Some business owners believe that not paying their own wages in order to prop up the cashflow is okay! I was one of those business owners not so long ago…
Things have changed in my mind. Now I believe – ABSOLUTELY NOT!
If the business can’t afford to pay you month on month then why would you invest all your blood, sweat and tears into it on a daily basis? For NO return!
“I have been working for six days a week for the last 6 months and I haven’t paid myself in over three months“ if this sounds familiar then read on…
Question – Would you work as an employee for someone else under these conditions? Of course not – so why do you accept them from a business that you own and run?
You take home all the headaches, so the least it can do, is pay you for your trouble.
Maybe you accept it because you’ve seen the good times – you know the business can be profitable – it was 5 years ago!
It’s going round and round in your mind – If only I could increase the gross margin, get that big order, purchase a new machine, sort out the cashflow, afford a good sales person, increase our marketing budget, reduce our overheads…….
Oh why – oh why – didn’t I sell five years ago?!
I have been there! And what is worse I have made the mistake of throwing my own hard-earned savings into a business that was sliding down the pan.
Why – because I was afraid of not having anywhere to go on a Monday morning? Perhaps – but to be brutally honest; I really thought I could turn-it-around.
When I look back with my 20-20 vision, in hindsight. I realise that nothing could turn back the clock to those profitable years.
I now accept that we didn’t shift with the times and made some classic mistakes. I kept grinding away but I lost all my fight and passion from all the knock downs.
Ultimately the business model was flawed by its stagnation.
At the time I thought that to change the model meant major restructuring.
Of course, I know differently now – after completing several successful turnarounds with similar challenges.
And what is great – looking back at that period – I learnt a massive amount from it!
At the time it was like a bad dream but now it’s feels like a period of intense learning and self-development.
Now I get excited and I am immensely passionate about helping business owners with their own unique challenges. I get satisfaction in helping them recognise their goals, targets and motivations for their future.
Consider Yourself and what YOU want.
Ask yourself and your business the following questions…if YES is your answer to two or more – then please consider your next step, take action and call me for a chat.
- Are you under constant cashflow pressure?
- Is there a hole in your cashflow bucket?
Profit & Loss
- Have you seen a reduction in your gross margin?
- Has your business made a loss in the last 3 years?
- Would an independent view of your accounts be of benefit to your company?
- Have you looked at all of your overheads but still need to find some savings?
- Have you cut waste and feel you are as lean as you can be but still have challenges?
- Do you have a liability or debt within the business that is preventing it from growing and moving forward?
- Would it be possible to increase profitability by focusing on the right products or services for your business?
- Is it impossible to focus on building the higher margin products and service because current overheads are high and work is work?
- Do some, but not all of your customers generate profitable business?
- Do any of your customers cause challenges in the business?
- Would it benefit your business if all your customers paid on time?
- Do any of your suppliers provide unreliable and/or inefficient services?
- Would it benefit your business if you could always pay your suppliers on time?
- At any point – does your quality become affected by the current challenges in the business?
- Are you personally being affected by the current circumstances – and is this effecting your overall performance?
- Is the business struggling to perform at its optimum capacity?
- Would it benefit you and your business if you had a strategy for the immediate, medium and long-term?
- Do you need to recapture your passion and drive?