Is Your Accountant A Small Business Advisor ?

Not long ago, a small business owner relied on their accountant for business advice.  Along with taxation and financial  advice, the accountant played a vital role in their business affairs.

Fast forward to 2010

1. accountants are snowed under with BAS, GST, tax returns  and upwards of 30,000 pages of taxation law;
2. financial advice is now done by financial planners;
3. small business is being overtaken by large companies;
4. the internet has changed how small business operates; and
5. small business owners feel overwhelmed or lost in the new era.
6. We know the position accountants are faced.  We are accountants but specialise in business advisory services.  Although we are very familiar with tax law, we work with your accountants to grow the business.

Recently I was introduced to two very different (but “identical”) prospective clients.  One client had a very successful business and the other client fell upon very challenging times.  They met with their accountant to discuss taxation matters once a year but never really discussed the intricate issues of business or challenges. They told me that the accountant was usually busy or did not have the skills or resources to help them grow the business.  In both cases, their accountants told them to prepare a business plan for review.  One of the accountants even suggested that one of their junior or middle ranked staff could prepare a business plan.

How one would delegate such a critical task without any serious input by the small business owner is for another day.

So what was the outcome of these meetings ?

As in almost every case, both of these clients had identical challenges.

1. lack of time;
2. having less personal time’
3. flat profit;
4. no cashflows;
5. becoming a social worker for their employees;
6. unable to move to the next level;
7. stressed;
8. lack of financial preparation;
9. lack of communication;
10. cashflow problems; and
11.  spending more time in administration and operations.

Yet I simply ask the one question that is rarely answered by small business owners and seems to elude them for the life of the business…

Can You Please Describe Your Strategy ?

In both interviews, the clients went to great lengths to explain to me how they were working on improving the systems, communication and marketing plans.

Yet, when I challenged them by suggesting that they were improving the operations of the business, they became slightly defensive and almost lost in responding to such a simple question.

A simple question – Describe your strategy …

Ask Yourself:  Can I describe my business strategy in less than 1 paragraph ?

The good news is that you are not alone. 

The bad news is that you maybe stuck at the same level as your competitors.

The great news is that you can do something about it now !!!

The basic formula and challenges for small business are almost identical for every business.  Yes, customers and suppliers may differ but the fundamentals are almost always the same.

Why is it that large businesses invest enormous resources to understand and execute their strategy and yet small business think that strategy does not apply or is of little value ?

No matter the size of the business, a lack of strategy and execution usually defines the success or lack of achievement in business.

Did you know these 6 important statistics:

1. 75 % of businesses never prepare a budget;
2. 20% of businesses spend more than 4 months preparing a budget and not completing it;
3. 78% of businesses that have a budget never change it in a financial year;
4. 85% of business owners spend less than 1 hour per month dealing with strategy;
5. 60% of businesses do not or cannot link strategy to the budget;
6. 92% of businesses do not report or prepare “strategy data” to help navigate the business;

What is it that makes certain businesses very successful and others struggling to make ends meet ?

How do the profitable companies stay ahead of the game and continually meet the changes head on AND do it quickly ?

The simple answer is that these companies have the benefit of understanding the power and importance of strategy –providing them with a competitive edge.

Small business owners struggle to keep pace with market change and continue to defend profit.

The impact of greater competition means that the small business owner works longer and harder – all at the expense of personal time !

In 2010, competition comes from everywhere, faster and harder and what gave you the edge today may not be there tomorrow.  It’s little wonder the small business owner is overwhelmed…

Our experience has shown that many businesses that invest significant time and money preparing a business plan fail to implement it because the owners cannot describe their strategy.

Remember, if you cannot describe your strategy in 1 paragraph, the you may not have an ultimate destination.

Without a clear and easy to implement strategy, the small business owner faces the prospect of making important decisions without all the facts, or worse, will not make a decision at all.

Either way, the result could be catastrophic to the business.

The next hurdle is execution of the strategy.  One you have researched, identified and described your strategy, you will need a method to execute the plan. 

Working with you... we can help with both

Who is Standard Edge ?

We are expert advisors that have proven methods and systems to deal with your current business needs and problems.  We know how hard it is to be in small business so we have made our services affordable and still receive the expert advices of professionals.

Businesses seek a proactive and disciplined relationship with their advisors.  They want to manage their people, processes and relationships. 

Numbers are no longer good enough and our firm helps change, transformation and improvement.  We combine maturity, professional skills and human qualities.  We have a firm grounding in business knowledge and competencies and a thorough understanding of the world of a small business owner.  With a broad understanding of leadership and high standards of personal and professional ethics, we have a long term commitment to your business.

Why Choose Standard Edge ?

1. We are specialists in the small business sector.
2. We provide a “fulltime” dedicated role in your business.
3. We are your partners but with an external view of your business.
4. We discuss business on a weekly basis.
5. We introduce you to a culture of accountability.
6. Our results are proven.
7. Our client testimonials.
8. Sounding board;
9. Raise your standards of performance.

Our Assets Generate Value to Small Business Owners

• Ability to ask the tough questions because we possess a wide range of business knowledge and expertise.
• We specialise in the small business sector.
• Ability to have conversations beyond the obvious.
• Ability to maximize performance and structure.
• Ability to challenge small business owners.
• Ability to be highly innovative, creative and collaborative.
• We serve as a strategic partner to the business owner and his/her team.
• Ability to be a confidante in which business owners are able to share all sides of themselves; their hopes as well as their fears, their egotistical wants as well as their social needs, their dreams for themselves as well as their organizations.
• Ability to inspire others at the highest levels.
• Ability to hold all things in confidence and operate out of highly evolved ethical procedures and conduct.

 What Are You Looking For In A Small Business Advisor

• An experienced conversation partner who is a good match (i.e., where there is a strong connection between Coach and client)
• An advisor who is different enough to bring about intervention, innovation and creativity to awareness.
• Someone who can work beneath the strong ego of the leader and who will challenge him/her to raise standards in all areas.
• Someone who is dedicated to having the business owner accomplish the agreed upon outcomes (e.g., increased productivity, increased effectiveness, shifts in leadership approach, increased organizational benefits).
• A person who has “been there” and who understands through their own analytical and intuitive hunches what the organization and client issues are.
• An advisor who will give strong objective feedback in a non-judgmental manner.

How Do We Do It ?

• Initial interviews that determine current situation, future goals, what is missing, background of strategic plan, mission statement, financials, etc.
• Scorecards for accountabilities.
• Pre/Post assessments to measure results for individuals and teams, team effectiveness.
• Measuring progress in terms of business acumen, being well read, personal courage, facilitation of teams, tasking for practice, stakeholder management, intellectual/intuitive awareness of the bigger picture, global-multicultural capabilities, personal and professional successes (e.g., networking, sales/marketing, and business/operational skills).
• Processes for conducting business in more effective manner such as determining vision, modeling values, discerning authority, decision-making, effective meetings, handling conflict and disagreement, creating innovative methods.
• Preparing and implementing a strategy budget – the most important document that you will ever have !
• Intensive meetings discussing and analysing your business
• Keeping your game plan on track
• Powerful research to see where “you fit” in your industry
• A detailed report of your industry, competitors, emerging trends and identifying potential risk points
• Understanding the importance of “trade offs” and how to make decisions when you have all the facts
• Helping you establish realistic and practical goals
• Setting good communication systems with your employees, suppliers and customers
• Establishing strong time discipline
• Maximizing your relationship with your advisors

 BENEFITS

• Guarantee to improve the value of your business.
• Allow your employees to take more responsibility.
• Find weaknesses and road blocks in the business – and FIX THEM
• You will SAVE money and precious time and put those valuable resources into other critical areas.
• You will be able assess and understand elements that will impact your business and how to communicate the game plan to your team.
• Improve your profits and better manage your costs.
• Our focus is your business strategy – we are not in competition with your accountants or other advisors as we do not carry out tax or accounting work – we are specialists in business strategy and improving performance

Please contact John to arrange a free consultation on 38310077 / jeg@standardedge.com.au