Implementing Benchmark Analysis Improvements to your Client’s Business
Sometimes you’ll need to set a few progressive targets, to get a client from a ‘poor’ position, to a ‘best practice’ standard. Here is an example. Suppose you have a client who is a real ‘basket case’ of a business: too much stock; debtors don’t pay on time; the company doesn’t charge enough for their […]
Improving Your Client’s Asset Productivity
The overall financial efficiency of your client’s business results from the interaction of ‘profitability’ on the one hand and ‘investment’ on the second. Looking at ‘return on equity’ benchmarks can be problematic, as there are many variables in small businesses which will materially affect the comparability of those results. However, reviewing Asset Turnover benchmarks […]
Why Advisors Should Benchmark Their Clients Against Competitors
As a business owner, competition can be intimidating. However, it can also drive to achieve impressive results. The important factor is knowing how to beat the competition. With this sentiment in mind, for business owners and advisors, gathering intelligence on a business’s competitors in a systematic and rigorous format is critical to success. What are […]
‘Businesses within a business’ – Applying different ‘models’ to the same business
Many businesses are ‘mixes’ of basic revenue models – and in particular, are a mix of ‘retail’ and ‘labour-based’ models. So to analyse it effectively, you might need to think differently about each part of the business, using a different ‘model’ in the process. Here are a few examples to prove the point: […]
How Do I ‘Benchmark’ a Business? Three Mindsets for Advisors
At different stages during the process of Benchmarking a firm, your mindset needs to change. Here are the key stages that you’ll need work through as you help a client to devise concrete plans for a better, stronger business: 1. At first, your role is essentially a clerical one: converting the financial data about […]
The Silent Disruption of the Accounting Industry
As Featured in the Australian Financial Review on 19/6/19. Amidst the protest of taxi drivers against ride-sharing, the headlines of more manufacturing companies closing and uproar over telecommunications jobs moving overseas, the mature accounting industry is quietly undergoing a dramatic innovation transition. And, the $1Billion Australian FinTech Industry is not the only one to blame. [...]
Instant asset write-off for small businesses
In case you didn’t know there’s a $30,000 instant asset write-off for small businesses If businesses are wanting to purchase assets, now may be the time given recent changes to the instant asset write-off (IAWO) thresholds. The IAWO was first introduced in 2015 as a means to help small businesses through a period of economic […]
Using Business Benchmarks – Three Points for Advisors
One point that can be made about ‘Business Benchmarks’ is that they are a tool. They are not the ‘complete answer’ to every possible question a client might ask you. It’s not the one tool that will fix absolutely every problem that you are going to run across. But they will enable you as an […]