Are you facing any difficulties managing cash flows? Follow these 6 steps to overcome it.

Cash flow is a pre-requisite for survival. Therefore, the requirement to efficiently and effectively manage cash remains important to any business. The challenges placed on businesses in the current pandemic are endless. Surviving in this hardship is a great way to reap the many benefits from the post COVID opportunities that will come. Based on our 100% track record of successfully guiding our clients to grow during both good time and tough times, SandS Australia continues to prove any business can thrive during challenging periods. How? Read on!

Managing cashflows is crucial– especially in the current situation. There are many reasons why businesses run into a cash flow crunch, such as not accessing the full range of support out there to keep businesses afloat, retain staff, and acquire new clients from competitors who have shut their doors permanently. Other very common problems to survival include slow debt collection, bad debt, seasonal sales fluctuations, overinvestment in capacity, or too much stock. To contribute positively to the economy and ensure your business thrives, it is essential you have the skilled finance and administration support to manage and resolve these challenges all businesses face daily. These support and contingency plans we’ve put in place for every one of our clients has meant they are growing strongly through this pandemic by picking up the clients from their less well managed and struggling competitors.

This is what we’ve done to keep our clients thriving through and post COVID. You too can implement these steps.

1. Forecast your cash inflows and outflows accurately: This may take a few hours and dollars initially. However, it is worth the call as you have the past performance information and forecast for future, to analyse, prioritise, and manage your valuable cash in hand.

2. Set up a strong a marketing funnel and sales capability to acquire the many clients of your distressed or bankrupt competitors.

3. Review your receivables and collect your debts. Request discounts from suppliers while negotiating to delay payments if possible: This should be performed carefully as, at this point in time, it is important to maintain good relationship with your customers/suppliers because the downturn impacts everyone adversely. We have managed to positively control the receivable/payable balances for our clients to reduce their hassle of collecting debts and making payments.

4. Apply for every one of the many Federal, State, and local government financial aid you are entitled to: This option can cause an immediate increase in the cash flow. However, the spending should me made wisely, with a view of investing each dollar only where there is a return. With our many years of experience in the investment industry we have a proven track record showing our clients where to spend money wisely, based on cost-benefit analysis, as well as diversifying the risk through diversified investments and business efforts. The strong financial skills and controls we help put in place enables us to rapidly review the financial position of our clients, to ensure that they receive the aid they are entitled to at the right time.

5. Dispose assets that are not in use and reconsider investing decisions on long-term assets: In such a precarious economy, it is vital to convert under or unutilised assets to cash so that it can be injected into profitable business activities and investments. Our SandS Resultants work closely with clients to help make the right business and investment decisions, which is a crucial building block that allows our clients to thrive through both good and tough times.

6. Create a sales promotion to sell old stock: Use discounts to get rid of the old inventory in possession. This will not only be a positive impact to your cash flow, but also reduce the risk of losses from stock obsolescence.

Written by Sasha, ACCA-UK, Certificate in Banking and Finance, MBA (General). She has many years’ experience in banking, finance and accounting, and lecturing for ACCA which helps her drive business growth.

Edited by Sam Mansoor. Chartered Management Accountant, CPA, Chartered Global Management Accountant, Dip. Equity Trading. He has over 30 years’ experience helping businesses achieve immediate and long-term success.

Have you ever thought about the impact from “Repeat Customer Orders” to your business?

Prime focus of majority of businesses is on generating revenue. The universal truth of attracting a customer to purchase your product or to obtain your service is based on main three factors. First and foremost reason is the Product / Service solution. What problem of theirs you solve, how important that problem is to them and how you resolve it. Second point is your Value Preposition; this refers to the value addition you pass on to your client in return to their time and investment. Third factor is the Service; this has an emotional element and depends on how well you create a memory and a positive experience in the minds of your customer.

When generating revenue it is important to focus on repeat customer orders. Having a clear idea on the impact of repeat customer orders can help you to devise strategies to increase revenue. This article explains the importance of repeat customer orders to your business strategy on following areas;

1. Cost Vs Return
2. Easy to Sell
3. Promoting Business
4. Customer Loyalty

1. Cost Vs Return

The effort and time taken to attract a new customer incurs a significant cost to your company compared to a repeat order. When a new client visits you with the mindset to purchase your product for the first time; make sure you have enough strategies in place to build trust. This will convert them to repeat customers.

At the same time, it is important to note that repeat customers spend more time and money in selecting and purchasing your products as opposed to new customers. According to research reports repeat customers spend 67% more than new customers when purchasing a product/service.

2. Easy to sell

When you have a data base of repeat customers already built; your new products and services should be offered to them first. Since you have already built trust based on your previous experience, they will definitely try your new products and services. You do not have to waste too much time and resources on potential customers who may end up not buying anything. Ensure you are paying enough attention to your existing customers and putting efforts into your customer retention.

3. Repeat customers means it’s a way to promote your business

Organisations invest significant amount of resources in promoting their business in various manner. However, business owners sometimes forget that their repeat customers are a free source of promoting their business. It’s their word of mouth which is more convincing and promising to attract a new client. If we quote an example, there are number of boutique hotels involved in eco-tourism around the world. They do their promotional activities only at the start-up level. They invest their time and efforts heavily in servicing and creating an unforgettable experience in their customer’s minds. This results in continuous repeat orders and new clients through word of mouth.

4. Customer Loyalty means long-term client retention

Loyal customer will stay together with a business in the long term. They will always have a cautious eye towards new product releases and growth of the company. This is a costless return a business owner can earn after servicing a client to their utmost satisfaction.

Eventually, it is important to understand how important repeat orders are to your organisation and invest your time and effort in increasing repeat orders.

Written by Nara, ACMA, CGMA (CIMA-UK), MBA (ICFAI University). Nara is a Commercial Accountant at SandS Australia. She has 15 years of experience in business, finance and accounting in senior managerial roles helping analyse, identify, and drive business growth

Edited by Sam Mansoor. Chartered Management Accountant, CPA, Chartered Global Management Accountant, Dip. Equity Trading. He has over 30 years’ experience helping businesses achieve immediate and long-term success.

Stepping Your Business Up to the Next Level, but Finding it Hard to Energize the Team? Follow These Three Steps to Energize Your Change Management

Like most business owners/managers, you will likely be aware of the many untapped opportunities and ‘goldmines’ in your business. Tapping, nurturing, and growing the value and profits from these ‘goldmines’ requires effective change. This could include changes like retraining your sales force to acquire larger/different revenue opportunities, training your team to work smarter at peak efficiency to improve work life balance and your bottom line, and many more such opportunities. This requires carefully managing the change(s) required to achieve these desired benefits.

For the success of the change, focus should be on people!

In situations of change, people tend to rely on their leader for guidance due to uncertainty. A leader in the change management process should be a motivator driving people, and sometimes lending a helping hand. He/she will need to have a deep understanding of people. One of the problems many organizations face during change management is managing the vast difference in learning capacity and responses from person to person.

During the previous decade, SandS Australia has helped many organizations to successfully implement change management to rapidly improve businesses. These projects varied from small scale to diversified, large scale developments. Assisting an organization to resurrect, survive and thrive from a difficult situation in the business environment, implementing a new system, guiding organizations to reach high volume sales, training and development programs to improve technical skills on subject matter areas are few of the examples SandS has successfully delivered.

Model for Successful Change Management

1. Vision (You) – Communicate, Communicate and Communicate!!

Content and mode communication play a crucial role in driving change in an organization. It is important to understand organization culture and then develop the communication strategy. For an example, employees in an organization working as small knit groups will like to hear this information in casual discussions rather than through formal mails. Use multiple channels as much as possible. Emphasis WHY you need to do the changes and HOW it impacts employees and organization.

2. Change Agents (Your Team) – Use People Power!!

Implementing something new should be fully supported by the employees. Their voice should be heard and their concerns should be addressed. Identify the Subject Matter Experts and make them leaders to drive the change. It is important that you give every employee to contribute towards the end result. Do not forget to recognize and reward their contribution upon successful completion of this task. It is important to develop trust with people in this process.

3. Structure (SandS Business Resultants) – Setup and Coach, to Learn, Practice, Measure, and Improve!

Throughout the implementation phase, it is important to embed formal mechanisms to capture and manage feedback. Encourage all the team members that learning is a key factor throughout the project. Arrange your Change Management Project in an agile manner to incorporate new improvements that are often not visible at the beginning of the project. It is also vital to measure the success of the project. Communicate results of the project with every team member and employee.

Written by Nara, ACMA, CGMA (CIMA-UK), MBA (ICFAI University). Nara is a Commercial Accountant at SandS Australia. She has 15 years of experience in business, finance and accounting in senior managerial roles helping analyse, identify, and drive business growth

Edited by Sam Mansoor. Chartered Management Accountant, CPA, Chartered Global Management Accountant, Dip. Equity Trading. He has over 30 years’ experience helping businesses achieve immediate and long-term success.

Tips to improve teamwork at your organisation

Having a collaborative team has a direct impact on how well an organization functions. Good teamwork helps improve creativity as employees are able to exchange ideas in order to arrive at the best solution. Also the individual members in a team may each have their own strengths and weaknesses, so each individual is able to bring his/ her talents to the table.

There are many associated challenges when it comes to managing a team such as conflicts, internal politics and lack of trust; all of which contribute in bringing the team down. Teams that don’t work together will struggle to perform.

This article provides some tips on how you can build an effective team at your workplace.

1. Be clear on the team’s purpose

A purpose that everyone understands will give clarity, meaning and direction and can lead the way for better decision making. When people are clear and aligned about what they need to achieve as a team, they can become a high performance team.

2. Maintain open communication

Pick the right channel to communicate with your team and always ensure the information is communicated to all team members without fail. This helps to build a cohesive team where everyone share their ideas and work together to arrive at the solution. Frequent communication can help team members develop a sense of belonging and strengthen relationships.

3. Clarify role and responsibilities

Ambiguity with regard to roles could create overlapping tasks between team members. This would ultimately lead to an inefficient team as there would be duplicated tasks. To prevent this it is important that roles and responsibilities are clearly documented so each member understands how their work fits in the wider context.

4. Encourage Informal Social Events

Informal social events like team lunch/ dinner, trivia contests, movie nights would be good way to really strengthen relationships among your team. Keep it simple and informal so that the employees are more likely to attend it and do not force people to participate in team building activities as it can in fact have the opposite effect. In the current context of the pandemic team building activities can be still carried out virtually using applications like Microsoft Teams and Zoom.

Written by Zara, ACMA,CGMA, BBA(Accountancy & Finance). Zara is a Finance and Commercial Executive at SandS Australia. She has 4+ years’ experience in Auditing, Finance and Accounting which helps her drive business growth.

Edited by Sam Mansoor. Chartered Management Accountant, CPA, Chartered Global Management Accountant, Dip. Equity Trading. He has over 30 years’ experience helping businesses achieve immediate and long-term success.