Here’s the part 3 of the FREE audio copy of The Business Essential Series: Back to the Basics.
Back to Business Basics
In the Back to Basics, 6-Part Podcast Episodes, we introduce a number of fundamental ideas and theories that you will use through the entire Business Essentials Series workshops. You will learn how a business is supposed to work and most importantly it provides you with a series of practical tips, suggestions, ideas and tools that you can apply to your business immediately as you begin your journey of making More Profit in Less Time.
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TRANSCRIPT: Bonus Episode 16
Title: Back to Basics (Part 3 of 6)
Date Published: March 12, 2016
Running Time: 10:22 minutes
So whether you are a baby bum looking to get those in the next few years or somebody in business, or somebody looking to get into business. The reality is, what are you going to do to make sure that your business is special and your business is prepared? Because there’s going to be more people, looking to sell businesses than buy businesses. So if you expect to get maximum value out of your asset, that’s what a business should be. An asset that generates cash flow and profit. If you expect to get a good return on that investment you need to prepare from day one. If you haven’t prepared for now. Start doing it, will take you through to some of the ways to actually do that.
So with your time. Now,I don’t know whether you had the chance to read Stephen Covey, 7 Habits of Highly Effective People or whether Brian Tracy – has written some fabulous books on time management. There’s a whole host of different things that you can actually go at there and tools to actually work in your time management. The reason why I mention time management second, is because if you don’t get this one under control and master your time, the reality is, you are now letting go one of your most valuable resources, it’s a none renewable resource. Once today is gone, it’s never coming back again. You have a fine note amount of time on this earth. It’s up to you, is to whether not you use every moment of that time as effectively as you can. Personally, professionally, in business, socially so it’s up to you. Now, one big part of that is, when we actually looking at our time, I like to look at it in a way of breaking down to really four different segments.
And the first segment I look at it is, what are those things that are taking up my time that are not urgent and not important? And these are the things that we actually call distractions. They might be junk emails. They might be reading up the paper when we should be actually working. And I hear a lot of justification behind that, “I need to come into the office and read the paper everyday so I know what’s going on” That may be true for small part of the population, but I tell you for most of it says really not the case. Is it important? Yeah possibly, but make sure that you actually get reading and doing the right things at the right time. Read the paper by all means but read it the right time. Look at your junk emails at the right time. Don’t after necessary ignore them. But Facebook another one, great fantastic social media tool but you use it inappropriately can actually be what I classify as a distraction. So it’s not important it’s not urgent.
The next areas that you look at it are things that are actually urgent but not important. And they are the things that we usually fall into a delusion. The phone ringing is usually a good example. If the phone is ringing it’s probably urgent, that’s why it’s ringing. Is it urgent? Oh you don’t really know until you answer the phone. Then when you answer the phone if it’s a client looking to engage you then it’s probably an important call. If it’s somebody trying to sell you another phone plan, it’s probably important, but not really important to them, not so important to you.
So what are the things that are happening where you’re delivering yourself to be able to put those things in place? What gate keepers, what tools can you use within the office to screen some of those things. And what are the other activities that you’ll being delusional some of the low skills, low capability, low value task that many business owners end up using inside their business. I see a lot of business owners who you do their own book keeping rather than getting a bookkeeper in. Now I’d rather invest, spend time to save money rather than invest money to save time. Truly successful people will take that attitude of investing money to save time.
Other task within your business that are better done by somebody else, that will take a fraction of your time, and that will enable you to focus on your core competencies enable you to do the things that you do best, and will generate a better profit inside your business and that’s effectively what we’re talking about better times better profits.
Another part of that then, is actually look at the urgent and important things. Did the day to day things that will classify as demands where these things are urgent, they’re important , they’re repetitive task within our business that need to be done every day. Unfortunate with them, what they do is they end up sucking up so much of our time augmented by a delusional and distraction activities that suck up even more of our time and don’t allow to get down to the really important part. That’s the important but not urgent part of it.
Now what’s important but not urgent? Standing here today in fairly good health. My health to me is important. Is it urgent? Probably not. Now if I fell over with a heart attack my urgency is now moved from not urgent to suddenly urgent. Unfortunately, this also then falls into a lot of people that I meet. And that we meet. Where their family is falling into the areas of other categories. So they ain’t can spend their time with their families, their loved ones or their friends. They’re important to them, but they’re not urgent, because they are not urgent, they are shut on the side and are not given the presence than it is. So I actually work from the inside out, if I were to make sure that I work on my zone time, the stuff that’s important to me, and that’s not particularly urgent, and then I work the demand which is important and urgent. I don’t find that I have a lot of time in my day for the rest of it. And the quality of my life and the interaction to those that matter to me are far far greater. There’s a saying that says uh, something along the lines that “there’s no use in having a lot of money living the best house on top of the hill, if you’ve got no one to share it with.” So get that balance, I called a life-work balance not a work-life balance. And that time management principles that I’ve just shared is a way to actually get that back under control. So if you can do that. You’ll be much better off.
So let’s have look at money. For financial management is not is not only the cause, the re cause of so many businesses failing. It’s also the failure of so many relationships. It also impedes on those things. Have they told you a happy wife is a happy life? I can assure you, if you take care of the things at home, through a good financial management at work, you will actually achieve much better results at work. Your business will actually flourish a lot greater. A lot of these things could actually have been avoided if they’ve taken on sound principles. One of the things I ask a new client when I meet with them is who’s responsible for profit in your business? And quite often I hear, “Oh no, my accountant’s responsible, or my bookkeeper’s responsible” Oh I’m sorry but that’s how gross, you need to take personal responsibilities, to your own actions, and take responsibilities for the profits in your business. So your bookkeeper and accountant are absolutely essential in your business and I will mention that time and time again. But unless you become financially literate, enough to actually be able to ask the question of your bookkeeper and accountant. Then you’ll not gonna be able to take responsibility over to financially driving your own business. If you ask them the right questions that will thank you for it. A good bookkeeper and a good accountant will thank you for asking good quality questions. They’ll be ecstatic that they’ve got somebody that they can engage in a way that is going to help you drive those profits forward. Now, you can’t cost cut your way to a magnificent business. It’s important to manage the financial areas to the business. And then enabling you then to be able to invest in your time, money and efforts and other areas of your business. So get those core principles right, we’ll cover that in a little bit of detail today and a lot more as we go through the business essentials series. So that cause on chaos, just to bring you back to you again, a lot of small and medium size business owners, they’re cost to them is not necessarily just a physical cost, we see divorces, we see separations, we see broken homes, we see people who are miserable or unhappy. Disengage with their friends their family their loved ones they’ve got heaps of money, that nowhere to go with it. Or they’re not making money, they’re working squillion hours and they still have nowhere to go with it. They haven’t got anybody anymore that they will be able to deal with. So make sure that we actually take care of those things and the big part of it is their physical health’s starts to fail, and that’s terrible. Because how can you say that you’re family, those around you who’s incredibly important and unless you’re around to be able to support them and spend that time with them. So looking after yourself enables you to look after others.
So consistent, now I’m hopping on this, but consistent financial management is the key to running successful business. It’s the absolute key. You need to be able to collect, track, save and invest wisely within your business. You must be in control of your money. Not necessarily other way around where the money is controlling you. So the keys to good money management, very simple things, budgeting. When was the last time, that you sat down and you prepare to budget that was meaningful. Now what is a budget, there’s a whole host of budget, I’m talking about whether it’s a household budget. Have you budget a profit? Have you budgeted for cash flow? Have you budgeted for growth? Have you budgeted for capital equipment replacement? Have you budgeted for training and investment? What are the different things that you need to do to actually budget within your business?