Good Enough For Elite Sport! Good Enough For Your Business!

Football is a game of structure, strategy, leadership, planning, reacting to change and ultimately achieving the outcome you are after.  Doesn’t that sound like business too?  Aren’t these exactly the characteristics of your business – structure, strategy, leadership, planning, reacting to change, all with the aim of achieving that desired outcome.

Recently I was hit by a BFO (Blinding Flash of the Obvious).  There are so many similarities between any sport and business and yet one of the most critical elements in sport, planned breaks (e.g. ¼ time, ½ time, ¾ time) don’t even exist for so may businesses.

Think about it – how many sports go from start to finish without some form of break to think about how things are going, to realign and to re-establish the planning of what needs to be done.  Tennis, cricket, golf, hockey, all football codes, even darts and snooker all have breaks scheduled in before the game starts.  Every player and coach knows there will be a chance to review and plan for the next period of the game.  You could argue swimming and some athletic events have no break but even then there are generally a series of heats with breaks before the final event begins.

So where’s the learning here?  Take a look at your business:

  • Do you have a game plan for your business?
  • Where is your planned break for your business to review, reassess and if required change or adjust?

It is common in business to blame the team – they’re no good at their job, they seem to always be going away from what they’re supposed to be doing, they’ve got a bad attitude, why can’t they just get the job done?

Now turn these questions on their head and as the business owner ask questions where you take responsibility for these issues.  Replace “they” with “me” or “I” and talk about your “feeling” on these matters.  I feel that I haven’t been able to create an environment where my team are great at their job, I feel that I haven’t found a way to get the business set up so everyone is on the same page, I believe all people have good in them yet I feel that I haven’t been able to get this attitude from my people, what can I do to ensure that we get that job done?

As soon as the language changes from “they” to “I”, you will begin to ask better questions and get better answers.  Just from these questions alone you might just be asking yourself:

  1. Have I created a game plan?
  2. Have I formalised it and shared it with my team?
  3. Have I created a strategy where I will revisit and review my game plan regularly in a planned manner?

If your answer to any of these questions are NO and you would like to take responsibility for your business and team performance email lynda@mcmahonosborne.com.au to book a FREE 1 hour consultation with one of our professionals.

Advertisements

Case Study – Put the spark back into your cash flow

The Problem

A large electrical contracting business had grown from $4M p/a revenue to $11M revenue, while having their profit go from $1M p/a to $70k p/a. They were investing in another larger commercial building for the business to move into and had a $1.5M renovation/building bill to pay over 9 months and were struggling with cash. 95% of jobs were now losing money, mainly due to the incorrect pricing and small to no margins on the work. The business budget was simple and not really understood and there was NO cash flow constructed at all.
The business was struggling and heading towards bankruptcy (without the owners realising it) and creditors were only 2.5 months away from knocking on their door and closing the business down.

The solution

The owner asked me to help them construct a budget and a cash flow from scratch. Using his business knowledge and allowing an objective look at the businesses past performance, we constructed a very specific budget with workings and assumptions. This allowed us to gather real information and enable us to progress forward.
We created a cash flow document based on reality and discovered a number of periods in the short and medium term we needed to address. We worked over a 5 month period and the owner looked into his business like never before with many “light bulb” moments and changes of opinion going forward.

The result

With the clear knowledge of what the “real situation” was and the “extra time” the owner now had to save the busness, the owner;

  • Received $2M funding from a private investor and saved the business from closing
  • They focused intently and converted $15M of new work at 15% margin within 3 months
  • They extended the building project from 9 months to 15 months
  • They saved themselves from losing the business 100%
  • They saved their family home from the banks as this was the guarantee of the business debt on their major projects

new MOG

Cracking the Property Market in 2013

lookingglass

If you’re looking to crack the property market in 2013, now would be the perfect time for you to ask yourself a few important questions.

Have you considered your home loan options?

Often buyers go through all the hard work of finding their dream home only to discover no lender will finance their purchase.  Contact McMahon Osborne Group to discuss your current financial situation and discover what options are available to you.  A pre-approval loan is always a handy tool to have.

Pre-Approval Power

Pre-approved finance is a powerful tool for all investors and something you should carefully consider.

A pre-approved mortgage will allow you to know how much you can afford to spend as well as the amount you are likely to pay in mortgage repayments.

Pre-approved finance is also a powerful negotiating tool with vendors.  Sellers will know you are serious about making a deal and that you should have no issue securing finance when the time comes to sign on the dotted line.

Where are you looking?

You’ve heard it a thousands times before and you’ll hear it a thousand times again, location, location, location.  When it comes to property investment, nothing is more important than finding the right area or suburb for your purchase.  Be sure to do your research-but also, have a chat with us prior to making any purchase decisions.

Have you got an investment strategy?

Your investment strategy will determine many things, from the type of property you buy to the location it’s in and to your home loan options.  In fact, your strategy will affect nearly all your investment decisions.  Be sure to devise a well thought-out plan.

We can help you with your plan and step you through the entire process of purchasing an investment property.  Talk to one of our property investment specialists today.

For your Free 1 hour consultation contact Lynda or Kristie at McMahon Osborne Group on (03) 9744 7144 or visit our website; www.mcmahonosborne.com.au

Case Study – Knowledge equals financial success!

The Problem

An accounting firm’s 2 owners (75% and 25%) were locked in major dispute about the direction their business should be taking and how they were currently operating. The 75% owner decided to buy the 25% owner out as this was the only way they could see a solution. The business was a $3M p/a revenue business, with 29 employees, a profit of $500k and a cash balance of NEGATIVE $370k (using their $400K overdraft to survive). After 2 failed acquisitions to aid their growth in the past 2 years, the business was on its knees financially!

The Solution

The remaining owner asked for some very hard “coaching” from me and said “he would now do 100% of what I said when I said to do it” (this is how desperate he got). We immediately put a weekly cash flow into place and forecasted it 6 months in advance. He decided to turn the weekly cash flow document I presented him into a daily cash flow format. We had the Operations Manager implement it and update it daily and it was sent to the owner and I every Monday morning for review.

The cashflow revealed exactly which areas in the business we needed to focus on and we decided on 5 strategies to implement over a period of 5 months;

  • Changed the trading terms to 7 days from 30 days
  • Implemented invoice financing for people who needed financial support to pay the bills
  • We pulled in all overdue fees (93%) immediately over 30 days old
  • We had some clients pay their money in advance
  • The team were made aware of the situation and asked to position/reposition the trading terms with clients and did not commence work until payment option was agreed.

The Result

Within 5 months, the owner has collected an extra $250k he never had before and is now 3 months from clearing the overdraft completely and trading solely on operational cashflow. The owner is in the process of shutting down their second office as it is clear NOW that it is losing between $10-15k per month, with people and assets moving back into the mother ship office. The business is now ahead of budget and making an extra 27% profit YTD with more growth expected.

MOG