Published on March 4, 2014
WELCOME… Today’s webinar will begin at 11am Sydney time WHAT WE’LL COVER… Presenter Kate Presenter Peter • What are the ‘7 Things’? • How to identify risks • Practical business tips This material may not be reproduced without permission www.smartfranchise.com.au 1
GETTING TO KNOWYOU www.smartfranchise.com.au 2
Poll #1 www.smartfranchise.com.au 3
THE ‘7 THINGS’ SURVEY Why we did it www.smartfranchise.com.au 4
There are significant costs when a business has financial difficulties Financial Time Human www.smartfranchise.com.au 5
THE ‘7 THINGS’ SURVEY How we did it www.smartfranchise.com.au 6
1,100 people invited Written responses Varied backgrounds • Accountants, Insolvency Practitioners • CEO’s, Senior Managers, Field staff • Franchisees • Lawyers, Bankers www.smartfranchise.com.au 7
INSIGHTS • Identified 7 key themes • Produced a report APPLICATION • Workshops • Business Tools www.smartfranchise.com.au 8
HERE THEY ARE .. The 7 Things that can send a franchise broke www.smartfranchise.com.au 9
#7 NOT RESPONDING TO CHANGE www.smartfranchise.com.au 10
“They still do the same things that worked for them prior to the GFC... …the market has changed significantly since then.” www.smartfranchise.com.au 11
• Consumer behaviour • Competitors • Costs • Regulations • Demographics • Business finance (availabilty, cost) • Your personal situation www.smartfranchise.com.au 12
#6 DIFFICULT CHILDHOOD www.smartfranchise.com.au 13
No matter how much due diligence you do… Reality turns out different from what you expected. www.smartfranchise.com.au 14
Financial results different • Cashflow • Costs • Profit It’s not easy to run a business! www.smartfranchise.com.au 15
#5 LACK OF BUSINESS RIGOUR www.smartfranchise.com.au 16
Poll #2 www.smartfranchise.com.au 17
People don’t usefinancial information the way we think they do. www.smartfranchise.com.au 18
“I really don’t understand what the accountant is saying to me.” “…It’s expected they know this stuff, but no one shows them or explains it.” www.smartfranchise.com.au 19
Hold regular business meetings Have up to date financial info Use financial & non-financial information www.smartfranchise.com.au 20
#4 PEOPLE DO ‘CRAZY THINGS’ www.smartfranchise.com.au 21
“They’re mad..! They spend all their money on toys!” www.smartfranchise.com.au 22
Improve daily lifestyle Take a holiday Buy a new house, car, bike, boat Invest in shares, property, 2nd business www.smartfranchise.com.au 23
“Extra commitments taken out against the business in good times… …cause financial stress in a downturn.” www.smartfranchise.com.au 24
Financial commitments increase Additional financial burden makes business harder There’s an impact on: • Marketing & sales • Service • Costs • Morale www.smartfranchise.com.au 25
#3 NOT ENOUGH SALES www.smartfranchise.com.au 26
Poll #3 www.smartfranchise.com.au 27
“Any person in business is selling something. …Most people have little or no training - or experience - in this area.” www.smartfranchise.com.au 28
Over reliance on marketing Don’t know how to sell Don’t know how to teach people to sell Staff not trained Staff turnover www.smartfranchise.com.au 29
#2 PRIDE &EGO www.smartfranchise.com.au 30
“I can sum it up in one word…Pride” www.smartfranchise.com.au 31
Business owner wants to be successful Things don’t always go as planned Don’t know who to talk to, or how • Might feel embarrassed • Not sure what to do So they put off the conversation www.smartfranchise.com.au 32
Pride can • Blind us to weaknesses or threats • Stop us from listening • Stop us from taking advice But we all need help sometimes! www.smartfranchise.com.au 33
#1 CAN’T PAY THE BILLS www.smartfranchise.com.au 34
Income too low Costs & expenses too high Didn’t see upcoming commitments www.smartfranchise.com.au 35
That’s why it’s so important to LOOK AHEAD! www.smartfranchise.com.au 36
Activity Current Financial Position $ www.smartfranchise.com.au 37
Tomorrow’s Actions Future Financial Position $ www.smartfranchise.com.au 38
WHERE ARE THE RISKSIN YOUR BUSINESS? www.smartfranchise.com.au 39
Poll #4 www.smartfranchise.com.au 40
Not responding to change Difficult childhood Lack of business rigour Doing ‘crazy things’ Not enough sales Pride & ego Can’t pay the bills www.smartfranchise.com.au 41
SMART FRANCHISE TIPS www.smartfranchise.com.au 42
1. 2. 3. 4. Know where you want to go Set sales targets Hold regular business meetings Monitor financial results monthly www.smartfranchise.com.au 43
QUESTION TIME www.smartfranchise.com.au 44
www.smartfranchise.com.au www.smartfranchise.com.au 45
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