What to do with Your Ideas

If you’re like me, then you have ideas coming into your head all day long.  And frankly, it can be quite distracting, contributing to the “squirrel syndrome” of chasing ideas and not getting things done on your daily list.  The question becomes, what do you do with all those ideas?

The answer is Vision and Focus.

When you are clear in your vision, in what you’re here to do, what your priorities are, it’s a lot easier to discern whether an idea has a place in contributing to that vision, or whether it should be released into the wind for someone else to pick up.

It doesn’t matter if you’re a business owner, employee, stay-at-home mom (or dad), we all have a greater vision for what we’d like our life to BE like, for what we were born to do here in this lifetime.  For me, that vision is a world that lives in greater joy and harmony that exists today.  Then you choose the vehicle for which you will contribute to that vision.

Until few years ago, my vehicle was a full-time job where I helped my team and clients reduce stress and anxiety over tax laws, allowing them to have more joy and harmony in doing their own job/business.  Currently, my vehicle is my business through which I inspire and empower people to have more harmony and joy with money and finances…which has a positive ripple effect into other areas of their life (health, relationships, family, community, contributing to their vision).  I do have another vehicle – one that involves meditation and writing.  With this vehicle, I inspire others to see greater possibilities beyond their current reality – one with more joy and harmony than they have today.

Just like the car you drive, that vehicle can change over time, but the vision doesn’t. 

So, what is your VISION?  What IDEAS are you generating that are in support of that vision?  And what ACTIONS are you taking to transform those ideas into meaningful contribution to your vision?

[author] [author_image timthumb=’on’]http://54.82.103.175/wp-content/uploads/2017/06/Linda-Spencer-Visionspire-cropped.jpg[/author_image] [author_info]Linda Spencer is a CPA, CA, Canadian Tax Specialist and Money Mindfulness Coach. Her mission is to eliminate stress and anxiety people experience around money and taxes, by empowering them with the tools, knowledge, strategies and mindsets that will put them in the driver seat of their business success and financial wellness, so they can have more harmony, joy and abundance in their life.[/author_info] [/author]

For more information on Linda’s upcoming programs and workshops, visit the Events page.

road over water

8 Things You Need to Know as CFO of Your Small Business

Let’s face it, as a small business owner, you wear many hats – one being that of Chief Financial Officer (CFO).  And as the CFO of your business, you are focused on strategy, planning and operating your business in a way that optimizes your profits and cash flow, and ultimately your financial value.  As CEO (Chief Executive/Operating Officer), you have the big picture vision, the dream.  But as CFO, you are the gate-keeper, the one that ensures the investment in the big picture vision is sound.

This is why I am sharing with you 8 key things that top CFO’s are concerned with to help you make better business decisions and avoid the top small business money mistakes.

  1. Revenue / Sales

The key to any business success is SALES!  No sales, no cash, no business.  So as CFO, you need to understand your sales numbers, as well as your products and target customers, so that you can recommend and take courses of action to ensure that you are going to hit/exceed your sales targets…things like return on marketing, cost of client acquisition and retention, pricing strategies and policies.  The key here is knowing your market and having a good sales and marketing system, as well as having good customer service…after all, it’s easier to get repeat business and referrals than it is new business from strangers.

  1. Vision for the Future

So many entrepreneurs operate by the seat of their pants, looking at short term gains with no real vision for the future.  While this might work in the short run, it is not a sustainable model for the long term.  The cornerstone of what I coach my clients is always to start with the end in mind, and have that end in mind when making your business decisions.  This includes having a written business plan (operational, financial and marketing/sales)…it doesn’t have to be elaborate (unless it’s required by investors/lenders), but it does need to be written down somewhere, vetted and shared with your team, and re-visited regularly.

  1. Talent Acquisition and Management

At one conference I attended, the common message I heard from all the women entrepreneurs who shared their success stories is that the key to their success was building good relationships and having a good team.  This is consistent with my research and with what big business CFO’s have shared with me personally.  You need to have the right people doing the right things with the right tools…and you need to have a system for evaluating their performance, rewarding them and retaining them.  You want a team that will challenge your ideas and strategies, to ensure that you are making the best choices for your business and your clients (and you’ll want to encourage them to do so).

  1. Risk Management

Risk management has been one of my main focus areas for over 10 years.  It is an area that is top of mind for big business CFO’s, but it is one of the most neglected areas in small and micro business.  Yet, risk is an area that can sink a small business in a heartbeat if not managed properly.  Do you know what your risks are?  They could be legal, operational, reputational, financial and credit, compliance, technology, privacy, economic or market risk.  What if something went wrong in providing a service to your client and they sued you?  What if you made a big order with a supplier and they didn’t deliver?  What if an employee was committing fraud?  Or someone was stealing your intellectual property? Or if you didn’t pay your taxes? Or if your technology failed, or someone hacked in and stole your data?  Some effective ways to manage these risks include first identifying your risks, then ensuring you have adequate and appropriate insurance, legal contracts, effective policies and procedures, and internal controls.  How does your business measure up to its risks?

  1. Governance

Along with risk management, comes governance.  Corporate governance is the system by which companies are directed and controlled. It provides the structure through which businesses set and pursue their objectives, while reflecting the context of the social, regulatory and market environments they play in.  For many small business owners, corporate governance and reporting is an afterthought…the reason being may be that many small business are not held accountable by any particular governing body, so governance and reporting takes a back seat to everything else in the business.  Why does this matter?  For one, good corporate governance strengthens a company’s reputation and risk management practices.

Not having good governance structure and practices could lead to things such as the following practices that could cause harm to others and ultimately cripple a business:

  • taking risks which have serious consequences, neglect of duty of care
  • dishonesty, withholding information, distortion of facts
  • misleading communications or advertising
  • avoiding blame or penalty or payment of compensation for wrong-doing
  • secrecy and lack of transparency and resistance to reasonable investigation
  • harming the environment or planet, people or animals
  • unnecessary waste or consumption
  • invasion of privacy or anything causing privacy to be compromised
  • conflict of interest, betrayal of trust or breaking confidentiality

As CFO of your business, the gate-keeper, you need to ensure you have good governance and reporting practices to reduce your risks.

  1. Operating Productivity

Often, cost control is a function of operational productivity.  This includes measuring how well you, your team and your assets are working for you.  What is your return on time and investments? You can look at revenues and costs as a function of time, or people (by function of sales, marketing, operations, technology, admin), or assets (particularly if you’re a capital intensive business).

  1. Profits and Cash Flow

No entrepreneur gets into business with a view of incurring losses…and it sucks when that happens.  Profits are often the driving force for creating financial value and obtaining financing.  But it’s not just revenue minus expenses…you have to also take into account depreciation and other costs indirect costs that you might not be thinking of on a regular basis, such as interest, taxes, and what you pay yourself (and YES – you should be paying yourself, just as you would for any other employee).

Even more important than profits, I think, is cash flow…you need to know what cash is coming in (receivables and collections) and going out (payables, payroll and taxes), and when, so that you can manage it effectively and ensure that you are still paying yourself, your employees  AND all the other bills.  That’s why it’s important to track, reconcile your accounts and review your cash flow at least on a monthly basis (or weekly is better) so you can make quick decisions to bring in more cash, especially if you’re facing a shortfall.  Doing so can also help identify problem areas in your business that need further investigation.

  1. Tax Planning and Optimization

As a small business owner, you have options as to how you structure your business, and what makes the most sense for you from a tax perspective…you don’t want to be paying too much tax, but also need to ensure you’re not under-reporting your income or over-deducting expenses.  Unexpected tax audit adjustments can be costly, and come with significant interest and penalties.  I’ve seen businesses go out of business because of unforeseen tax assessments.  This not only goes for income taxes, but for sales taxes and payroll taxes as well.

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How do you track and report all this?  Where do you start?  Start by working with your professional advisors… Ask your accountant questions so they can help you understand what your numbers are telling you.  Hire a business consultant – they’re trained to see and understand the big picture, analyze the situation and identify areas for improvement, as well as the solutions to implement for greater success.  If your concern is sales, hire a sales consultant or coach. Talk to your lawyer about hedging your legal risks, and to your business insurance agent to ensure you’re adequately covered.

Still not sure?  Send me an email…I’d be happy to discuss your situation to see how I can help directly or refer you to someone in my vast network of business experts (accountants, lawyers, marketing strategists, sales coaches, social media experts, web and graphic designers, content writers, technology solutions, insurance specialists, financial analysts and advisors, HR specialists, recruiters, and more!).  And check out upcoming workshops and programs than may assist you www.visionspire.ca/events

Contact Linda@visionspire.ca .

 

[author] [author_image timthumb=’on’][/author_image] [author_info]Linda Spencer is a CPA, CA, Canadian Tax Specialist and Money, Marketing & Soul business coach. Her mission is to eliminate stress and anxiety around money and taxes, by empowering heart-centered small business owners with the tools, knowledge, strategies and mindsets to put them in the driver seat of their financial success and wellness.[/author_info] [/author]

Weath Creation

Small Business Model for Success – Make Your Profits Flow

wealth-creationAs a small business owner, you wear many hats – one being that of Chief Financial Officer (CFO).  Being the CFO of your business does not necessarily mean being your accountant – in fact, I highly recommend hiring someone to do your bookkeeping and financial reporting for you (i.e., the collecting and reporting of results).  As the CFO of your business, you are instead focused on strategy, planning and operating your business to maximize your profits and cash flow, and your financial value.  You have a big picture vision, so you look at your financial plan, forecasts, budgets and results from 30,000 feet, and analyze those results in context of your overall business objectives and strategies, asking “what if…”  You determine what your results are telling you, and make strategic, financial and operational decisions accordingly.

So, how do you do build a business model that will allow you to maximize your cash flow?

This is step 5 of my 8 Steps to Building Your Road Map to Success – create your strategic operating and financial plan (if you missed the previous steps, click HERE to go to see previous posts).  As a small business owner myself, I like to keep it simple – first by building a profit model that allows you to create fluid and sustainable profits and has these key characteristics:

  • is intuitive, flexible and has flow
  • allows for creativity and innovation
  • is scalable and has multiple layers that allows you to easily and fluidly up-sell, cross-sell and down-sell between the layers of services and packages
  • focuses on 2-3 things that you do really well, and
  • allows you to continuously dip into your well of opportunity, to connect with the people entered your world at various levels and give them the “what’s next”.

Always with your core business purpose and ideal client in mind, the key is to set up your business model and services/packages in a way that allows you to maximize every opportunity to its full potential.  Start with your platinum service level that will bring you top dollar and platinum client, then your entry level service that will allow people to connect with you for little investment, and then fill in the middle with a couple of gold and silver level offers that will engage and create momentum with your clients.

Ultimately, you want to maximize your profits, so when you create your business profits model with the different layers of packages/offers, you’ll need to run the numbers.  This is what gets scary for a lot of people, especially creative types in my experience (as a creative myself – I write poetry and design jewellery for the everyday occasion – I can empathize.  But I also have a very analytical mind that allows me to help bridge the gap for other creatives in building their business models for success.).  But without knowing your numbers –  the cost of inputs (including what your time is worth and overheads), capital requirements, desired profit margins, projected unit sales and break-even points – you may find yourself struggling to make ends meet.

When clients come to me for assistance with their pricing and what to charge, I have found that every one of them has undervalued what their time is worth and how much time the spend developing, marketing and delivering their products and services, leading them to charge to low a price.  This results in lower profits and having to work even harder for the revenues they do collect, leaving them cash and time poor.  With my easy pricing model, I then show them how to quickly determine what their time is worth and how to price each of their packages and services to create maximum value.

This is just one of the things that I will be showing participants at my upcoming workshop on February 29th in Milton.  If you want to know how to easily charge what you’re worth and price your packages and services for maximum value, then you MUST come to the workshop!  Click HERE to secure your spot and get all the details.

 

[button link=”https://www.eventbrite.com/e/workshop-improve-your-business-cash-flow-with-your-4ps-of-success-tickets-21330914339″ type=”big” color=”green” newwindow=”yes”] SECURE MY SPOT AT THE WORKSHOP![/button]

[author] [author_image timthumb=’on’]http://54.82.103.175/wp-content/uploads/2015/10/linda-contact-e1447279259479.jpg[/author_image] [author_info]Linda Spencer is a Creator, Visionary, Business Coach and Savvy Canadian Tax Specialist. Linda believes that NO ONE should have to struggle to create the life of their dreams. This drives her to empower business owners with the knowledge and tools they need to gain insight and clarity into their business strategy and to take inspired action to streamline their processes, improve their cash flows and reduce their stress levels, such that they can more easily create the life of their dreams. With 20 years experience helping businesses with their financial, tax and business plans, managing tax risk and advising on Canadian corporate, personal income tax and sales tax matters, Linda combines her expertise and knowledge with her intuition and creative abilities to arrive at sound tax and business solutions. She is also known for successfully leveraging cross-functional teams and creating efficient processes that translate into tangible business results. Discover how you can create more ease and flow in your business at www.VisionSpire.ca (formerly www.LindaSpencerTaxConsulting.com)[/author_info] [/author]