Tag Archive for: Risk Mitigation

Navigating Business Risks in the Festive Season

As we take the run into Christmas, most business are focused on getting things finished so they can wind down for a bit of R ’n‘ R over the Christmas & New Year period. Naturally, those in Retail are still geared up until after the post Christmas sales and Hospitality, will run hard until the holidays finish, but….there is another group who are gearing up for a busy holiday season.

This group, would officially be on the “naughty list”, as this group have only one objective – to rob you.

What’s normally left off the pre-Christmas “to do … Read More

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Breaking Down Phone Barriers for Greater Business Success

In business, the humble phone is such an important tool – yet many business owners will not dial a prospect or debtor. The reasons for this span from; a simple lack of purpose, through to a real phobia or fear, however the outcome is the same – the call is not made – and this is what costs business.

For the bulk of people, the avoidance of making critical phone calls can be overcome by following some practical steps along with some honest perseverance. For the smaller group who still find issues, then face into the issue and seek some … Read More

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Ready to Launch Your Business? Here’s What You Need to Know

I want to run my own business, so now what?

I’ve heard this line on many occasions over the years. Bright eyed and highly energised potential business owners with a concept for a business that they want to run. Of course, as every experienced business owner will tell you, it’s actually not that simple to run a business – successfully and profitable. There are many pitfalls and in most cases – you need to spend a few dollars before you can turn a dollar.

For those serious about setting up a business for long term success – this article … Read More

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The Wallet Size Multi-Tool for Business Success

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

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Business Data: Valuable Asset or 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

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Ensuring Business Security: Thieves Don’t Take a Holidays

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

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Choosing the Right Information to Run Your Business

It’s that moment where you are sitting amongst a pile of information – numbers, graphs, returns, production numbers, stock levels, customer surveys…….all with seemingly important information……but what does it all mean……what information should I use to run my business?

These are the questions which are being raised more and more with the rise of technology, as we tend to have an unending supply of data and reports available. The secret to all of this is to understand what material is relevant to the business operations and then, to understand what the information is telling you. From this point, it’s … Read More

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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

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Clear Business Process + Strong Execution = Great Savings

Regardless of whether you are selling burgers to a young family with three tired kids or producing “O” rings for the space program – there is always a cost when your process fails – it’s just the magnitude that varies.

For a minute, let’s consider the more trivial of these two examples and look at the world through the lens of a parent with three children under 10. It is a warm day, the kids have been running wild all morning and at 2pm, it’s going to be a late lunch.

You place your order at the local fast food … Read More

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When Good Times Go Bad: Navigating Challenges in Business

How much risk are you carrying in your business – do you know……and what are you doing about it?

Someone once explained Operational Risk to me as the classic, ‘good times gone bad’ situation, where one or more of the things which have made the business successful, suddenly go wrong – and often….very wrong!

Perhaps a clearer or simpler description of operational risk is; a failure in the people, internal processes or systems of the business, or an external event that could have financial or reputation impacts.

For a typical SME business this could look like –

    • Poor password
… Read More
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Essential Banking Insights: The 10 Must-Knows for Businesses

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.

  1. 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
… Read More
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12 Costly Risks Every Business Should Be Aware Of

Murphy’s famous law about what could go wrong is just as applicable in business as for any other part of life – with the key learning being that you always need a Plan B!

The majority of risks in business can be predicted and quantified as part of an assessment of the business and how/where it operates. For most businesses however, stopping to undertake this type of assessment is rare – let alone implementing mitigation plans.

So in the absence of a specific risk analysis of your particular business (which is naturally the best option), this article highlights … Read More

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10 Mistakes to Avoid When Selling Your Business

With lots of blood sweat and tears, you have built a business over time which is worth something…. and now you want to sell it.

  • Some would say that the hard work has been done, but you can’t take your eye off the game at this crucial time – as it could blow up in your face and cost you a lot.

Selling a business is unfamiliar territory for most business owners, so a couple of poorly timed comments or a lack of preparation could result in a material change to either the sale price, its terms or even … Read More

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The Importance of Having a Business Plan: Avoiding Failure

“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

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Identifying Surefire Business Killers: Strategies for Prevention

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

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Announcing: My Business is Up for Sale! Are You Ready?

The sale of a business is typically an emotive situation for the business owner…… and in the majority of cases, something that they are very unfamiliar with. So if you are thinking of selling your business, then consider the following 6 ingredients for a good business sale experience.

Clarity on why you are selling

  • This is normally an “ice-breaker” question which comes up in the first few minutes of discussion – so have an answer. Some owners try to be smart and give “the right answer” for why they are selling, but I personally advocate a clean honest response. Be
… Read More
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Business Finance: On the Hook! Understanding Financial Responsibilities

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

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The Financial Shopping List: Essential Items for Business Success

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

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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

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Avoiding the Business Debt Trap: Strategies for Financial Freedom

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

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5 Avoidable Banking Mistakes for Business Growth

As with most things in life – learn the lessons of those who have gone before you.

Over my years working with businesses and lending money, I have seen a number of simple mistakes that have cost people a lot of money. To save you the cost of these, I have jotted down 5 of the most common mistakes that I have seen, along with simple yet effective suggestions to avoid them.

Mistake # 1 – DID NOT READ the loan contract or terms & conditions.

25 years ago, a home loan contract was 2 pages – these days … Read More

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