Better Business, Better Life – Issue 131

Apologies for not getting a newsletter out last week. After a week, 2 weeks ago, when I started the EOS journey with 2 new clients & worked through sessions with 2 existing clients, I was off on a plane to Melbourne & I just never found the time to write the article.

If I explain my last week, you might understand why I didn’t have time to write.

So, I have just got back from a week in Australia, where I was setting up my new 2nd home & session room.

It was a full-on week, but we got there.

On Sunday, when I took possession of the keys, the rooms were completely empty.

On Monday, the apartment furniture was delivered in a flat pack. I was on a few client calls, but in between, I managed to unpack all the crockery, cutlery, towels, etc. & got them all put away.

By Tuesday, whilst I was running a client session in the old session room, there was a man assembling all the flat packs.

On Wednesday, whilst I was running another client session in the old room, the remainder of the furniture arrived for the office/session room.

On Wednesday evening, we (Adam Harris & I) assembled it & moved all the empty boxes & rubbish.

Thursday, we were at our EOS QCE (our EOS Quarterly Collaborative Exchange) & then onto an EO event afterwards where we saw the Blinkist founder talk about his journey… That was a great session 7. There are so many reminders about how a business needs to run.

After that event, we came home & packed away the rest of the rubbish.

On Friday morning, as Adam travelled home to NZ, I ran my first client session in the new Session room.

And on Saturday, I came home to NZ by myself.

In the conversations I have been having with clients, it has become really evident to me that we need to set strong boundaries in business – it’s for the good of the business & it’s for the good of our people.

Because people like to know how they win at a game… And business is really just one big game, isn’t it?

So, I thought I would share with you my thoughts on this.

As a solution, we implemented several creative models that resulted in improved cash flow, supporting the company’s growth plans. In addition, the model employed allowed the customer to shift the sales and marketing focus from the “upfront” profit to the value created through a longer-term relationship with their clients.

Over 18 months, we funded a circa 30% expansion and released over $5m of capital, which has allowed the company to return funds to shareholders and is allowing them to look at expansion opportunities.

What challenges do you see your clients commonly face, and how do you help them overcome these?

There are several issues that commonly come up with clients, but the most important is having an accurate view of the cash requirements of the business. As they often say, “Cash is king”.

During the growth of the business, you end up with more money invested into debtors, inventory, fixed assets, etc., which, if not properly managed, results in serious cash flow issues. Business growth requires accurate reporting, detailed balance sheets and forecasts that match the business strategy – which is where a fractional CFO steps in to own that for you.

So, as a CFO, I work with clients to understand their cash flow position fully, which often leads to improving profits, margins, and business valuation. Making small tweaks across a range of business levers can make a huge difference to the bottom line. Once we understand the business’s cash position, we can proactively look to ensure that the company has the cash resources required to fund the business. We also utilise our close relationships with banks and other partners/funders to make this happen.

What trends are you noticing in your field, and how do you adapt to stay ahead?

The increasing use of digital tools, including AI, will bring change and challenges; it will potentially mean that business owners have more information being thrown at them. So, it is important for managers /owners to have a very strong view on what information really matters, which will also change over time.

As CFOs, one of our roles is to understand how these tools can help within the businesses we work with. How they might change the competitive environment, and how to ensure their own data is protected.

What is the most common mistake you see businesses make, and how can they avoid it?

In my view, it boils down to not focusing on creating long-term sustainable value for the key stakeholders in the business (and ultimately, that will be the owners). Focusing on the wrong key performance indicators (KPIs), thinking short-term rather than strategically planning for the next 3 to 5 years.

How this impacts or shows up in every business is different. However, this is where an experienced CFO adds exceptional value, as they can look at this through an experienced lens within different industries, businesses, etc. – impartially, without the same emotional position of the owners.

We are here to help you live a better life by creating a better business. We are real-life business owners with years of experience & a strong desire to make a huge difference to the lives of entrepreneurs.

If anything here resonates with you or you would like our help, then please get in contact. Just reply to this newsletter & let us know who you would like to speak to…. Or visit our webpage & contact any of our team from their own pages.

If you know someone who would benefit from reading this, then please forward it onto them. 💖