Here is a simple strategy that turns any family owned business into a never ending money making machine…
In such a highly sensitive, politically correct era I’m going to talk to you about money without reservation…
I have no care for political correctness here. I’m beyond that rubbish. I see too much pain and suffering by family owned businesses that don’t get it right.
We need to talk about money and the more we talk about it the better off your business will be.
First and foremost, your business is not a charity!
Your business needs to be a money making machine if it is to thrive and keep people employed.
Your business does the local community a huge service.
It employs people, it buys products and services and it keeps the economy growing.
Your business provides solutions to peoples problems.
You thriving in business IS a big deal.
You cannot thrive if your business is a ‘Money Losing Machine’ (MLM).
People don’t like to talk about money for the fear of sounding money hungry and that’s a real shame.
Maybe that is why most businesses fail. They avoid speaking about the most important measure in the survival of a business. Money.
Talk about your money situation right now…
Do you have more money coming in than out?
Will you need to borrow some? At your current rate of cash burn will you survive 2016 or will you become another statistic?
Maybe you have great cashflow and that will trigger other money issues? Talk about your money situation every week at a minimum.
Great businesses talk about it everyday.
Look, money is neither good nor bad, it is simply an exchange tool we’ve agreed to use to reward each other.
There is a Golden Rule Of Money in Business:
“More of it has to come in than goes out!”
And you can only do that by focusing on creating a Money Making Machine…
Your business MUST be making you money…it MUST be paying you for your efforts, your risk and the fact that you’re not getting a fulltime wage somewhere else.
If you keep telling yourself that things will get better, that things will change this year, my advice is: wake up and stop kidding yourself…this is a losers story, stop using it to get by another week.
Face the facts…If your artery is spewing blood, then it’s spewing blood…you’ve got to stop it NOW.
No amount of positive or wishful thinking will stop your arm from spewing out blood and dying. This is where positive thinking is dangerous thinking.
Let me ask you this:
How long would your employees work for you if you told them they should work for free for a few months, maybe years, that things will get better over time, that they’ll just need to hang in a bit longer?
Oh, and on top of that you tell them that they should get a loan from the bank or friends to cover their living expenses for a while?
Employees are smart… They’ll be long gone!
Like you, employees need to be a Money Making Machine for their own family too.
They want to be able to pay for their dreams and so should you.
Owning and running a family business is no different.
But why do we hang on? It’s not that we’re dumb…it’s just that we’re not focusing on the right activities in our business…
If you don’t focus on the right activities to become a money making machine your family loses everything it has risked: house, car, relationships and friendships…
When you downsize or close down you’ll have to let go of your employees, which means your employees will lose, the local economy will lose…we all end up losing.
So, what needs to be done to go from being a Money Losing Machine to a Money Making Machine?
You need to focus on MMA’s – Money Making Activities.
At this point I need you to know or at least remind you that my focus when working with family owned businesses is that I make sure each and every family member of the business to work in a highly leveraged way that grows and keeps the business growing without anyone burning out.
There’s only one thing worse in business than losing money and that is losing your health.
My mission is to help you create a healthy money making machine and be a healthy human being.
If you’re a client of mine the following will be a great reminder for you as you would have covered these with me in our first two days together.
If you’re not yet a client, here’s your first step to creating a money making machine:
There are only 2 types of activities in your business (be brutal in your thinking here):
1/ Activities that make your business money
2/ ‘STUFF’ – all activities that keep you away from making money
Now, get a blank sheet of paper and draw two columns on it.
Left hand side, write Column A: Money Making Activities I Do
Right hand side, write Column B: Stuff I do
Now for the next 5 working days list all of the ‘money making activities’ and ‘stuff’ you do from first thing in the morning to the last thing before bed.
At the end of 5 days take a long look at your two lists…
If your ‘Stuff’ list is way greater than your ‘Money Making Activities’ list then 2016 will not be a good year for you, unless you make a decision to change right NOW…
Here’s the change that I work on with my own personal clients:
Do the following 3 things with your list:
1/ Stop doing ALL of the Stuff… it’s time to delegate it, let go of it, outsource it or simply delete it … you need to be able to ‘trust-let go-relax’ and I can show you the systems you’ll need for this…
2/ Rate all of the Money Making Activities from highest income generating to least income generating. AND Here’s the simple strategy that will turn any family owned business into a never ending money making machine:
3/ Do at least one of those 3 highest income generating activities on a daily basis
Do this and you’re well on your way to creating a leveraged Money Making Machine for your family owned business.
NOTE: Don’t forget that money is how we keep score of the health of your business BUT it’s the activities we do that drive that score.
And those activities MUST be passionate ones.
They must be activities that you and your employees are unique at doing and they must be meaningful so that everyone does them with purpose.
Here’s what I mean by that:
Three bricklayers were asked what they were doing.
Three different answers were given…guess which one was working with real purpose and did great work?
Answer 1/ ‘I’m laying bricks’
Answer 2/ ‘I’m building a wall’
Answer 3/ ‘I’m building a cathedral for my community’
Fascinating perspectives, right?
Before I go, remember one thing:
I am a resource for the growth of your business… I see things for you in a new fresh way…
Our way of doing things is unique and it’s why it produces unique results for our clients…
We would love the opportunity to help you clear your head on what is the right way for you to accelerate your business…
We highly recommend you watch this step-by-step case study of how we grew Beefy’s Pies into a Famous Aussie Icon from a small stressed out bakery into a family owned chain. Click here to get all the insights into their success…
Or if you have heard enough about how we work with our small business owners, then let’s have an off the record chat about your current situation and see what we can do to immediately guide you…click this link to see what time best suits you.
P.S. Ask if our Boardroom Program intake is open for enrolments…It works best for business owners who see the benefit of having us on as their ‘external partner’ so that they are not alone in the day to day decisions of their business.