Many business owners believe they have an accountant, when in actual fact they have a bookkeeper or tax agent. Think there’s no difference? Think again… your profits may just depend upon it.
These days, the importance of positioning your business correctly – that is – maximising opportunities and minimising threats – is essential. Just be careful whom you turn to for advice. Here’s a working example to illustrate…. Meet Andrew.
Start Grow Run were recently approached by Andrew, an owner of a well-positioned cafe / restaurant.
Andrew was in a great deal of financial distress as he was losing money on a monthly basis. His old accountant had told him it was ‘all over,’ and to ‘sell the business for whatever he could get’.
Immediately, Start Grow Run assessed the profitability of the business and segmented it into product lines.
We discovered that the business had been selling a leading product at less than its cost price, and an employee had been pocketing stock that never hit the shelves. As it turned out, the business was capable of making a healthy profit – it just needed the right people to be paying attention to the right things.
Start Grow Run received no more information than the original Accountant – which begs the question – why didn’t the original Accountant pick this up?
This story has a happy ending… Andrew sacked the devious employee, turned the business around and is now a successful businessman deriving a healthy profit. Andrew learned two crucial business rules: Not all employees are created equal and the same goes for accountants.
Not convinced? Click here to read a recent article published in the Sydney Morning Herald or another case study below.
Within 4 years, Company A had grown annual revenue from $70,000 to $500,000. To finance growth, the owner kept borrowing money from the bank. The problem was, the more he grew, the more he needed to borrow because revenue was not covering expenses. Today, and as a client of Start Grow Run, Company A focuses on profit, not revenue – and the business has increased its bottom line by 30%. Want to find out how? Get in touch today for an an obligation free chat, phone: (02) 9113 0811.
