I can pinpoint the moment when a business stops being enjoyable and becomes an unforgiving master or mistress. Often coinciding with a period of unprecedented growth or a new direction, the needs of the business outgrow internal expertise. The common reaction from many business owners is to work harder and give more. Sadly, this isn’t enough.Running a business – any business – demands an understanding of the key essentials – marketing, human resources, IT, operations and accounting. But that doesn’t make you an expert in these fields. The natural next step for many business owners is to employ an expert – someone to share the load, take the reigns, provide a unique perspective. But what happens if this person doesn’t provide these benefits? If there’s more to be had, and you don’t even know it? Let me share a story with you.
Previously employed as a Marketing Director and Chief Financial Officer (yes, you heard that right), Arnold was a ‘jack of all trades’ and good at shirking responsibilities. Working inside someone else’s company (possibly yours?), Arnold happily took home a generous monthly salary and gave little or no thought on the company’s balance sheet, broader aspirations or short and long term objectives.
Deciding he could do more, Arnold eventually went ‘out on his own’ and set up his own consultancy business.
Engaging Arnold as their bookkeeper / accountant, Trevor and Susan were Arnold’s first unwitting clients. A husband and wife team that had been trading for around 10 years, Trevor and Susan were good at their jobs and on the verge of great things. The only problem was, they were about to be short changed. Arnold was at the helm and he was sailing blind.
While their BAS was lodged on time and their group certificates were filed (usually), Arnold provided nothing more than a reactionary service. He plodded through the basics and offered no insight. Trevor and Susan were ecstatic. After all, isn’t that all accountants were supposed to do?
Skip forward a few months, and Trevor and Susan were experiencing growing pains. They were working hard but the fruits of their efforts weren’t visible. They had no idea which product was making them the most money or where to reinvest in their business. As a result, they made poor day-to-day business decisions, hired in the wrong areas and over-purchased stock. Arnold was out of his depth, and Trevor and Susan’s narrow view of what their accountant ‘should’ be providing, was crippling their business.
Referred by a mutual friend, Trevor and Susan asked me to look into their business about 12 months after Arnold’s appointment. Commencing with some financial reports (verbally and in writing) and weekly face-to-face strategy meetings held in Trevor & Susan’s office, I showed them how to capitalise on missed opportunities, reduce overheads and make more money. Armed with ‘up to the minute’ business and financial insight from me, Trevor and Susan were empowered to get on with what they did best, and finally had a clear path to profit and prosperity.
Over the next 6 months, the business grew by 400%. Armed with my experience and professional insight, Trevor and Susan began taking advantage of the right opportunities and started putting money where a return on investment was likely. That year, Trevor and Susan took home an additional $200,000 profit. And that was just in our first year of doing business together.
