Next Zero Financial Services

Got a call from client. They had an opportunity come their way. It wasn’t part of the plan or what they do normally and weren’t sure if they should take it. Had the client send all the information they had and did some numbers. Looked at cashflow, capacity, resources, profitability, etc and it looked all good and within reason. The point is, just because something is not part of the original plan or outside what you normally do, doesn’t mean you shouldn’t do it. Opportunities are never part of any plan. If they come, grab them with both hands and run.

My drive to and from office I realise has a lot in common to people running businesses. As you drive minding your own car and course, you see all these other drivers swirling from lane to lane, trying to beat the red light, doing illegal U turns, overspeeding, driving where they are not meant to, etc. You wonder if you should start doing the same to gain some advantage over others and then you realise that everyone starts at a different location and ends at a different location and it’s not a race. Your journey is your journey. Same applies to businesses. You see businesses doing certain things to get…

I have seen lots of businesses who make the mistake of focusing on increasing their sales but showing no urgency in collecting their money from customers (debtors). Remember you are in the business of supplying whatever it is you supply and not in the business of lending your money to finance your debtors’ businesses. The first thing that you need to do to keep your debtor days in check is to change your attitude towards debtors. Your attitude should revolve around the thoughts “Its my business so the debtors should play by my rules” and “The money they are not paying is my money and I should not be afraid…

There are two ways of owning a business. You either start it from scratch or buy an existing business and continue running it or even better, improving it. When you buy an existing business; over and above the value of the assets, the seller is likely to ask for a Goodwill amount for the non tangible value of the business. Even with small businesses, the amount of Goodwill being asked for currently is ridiculously high and can run into hundreds of thousands of dollars and for some even over the million dollar mark. The question then becomes if the Goodwill is worth paying. My advice is simple: If you want…

It’s not that hard for business owners to make a decent living out of their business or for employees to reach a salary level that they are comfortable with. For business owners – we have an idea, we do a bit of research, start a business, start getting clients, service them reasonably well and the we make a good living. For employees – we get our first job, get experience, move on to a couple of more jobs, get a couple of promotions and again we make a good living. Most of us are however are just stuck there and though we want to go to the next level, we…

There are people and businesses out there who are claiming to be the best at doing one thing or another and there are also those that are trying to get there but my advice to both the groups is to stop trying to be the best in the world and just try to be the best you can be. If you think it’s a race to the top and that you need to be at the top of the pile, you will just be running a rat race and you will soon find someone else who has a bigger house than the grand house you just built, a better product…