Need help to grow your wealth during crisis?

COVID-19 has created a significant negative impact to income generated from employment and savings. This signals that the wealth an individual holds in bank accounts do not grow. SandS Resultants have highlighted this to our clients seeking to grow their investment portfolios. We have performed the background analysis so that our clients can make the best wealth generation decisions.

Many business owners are yet to understand the new normal that suits the survival of their investments. It is crucial to seize the opportunities to generate your wealth at the right time, not the perfect time, as there can’t be a perfect market condition at anytime. Our professional advisors will help you to stay focused on your investment growth goals, by providing the information and guidance to grow a secure and stress free investment portfolio. Though COVID has given people reason to pause and reassess their plans, incredible investment options are also becoming available, it’s important to acquire them before others take them all.

There are several consideration to allocate your investment budget.

1. Identify your current financial status: Your financial status depends on the income, expense, assets, liabilities, and access to emergency funds. We at SandS have ensured we maintain financial records of our clients systematically in order to analyse their financial status easily.

2. Align your personal goals to investment decision: Your short-term and long-term life goals will have a direct impact on your investment goals. Common aims for individuals would be; retirement plans, owning a property, creation of passive income or wealth generation for your heirs.

3. Identify your acceptable risk level: The cost attached to the investment is the loss you may incur due to the risk undertaken, not just the initial cash outflow on the investment made. Therefore, it is crucial to rely on a trustworthy, experienced, and proven finance and business professional to help you make that decision easily and decide the level of risk for a very high return.

4. Decide the type of investment: Explore the different types of investments suitable, before starting to invest. With many years of experience, we have managed and analysed the costs and benefits involved in an investment decision which enables our clients to consider the best options from the many available.

5. Sense of Urgency to make the decision: Set up your own deadlines to make your planned investment decisions that reach your personal goals. This ensures that you achieve timely results to support the desired goals and lifestyle.

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.

Relationship Marketing for business growth

Relationship Marketing is a long-term marketing strategy. Prime objective of this strategy is to build a long-term relationship with the client, with the focus of client retention. This type of marketing relationship is built by prioritising product benefits to the customer and customer service (before making the purchase decision, while making the purchase decision and after sale). Quality is a vital component maintained throughout this process. This is not an overnight yielding process. Investment of your time and resources will definitely give you long-term results.

Prior to talking about Relationship Marketing, have you decided what percentage of your revenue should be generated through Relationship Marketing?

If your answer is “No”, your long-term business strategy is in risk!

This percentage can vary based on the atmosphere maintained by various business owners in their organisation. Yet you need to have at least few long-standing, loyal customers.

In this article, we have summarised three steps a business owner should consider when building a Relationship Marketing Strategy;

1. Emotional connection
2. Meaningful reason
3. Leverage on your community

1. Emotional Connection

The moment we speak about customer loyalty you will remember some of the most popular consumer brands instantly. Even if someone talks negatively about these brands, their customers will defend the brand. What about your B2B business? You too can have loyal customer in B2B; because, it is eventually people getting connected more than the business.

It’s important to Build Trust with your client. Make sure from day one your promises have been delivered. Showcase your brand insight. This is about the people behind your products and services. Share with your clients the way your team works, how they are being treated, values and recognition within the company. This will allow your customer to understand your brand as a person to remember.

Deliver great customer experience. Great customer service is of no use, if that does not create a memory in the minds of the customer. Ensure the content, communication is valid and relevant to the occasion you deal with the customer. Remember to show the customer that the brand remembers them.

2. Meaningful Reason

There has to be a meaningful reason for the customers to stay with your products and services. You should imply this to the customer through different communication methods. Remember” Increasing profits” is not the most attractive phrase for a client to stay with you. It’s a result.

Recent research papers have indicated customers are more likely to stay with products those stand for something; i.e. preserving environment, giving back to the community, carbon free products, uplifting community lives and social responsibility.

What is the purpose of your products and Services? You should start showcasing this to your clients as a value addition.

3. Leverage on your community

When you have deep connections with your clients, it will automatically form a community. This will be a group of customers to stay together with your products and services. Then it will be the time to bring together your community groups, engage them, nurture them and automatically letting them to promote your products.

Written by Nara, ACMA, CGMA (CIMA-UK), MBA. 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.

What to do with your excess business cash?

As entrepreneurs your focus during the initial stages of launching your business is to keep it up and running. Once you have established your business, you need to have a strategy in mind about how you intend to use up your excess cash. The goal is to develop your business so that it achieves long term success, so you have to avoid withdrawing most of the excess fund for yourself at least during the initial stages of your business.

This article explores some options that business owners should consider when deciding how to use the excess cash.

1. Create a cash reserve

Set some money aside so that your business would be protected when there are unanticipated circumstances such as an increase in expenses or a drop in sales. This way you won’t have to rely on debt financing when you are faced with a cash shortage. Also keep in mind that this reserve doesn’t have to only be in cash, it can be short term investments such as government/ corporate bonds and money market funds.

Look at your monthly cash flows to identify how much money is spend on average for expenses multiply that amount by the number of months that you want the reserves to cover. You can adjust this figure for inflation if you anticipate the costs to rise in the future. This would give you a rough indication on the amount of cash reserves that you should maintain.

2. Re invest

Once you have set aside a portion of your excess funds, you can invest part of the remaining cash back into your business. This could be in the form of a new marketing campaign to grow the customer base, launching a new product or service, upgrading your equipments or investing in training your employees. All these are bound to yield returns in the medium to long term so your company would benefit from that.

3. Repay debt

If you borrowed money to finance your business at its inception, you can consider paying part of it off with the excess cash. This will help bring down the interest costs and reduce your debt burden. Alternatively you could refinance your loans, whereby obtain a new loan at a favorable rate by showing your cash reserves. This loan can be used to settle your previous debt which you may have obtained at a higher rate.

4. Pay out bonuses

You can reward your employees by paying out bonuses as a way of recognising their contribution to the business. This would help you to retain the employees. Have a mechanism in place for deciding how much bonus needs to be paid and keep the employees updated on how the bonuses will be paid out. They should be made aware that it is tied to company performance so that there are no disappointments in the years where the company has not achieved its financial goals.

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.

The Three COVID-19 Driven Efficiencies to Improve Your Business Profitability

COVID-19 is shifting the global landscape in many ways. It has catalyzed new, efficient, and profitable ways of doing many things. It is important to understand these threats and opportunities created by COVID-19 to avoid falling behind the competition. There are many valuable articles/researches available online relating to the sectors boosted by the pandemic. We have summarized the sectors positively impacting business into three categories; emerging virtual business & virtual workforce, virtual reality & virtual tech and electronic transfers. Your business might not be directly in these sectors; however all business must understand and adopt the right technology to avoid being outcompeted by the competition.

Have you seriously investigated how to utilize the opportunity created by these booming sectors to grow your business? This is how SandS can assist you in getting there.

We recently assisted our client in signage industry to convert their recruitment and selecting process to virtual reality. We published this in social media and it attracted a good pool of candidates to select from. Further, we assisted them in converting 80% of the purchasing process to an online platform, which saved 30% in expenditure.

1. Emerging Virtual Business & Virtual Workforce

Many industries have moved towards online/virtual service platforms. Support workforce (Finance, HR, Recruitment) have started working remotely, and this a highly efficient and very cost-effective trend that provides business an immediate competitive edge as well as profitability increase over their competition.

What you should do?

– Revisit your administrative cost and reduce them by effectively converting required portions of your workforce to remote working and virtual assistants.

– Improve online communication with your stakeholders. Promote your brand as a beacon in virtual business. This is the key in retaining and attracting customers.

SandS resultants can support you in converting your business to an e-platform, to deliver immediate results.

2. Virtual Reality (VR) & Virtual Tech

Applying Artificial Intelligence and Robotic Process Automation to create contactless monitoring mechanism are the key areas software engineers are working on to create the new normal. Early stages can already be observed in industries such as robots in healthcare, virtual technology in mining and construction supervision.

What you should do?

-Plan your investment in value adding technology. This is a long-term sustainable strategy.

-Start building a tech-savvy workforce. Include tech-based training sessions in your business’s training and development programs.

SandS resultants can advise you on how to make proper investment plans in technology to boost your bottom line without impacting your routine business. We can also train your staff on the latest the developments in technology starting from basic training sessions to advanced training and mentoring.

3. Electronic Transfers

There is a significant demand for cashless and paperless transactions. There is an international trend towards electronic transfers. Thus, it is important for you to prepare your business for the change to sustain and thrive in the industry.

What you should do?

– Stay abreast of changes in fund transfer methods in the banking system

– Identify the impact on electronic transfers for your business and align your process accordingly

SandS can assist you in interpreting changes in rules and regulations imposed by government / other authorities. We can also assist you as a trusted advisor to navigate and leverage change to grow your business.

Written by Nara, ACMA, CGMA (CIMA-UK), MBA. 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.

Rapidly Grow Your Business Profits by Balancing this 5 Step Business Formula

 

Growing your business can be difficult. Balancing the profit growth formula increases sales and reduces costs wisely. Our SandS Resultants have identified most business owners and managers face difficulty in achieving this, (e.g. overpaying sales staff in a desperate attempt to increase sales, only to see sales & profits decline or stagnate), however striking the right balance generates large revenues, and rewarding bonuses for their sales teams.

There are three options. Avoid such decisions and do nothing, or make the wrong and costly decisions, both these add to costs and pressures on your business. The 3rd and right option is to face the challenges with the right skills, guidance and direction, and like our many clients, start looking at each challenge as an opportunity to get your business up, step by step, on its way to become an industry leader.

If you are that business owner or manager who feels this overwhelming burden of balancing the revenue and cost formula, a SandS Resultant can help. We have engaged with many clients to find the right formula to set up their sales teams that have become recognised powerhouses in their respective industries.

1. Re-engineering operating procedures: This is generating more sales while reducing costs. Have a clear step by step process map on the optimal way to progress sales opportunities. Have crucial decision steps as early as possible in the process (e.g. qualifying a good prospect); develop a clear list of criteria for these decisions, etc. etc. All these improvements will reduce costs through increased efficiency, which, along with increases in sales, has an exponential increase in your profits!

2. Stay connected to your stakeholder: Stakeholders bring opportunities to the business. Therefore, using all available avenues and platforms to stay connected with your stakeholders helps boost sales & profits.

3. Streamlining management processes, costs, and overheads: Managing costs via automation, outsourcing, eliminating non value adding activities, and streamlining processes will achieve efficiencies that help your business and teams run smoothly and rapidly improve profitability, speed, and customer service.

4. Set a motivational bonus structure: It is important for sales targets to be achievable, and beneficial for both the sales team earning the bonus, and the business earning the profits. This is a key area our SandS Resultants put right for our clients, to quickly and rapidly increases clients’ revenues & profits.

5. Recognize & reward high achievers: This is very important, to keep high performing employees engaged and motivated, while encouraging others to step up. SandS finance professional develops cost effective management information systems for our clients’ to easily identify their high achievers on a weekly and monthly basis. A lag in identifying high performers will demotivate the employees and retention of those skills will be impossible.

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.