Finance | SCS Performance

If you admire gadgets or clever design, then you will most likely have one of those nifty little tools’ which have dozens of attachments enabling you to; cut, bend, clamp, squash, saw or sew. They come in a range of colours and sizes, from pink micro versions to hang off your keys to the bulkier silver numbers designed for a holster on your belt….but….have you ever considered the value of the super thin plastic version?

Perhaps one of the smartest (and most common) multi-tools on the market for business is the 2.8mm thick plastic credit card you are carrying … Read More

February 15, 2016/by Stewart Clark

Business Data – “is it a valuable asset or an expensive handicap?”

It’s well recognised in many corporate environments that data quality is a large and expensive issue.

For banks & insurance companies with risk data, retailers with stock, marketers with poor lists, and countless others who rely on accurate financial info – poor data quality is an issue as it breeds inefficiency, increases expense and robs capital. For the big boys, the cost of this can generally be absorbed as they have the scale to cover it. It’s the smaller players in the SME market who I find get knocked around the most by poor data quality.

Don’t think that … Read More

January 31, 2016/by Stewart Clark

Business Improvement for the year ahead

Christmas Day has been and gone and New Years is settling in, but when you sit back in the comfy chair – wherever that may be, on the beach, by the water, camping or even just at home……now is the time to take a quick “stock take” of the year that has past.

For those in business, often there is little respite as you run from one; sale, job, project, customer, site, state, transaction, employee, etc…..to another. So when you consider the following – think to the positive as well as the negative, and give yourself a pat … Read More

December 31, 2015/by Stewart Clark

Business security – thieves won’t be taking a holiday

With just on a week to Christmas, businesses are generally finalising last minute sales, delivering product orders, sorting through end of month accounts, preparing for New Year sales, confirming the staff leave roster, and even…. finalising the details for a staff Christmas break-up!

What’s normally left off the pre-Christmas “to do list” is security – physical and virtual.

Make no mistake, thieves will NOT be taking a holiday over the festive season – in fact, they will be working hard exploiting the combination of business closures and peak retail activity.

The risks to business vary significantly accordingly to industry, but … Read More

December 17, 2015/by Stewart Clark

Effective Business Reporting

To run a business efficiently and profitability takes more than just luck. In addition to having a good service or product, successful businesses typically have a strong management information framework in place to ensure all of the critical elements of the business are running correctly.

I often liken this information to the dashboard instruments in a car – where you have a range of information to let you know how you are travelling and the condition of the car. A good management information pack does the same for a business.

Every business has “key elements” in it … Read More

November 15, 2015/by Stewart Clark

5 Steps for better Business Financing

With countless business finance products in the market – is can be daunting for some businesses to decide which option to choose. The frequently asked question is “which one should I take?”, so to take some of the pain out of this point – we have provided 5 simple steps for better Business Financing.

To start, it’s not so much a case of which product you should take, it’s more a question of which one do you need and realistically, what is available.

Finance facilities should match the need, otherwise you run the risk of additional cost or … Read More

October 30, 2015/by Stewart Clark

What if I didn’t read the business contract?

Have you ever heard, “…what if I didn’t read the business contract before I signed it?” Unfortunately I have, with my default response being, “the devil is always in the detail”. So if you have not read your document, then the chances are that the “detail devil” will cause you trouble.

Experience has shown me that when faced with a lengthy document or contract to review, most people skip the read and get by on the verbal overview provided to them – choosing to act in the spirit of what they believe it means. For the few … Read More

June 11, 2015/by Stewart Clark

In Business – Cashflow is King

A well-used line in business – and for good reason, as without cash (or cashflow) in a business, it delivers the same result as a having a body without blood – SUDDEN DEATH!

I have seen mortally wounded businesses survive, simply because they had sufficient cashflow coming in the door to provide options. In some cases, the key objective was purely the opportunity to open the door again tomorrow.

There are a variety of ways to look after your cashflow – BUT FOR THIS POST we will cover one of the most fundamental and important cashflow aspects – … Read More

May 15, 2015/by Stewart Clark

Business Margins – Improve your Financial “Short Game”

Finance has shown me many things over time, but perhaps one of the more powerful concepts is “profit versus turnover”. For the golfers out there, I liken this to “driving for show VERSUS putting for dough“.

Underlying profitability and the associated free cash available for debt servicing are focal points for a Banker with any finance proposal – as this shows whether there is the expected ability to repay the loan within the proposed terms. The simple “revenue line” however, whilst interesting for trend and margin analysis, by itself – does little to prove debt servicing ability.

This … Read More

April 30, 2015/by Stewart Clark

10 Banking Essentials

You would not skydive without a parachute, so don’t do business without these.

From a banking perspective, every business should have these 10 items in their kit bag to either save, make or protect money – whilst maximising their banking relationship.

Assess whether your business has these as you go (Yes/No responses) and be honest – pass/fail thresholds are at the end.

a contact (or preferably three) at their bank. When you need assistance, you need to be able to quickly bypass the web and IVR tools and speak to a real person. For a deeper understanding on

February 28, 2015/by Stewart Clark

Business Growth Costs….

Often the objective of most businesses is SALES GROWTH, but it comes at a cost…. so the real question is – how growth ready is your business?

A basic principle of business is to generate sales (product or services) to return a profit. The natural flow on from this is to generate more sales to achieve a greater profit – but…what does this take and how prepared is your business for growth?

Listed below are five key ingredients required for successful sales growth;

Personnel

Increasing sales invariably requires more of your personnel, whether it be in the creation, … Read More

February 14, 2015/by Stewart Clark

The One More Thing for business success

Whether it be in sport or business, the difference between success and failure can often be simply doing one more thing than the competition. The extra phone call, one more prototype, another sales approach, an additional quality check, a larger focus group, an extra tier of service etc etc…..any of these can be the secret ingredient to business success.

A few qualifiers;

– know your competition as this will provide some form of benchmark. This is not to say that your competition is setting the right pace, but as a minimum it provides a starting point.

– work from … Read More

January 30, 2015/by Stewart Clark

10 Commandments of Business

Many business owners are time poor and simply don’t find the time to read the more comprehensive articles. So if you are looking for a bunch of potent tips for your business – then this short article is for you.

Aptly named the 10 Commandments of Business, these are 10 activities which will add bottom line value to every business.

Thou shalt…

… plan for the business. This should be aligned to a clear vision of what the business is seeking to achieve, along with its key strategies and measures to get there.
… understand your cashflow. Cash is

January 15, 2015/by Stewart Clark

What do I need to prepare my business for sale?

Sale/Succession

Business Sale Building Blocks

The prospect of selling a business, or at least positioning it so it can be sold, will be confronted by all business owners eventually. It may be for 20 years down the track (rare) or to sell now (more common), but the simple reality is that all businesses will have a change of ownership at some point.

The burning question for most owners is, “what do I have to do”?

Selling a business can be a relatively easy process, providing of course – you have a business which is worth buying (from a buyer’s perspective) and … Read More

October 26, 2014/by Stewart Clark

The Cost of being Tolerant

Business owners tolerate a lot, whether it is poor performing staff, process problems, cash flow, IT and the like. In doing this, the level of stress or pressure on the owner (and in many cases – the business) rises in direct proportion.

The two questions I pose are why…….and…..what is the cost?

In general terms, things are tolerated because of either a perceived lack of alternative or an inability to implement change. History shows me that there is always an alternative, albeit it may be painful, costly or difficult – but there is always a choice. The implementation of a … Read More

October 3, 2014/by Stewart Clark

What is your product or service worth?

Pricing… pricing… pricing… it’s all about the getting the price right – so that your price point is not only accepted by the market…. but also delivers sufficient profit to your bottom line.

So what is the right price, who determines this and how is it calculated?

To answer these questions I normally discuss two concepts – “Cost” and “Value”.

Cost – is the cost of delivery of a product or service for sale, so this is your cost of goods sold, your fixed and variable overheads at a product or service item level. It is important to … Read More

September 16, 2014/by Stewart Clark

Fail to have a Business Plan is Planning to Fail in Business

“Fail to plan is planning to fail” – Winston Churchill.

Even though this well used line receives universal acceptance in conversation……. few businesses “walk the talk”.

If fact, based on a number of recent business reviews it’s obvious that more planning goes into an overseas holiday, than many business owners put into planning for the success of their business.

Few businesses were actively “not planning”, with the majority either not having the time or seeing it as a low yield activity. This finding did not just apply across business planning, but equally to marketing, employees, sales and cashflow … Read More

August 28, 2014/by Stewart Clark

Sure Fire Business Killers

Operating a business has its challenges due to the many and varied issues drawing on the owners time – people, product, sales, collections, just to name a few. Thus it’s no wonder that many business owners operate “in” rather than “on” their business – which has its dangers.

Heading the list of dangers is the loss of sight of the “whole of business” picture, because as the business owner, you are too close to just one element. It’s like falling in love with the look of a shiny red sports car because that’s all you see – whereas if … Read More

July 21, 2014/by Stewart Clark

Business Finance – On the Hook!

For those who have borrowed money, you would be aware that financiers are always looking for a primary exit (repayment) source – normally via the repayment from business operations AS WELL AS a secondary exit just in case everything turns sour.

Most people get the simple fact that if they default on the loan, the financier will look to seize the security to get their money back, but…. there is a lot more to learn about this.

Firstly, did you know there is more than just property security that can be taken? Most financiers will look for property security whenever … Read More

June 30, 2014/by Stewart Clark

3 Strategies to Energise your Bottom Line

There are three key strategies available to energise your bottom line, with then an infinite number of tactics which can be used to support them – customised to your business and its circumstance.

The three key strategies are;
•   Revenue – increase
•   Direct costs – control
•   Operating costs – reduce

Each of these strategies has relevance for every business, and can be used either in isolation or combined depending on where the business is currently positioned. Before jumping onto any change program, naturally it is essential to understand where your business is presently at, what is working and … Read More

June 16, 2014/by Stewart Clark

7 Reasons Why You Should Know Your Cash Cycle

Cash Management

You often hear throw away comments such as “Cash is King” and “Cash is the lifeblood of business” – but what do these really mean?

“Cash is literally King” – as it is arguably the most important aspect of the financial health of any business and essentially “rules” over what happens. The other fitting analogy is that “Cash is the lifeblood of business” – as a business without cash will close just surely as a body without blood will die.

When I look at a business, the second statement normally resonates more for me – as an important component of … Read More

May 12, 2014/by Stewart Clark

The Financial Shopping List for Business

With countless finance products in the market – which one should I take? This is an FAQ from most businesses at some point, so this simple shopping list should take some pain out of the process.

To start, it’s not so much a case of which product you should take, it’s more a question of which one do you need and realistically, what is available.

Finance facilities should match the need, otherwise you run the risk of additional cost or inappropriate terms (which normally winds up being even more cost).

Step 1 – what is the need? Short term needs … Read More

April 20, 2014/by Stewart Clark

But I didn’t see it coming!

All too often this is the catch cry after a major incident…..a show stopping incident…..a business crippling incident…

But after the dust has settled and the emotion has been removed from the discussion, the real question is “WHY didn’t you see it coming?” Show stopping incidents in business – the ones that have the ability to cripple or kill a business, can be predicted.

These risk events will normally fall into either being a Credit, Market or Operational risk event. A common Credit risk event for small business is a major bad debt, which more often than not will have … Read More

April 8, 2014/by Stewart Clark

The Factor of Time

Time is a precious commodity and one not to be squandered. Often time…..is the critical factor between success and failure.

In prior blogs I have made references to how important time is in finance, and then more generally – to business viability. If your business is running tight – with losses or cashflow gaps starting to show, then this article will provide you 10 reasons to take corrective action now.

– Interest

The greater the duration of a loan, the larger the interest cost to your business. Miss a payment or exceed your approved limited you only increase your interest … Read More

March 23, 2014/by Stewart Clark

The Business Debt Trap

Debt comes in two forms – Good and Bad. Successful businesses understand the difference and actively manage their position.

Over the years I have seen many businesses struggle (and some crumble) under the burden of debt – with the debt load literally hanging over the business like a tree branch waiting to fall in a strong wind. Using a simple test before taking on debt will assist you in avoiding this risk.

But……to start with – not all debt is bad!

In fact, debt can be a great enabler to get a business going, be it for a vital piece … Read More

March 18, 2014/by Stewart Clark

More Fees for Business than Service

Cash Management

Ever noticed that some bill accounts are so complex that it takes a master’s degree to work them out? Put simply…..it’s an illusion to justify a larger cost and/or mask the value that is being charged.

I call the language used in these accounts “bill speak“, so once you understand how to translate it – you will never be fooled again.

Regrettably the world of financial services, telco’s and some utility providers use bill speak to the extreme and appear to compete for the most individual fees for what is fundamentally a single service.

Recently I reviewed a … Read More

February 24, 2014/by Stewart Clark

5 Avoidable Banking Mistakes for Business