How To Get Your Business Mojo Back

Tired and frustrated, sick of answering the phone (it’s only bad news), your customer base is weakening and the lingering effects of the GFC (I mean how much longer can we put up with this?) are leaving you disheartened?

And it gets worse. The bank is looking for a meeting to “see where you’re at” (how many more meetings do they need?) and the tax repayment plan you initiated only three months ago looks like it’s not going to be met this month.

Running your own business can seem like a great idea (and it was fun) but it’s becoming very difficult and it’s not much fun now.

There seems to be simply not enough demand around for your products and everyone else’s for that matter.

So how are you going to manage over the next 12 months? Because it IS going to be tough for at least another year.

Getting the best result when you have to sell a business asset

There is a real skill involved in the successful sale of a business asset.

Even if the sale is forced because the business is facing a crisis, there are steps you can take to ensure the best possible price for your asset.

Being able to sell an asset in times of crisis can be crucial to the future of the business, and the process requires as much thought and pre-planning as possible.

The first thinking has to be “why are we considering selling and what are we going to sell?”. Selling because the bank or other parties say so is not always the best strategy.

Is there an alternative?

Focus on Cash Flow (Part 3): Optimising Stock Management

Stock is a core focus of many businesses – customers demand it, suppliers provide it and financiers securitize it.

Here are some strategies to ensure you’re getting the most from your stock management systems and processes…

Tips for surviving tough times in the construction industry

The skills required to survive in business vary widely when there is noticeable change in the business cycle, up or down.

The Queensland construction industry has certainly had its up and down moments over the past decade.

After a number of years of positive growth in the leadup to the GFC, many business owners within the state’s construction industry felt they had cause to be optimistic, committing forward expenditure on equipment, assets or land stock and funding these commitments through various forms of debt.

However, the GFC negatively impacted on many businesses, who found themselves overcommitted with debt or cash outlays due to a sharp reduction in income.

The industry experienced considerable turmoil and restructuring post-GFC and further difficulties after the natural disasters of January 2011.

Many companies had to react with major debt reduction exercises, sale of assets or staff lay-offs to improve cash flow and survive.

The consequence for those who were unable to adjust is that the Queensland construction industry…

New executive remuneration laws give more power to shareholders

Executive pay remains a contentious issue for shareholders of organisations and the broader community.

Links can be drawn between the ‘Occupy Movement’ (which has sprung up in locations around the world, protesting social and economic inequality, corporate greed and corruption) and the substantial difference between the national average wage and what Key Management Personnel (KMP) are paid.

There is no shortage of examples where the public and shareholders have been at odds with Boards’ interpretation of fair pay.

Look at the recent pay rise of Alan Joyce, CEO of Qantas, which was questioned widely in the media and public circles. It practically coincided with the industrial dispute that cost the business millions.

Remuneration and an individual’s value to an organisation is determined by a complex interaction of factors.

Why Businesses Need Turnaround Executives

Hiring a turnaround executive may be one of the most important and critical business survival decisions a business will make.

Any business, even one with a long history of strong performance, will at some stage need to introduce fresh ideas or change direction to remain competitive.

For underperforming or distressed businesses, stabilisation and careful steering out of crisis is required before setting out in a new direction.

In both cases, it is extremely difficult for people within the business to find the time or energy to objectively and critically evaluate what direction the business should take.

Those who take the time to think about the future of their business will consider hiring turnaround executives to help with the challenges.

How turnaround executives help businesses…

Should You Sell a Non-Core Business?

Non-core businesses are created usually from acquisitions, mergers or as a result of synergies with the core group activities.

They can be the “forgotten child” of business. Once purchased or set-up, the original recognition of the unique features that would add value to the group is forgotten and the core business takes over focus, to the detriment of the non-core business.

It is common to see ASX 200 companies divest non-core businesses to focus on their core activities.

However, boards and Group Leadership Teams (GLT) really do need to understand and care about non-core businesses for them to succeed.

There can be value in retaining a non-core business.

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