In the next podcast episodes we will be sharing with you a part by part Quarterly Business Improvement Sessions, a workshop audio clip which has been attended by more than 100 small business owners. In this podcast series we will make you a part of an enriching experience.
So here’s the third of the four part podcasts series of June 2015 Quarterly Business Improvement Session: Creating a Powerful Business Plan.
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TRANSCRIPT: Episode 49
Title: Creating a Powerful Business Plan (Part 3 of 4)
Date Published: Januart 1, 2017
Running Time: 13:20 minutes
Does anybody mind, if I share my quick vision? Or part of my vision cause it’s quite lengthy? I decided 5 years ago, that I wanted to help 10,000 businesses in ten years. Do I mention that, that was 5 years ago? Half way there. Now, I love coaching. I love working with people one on one but what’s the chances of me, getting around and helping 10,000 people in 10 years? Slim to knew? Yeah. So part of my mission the pathway by which I’m going to take to get there was, “how else can I help people?’ and part of that was, “I’ll create a great program” Let’s put that on video. Let’s sell that video on amazon, let’s put it on audio books. Let’s create books, let’s share the wisdom that way. The good news is, we’ve already help more than 10,000 people.
So now the goal is, I want to help 50,000 in the next five years. Big goal? Unattainable? Probably. But am I going to give a red hot crack? Yeah. Is it specific? It is measurable? Yeah. Is it achievable? I hope so. I believe so. Is it results driven? And does it have a time bound factor on it? And did it take four pages to write? No. So have a think about it, what do you want to do? How do you want to do. And what is it going to get you excited within your business? I love it everytime I hear Uwe, talk about his business and what he does. I even love it when I talk to the people that you’ve help, who have that “I am making money”, that’s kinda cool. Because that’s a good example of people having a successful business being able to then invest on the things that will make them surely wealthy.
Who enjoys working in their business? Who wants to do it every single day and not make a dollar? No. Right? So let’s, I’ve said this what? Five times? We’re here to make money. We’re here to make money. We’re here to make money. We’re here to make money. Does it mean that we have to let ourselves turn our vision and how we communicate with people, how we engage with people? You should be proud enough to introduce your family to your clients. Your clients will become your friends. And If they can’t, then do you really want to be business with them? I’m really lucky, to have a number of really good friends that we just happen to do business together as well. Who here has got that experience? Most of us. Wouldn’t it be cool to have more? Would that not need to be a part of your vision as well? Interesting why have looking at it.
Let’s have a look at a really interesting now that I’ve thrown you to a profound just spasm of business. A little bit further down on the other page or the top of the other page. It’s got something that most of us tend to avoid. And if we don’t avoid it, we don’t necessarily do it particularly well, and it’s called finances. Finances, let me ask you, now I’m not gonna ask you to put your hands up. Because I’m not going to embarrass people in the room. Do you have a current, cashflow forecast? So that you know where your money is coming, probably coming from Where the heck it’s probably going to go. Who’s got a profit forecast. You don’t have to answer these things, but if you don’t have them, my suggestion is to write down, must do cash flow forecast, must talk to an accountant and bookkeeper about profit forecast. One of the great joys of investing your time and money into a business plan, and doing it really really well, is that when you do take it to a bank because leveraging other people’s money are good thing, you guys are extra quite, you didn’t even admit you’re in the game. How’s that? You’re embarrass, you’re a finance broker. When you go to the bank, and you’ve got a good quality business plan, what are the banks more likely to say?
“Yes” – Yes.
Why? – “You’re organize”,
You’re organize. Banks like orginisation. Lionel? “and you know where you’re going” You know where you’re going. Hayden?
“The reason why I want a business plan is to show that you’ve got plan” To show you’ve got a plan. “The words in it sometimes it’s more to say this guys knows what they’re doing.”
Yup, but what’s the number one reason why bank wants to see your business plan, your forecast and everything else? Because they are in the business of making money. Now isn’t funny that the people who are likely to give us the money that we need in our businesses requires to do something that’s gonna show that we are capable in making money.. Do I have to continue that sentence? I mean really. They just don’t do it because of pencil pushing read next, some of them are, we know couple of one, don’t we Grant? Not a lot, there’s a couple. But the reality is they want to do what they want to reduce risk. Financial Risk. Would it not be a bad idea, for you to be able to reduce or eliminate risk in your business cause you knew where your money was? Where’s it’s been and where its going? What you are going to do with it? When is the best time to do some tax filing Mr. McDonald? “All the Time” All the time, why don’t we just wait until 30 seconds before the 30th of June finishes? “Because it’s too late”. It’s too late. So this are open. When is the best time to sit down with your clients please? C’mon Pete tell me. “All the time” All the time, right. So, who here goes to see their accountant, their financial planners and their bookkeepers more than once every quarter or once a year? Put your hands up. And I will guarantee that most of you are financially literate. I’m always gobsmacked, when I meet a new client. Met when I was referred to one yesterday. And he had completely mixed up his margin versus his markup. He was telling me that he was working on a 50% markup. What he was doing, and I will just give you a simple figures is he bought a product for a $10. If you buy a product for $10 what does it mean you sell it for? Yes, $15, excellent. So that gives me a 100% margin. No, you just mark it up 50%, and that gives you how much margin? Around a third right? Until he told me that he also included a $15 GST. And he wondered why his sales had gone through the roof, he was smashing his competitors. But he didn’t have any money. Yeah lots of cash flow, but he didn’t have any profit. I’ve seen a number of very profitable business with no cash flow go belly up. I’ve also seen a number of unprofitable businesses but with awesome cash flow, continue to thrive. Wouldn’t it be cool to have both? If you don’t budget for both, you’re not forecasting for both, what are you gonna get? You’ll going to get whatever you get, cause you’ve got now idea, what you were supposed to get. No I could crap on for hours about money, cause money’s really cool, money let you do the things, invest on the things that you’ve want to do. Im’ very fortunate to sit on the board of bridge builders.
If I don’t make a fine equitable profit in my businesses that, I don’t know, mostly you know, mostly we donate 10% of our net profits to charities so which one of the recipients is bridge builders. The percentage doesn’t change. But where is the input is in my business come from, when I’m going to be able to say, hey, “where the girls retreat coming up, which by the way we do, in September I believe, to be able to sponsors some girls to go on the girls retreat. To be involved in boys to men program, be involved in some of the other program. You don’t just do that with good well-wishers. Charities require money, wouldn’t it be nice to have enough to be able share with somebody else? You wont do that unless you plan for it. And that’s what all today’s all about.
Right, next point. One of the big question, if you just flip over to the next page, there’s a number of different things that are in there, that get a little bit below ring. You see people go, “Oh hang on a second, what’s the difference between an ABN and ACN”, that’s a sort of thing my accountant thanks care of, isn’t it? GST, when can I be register for GST? Some of you will know the answers to that, but the tax department loves to do something really strange, like change their mind all the time. Has anybody ever had that? What do you think? Oh yeah, this is normal, and it’s not. So getting continual advise when you got actually changes.
Reason why I put it over there, is domain names, who here got an email address? Keep your hand up, if that email address is @gmail, @yahoo @hotmail @, excellent, anybody who’s got one of those, it’s not hard to register your business name and change it to URL. You don’t even need a website. But I’ve come to the realization, Rohan uses a fantastic slogan which I love, “A business with no sign is a sign of no business”. Business is moving, into both bricks and mortar and clicks and mortar. If you don’t have an online presence now? Get one. If your external presence isn’t matching up with your online presence? Fix it. Are you truly proud on how your business are being represented? I’m gobsmacked when I say, “oh well, I’ve got a website, that’s look kind of crap and uh, don’t really work all that well. But hey, that’s the face I’m using to the general public, to my potential client.
Cause what are we really saying to them? Yeah, I’m pretty crap, aren’t I? In fact, it’s going to be part of my new Unique Selling Proposition. My customer service really sucks, because when you clicked on my contact me form, it goes nowhere. If you clicked on that email address, it doesn’t exist anymore. And in fact, when you do something to my entire website, it’s going to crash so it’s not going to help anyway.
There are number of things you need to look at with the branding of your business.
Mel, Jack, I’m going to point out and pick you out for a minute. Mel and Jack runs a fantastic personal training studio. Twelve months’ time talk to me how I’m going to look okay? (laughs) But the reality is, one of the things I love when I see Mel’s business, her branding, is exquisite, it’s consistent. Doesn’t matter whether you meet her face to face, you see the inside of the building, the outside of the building, flyers, newsletters, website, it’s all congruent, isn’t it? Noregretspt.com.au? Yeah? if you’ve got a chance have a look at it. What else has she done to build her branding? She’s developed a whole host of free content. And that has to be part of, what we’re looking at. Isn’t it funny? Why would you give all these personal training tips away for free, Mel? Aren’t you just giving away the gold?
“I am not giving away golds, I am just giving away pieces.” I know you can speak up later than that, cause I’ve heard you, c’mon John. “We’re just giving them a taste of what we’ve been showing” Correct. “If what you read, thinks that’s good, then there’s more to come”. And it is done it it’s consistent way, it is congruent. From one end to the business, to the other end of the business.
“It also shows how to be the expert” Yes. “And that’s the people want” Yes. So part of your plan needs to be, the expert, how do I need to do that? How do I need to be congruent in my business?
Jarrod, here’s an interesting question, how many times do you see letterhead? Do you see a business card? And do you see someone’s email signature and they don’t look anything the same? “Everyday” Everyday. And the vehicle signage, which might been put around by Signarama Oakleigh, small flag for you there right? Doesn’t match up, why? Because you haven’t got your branding part. This got to be part of your planning. Also people often ask me, what do I need to plan for, in my business plan? The answer is really simple, everything.
The hard question is, what do I need to plan now?