The Financial Needs of a Modern Business
Mar 30, 2020
The modern business has a different set of financial requirements to a traditional business.
Modern businesses may have lumpy cash flow where they run a campaign to sell a service. And then spend the next few months delivering without any further income.
But like every business, the modern business owner needs:
- to understand the core financial concepts,
- to develop focused management skills, and
- to create a planned growth strategy.
Knowing how to do the bookkeeping is a useful skill to learn; but what's more important is to understand and interpret the numbers. Use the numbers to tell the story of the business. Interpreting the numbers provides further insights into the business helping you to make good business decisions.
A profitable modern business requires the owner to have a broad range of skills and knowledge.
Core Financial Concepts
Core financial concepts are the foundations of business numbers. The basic building blocks on which everything else is...
Is Modern Business the Goal for Traditional Businesses?
Mar 09, 2020
Do you have a traditional business where you are tethered to your office, shop or workplace? A business that serves the local community but you dream of growing bigger and serving a larger market?
Marketing gurus spruik the benefits of having an online business where you can make money while you're sleeping. Whilst there's a degree of hype in their messages, the underlining model is where the future lies.
Example
A good friend of mine owned a retail shop for many years. She sold it some years ago to focus on manufacturing, importing and direct selling. Over time, as online product sales became the way her target market was buying, she moved her business online.
Imagine waking up in the morning to find sales processed overnight. Her business evolved from waiting for someone to walk into the physical shop to having her business open 24/7 online. Having an online shop doesn't guarantee sales. You've still got to do the marketing to get people to your online shop for them to...
Modern Business rising from the ashes of Traditional Businesses
Mar 04, 2020
The types of businesses operating today have changed significantly from the traditional businesses we all know.
You know the ones; the ones with a bricks and mortar presence, whether it's a shop, a workshop, a factory unit or an office. Businesses traditionally were location specific and served the local community. Their incomes are directly linked to the size of the community around them and those who pass through or come for holidays.
In Australia, those traditional businesses in areas impacted by bushfires have been badly impacted. There are those whose businesses were engulfed in flames losing everything. There are others where the business premises were saved from the flames, but the community around them is in crisis. Holidaymakers were ordered to stay away or go home.
The livelihoods of these business owners has been damaged beyond belief.
Small Business
Small business is a term that has multiple definitions depending on the context in...
Find out where the pressure is in your business
The Business Barometer will measure your business finances across three critical areas: Core Concepts, Focused Management and Planned Growth.