What is Success…and How do we Measure It?

I know what success means to me.  Success is – living the perfect day, each and everyday.

My perfect days is simple – it would involve an early start – exercise, fresh food, lots of time spent with my family, and working on my investments.

The way I measure my success in life is to see how close each day comes to my perfect day.

I’ve tried counting cash in the bank, houses, sports cars and boats.  I’ve been on numerous holidays and travelled the world.

I’ve been lucky enough to work in my “dream job” as a scuba diving instructor on the Great Barrier Reef.

I’ve been up mountains, boarded down them, run marathons and found my inner self but none of these things make me successful in my own mind.

Continue reading “What is Success…and How do we Measure It?”

Advertisements

Financial Freedom – So What! – Then What?

Financial Freedom – So What! – Then What?

I set myself a goal, sometime ago after reading several “business success” books.

All the books I read seemed to have a theme running through them.

That theme, was heavily endorsed when I went to business seminars and networking events.

The Goal –

Financial Freedom! (or retirement) – a passive income that would generate wealth, even without me having to be present from 9-5.

I’ve never really launched myself into that goal.

I began to think that the Financial Freedom = Happiness, theory is a myth.   We talk about it as if it would be the solution to all our problems, it’s not!

Continue reading “Financial Freedom – So What! – Then What?”

Time to Wake Up and Smell the Tea!

We have a cash-flow problem, shall we reduce our margin to drive sales volumes?

Cash-flow management is about how money flows into and out of your business over-time. There are three types of cash flow – operational, investment, and financing – and the one of interest here is operational cash flow. Cash-flows in from sales, and out in payment of bills, including supplier invoices, wages and rents.

Margins need to be high enough to leave sufficient cash to pay all these and the timing of inflows and outflows needs to be managed to make sure enough cash is there at the right time.

By discounting margins to drive sales, you risk not having enough cash left to pay all these bills. This is a common problem with businesses at the moment, with everyone discounting like mad to try to maintain sales, resulting in insufficient cash to pay salaries and rents. People are literally buying the work to stay afloat.

Continue reading “Time to Wake Up and Smell the Tea!”

Live the lie of success…

Last week one of my business partners dropped a bomb-shell.

We were chatting about a company we both know well.

I know one of the partners and he knows the other.

The guy I know is a great sales guy.  He is a marketing expert and believes in networking.

From the conversations we had, and the news stories that were coming from him, it was fair to assume the business was doing really well in 2011.

My business partner knows the other partner, who is the financial director.

He told a different story, of a struggling business, backs against the wall.  At one point in 2011, they came close to becoming insolvent.

Continue reading “Live the lie of success…”

Thinking Beyond – The Outside of the Box

It takes a lot of self-reflection and guts, and likely many sleepless nights, to decide that it’s time to shut down a struggling business.

Owning a business is a labour of love and grief.  There are the highs and the lows.  As well as a huge amount of work it takes to get things off the ground.

Thinking back I did not want to let the business go, more out of fear for the unknown than anything else; but the pressure started to mount up and the problems we had accumulated over the last two years became untenable.  We were having a really hard time paying off past debt, while trying to buy new stock and keep up with rent and everything else. Continue reading “Thinking Beyond – The Outside of the Box”