"None of us is as smart as all of us." "None of us is as smart as all of us."
So said business whiz Ken Blanchard. And it would be hard to find someone who disagrees (sorry Elon…).
So said business whiz Ken Blanchard. And it would be hard to find someone who disagrees (sorry Elon…).
The point is, creating, maintaining and growing a business is a major undertaking. Surrounding yourself with experts can help make a great business idea brilliant; spot and address potential risks; and help set you up for growth and success.
Plus, there are only 24 hours in a day. Delegating and outsourcing is an essential skill for owners and operators, freeing them up to focus on making sales.
This is true at all stages of the business lifecycle. Whether you’re an SME getting ready to launch or an established enterprise, it takes a ‘village’ of experts to ensure success.
Read on as we look at how this is true during the four classic stages of the business lifecycle.
Or go even more in-depth by listening to our webinar on this topic; a panel discussion with experts Sonja Pfitz (Pfitz Financial), Adrian Palone (William Buck Accountants) and Matthew Boglis (Mason Black Lawyers).
Plus, there are only 24 hours in a day. Delegating and outsourcing is an essential skill for owners and operators, freeing them up to focus on making sales.
This is true at all stages of the business lifecycle. Whether you’re an SME getting ready to launch or an established enterprise, it takes a ‘village’ of experts to ensure success.
Read on as we look at how this is true during the four classic stages of the business lifecycle.
Or go even more in-depth by listening to our webinar on this topic; a panel discussion with experts Sonja Pfitz (Pfitz Financial), Adrian Palone (William Buck Accountants) and Matthew Boglis (Mason Black Lawyers).
Launch stage: get it right from the start
The early stage of the business lifecycle is characterised by low sales and high costs. Translation: little-to-no profit. Finance is equally hard-to-find, often coming from personal and family contributions.
So, it’s a busy and intense period, with lots of decisions to make.
Despite this busyness, and the distractions and excitement, it’s essential SMEs get their set-up right at the start. Not only is it hard to correct-course once operations are up-and-running, you could be missing both great opportunities and great risks.
This is where your ‘village’ of experts comes in. And the message is clear: get your business structure right.
“It’s a cliche, but getting the right advice early is paramount,” says Adrian Palone, a partner at accounting and advisory services firm, William Buck.
Different business structures exist to support different enterprises so you need to be clear on what you hope to achieve, such as build-and-sell and cash out, or create ongoing generational wealth. Having a vision is important.
“This also allows you to take advantage of things like tax concessions or business incentives. You might not be able to get your hands on these things if they're not considered at the launch stage.”
Lawyer Matthew Boglis agrees.
“Structure and strategy go hand-in-hand,” he adds.
So, it’s a busy and intense period, with lots of decisions to make.
Despite this busyness, and the distractions and excitement, it’s essential SMEs get their set-up right at the start. Not only is it hard to correct-course once operations are up-and-running, you could be missing both great opportunities and great risks.
This is where your ‘village’ of experts comes in. And the message is clear: get your business structure right.
“It’s a cliche, but getting the right advice early is paramount,” says Adrian Palone, a partner at accounting and advisory services firm, William Buck.
Different business structures exist to support different enterprises so you need to be clear on what you hope to achieve, such as build-and-sell and cash out, or create ongoing generational wealth. Having a vision is important.
“This also allows you to take advantage of things like tax concessions or business incentives. You might not be able to get your hands on these things if they're not considered at the launch stage.”
Lawyer Matthew Boglis agrees.
“Structure and strategy go hand-in-hand,” he adds.
“Having a clear vision is really important. Unfortunately, as a litigator, I often see the consequences down the track where a failure to set the right structure comes back to bite.”
– Matthew Boglis.
Growth stage: time to put the foot down
Business is flourishing. Sales are golden. Revenue keeps increasing.
Time to turn on cruise control, right? No.
Very few SMEs make it to this stage – so while congratulations are certainly in order, this is a time to thrive. And also, the same risks that haunt start-ups are still lurking. Critical risks like cashflow.
Robust sales can be masking cashflow issues. If a business doesn’t have a system in place to track input costs, for example, its profit margin could be fading away despite rosy revenue numbers. Indeed, profitable businesses can have a negative cashflow – a hidden, ticking time bomb.
A lack of time is often raised as reasons why SMEs fail to set-up a cashflow management system. Leaning on an industry expert can ease the squeeze. A finance broker is one place to start. Beyond the cashflow conversation, they could also help put together a compelling loan application – with new finance often necessary to accelerate growth while things are going well. A good broker is a key part of the business ‘village’.
As is a lawyer. Especially for guidance on another common victim of the time-poor business owner: compliance. Like cashflow, a lack of consideration here can cripple growth at a stage where SMEs should be heading skyward.
“Nobody will want to invest in a non-compliant business,” says Matthew Boglis.
Considerations should includes protecting your business and what you’re selling – your essential intellectual property. Trademarks, patents, licence agreements, registration of business names, and employment agreements, are just some off the areas a lawyer can help.
This is about reputations, too.
“If you lose your reputation, it takes a long time to come back,” adds Matthew.
Time to turn on cruise control, right? No.
Very few SMEs make it to this stage – so while congratulations are certainly in order, this is a time to thrive. And also, the same risks that haunt start-ups are still lurking. Critical risks like cashflow.
Robust sales can be masking cashflow issues. If a business doesn’t have a system in place to track input costs, for example, its profit margin could be fading away despite rosy revenue numbers. Indeed, profitable businesses can have a negative cashflow – a hidden, ticking time bomb.
A lack of time is often raised as reasons why SMEs fail to set-up a cashflow management system. Leaning on an industry expert can ease the squeeze. A finance broker is one place to start. Beyond the cashflow conversation, they could also help put together a compelling loan application – with new finance often necessary to accelerate growth while things are going well. A good broker is a key part of the business ‘village’.
As is a lawyer. Especially for guidance on another common victim of the time-poor business owner: compliance. Like cashflow, a lack of consideration here can cripple growth at a stage where SMEs should be heading skyward.
“Nobody will want to invest in a non-compliant business,” says Matthew Boglis.
Considerations should includes protecting your business and what you’re selling – your essential intellectual property. Trademarks, patents, licence agreements, registration of business names, and employment agreements, are just some off the areas a lawyer can help.
This is about reputations, too.
“If you lose your reputation, it takes a long time to come back,” adds Matthew.
Maturity stage: harvesting the fruits of labour
Businesses that hit the golden stage of ‘maturity’ are now seeing steady sales, declining costs, and growing profit.
They've mastered the puzzle, and for hard-working owners and committed investors, it’s time to reap the rewards.
“At the maturity stage many SMEs want to start to look at debt reduction says Sonja Pfitz, a financial broker and adviser.
They've mastered the puzzle, and for hard-working owners and committed investors, it’s time to reap the rewards.
“At the maturity stage many SMEs want to start to look at debt reduction says Sonja Pfitz, a financial broker and adviser.
“Quite often directors or shareholders have put up property to
support their funding and now want these removed.”
support their funding and now want these removed.”
– Sonja Pfitz.
A good support team, including a financial broker, can help to restructure financial arrangements and work with directors on strategies to issue dividends from the business to directors/shareholders in order to support future wealth opportunities.
Equally, business owners may be looking to retire, or parlay into a new opportunity. This could mean selling the business at the top-of-its game, perhaps a management buy-out arrangement, an employee stock ownership plan, or selling to a competitor.
Whatever the strategy, SMEs should be taking advice at the right time.
“A broker is crucial to that all happening,” Sonja adds. “We’re typically in the business more often, and can help plan this through carefully. We can help bring the groups together.”
Equally, business owners may be looking to retire, or parlay into a new opportunity. This could mean selling the business at the top-of-its game, perhaps a management buy-out arrangement, an employee stock ownership plan, or selling to a competitor.
Whatever the strategy, SMEs should be taking advice at the right time.
“A broker is crucial to that all happening,” Sonja adds. “We’re typically in the business more often, and can help plan this through carefully. We can help bring the groups together.”
Decline stage: don’t be an ostrich
Though not inevitable, the course for many SMEs will involve an eventual decline.
Whether gradual or sudden, temporary or permanent, our experts agree that the most important thing for an SME is to get in touch early.
“The number one thing that will make things go awry, is to put your head in the sand and avoid everything,” says Matthew.
“Being proactive can save your business,” agrees Sonja. “It’s not the end of the world, but you have to be proactive and speak with your consultants early.”
And there are many different scenarios that an SME can consider, including winding down a business, voluntary administration, selling the business, exploring an employee buy-out. In turn, each of these scenarios has its own considerations, from how to managing debts, obligations and agreements, through to varying tax implications.
Whether gradual or sudden, temporary or permanent, our experts agree that the most important thing for an SME is to get in touch early.
“The number one thing that will make things go awry, is to put your head in the sand and avoid everything,” says Matthew.
“Being proactive can save your business,” agrees Sonja. “It’s not the end of the world, but you have to be proactive and speak with your consultants early.”
And there are many different scenarios that an SME can consider, including winding down a business, voluntary administration, selling the business, exploring an employee buy-out. In turn, each of these scenarios has its own considerations, from how to managing debts, obligations and agreements, through to varying tax implications.
“You only get to sell the business once, so give the process the respect it requires,”
– Adrian Palone.
Whatever stage your business is at, whatever its size, having a trusted group of experts could make the difference between good, great and amazing results.
Not sure where to get started? Add Banjo loans to your ‘business village’ and dive into our webinar or online knowledge hub to explore more about growing your SME.
Not sure where to get started? Add Banjo loans to your ‘business village’ and dive into our webinar or online knowledge hub to explore more about growing your SME.
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