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Mark Ostryn http://www.knowledge2020.com [email_address]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Why does a business flounder?
My company is called  FitnessCentre And  its main business is in  Owning an operating a gym in the CBD Our main customers are  Young people in the finance industry who work nearby Who buy from us because  We are the closest gym By the end of 2009 we aim to  Reverse the current decline in new memberships and renewals  And in the next five years I’d like to have  A  reasonable profit on the purchase of the gym in 2008 via a trade sale, probably to a larger competitor or franchisor. I anticipate our main challenges being Finding new revenue sources –adapting to a shifting marketplace. Paying off the loan acquired to purchase the gym. Retaining as many of our existing customers as possible Beating off continual price competition from the gym down the road Having the cash flow to afford some of the renovations that will eventually be required.
Changing Consumer Requirements Technological Trends Supplier Power Substitutes New Market Entrants Your Company & Your Competitors Buyer Power Legal, Social & Environmental Trends Government Trends Michael Porter’s Five Forces Model - Adapted
 
 
[object Object],[object Object],[object Object],Medium to Long Term  -Strategy ... but  bills  have to be paid
 
Value Curve - Wine Budget Premium Yellowtail LOW HIGH Enological Terminology in wine communication Above the line marketing Aging quality Vineyard prestige and legacy Wine Complexity Wine range Easy drinking Easy selection Below the line marketing Price
Value Curve – Budget Hotels One Star Two Star Formule 1 LOW HIGH Eating Facilities Architectural Aesthetics Lounges Room Size Availability of Receptionist Furniture & Amenities in Rooms Bed Quality Hygiene Room Quietness Price
Accor 2009
 
[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Short Term Tactics – Survive & Prosper
[object Object],[object Object],[object Object],[object Object],[object Object],Overall Profitability – A Quiz
[object Object]
Existing Movement Result Sales $1,000,000 4% $1,040,000 Cost of Sales $500,000 -4% $480,000 GROSS MARGIN $500,000 $560,000 Less Salaries & Expenses $400,000 -4% $384.000 EBIT $100,000 +76% $176,000 Incremental changes lead to larger bottom line changes
[object Object],CUSTOMERS
[object Object],[object Object],[object Object],[object Object],[object Object],Customer Retention
Richard Branson’s Flight Notebook ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What makes you angry?
 
 
New Revenue – Existing Customers TYPE OF PRODUCT / SERVICE YOUR COMPANY / FITNESSCENTRE Complementary products   Packaged bundles of product Upgrade revenues Support revenues Training revenues Service revenues Licensing revenues Consulting revenues Accessory revenues Installation revenues
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],FitnessCentre
FitnessCentre Revenue Less Detail About this table Less Detail About this table Less Detail About this table Less Detail About this table Sales Recognised Jul 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 Actual Actual Actual Actual Actual Actual Membership Fees 157,242 158,028 158,818 159,612 160,410 165,518 Enrolment Fees  12,145 12,206 12,267 12,328 12,390 12,784 In Centre Revenue 55,326 55,602 55,880 56,160 56,440 58,237 Other 18,431 18,524 18,616 18,709 18,803 19,402 TOTAL 243,144 244,359 245,581 246,809 248,043 255,941 Sales Recognised Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun 09 Actual Actual Forecast Forecast Forecast Forecast Membership Fees 159,152 153,030 150,030 138,916 129,828 126,047 Enrolment Fees  12,533 12,288 12,047 11,154 10,425 10,121 In Centre Revenue 57,096 55,976 54,878 50,813 47,489 46,106 Other 19,021 18,648 18,283 16,928 15,821 15,360 TOTAL 247,802 239,942 235,237 217,812 203,563 197,634
Forecasted Cash Flow
[object Object],[object Object],[object Object],[object Object],Owner’s Requirements
What do you want from a gym? PRIORITY REASON 1 2 3 4 5
[object Object],[object Object],[object Object]
 
[object Object],PROSPECTS
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],FitnessCentre Strategy
[object Object],[object Object],[object Object],[object Object],[object Object],FitnessCentre Strategy (2)
Forecasted Cash Flow
[object Object],[object Object],Upgrading in a downturn
[object Object],[object Object],Marketing in a downturn
 
 
Make the competition irrelevant The higher the risk, the greater the need to prove credibility
[object Object],[object Object],[object Object],[object Object],[object Object],Support
[object Object],[object Object],[object Object],[object Object],Community Supporter
 
The power of Google
 
 
 
 
[object Object],PRICE & COSTS
[object Object],[object Object],[object Object],[object Object],Cost Management
Price Discounting (1) If your present margin is: 20% 30% 40% 50% (2) And you reduce price by 10,20, or even 30%: (3) Then to produce the same gross revenue your sales volume must increase by: 10% 100% 50% 33% 25% 20% - 200% 100% 67% 30% - - 300% 150%
 
[object Object],[object Object],[object Object],[object Object],Cash Flow
Break Even Point
Interconnecting Gears
Working Capital Cycle
Transaction funded for 82 days
Pay $100 Get $125 Pay $125 Get $156 Pay $156 Get $195 Pay $195 Get $244 Pay $244 Get $305 Pay $305 Get $382 Pay $382 Get $477 Pay $477 Get $596 Pay $596 Get $745 Pay $745 Get $931
Reducing Receivables ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Receivables
 
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Payables / Supplier Relationships
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Inventory
[object Object],[object Object],[object Object],“ Inventory” in Service Industries
[object Object],PEOPLE
[object Object],[object Object],[object Object]
“  what a person does on his own without being stimulated by the thoughts and experiences of others is even in the best cases rather paltry and monotonous” Albert Einstein
Productivity
“ Think beyond the bottom line.  Families forgive each other.  Families work around problems. Families require effort and patience. You have to be prepared to take the rough with the smooth.  You have to put up with your troublesome siblings.  They’re your family, you can’t just throw them out on the street”
[object Object],ALLIANCES
Strategic Alliances?
1 + 1 = 3
 
Why?
Who?
 
[object Object],Bringing it all together
Mitigating Risk Risk Probability  (1-5) Impact  (1-5) Risk score Plan of action Example - Increasing costs of raw materials 2 3 6 Dual source raw materials Revenue collapse perhaps related to the general economic cycle. Challenges at maintaining internal systems Capability of management to handle business Market power of one or a few large customers
[object Object],[object Object],[object Object],[object Object],[object Object],Why own a business?

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Recession Proofing Your Business

  • 2.
  • 3. My company is called FitnessCentre And its main business is in Owning an operating a gym in the CBD Our main customers are Young people in the finance industry who work nearby Who buy from us because We are the closest gym By the end of 2009 we aim to Reverse the current decline in new memberships and renewals And in the next five years I’d like to have A reasonable profit on the purchase of the gym in 2008 via a trade sale, probably to a larger competitor or franchisor. I anticipate our main challenges being Finding new revenue sources –adapting to a shifting marketplace. Paying off the loan acquired to purchase the gym. Retaining as many of our existing customers as possible Beating off continual price competition from the gym down the road Having the cash flow to afford some of the renovations that will eventually be required.
  • 4. Changing Consumer Requirements Technological Trends Supplier Power Substitutes New Market Entrants Your Company & Your Competitors Buyer Power Legal, Social & Environmental Trends Government Trends Michael Porter’s Five Forces Model - Adapted
  • 5.  
  • 6.  
  • 7.
  • 8.  
  • 9. Value Curve - Wine Budget Premium Yellowtail LOW HIGH Enological Terminology in wine communication Above the line marketing Aging quality Vineyard prestige and legacy Wine Complexity Wine range Easy drinking Easy selection Below the line marketing Price
  • 10. Value Curve – Budget Hotels One Star Two Star Formule 1 LOW HIGH Eating Facilities Architectural Aesthetics Lounges Room Size Availability of Receptionist Furniture & Amenities in Rooms Bed Quality Hygiene Room Quietness Price
  • 12.  
  • 13.
  • 14.
  • 15.
  • 16.
  • 17. Existing Movement Result Sales $1,000,000 4% $1,040,000 Cost of Sales $500,000 -4% $480,000 GROSS MARGIN $500,000 $560,000 Less Salaries & Expenses $400,000 -4% $384.000 EBIT $100,000 +76% $176,000 Incremental changes lead to larger bottom line changes
  • 18.
  • 19.
  • 20.
  • 21. What makes you angry?
  • 22.  
  • 23.  
  • 24. New Revenue – Existing Customers TYPE OF PRODUCT / SERVICE YOUR COMPANY / FITNESSCENTRE Complementary products   Packaged bundles of product Upgrade revenues Support revenues Training revenues Service revenues Licensing revenues Consulting revenues Accessory revenues Installation revenues
  • 25.
  • 26. FitnessCentre Revenue Less Detail About this table Less Detail About this table Less Detail About this table Less Detail About this table Sales Recognised Jul 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 Actual Actual Actual Actual Actual Actual Membership Fees 157,242 158,028 158,818 159,612 160,410 165,518 Enrolment Fees  12,145 12,206 12,267 12,328 12,390 12,784 In Centre Revenue 55,326 55,602 55,880 56,160 56,440 58,237 Other 18,431 18,524 18,616 18,709 18,803 19,402 TOTAL 243,144 244,359 245,581 246,809 248,043 255,941 Sales Recognised Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun 09 Actual Actual Forecast Forecast Forecast Forecast Membership Fees 159,152 153,030 150,030 138,916 129,828 126,047 Enrolment Fees  12,533 12,288 12,047 11,154 10,425 10,121 In Centre Revenue 57,096 55,976 54,878 50,813 47,489 46,106 Other 19,021 18,648 18,283 16,928 15,821 15,360 TOTAL 247,802 239,942 235,237 217,812 203,563 197,634
  • 28.
  • 29. What do you want from a gym? PRIORITY REASON 1 2 3 4 5
  • 30.
  • 31.  
  • 32.
  • 33.
  • 34.
  • 36.
  • 37.
  • 38.  
  • 39.  
  • 40. Make the competition irrelevant The higher the risk, the greater the need to prove credibility
  • 41.
  • 42.
  • 43.  
  • 44. The power of Google
  • 45.  
  • 46.  
  • 47.  
  • 48.  
  • 49.
  • 50.
  • 51. Price Discounting (1) If your present margin is: 20% 30% 40% 50% (2) And you reduce price by 10,20, or even 30%: (3) Then to produce the same gross revenue your sales volume must increase by: 10% 100% 50% 33% 25% 20% - 200% 100% 67% 30% - - 300% 150%
  • 52.  
  • 53.
  • 58. Pay $100 Get $125 Pay $125 Get $156 Pay $156 Get $195 Pay $195 Get $244 Pay $244 Get $305 Pay $305 Get $382 Pay $382 Get $477 Pay $477 Get $596 Pay $596 Get $745 Pay $745 Get $931
  • 59.
  • 61.  
  • 62.
  • 63.
  • 64.
  • 65.
  • 66.
  • 67. “ what a person does on his own without being stimulated by the thoughts and experiences of others is even in the best cases rather paltry and monotonous” Albert Einstein
  • 69. “ Think beyond the bottom line. Families forgive each other. Families work around problems. Families require effort and patience. You have to be prepared to take the rough with the smooth. You have to put up with your troublesome siblings. They’re your family, you can’t just throw them out on the street”
  • 70.
  • 72. 1 + 1 = 3
  • 73.  
  • 74. Why?
  • 75. Who?
  • 76.  
  • 77.
  • 78. Mitigating Risk Risk Probability (1-5) Impact (1-5) Risk score Plan of action Example - Increasing costs of raw materials 2 3 6 Dual source raw materials Revenue collapse perhaps related to the general economic cycle. Challenges at maintaining internal systems Capability of management to handle business Market power of one or a few large customers
  • 79.

Notes de l'éditeur

  1. First of all, I’d just like you to meet your neighbour. If you know them already, go and meet someone else! I want you to talk about two things. One minute pitch to each other about your business. BREAK (Ask a few – whiteboard them) The second things is an octopus. Let me introduce you to our resident octopus first
  2. Toowoomba "Strengthen your Business Today" Presentation Mark Ostryn - http://www.knowledge2020.com
  3. This is Richard Watson's trendblend that outlines where a lot of the opportunities and risks lie Ageing , globalisation, personalisation, happiness (the search for ), urbanisation, sustainability, tribalism, ethics, anxiety, resource shortages. Example ageing by 2025 more people >60 than under 25 in Australia (try to fund one chicken breast in Woolworths, Also arthritic hands trying to open the packaging seals of computer accessories purchased at Harvey Norman) Global Connectivity 3.3b mobile phones in the world. Half world had never heard a ring tone 10 years ago. 1.5b devices connected to internet - 14b in 4 years. Environment Consequence of $200 oil. Its dropped but it will come back . Speeding up. McDonald camera on the drivethrough that predicts what you are going to order based on what car you drive, how old it is and the number & age of occupants inside. 70-80% accurate We’ve even got conflicting trends – Well being trend is contradicted by life speeding up and us having no time trend.
  4. The first question allows you to determine your current market position. The second question is all about the goals and objectives of your business, and the third question is all about the strategy – i.e. the plan of action designed to achieve those goals. Nick – 29 Talking of bills, let’s go back to Fitness Centre
  5. Eliminate factors that the industry takes for granted but adds no perceived value to customers. Casella Wines recognized that most wineries touted aging and tannin qualities, two factors that intimidated customers. Casella decided to focus their efforts on different qualities. 2) Reduce factors well below the industry’s standard to avoid the mistake of over delivering in order to beat the competition. To avoid customer confusion, Casella Wines limited their offerings to just one white wine and one red wine. 3) Raise factors well above the industry’s standard so your customer won’t have to make compromises. Casella Wines raised the involvement of retailers with [yellow tail]’s success by giving retail employees Australian outback clothing that made [yellow tail} seem friendly instead of intimidating like other wines. 4) Create new sources of value that the industry has never offered. Casella wines created new customer experiences for wine drinking: easy drinking, ease of selection, and a sense of fun and adventure.
  6. In the budget category you got one star or two star – Put up with poor beds and noise or pay double. Are there any features that customers take for granted that could be eliminated? Which factors could be reduced well below the industry standard? Which factors could be raised above the industry standard? Which factors could be created that the industry has never offered?
  7. Everyone has heard of the hotel chain Accor. They had a problem in the 1980’s in France Over capacity & stagnation in the budget hotel industry Managers were called in. What would you do if you could start again? Eliminate costly restaurants, appealing lounges, receiptionists only at peak hours, no stationary, desks or decorations. Pole rather than a cupboard and modular blocks. BUT you get a comfortable good nights sleep for the price of a one star.
  8. Incidentally I use this quote, but I had no idea of who William Feather is or was. So I Googled him today. He’s apparently famous only for writing quotes. They include such gems as “ Early morning cheerfulness can be extremely obnoxious.
  9. $1m business, $500 COGS and 10% profit on Revenue
  10. Duh! Some percentages according to the god of marketing Philip Kotler: The average company loses between 10 and 30 percent of its customers each year. A 5 percent reduction in the customer defection rate can increase profits by 25 to 85 percent, depending on the industry. Acquiring new customers can cost 5 to 10 times more than the costs involved in satisfying and retaining current customers. The customer profit rate tends to increase over the life of the retained customer. Which ones shall we be nice to? All of them. Which ones shall we be really nice to? The 20% of them that give you 80% of your business.
  11. Phone contact with the customer is also important – but again needs to be handled correctly. I had my car serviced in December through a franchised repair company I then get a phone call in January from the company. “ g’day its XYZ car company here. We are wondering if you need to have your car serviced with us” “ I came in last month” “ Oh, did you. Oh okay” “ While I’ve got you here, you removed the oil drip tray from my car and said you were going to replace it.” “ oh did we” “ so you’ll look into either finding it or getting a new one in for me” I had a bet with myself I’d never hear from them again. I won.
  12. Product bundles Several complementary products – price typically lower than sum of individual items Upgrade revenues Replace a product with a newer version Support revenues Assistance with using the product – help desk, onsite etc. Training revenues Structured session teaching you the product. Service revenues Repairs / maintenance on the product Licensing revenues Granting permission to others to sell the “smarts” through alternate channels Consulting revenues Providing advice on an area of expertise Accessory revenues Complementary products of a lower revenue Installation revenues Setting up the product in a location Complementary – Virgin Blue – offset carbon credis, exit row, insurance etc Even a story about low cost European carrier, Ryanair boss selling entry to toilets.
  13. OLD MODEL FitnessCentre was purchased by current owner around a year ago SHOW HISTORIC REVENUE Drop off in membership fees over the last few months, as some financial customers have not renewed. SHOW HISTORIC COSTS Owner has tried to stabilise costs, but as a result is now running at a loss. He’s particularly concerned because he’s got a loan to pay back and can’t envisage an upturn in membership any time soon. SHOW CASH FLOW: These bars show the net inflow and outflow of funds every month, adjusted for when customers physically hand over their money and when he physically hands over payments to suppliers etc.
  14. But it ain’t about him, its about you. Now lets look at things from the customers perspective.
  15. In words that my four year old daughter will shortly learn and then drive me insane as she endless repeats it for the next 15 years – duh! Some ideas please....
  16. Scott 35 Other “Cheaper at Home” recreation opportunities include – Quickfix the online movie subscription company.
  17. Throughout Australia, people are reassessing their buying behaviour – and if you want to influence their behaviour you need to talk about it. There are certain messages I want you to get across. Use the words “NOW and “FREE” – Foxtel. The more that people have to think about something, the less likely they are to make a purchase decision. There is so much crap around you’ve got to make a noise and be noticed. Do stuff that adds to your credibility and makes going elsewhere risky. Measure the response.
  18. On a ute yesterday! (I had to fit this in somewhere!)
  19. Before I show you the next slide, does anyone work in the Caloundra Central Apartment Hotel?
  20. Where can work be conducted most cost effectively? Are there parts of your operation that can be relocated to other (non CBD) offices, interstate or overseas? (Shift in Pacific Brands manufacturing may not have been so clever. PB – overgeared, & failing covenants. Chinese were desperate cos exports down 50%. But potential for $ to fall lower) Can you shift in-house work to an external supplier based on their capabilities? Do they have a superior cost structure compared to yours? Can you outsource or use shared services? In recent years, internal telemarketing teams have been outsourced to call centres, while IT departments have been replaced by specialist IT service companies monitoring your network performance with back up facilities and timed response rates. Can you transform your entire way of doing business? How can you optimise your workforce, processes and technology to provide the most productive and efficient environment for your company? Then refer to manufacturing slide on p41
  21. Cutting prices is a quick way to spark sales growth, but commercially this may not be sensible. If your business is operating on a 30% gross profit margin and introduces a 10% discount sale (10% discount on gross revenue), the company would need to generate an additional 50% in sales to maintain that 30% profitability level. 
  22. But try getting a pair of RM Williams boots on offer. Sure they will sell you cheap end of season stuff, or throw in a car cover – but $345-365 is about the going rate where I come from. If you have to discount – “ Two for one” is better than 50% off. It helps you clear stock faster. If you can get away with “buy one, get one half price” that’s even better! “ 4c a litre off”. Look at the queues at Shell / Woolworth petrol stations and understand the power of a very small discount, provided it is handled cleverly! Loyalty discounts. Invitations to customer evenings, see our sale items before the public do, 10% discount with our special card and other such “elitist” marketing rapidly creates an aura of exclusivity that it’s hard for the consumer not to appreciate. Loss leaders or “”door buster” sales. The large retailers successfully use large discounts on a select few items to get people in their stores..
  23. What policies and actions do you need to put into place to service those objectives?
  24. Also must consider – occasional expenses, refunds & returns, slow moving stock, seasonal fluctuations.
  25. These are supposed to interconnect – In the same way that we picked up some contradictory notions in the gym picture, there are also some trade offs that you need to balance. - go aggressively after debtors and you lose customers. - decrease inventory and risk out of stock. - improve customer service and increase cost. - bulk purchasing decreases costs but increases inventory levels. Model Trade Offs Need to strike a balance to modify what we are trying to do. Need to recognise the implications of what we have done. But there may be slack Exponential relationship between inventory and service level. Where in the spectrum of the trade offs do we want to exist? (Don't make decision based on emotional feelings)
  26. as it moves through a company it first flows from a company to pay for supplies, materials, finished goods inventory, and wages to workers who produce goods and services. It then flows into a company as goods and services are sold, and as new investment equity and loans are received. Each stage of this cycle consumes time. The more time the stages consume, the greater the demands on working capital. Do we have any athletes here? (you look pretty fit) Concept of OVERTRADING – where your creditors are in effect funding your expansion. Solution is a bank loan or working capital finance.
  27. Assumes that you have unlimited demand that you can access.
  28. Your debtors pay the creditors they most fear they’ll lose.
  29. The American wit Dorothy Parker once said that the two most beautiful words in the English language are "cheque enclosed‘. How do we speed it up? SPEEDING UP RECEIVABLES · Introduce retainer payments - a guaranteed fixed sum payment, usually monthly that enables the customer to call on you for regular work. · Try to have the customer make as much payment upfront e.g. ask for one third when the job commences, one third while in progress and the remaining one third on completion. · Send the invoice as quickly as possible. · Don’t hesitate to use debt collection services. · Keep records including client’s reasons for slow payment? It will make it easier for you to validate the reasons the client gives the next time they pay late. · Aim for partial payment where you know that the customer may be experiencing financial pain. · Offer discounts for early payments - say within seven days. · Ensure that your credit reference checking is stringent prior to offering credit terms. · Ensure that your customers know the payment terms and other credit policies. Make them highly visible in the invoice. · Incentivise the customer to make payments using the method least costly to you - direct debit to your bank account avoids the credit card fees. · Use collections as a way to motivate your sales force. Delegate to them the responsibility for timely receipt as a condition of bonuses. · Ensure that regular statements are sent to customers to act as a reminder. · Be prepared to follow up late payments with phone calls or emails. · Charge interest or service charges on overdue balances.
  30. Inward price v important. 3$ a kilo for processed ham for cheap pizza shops Their leg ham = $9/kilo A 2% increase in ham prices @ $9 /kilo is 3x what a 2% increase in price @ $3 a kilo Spent 6 months with that supplier “let me understand your business” Found out there big issue was trucks When they did their deliveries 8am to 4pm, trucks were pretty much at capacity. To take on their business needed to buy more trucks Did overnight drops – utilise fleet in non core time. How amenable was supplier to you investigating them?
  31. Suppliers The necessity to reduce inventories, have “just in time” supply and ensure that supplier credit terms are fully utilised will often conflict with the objective of improving supplier relations.   One way of rationalising this is to segment alternative suppliers based on value (i.e. your spend with each supplier) and risk (the number of other suppliers who can provide a same or similar product)
  32. Advantages of a reduced cycle – Decreased storage, insurance, obsolescence, security and interest payment Your decision regarding whether to hold inventory can be segmented by the type of inventory, where value depends on the value of that product and risk depends on the consistency of customer’s historic demand.
  33. Internal Processes Accountant – waiting for clinet data – waiting for approvals from a manager or partner. PR – held up by a photographer Hairdresser – time cycle of colourants Progress Interrim Billings Advance Payments (Media Buying example) Interest on overdues
  34. Wayne - The day you decide that you are Buddha, the day that your business will fail. Must embrace others thoughts. Surround yourself with intelligent staff.
  35. I don’t want you to retrench people unless they deserve it. Neither does my boss Anna Bligh, because she needs to keep Queensland working, and she gave me this absolute dream job in order to ensure that. Why not? Multiplier effect on the economy of someone not getting paid Effect on the individual. I’ve a little circle here. Once we’ve completed a lap, can you please review any retrenchments you’ve got planned. See yourself as the customer sees you. INCENTIVE BASED – Link the success quantitatively & qualitatively. CUSTOMER SERVICE – It’s still really ordinary! (presentation, enthusiasm, when I talk to the delivery driver for the company have them help me – don’t tell me to ring the office) GOALS & ACCOUNTABILITY TRAINING – Most people get no training. WORKFLOW & PROCEDURES – Are they documented. JOB SHARE – We’re in a digital age.
  36. Denver Vidler's philosophy of treating staff at his Nybro Holdings business like members of the family has been recognised by the Queensland branch of Family Business Australia. The company has just been named the most innovative and entrepreneurial family business in the State in the "first generation" category. The Kunda Park-based enterprise specialises in producing aged care and disability products such as motorised wheelchairs and artificial joints, as well as specialised tools and equipment for industrial purposes.
  37. Being a small business is no longer an excuse
  38. One of the businesses that I am currently involved in is SpeedAlert – a device that tells you what the speed limit is on every stretch of road, and will soon give you real time traffic data. Info is delivered by a standalone PDA or a GPS enabled mobile phone. It was a start up, with limited funds to develop, produce and sell through telco’s. So we needed alliances wherever possible. The world does not come looking for a better mousetrap. The economy is a machine that involves many firms acting in concert as well as many competing with each other. You are unlikely to be able to build an enterprise that is wholly self sufficient and an effective economic force without working with other firms. So it makes sense to assemble a group of partners that mesh together and together form a sustainable economic force.
  39. I want to run an experiment totally uncontrolled – who’d like a partner? One volunteer Tell everyone what you do I can help him to our mutual advantage through ....
  40. Indirect – Substitute goods? (think of others)
  41. Sub-section of a chart on p57 How likely is each one to occur? How strongly is it likely to affect your business? How can you mitigate against it happening NOW?
  42. The end game, and much of the reason for why entrepreneurs own businesses, is to increase the value of their business, as well as generating an income stream for themselves.   Regardless of whether you wish to work in your business until you retire, pass it on to your children, grow it and them float it as a listed company or sell it to the highest bidder, much of your ‘working on , rather than in the business’ mindset must be directed towards making the business a more valuable asset. The market value of your business will stagnate of fall unless your skills become more valuable. Understanding this principle is the key to increasing your economic worth. Even if you are on the right track, you’ll get run over if you stay there.