but it’s also poor business practice.

Recessions often provide a “wake-up call” for many business owners as it forces them to evaluate what they are doing.  In the current uncertain climate there is very little excuse for ignoring your key financial indicators.

One efficient way to understand your business’ financial performance is to prepare a simple cash book.  For as little as $100 per month, you can generally get a book-keeper or accountant to do this for you.

Understanding your current profitability, cash flow and break-even points will help you to review your spending and help you to set budgets.  This may include putting money aside for tax liabilities and owners’ drawings/salaries.

I have seen far too many small businesses suffer because their owners failed to meet their tax obligations or pay themselves.

Talk with your accountant.  They should be able to advise you how much to set aside for tax – I accept that this may reduce cash flow in the short term but it may avoid unnecessary surprises later.  Consider setting a regular amount aside in an interest bearing deposit account or use your credit card for some expenses to take advantage of the interest free periods that many credit card companies now offer.

Also examine your expenditure as there may be ways to easily reduce costs too.  I have put a complete stop to anyone purchasing anything in my businesses without my express approval.

This had an immediate positive impact on our stationery, printing and postage expenses.  Remember it’s your money that your employees are spending…not theirs!

I am currently consulting with a client who “shouted” their staff morning tea twice a week.  On my advice, she now buys the ingredients and asks her daughter to bake home-made muffins and she also now provides on-site coffee facilities.  She is delighted that she now saves over $700 per month from just this one simple change.  What small changes could you make?

But be careful…many small business owners cut back on the wrong expenses.  Marketing and sales remains an important area for many of them.  However, I have lost count of the number of clients who blatantly waste money on marketing and advertising campaigns that simply do not work.  They simply throw more money at it, hoping that the ‘phone will ring.  For more marketing tips, visit www.themarketingdude.com

Is it time that you reviewed your business finances?  Who knows…a few hours of your time may result in some pleasant surprises.