Over a decade ago a young cricketer at the Australian Cricket Academy was approached to bat whilst the Australian team were practicing in the nets nearby. The teams fast bowlers were asked to try and bowl out the 16 year old star of the future.
Caught in the economic downturn?
The key to operating a successful business and making money in an economic downturn or recession is to know where your business performs well and where it can improve.
A "Business Value Gap" is the difference between the value of your business today and what you need it to be at time of sale.
A shortfall can have a significant impact on your retirement plans and may force you to reassess your desired standard of living in retirement.
Worst case - it can mean you cant afford to sell.
As business owners we often want to feel essential to the success of our business. Some common quotes from business owners are:
“My Customers are totally loyal to me”
“I am the face of my business”
Given that the average age of business owners within Australia is currently 56, it is more likely that you will be a "Baby Boomer" business owner yourself.
This can pose a number of issues for you and your business.
It is critical that business owners have a succession strategy. Many people are led to believe that succession means selling.
This isn't necessarily the case, however, as there are a variety of succession strategies available that are not widely considered by business owners.
Youve grown your business gradually, and now your mind turns to collecting your reward from your investment of capital, know-how and years of effort.
Achieving the most money for your business requires the same diligence it took to grow it.
So how can you ensure you receive a return for your efforts?
If youre in business, you should be aware of the changing nature of accounting software. Historically the most common business accounting software for small business was MYOB or Quicken. However the past few years has seen a seismic shift to Cloud accounting.