Get your business flying
Sick of just paddling around in business? Want to really stretch your wings and fly? The difference between an ordinary business and an extraordinary business is literally that little bit extra. Many is the time that in a business you can’t quite see the wood for the trees, being buried deep in a business can stifle a fresh and objective viewpoint.
There’s nothing quite like a rank outsider coming in and doing a full review of what you do and (sometimes more importantly) why you do it. We can remember one time we asked a fishmonger client why they priced a particular type of fish a certain way. With a look of almost disgust the owner said, “I have always done it that way.” Fair enough we thought but why did they do it exactly as they did? Then the truth came out… the client raced to his desk, opened the top drawer, took out a ragged piece of paper and exclaimed proudly, “When I bought the business the previous owner told me to use this conversion formula when selling the fish.” Our heart sank, because this was EXACTLY why the business was failing – the conversion was mathematically incorrect. In fact by the time the fish were gutted and filleted they were actually losing money on that particular specie. No prizes as to why that particular type of fish was the shops best selling line! When we explained to the client the price had to go up he exclaimed that was impossible – it was his best selling line! Oh my! After much debate and mathematics the penny dropped and instantly the business enjoyed a financial turnaround.
Knowing your margins intimately is an excellent first step in really getting up and flying. When you know your margins and then know your sales mix you can start making some serious coin in business. But wait there’s more… Knowing where the profit margins are will let you more accurately determine what advertising you should be doing across your business. We have experience as cost and management accountants so if you’re feeling a bit in the dark about margins and costs we’d like to turn the lights on for you.
Outside eyes on your margins can leverage great results. Likewise an outside or second guess on your expenses can save dollars that get added straight to the bottom line profit. Nothing sucks cash out of a business faster than uncontrolled growth. Working to a plan means you are fore-warned. The biggest challenge is that only 5% of Kiwi businesses are truly working to a plan! If you have one then count yourself amongst an elite few – we could even argue you really do have your “ducks in a row.” To celebrate give us a call and we will gladly send you your own Martz Group Duck to join your own.
A second set of eyes is also very useful when it comes to other operating procedures, from stock procurement to preparing GST and income tax returns, from employment practices to wages preparation, from cash handling to debt financing. The list goes on and on. Where Martz Group can really generate a difference is that with our discipline of cost and management accounting our advice can be truly focussed on what’s going to impact (favourably) on the bottom line. All too often you can slip in to the age-old trap of mistaking activity for profitability. Many is the business we have downsized and had them make more profit.
Let’s talk about tax for a minute too. We totally concur that it is our responsibility as business owners to pay tax to support the country’s infrastructure. But, nowhere does it say you need to spend more on tax than you are legally obliged to pay. Here again a second set of eyes can unearth some hidden opportunities to find expenses that might be deductible but you’re not currently claiming. Are you truly 100% convinced that you’re claiming all your entitlements?
There’s another currency we focus on when on a client assignment. It’s not money, but it’s equally, if not more, valuable. TIME. Making money is (relatively) easy, managing time is quite a different kettle of fish. Time is a very finite resource and so putting in place checks and balances, systems and procedures that frees up more time for you is worth pure gold. More time to enjoy living, more time to spend with family and friends, more time to sit back and objectively grow the business, more time for holidays.
At Martz Group we are currently seeking more clients of the type we want to have. If anything you just read resonates to you at some level then it is VERY likely you are someone we want to work with.