June 20, 2025 • 31 mins
The heartbeat of your business isn't your profit and loss statement—it's your balance sheet. We pull back the curtain on this misunderstood financial document that reveals the true strength of your company.
While most small business owners obsess over turnover figures, we explore why focusing solely on profit can lead to disaster if your balance sheet isn't healthy. Paul breaks down the critical components in plain English: assets (what you own), liabilities (what you owe), and how these must balance with equity to create financial stability that withstands sales downturns.
We tackle common misconceptions head-on, particularly the dangerous assumption that money in the bank equals financial health. Your suppliers, creditors, and potential business partners can see your filed balance sheet at Companies House—it's your business's public financial face. Understanding what they're looking at could mean the difference between securing credit terms or being forced into upfront payments.
Through relatable examples (including a musical theatre analogy for the creatively-minded!), we demystify fixed assets, current assets, liabilities, and the critical importance of maintaining positive working capital. Paul shares why he reviews our company's cash flow weekly and forecasts months ahead—practical wisdom from decades of financial management.
The balance sheet isn't just a document for accountants. It's the foundation of intelligent business decisions, revealing whether you can weather storms, fund growth, or position your company for eventual sale. If you've been neglecting yours, this episode provides the clarity and motivation to change that today.
Ask your accountant to explain your balance sheet—and if they can't make it understandable, find someone who can. Your business's future may depend on it.
🎧 Listen now on Spotify & Apple Music and don’t forget to subscribe, share, and leave a review – and send us your questions for future episodes!
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Welcome to Business with the Donos, where we talk
about family business andeverything in between.
I'm your host, jade Dono, andI'm here with my dad, paul Dono,
and this week we are talkingabout balance sheets.
Woo Woo, it's so exciting.
So, first of all, dad, can yousay in plain English oh my, my
(00:25):
goodness what a balance sheetactually is in plain english
plain english okay, so a balancesheet is exactly what it says.
Speaker 2 (00:38):
It's a sheet that balances and it it shows you the
assets and liabilities of abusiness compared to, and it
ties it in with the profit andloss account.
So the profit and loss accountside, with the equity of the
business, shares etc, has tobalance with its assets and
liabilities.
That is a very, very short,confusing, plain english version
(01:04):
without showing.
English it's getting to mePlain English yeah.
So, yeah, it's difficult toexplain it without pictures.
Speaker 1 (01:18):
Okay.
Well, this is a podcast, soyou've got to try and explain it
without pictures.
We promised all our listenerslast week that we would explain
it, explain a balance sheet.
Speaker 2 (01:29):
I think you know, at the end of the day, a balance
sheet is something that is oftenneglected by a lot of small
business owners.
Everyone is focusing onturnover.
Oh, my turnover is over amillion, but it doesn't matter
if you're not earning any moneyat the other end.
So people focus on turnover.
(01:50):
Then, as accountants, we focuson profit maybe gross profit and
net profit but what peopleforget is that a balance sheet
is the strength of the business.
You know, can your businesscontinue if your sales drop down
(02:15):
If your balance sheet is strong, ie positive, not just cash in
the bank, it will come to that,but if it is strong and robust
enough, then your business canmove forward.
And I would urge any smallbusiness owner to go to their
accountants and say can weconcentrate on the balance sheet
as much as our profit lossaccount?
Speaker 1 (02:35):
yes, okay, so just because I'm sorry dad's gone on
his phone.
It's very.
Speaker 2 (02:43):
No, it's because I've got these hearing aids and the
Bluetooth links to my hearingaids and all of a sudden someone
sent me a message and it'sreading them to me, so I've
turned it off.
Speaker 1 (02:53):
He got a little in ears.
Speaker 2 (02:54):
I've got in ears.
They're not helpful.
Ones In ears have gone.
Speaker 1 (02:58):
Okay.
So, from my understanding verylimited understanding, although,
as I mentioned before, mycurrent module in my MBA is
finance, so I've been doingquite a lot more research and I
do hear people talking aboutthis stuff all the time, but
from somebody who did musicaltheatre, this is my
understanding.
(03:18):
So you have two for an SME, youhave two main financial
statements that you're going towant to look at, and that is
your profit and loss, which doeswhat it says on the tin.
And then you have your balancesheet and, to explain what Dad
said, your balance sheet hasyour assets, so your stuff that
you could sell for money.
It then has your liabilities,so all of the money that you owe
(03:43):
, your liabilities, so all ofthe money that you owe, and it
also has, like, your cash in thebank and sort of um, like any
other investments and thingsthat you've got as well, and
that basically then means thatif you're looking at that and
that is strong, if your saleswere to dip down, as dad said,
you've got assets that you couldsell and you've got money in
(04:05):
the bank that could keep yougoing.
That is why it's important, amI right?
Yeah, it's not bad yes.
Speaker 2 (04:11):
So musical theatre, the balance sheet will be your
theatre.
Yes, so that will be yourtheatre, and the chairs and
everything else like that andthe money that have been taken
in on ticket sales and thepayments to suppliers that's
your balance sheet.
Speaker 1 (04:25):
Yep.
Speaker 2 (04:26):
And then your profit and loss, which makes the
balance sheet work is your salesof the show and what have you
and your popcorn and all thatsort of stuff.
Yeah, and that's kind of a verystrange way of explaining it in
musical theatre lovey land.
Speaker 1 (04:42):
Musical theatre lovey land Okay, okay, it in musical
theatre lovey land.
Musical theatre lovey land okay, all right.
So that sort, I think that sortof explains it.
So why, why does it matter?
Why, why do we strive to have apositive balance sheet?
Speaker 2 (05:02):
I mean a a few reasons.
At this moment, if you're asmall business or a micro
business, you only have to filea balance sheet at a company's
house and it's a cut-downversion as well.
So that is all people can lookat when they're looking at you
as a business.
So if a client comes to us andsays we're going to trade with
(05:22):
this company, what do you thinkof their business?
The first thing we do is we goin company's house.
We look at their balance sheet.
A we see whether or not they'reoverdrawn or not, and b we see
whether or not their currentassets ie what they can sell
within the next 12 monthsagainst their current
liabilities, what they can, whatthey have to pay for in the
next 12 months.
We make sure that their currentassets are above their current
(05:45):
liabilities, which means theycan pay off their debts, etc,
etc.
It doesn't really.
We can't really get to a profitand loss figure and we can't
get to owner's dividends either.
Speaker 1 (05:58):
No.
Speaker 2 (05:59):
Or shareholder's dividends, but that is public
record.
It's the only thing that ispublic record.
So we do try and do a positivebalance sheet.
You know we often have clientscoming, come in and go oh well,
we made a loss this year butwe'll get a?
Um, we'll get a tax refund.
You know, that's it, say lovey,and then we might sit there and
(06:20):
go.
That's fine.
But your suppliers that you relyon that go to credit
referencing the agency may evenfactor that your debt are
suddenly going to get hit withall their reports saying your
balance sheet is insolvent andtherefore your credit limits are
going to be cut or you're on aupfront payment, and that can
(06:43):
really devastate a business.
So if you don't understand that, whilst it's, you know oh, it's
okay, I'm not paying any taxthis year and you've kind of
resolved yourself to that.
You need to make sure thatbalance sheet is positive.
You need to make sure it'sbetter or as good as the year
before, especially if you'retrading with big suppliers and
when I say big suppliers it canbe down to a builder, you know,
(07:05):
dealing with the big, the bigsuppliers like travis perkins,
mkm, you know those sort ofthings.
Speaker 1 (07:11):
They're going to be doing credit checks on you and
they're going to monitor yourbusiness all the time, and they
have software to do that yeah,and I mean equally, if you
understand the balance sheet andwhat it's for, you could be
checking your people um so thatyou can adjust your credit terms
, you know yeah, absolutely ordeciding whether you're going to
(07:33):
use a person or not.
Speaker 2 (07:35):
You could be checking their balance sheet as well, if
you understand it yeah, so yourability to make you basically
make sure balance and understandwhat lenders want.
Speaker 1 (07:45):
Yeah.
Speaker 2 (07:46):
I remember sitting in front of someone who wanted to
borrow a significant amount ofmoney from Barclays Bank, one of
the high street banks, and thatbank would have been happier if
they'd have been effectivelyhiring their equipment rather
than buying their equipment.
Yeah, because that made adifference on their um how they
(08:07):
were funded.
Speaker 1 (08:08):
It's understanding that and understanding what is
right for your business in termsof the way that your balance
sheet is structured yeah, andalso, if your goal is to sell
your business, you need a strongbalance sheet to you know, be
in a good position there as well.
Is that right?
Speaker 2 (08:27):
yeah, so you know you need to have the working
capital there.
So ie funds that can, that can,at least you know, operate your
business for one, two, threemonths ahead, um, without you
know, with a proper sales dropand if you want to sell your,
yeah, it is making sure that isa much stronger balance sheet.
(08:48):
And in a small business, thething that normally crucifies a
balance sheet is the director'sdividends, and what I mean by
that is that not understandingthe effect of dividends can be
such a nightmare.
And what often happens forthose that don't understand it
(09:09):
and just concentrate on profitand loss and not on their
balance sheet is, for example,if they've got £20,000 in the
bank account, the owner will go,I'll have that £20,000.
Puts it in their bank, spendsit, goes on holiday, goes on
holiday, etc.
Etc.
But there's tax on that.
So a dividend is a distributionafter tax.
(09:32):
So what they've not done isallowed for the tax side of it.
And often we come to the yearend and go your balance sheet's
insolvent.
They go well, it can't be,because you know, still got 20
quid in the bank, yeah, butyou've spent the tax money and
that dips them out.
So it's so.
I mean, I just can't emphasiseit enough.
It's so important to look atthat balance sheet and
(09:54):
understand it.
Speaker 1 (09:55):
Yeah.
Speaker 2 (09:56):
So just again, so that people really, really
understand all of the terms thatwe're using, just explain what
an asset is, why it's important,what like what it is so an
asset is something that you use,ie a fixed asset which will be
the top of the balance sheet issomething that you use in the,
(10:16):
in the business, for, um, youknow, over a period of time.
So in our business, our biggestassets are probably our laptops
.
Yeah, so we'll buy a laptop forargument's sake.
They're about they've gone upnow, they're about 1400 pound.
We spend on one and we mightsay that's going to last us
three years.
Yeah, so we'll say for everyyear we'll waste that asset,
(10:39):
we'll waste and it'll be calleddepreciation.
Yep, so it drops down in value,but it hasn't gone straight
onto the profit and loss account.
So that's an asset and that'sthe value of the assets.
We would expect the value ofthose assets.
If the business had to be sold,that would be the value that
would be put to those assets asa crude way of thinking.
(11:05):
But then you have the next line, which is your current assets.
This is stuff that can beconverted to cash within 12
months, and your current assetsare typically money in your bank
, um, your trade debtors, yeah,something called pre-payments,
which is an accounting termwhich I'm not going to go into
because that's a whole differentsubject.
(11:26):
And stock is another one.
You know we talked about stockon the last podcast, didn't we?
And how we turn that over andconvert it to cash?
Yeah, obviously you know, andstock turnover is really
important to be able to do that.
They're sort of like your bigcurrent assets.
And then you've got yourcurrent liabilities.
So current liabilities areloans, high purchase that you
(11:49):
are going to pay back within 12months yeah the next 12 months
on that.
Your suppliers, um ie what youowe people for the goods that
you buy that you either resellor use within your business, and
you've got credit terms umcredit card accounts.
A lot of people use capital ontap.
I see a lot of people thenextend that to funding on it and
(12:10):
it's a really expensive way offunding your business.
But that's another area thatneeds to be repaid, money you
owe to the government, ie VAT,corporation tax and PAYE and
employee taxes, such as taxes,is it?
I call it taxes?
It's your 3% pensioncontribution as well, that you
(12:31):
owe.
All of these, hopefully, areless than your current assets
and that will give you your netcurrent assets.
Speaker 1 (12:41):
Yeah.
Speaker 2 (12:42):
And then you have long-term liabilities.
Long-term liabilities typicallya loan will be five years.
Speaker 1 (12:47):
Yeah.
Speaker 2 (12:48):
So this will be the four years left on the loan or
any balance of the loan after 12months.
And you might owe the businessowner some money and that
business owner might turn aroundand say, well, I don't want
paying back for five years.
So that would be a long-termliability as well.
And then that's your value ofyour balance sheet.
(13:09):
And then the bottom section isthe shares typically 100 shares
in a family-run business,typically two family owners, 50
shares each.
Your profit and loss reserves,ie what you don't take out of
the business, what is left inthe business.
That's after dividends.
That is added to that figure.
(13:31):
There I won't worry aboutrevaluations because that's a
different topic, but those twofigures together should equal
the balance sheet on top,assuming that is correct.
And, to be quite honest, mostsoftware deals with the ins and
outs of this.
For any sad accountantslistening to that.
It used to be.
(13:51):
Debit was on the left-hand sideby the window, credits on the
right, but your software dealswith that that was a bit geeky
for this podcast.
Speaker 1 (13:57):
That was very, very geeky.
Speaker 2 (14:01):
But yeah, in the good old days when you had proper,
proper, you know handwrittenledgers, you know that.
So and that's really is, thenthat's, the value of your
business okay.
Speaker 1 (14:18):
So just for my understanding, because I can
never work out why the balancesheet balances.
My head doesn't do the maths,but basically that the middle
figure in the in the report, um,it should be the same as the
bottom figure yes essentiallyyes and that's what you've got
to look out for to make sure itall works.
Just make sure those figures arethe same and if, like me, you
(14:40):
can't understand for the life ofyou why they are the same, just
accept that they should be, andif they're not, there's
something wrong and ask youraccountant.
Speaker 2 (14:48):
If they're not, a there is something severely
wrong with the software beingused and B your accountant is
proper old school and probablydoing it on Excel.
Speaker 1 (14:57):
Yeah, but just make sure those figures balance.
Speaker 2 (15:00):
They have to balance, and then they have to balance.
Speaker 1 (15:03):
That's why it's called a balance sheet.
Just accept that, and if itdoesn't balance, just ask
someone.
That's the theory I'm going togo with.
Speaker 2 (15:10):
Hopefully ask your accountant, and if they don't
understand, just ask anaccountant.
Speaker 1 (15:14):
that is competent, fine, cool.
So a common misconception.
You sort of touched on this,anyway, but I think we should
just circle back, because thisis something we get asked all
the time.
People assume, if they've gotmoney in the bank, that they're
doing well, but that's notalways the case, is it?
Speaker 2 (15:38):
no.
Speaker 1 (15:40):
Tell me more.
Speaker 2 (15:51):
This is where working and understanding your numbers
regularly really helps.
So you might have collectedyour money in because someone's
paid you up for an invoice.
For all I'm saying yeah, yeah,so someone's given you an
invoice.
You've given someone an invoice, they've paid you.
Yeah, yeah.
So someone's given you aninvoice.
You've given someone an invoice, they've paid you.
It's gone into your bank, butthen you've got your suppliers
to pay.
Speaker 1 (16:09):
Yes.
Speaker 2 (16:10):
So if your trade debtors ie how people are paying
you is going down, which isgreat because cash is king.
Speaker 1 (16:16):
Yeah.
Speaker 2 (16:18):
But your suppliers' days are going up, then all
you're doing is you're puttingmoney in your bank account and
not paying your suppliers.
But if you've only got 20 grandin your bank account, your
suppliers are 25 grand,automatically you're five grand
the wrong way.
So it is all aboutunderstanding what's in your
(16:38):
bank, what your stock is, whathold your stocks holding, what
your turnover on stock is, yourdebtor days, etc.
Against what you're paying out.
Yeah, um, and I would say youknow us as a business.
We keep a daily cash flow andwe are one month in advance on a
daily cash flow.
We know exactly what we've gotto pay out in the month and on
(17:00):
what day with the money thatcomes in and how we pay it.
I would urge any any businessto do that.
And we also forecast from acash flow point of view where
we're going to be now six months, 12 months, two years down the
line we know what those figuresare and I look at that.
(17:22):
You know some of our clientslook at it monthly with us.
Speaker 1 (17:25):
Yeah.
Speaker 2 (17:25):
A lot.
Look at it quarterly.
We look at it as a business,probably weekly.
Speaker 1 (17:31):
Yeah, yeah, because it's really important.
Knowing your numbers is reallyimportant and understanding them
is just really important, andit's not.
I think, like we said last week, there's such a dark art around
all of this stuff that it'sjust unnecessary.
I think if you're running abusiness, you are definitely
110% capable of understandingyour numbers.
(17:53):
It's not as difficult as peoplethink it is.
Speaker 2 (17:59):
No, and ask your accountant.
Speaker 1 (18:01):
Yeah.
Speaker 2 (18:01):
Ask them, ask them for support.
I mean, how many times do wehave someone going um no and ask
you, ask your accountant?
Yeah, you know, ask them, ask,ask them for support, you know?
I mean, how many times do wehave someone for not?
This is a really dull question.
Speaker 1 (18:06):
I'm really sorry to ask it, but bring them on, ask
the questions absolutely ask thequestions and I think just in
life, like not even with thisjust ask.
If you don't know something,just ask someone.
Nobody is going to be upset byyou asking.
You'll learn, and everyone notno one knows everything, so you
have to just continuous learningwell, apart from me.
(18:28):
That's such a lie.
Moving on everybody, I think.
I think we've probably doneenough about the balance sheet.
Speaker 2 (18:42):
I think we've bought enough people.
Speaker 1 (18:43):
I think yeah, we'll probably get about three
downloads on this one this week.
Speaker 2 (18:49):
But it is so important, please, please,
please, ask your accountant,please do that and challenge
them about your balance sheet,and if they just waffle, just go
.
I want to understand this.
Speaker 1 (19:00):
Yeah, you know, just ask the questions, and if you're
really really struggling aswell and you don't know who to
ask, just get in touch with usand we can talk it through with
you.
Speaker 2 (19:10):
Yeah.
Speaker 1 (19:10):
No problem at all.
Speaker 2 (19:13):
When you say we, is that you?
Speaker 1 (19:16):
I can try.
You'll get a very fluffy answerfrom me.
Speaker 2 (19:21):
Oh, your assets are your theatre.
Speaker 1 (19:24):
It's not a lie, is it Absolutely Indeed?
You've got to understand it inyour own way, yeah absolutely.
So anyway, moving on to ourunfiltered minute.
So I'm going to start with mystory today.
Speaker 2 (19:40):
Oh, here we go.
Speaker 1 (19:41):
Here we go.
So my car, my poor car, wassitting outside.
Speaker 2 (19:47):
Your poor company car .
Speaker 1 (19:49):
My poor company car.
That doesn't matter, it'sneither here nor there, it's my
car.
Speaker 2 (19:52):
Well, it does when you actually go into your detail
.
Speaker 1 (19:55):
Anyway, the car was sitting outside Josh's parents'
house and some Amazon deliverydriver reversed into it and it's
got a great big dent in it now,which you know is fine.
The delivery driver was reallygood.
He did knock on the door and heapologized when you said you
know he's fine.
Speaker 2 (20:14):
That's not what you've been saying it's not fine
anyway.
Speaker 1 (20:18):
So this has happened, but the annoying thing is the
lease on my car comes to an endin two weeks time and now I've
got to get the car fixed anddeal with the insurance company,
which has taken up an awful lotof my time this week, even
though it was not my fault oranything.
So this is my mini rant is thatif somebody does hit your car,
(20:40):
even when it's parked, it'sgoing to take up your time and
you need to prepare for that.
Speaker 2 (20:44):
I mean it's lucky you're not busy, it's lucky that
you've got the time to do that.
Just for the listener out there, Jade has just put her hand on
her hips and given me that lookthat her mother gives me Dad's
scared, and he should be.
I am now going to just Look,you can tell in my voice I'm
(21:06):
scared.
So because it is lucky you'renot busy, because we haven't got
a cute, you know a qualitycontrol visit.
Next week have we from ourprofessional body, you're not
being prepared for that.
So are you no and we haven'tjust moved offices, have you?
Speaker 1 (21:18):
no no, and I'm not doing a master and it's not like
mega hot and you're notsleeping very well no, no.
Speaker 2 (21:25):
None of that.
So you know, a little dent inthe car has just kind of made
you just have something to do.
Speaker 1 (21:31):
Yeah, it's just made me busy.
Yeah, no, this week is probablyone of the busiest weeks I've
had in a long time, and I couldhave done without somebody
reversing into my car.
Speaker 2 (21:41):
At least I can look out and there's no bird pill in
the car, because that's mum'scar and not Josh's and yours.
Speaker 1 (21:49):
Yeah, at least the car might get cleaned now, who
knows.
Anyway, that was my littleunfiltered moment.
What's yours Dad.
Speaker 2 (22:00):
It's not completely unfiltered, though, is it?
It's not only a little moment,it's one we've had for ages.
Mine's not going's notcompletely unfiltered, though,
is it, and it's not only alittle moment, it's one we've
had for ages.
Speaker 1 (22:06):
Mine's not going to be a rant.
Speaker 2 (22:07):
Okay, that's not a bad thing, no, mine's actually
going to be, and I did put it onLinkedIn the other day about my
new fitness regime oh so it'snot a rant.
I'm actually really pleasedwith what's going on at the
moment.
Speaker 1 (22:20):
So, jen and I, your mom, oh, really, yeah, oh, I
didn't know that.
Did you know that?
I thought her name?
Speaker 2 (22:27):
was mom.
Yeah, um, we joined a new gymabout eight weeks ago yep um a
bit more, a bit more sort ofone-to-one training in that um
with small groups of up to six,and we're doing really well.
It's mainly looking at weights.
Yeah strength building.
(22:48):
Strength building because weare getting a little bit older,
Hitting the next decade in a fewyears' time, which is
interesting.
So we're trying to buildstrength, lose a bit of body fat
, etc.
And it's working, which isgreat.
So my regime this week has beenMonday I went to the gym.
Speaker 1 (23:12):
Well done, yeah, which was good.
Speaker 2 (23:14):
Tuesday I can't remember what I did on Tuesday.
Speaker 1 (23:17):
Probably played golf.
Speaker 2 (23:18):
I did play golf, did 10 holes of golf.
Speaker 1 (23:19):
There you go then Wednesday.
I did play golf Again.
Speaker 2 (23:28):
Yeah, golf again.
Yeah, yeah, this morning wentto the gym, nice um, and tonight
we're gonna walk betsy whenit's a bit colder yeah, because
it's too hot for her.
At the moment, um friday, I'mgonna go on my peloton oh
saturday golf nice and thensunday I've got to take mum
shopping because apparently I'vebeen playing a lot of golf.
Speaker 1 (23:44):
Oh, really, yeah, oh, it didn't sound like that from
all of the exercise.
Speaker 2 (23:51):
However, I am on the last hole of the belt on my
shorts.
Well done.
Oh and on Tuesday I cycled tothe epicentre and back.
Speaker 1 (24:01):
Yeah, there you go, well done.
Speaker 2 (24:02):
Get that.
But it's doing really well.
But the good things about it,my BMI is down.
Speaker 1 (24:10):
Yep.
Speaker 2 (24:10):
Yep, so that's my body fat and all that stuff.
My blood pressure is down Good,which is great, and my sleep is
phenomenal.
Speaker 1 (24:20):
So we've got these, because you've got air con.
Speaker 2 (24:22):
Yeah, we do have air con.
No, it's because I've got agood fitness ratio, so we've got
these aura rings and my lowestheart rates have all have been
up to about this last week.
Um, I've been around about thesort of 49 50 mark.
they're down the 46 47 mark oh,wow doesn't seem like a lot, but
(24:42):
it's a really good trend, whichmeans apparently I'm fitter
good, well done and now mycardiovascular age has gone from
two years ahead to only half ayear ahead, so I think that
that's really good and Iactually feel a lot better for
it, which is great good um, so,uh, so yeah.
So that's my.
It's not a rant, it's a bit ofa.
Invested a lot of time myselfand I have had outside coaches
(25:05):
as well, so obviously a coachfor my fitness yeah I've got a
coach for my golf yeah um, we dohave a coach for the business
as well, but I think that kindof you look it all back if you
want to be better, you know,want to understand your numbers.
You do need a coach and someoneon your side just steering you
in the right direction.
Yeah, um, but don't tell mum,because Ollie has said I now
(25:30):
need some new golf clubs no, hetold you you didn't need them
the other day.
He's changed his mind and I neednew golf clubs.
So don't tell mum she won'tlisten to this she will but at
about 6 o'clock tonight we needanother podcast on how she's
wrapped the old golf clubsaround my head.
So of course now he's told me Ineed new golf clubs.
I'm looking at TaylorMade P790s.
Speaker 1 (25:52):
Oh God, he's looked for them already.
Speaker 2 (25:55):
I've looked on the YouTube.
I've done a lot of research.
Speaker 1 (25:58):
I've asked Chachi PT Can you tell Mum before I come
round on Saturday.
I don't want to be involved inany awkward conversations.
Speaker 2 (26:11):
It's my birthday, coming up in august I know, but
I can buy myself an earlybirthday present, okay, so
anyway, that's all good reallywell done with the fitness as
well.
Speaker 1 (26:18):
I've been doing my own fitness thing too and it's
very different from yours andit's been working as well.
So I think sometimes as wellit's finding what, what's right
for you and what fits in yourroutine, because I've been doing
little exercise videos everymorning by MK Fit.
If anyone else uses her, shedoes little dance videos and
Pilates videos to music.
(26:39):
I like, so Disney songs and popmusic.
You've been doing Jane Fondastuff as well, haven't you?
Oh yeah, she does a Jane Fondaworkout and that's great fun.
That's really good fun.
Yeah, proper 80s.
Yeah, proper, proper 80s.
That was really good.
I did that the other day.
And then I've been doing weighttraining as well, especially
squats with my weight, and I'vebeen walking jango as well,
(27:02):
although it's too hot at themoment, so getting my 10 000
steps in at least a day.
So it's finding what fits foryou.
And yeah, with that I've I'velost weight and my bmi's down
and yeah, we have to go shoppingagain.
Oh yeah, I'm gonna need newclothes at this rate, but as
well, with with what, what yousaid, like I, I feel so much
(27:25):
better.
I've got more energy, eventhough I'm doing more exercise
like yeah, it's great um, apartfrom this heat now oh yeah, the
heat's the heat's ruining it.
It's so hot I feel like I'mburning calories just standing
here, but no cool.
Have you got anything else tosay on your, on your fitness?
Speaker 2 (27:45):
no, not at all okay.
Speaker 1 (27:47):
So we didn't get a listener question this week, so
please, please, please, send usin your questions, but we have
instead.
So you got a phone call, didn'tyou, from your friend.
Speaker 2 (27:58):
Yes.
Speaker 1 (27:59):
And we set a challenge a few weeks back about
the word proactive on ourwebsite.
And you tell the story, Dad.
Speaker 2 (28:13):
So we said that we don't like the word proactive on
our website.
Yeah, I said that.
I think jade actually knew wehad it on our website.
Yeah, you did know.
So.
My mate dan your mate dan, yeah, who runs nine jars in
haverhill.
He phoned me up, laughing withhis son in the car, and he said
pa Paul, you've set a challenge.
And I went what's that?
(28:33):
And he went the word proactive.
It's on your website.
I went oh no, really, where isit?
He went it's on there.
Six times I went oh no, so weneed to get that off.
But it does prove that helistens to it and James as well,
obviously listened to it aswell.
So, um, that's his son, james.
So you know, thanks forlistening, um, and thanks for
(28:57):
pulling us up on the fact thatwe got it wrong and proactive is
on our website yeah six timesum.
So it just means because we'rereally proactive yeah, and
obviously Dan was very proactivein telling me.
In fact, I think he phoned uptwice to tell me, did he yeah?
Speaker 1 (29:16):
He really wanted to rub it in.
Yeah.
Speaker 2 (29:19):
And I don't know why he has to be so competitive with
me.
That doesn't make sense.
Speaker 1 (29:26):
All righty then.
Speaker 2 (29:26):
So thanks Dan.
Speaker 1 (29:27):
Thanks, dan.
Thanks, dan, for your question.
That wasn't a question, um, andif, like I said, if anybody
does want to send us in anyquestions for next week's
podcast, that would be great.
Speaker 2 (29:38):
We haven't got a guest this week again because
still the microphone situation,but if you want to join our
guest waiting list, let me knowand I think, unless you have
anything else, dad I think nextweek's podcast will be the
experience of having ourbusiness turned inside and out
for a review as part of ourregulatory licence, which
(29:58):
arrived last week, which wasgood, or was it this week, I
can't remember what week, but wegot our licence renewed, which
is great, and I think I've hadthat licence for nearly 30 years
, if not more.
Woo Well done.
That's unbelievable, isn't it?
Yeah, so it's nearly as old asyou, and yeah, so I think that
we will, probably next week,discuss on what has been
(30:23):
involved in making sure that weare absolutely compliant as a
regulatory business.
Speaker 1 (30:29):
Yeah.
Speaker 2 (30:29):
I mean obviously from my point of view.
I did find one certificate foryou.
Speaker 1 (30:33):
Yeah, thanks for that .
Yeah, that's okay Again, notbeen busy this week preparing
for that.
Speaker 2 (30:38):
But I think that was helpful.
I mean, I already sent it toyou, didn't I, that ICO
certificate.
Speaker 1 (30:42):
Yeah, but it had the wrong address on.
Speaker 2 (30:51):
Yeah, but you know it was the right address at the
time.
I sent it, but we were movinglike that.
Yeah, I know I hadn't realizedyou'd actually move the address
in the first place, but thereyou go.
Speaker 1 (30:55):
So I think I've been very helpful, okay, but I think
next week's podcast we'll talkabout that and also just like
governance in general overbusiness, because it's important
and it's one of those really agthings that nobody wants to do
but you have to do.
So we'll have a good rant aboutthat.
I think I'll be ready to rant.
(31:15):
I'm ready to rant already.
I'll be ready more ready nextweek lovely.
Speaker 2 (31:19):
Look forward to it.
So next week's podcast willjust be hosted by jade well,
this week's was just you.
Because I'm going golf.
Speaker 1 (31:29):
No, come for the podcast.
I've put it in the calendar.
Anyway, thanks for tuning infor Business with the Donos.
If you've enjoyed this episode,don't forget to subscribe,
share it with your friends andleave us a review.
It really helps us.
But for now, we will see younext week.
Goodbye, bye-bye.
Welcome to Business with the Donos, where we talk
about family business andeverything in between.
I'm your host, jade Dono, andI'm here with my dad, paul Dono,
and this week we are talkingabout balance sheets.
Woo Woo, it's so exciting.
So, first of all, dad, can yousay in plain English oh my, my
(00:25):
goodness what a balance sheetactually is in plain english
plain english okay, so a balancesheet is exactly what it says.
Speaker 2 (00:38):
It's a sheet that balances and it it shows you the
assets and liabilities of abusiness compared to, and it
ties it in with the profit andloss account.
So the profit and loss accountside, with the equity of the
business, shares etc, has tobalance with its assets and
liabilities.
That is a very, very short,confusing, plain english version
(01:04):
without showing.
English it's getting to mePlain English yeah.
So, yeah, it's difficult toexplain it without pictures.
Speaker 1 (01:18):
Okay.
Well, this is a podcast, soyou've got to try and explain it
without pictures.
We promised all our listenerslast week that we would explain
it, explain a balance sheet.
Speaker 2 (01:29):
I think you know, at the end of the day, a balance
sheet is something that is oftenneglected by a lot of small
business owners.
Everyone is focusing onturnover.
Oh, my turnover is over amillion, but it doesn't matter
if you're not earning any moneyat the other end.
So people focus on turnover.
(01:50):
Then, as accountants, we focuson profit maybe gross profit and
net profit but what peopleforget is that a balance sheet
is the strength of the business.
You know, can your businesscontinue if your sales drop down
(02:15):
If your balance sheet is strong, ie positive, not just cash in
the bank, it will come to that,but if it is strong and robust
enough, then your business canmove forward.
And I would urge any smallbusiness owner to go to their
accountants and say can weconcentrate on the balance sheet
as much as our profit lossaccount?
Speaker 1 (02:35):
yes, okay, so just because I'm sorry dad's gone on
his phone.
It's very.
Speaker 2 (02:43):
No, it's because I've got these hearing aids and the
Bluetooth links to my hearingaids and all of a sudden someone
sent me a message and it'sreading them to me, so I've
turned it off.
Speaker 1 (02:53):
He got a little in ears.
Speaker 2 (02:54):
I've got in ears.
They're not helpful.
Ones In ears have gone.
Speaker 1 (02:58):
Okay.
So, from my understanding verylimited understanding, although,
as I mentioned before, mycurrent module in my MBA is
finance, so I've been doingquite a lot more research and I
do hear people talking aboutthis stuff all the time, but
from somebody who did musicaltheatre, this is my
understanding.
(03:18):
So you have two for an SME, youhave two main financial
statements that you're going towant to look at, and that is
your profit and loss, which doeswhat it says on the tin.
And then you have your balancesheet and, to explain what Dad
said, your balance sheet hasyour assets, so your stuff that
you could sell for money.
It then has your liabilities,so all of the money that you owe
(03:43):
, your liabilities, so all ofthe money that you owe, and it
also has, like, your cash in thebank and sort of um, like any
other investments and thingsthat you've got as well, and
that basically then means thatif you're looking at that and
that is strong, if your saleswere to dip down, as dad said,
you've got assets that you couldsell and you've got money in
(04:05):
the bank that could keep yougoing.
That is why it's important, amI right?
Yeah, it's not bad yes.
Speaker 2 (04:11):
So musical theatre, the balance sheet will be your
theatre.
Yes, so that will be yourtheatre, and the chairs and
everything else like that andthe money that have been taken
in on ticket sales and thepayments to suppliers that's
your balance sheet.
Speaker 1 (04:25):
Yep.
Speaker 2 (04:26):
And then your profit and loss, which makes the
balance sheet work is your salesof the show and what have you
and your popcorn and all thatsort of stuff.
Yeah, and that's kind of a verystrange way of explaining it in
musical theatre lovey land.
Speaker 1 (04:42):
Musical theatre lovey land Okay, okay, it in musical
theatre lovey land.
Musical theatre lovey land okay, all right.
So that sort, I think that sortof explains it.
So why, why does it matter?
Why, why do we strive to have apositive balance sheet?
Speaker 2 (05:02):
I mean a a few reasons.
At this moment, if you're asmall business or a micro
business, you only have to filea balance sheet at a company's
house and it's a cut-downversion as well.
So that is all people can lookat when they're looking at you
as a business.
So if a client comes to us andsays we're going to trade with
(05:22):
this company, what do you thinkof their business?
The first thing we do is we goin company's house.
We look at their balance sheet.
A we see whether or not they'reoverdrawn or not, and b we see
whether or not their currentassets ie what they can sell
within the next 12 monthsagainst their current
liabilities, what they can, whatthey have to pay for in the
next 12 months.
We make sure that their currentassets are above their current
(05:45):
liabilities, which means theycan pay off their debts, etc,
etc.
It doesn't really.
We can't really get to a profitand loss figure and we can't
get to owner's dividends either.
Speaker 1 (05:58):
No.
Speaker 2 (05:59):
Or shareholder's dividends, but that is public
record.
It's the only thing that ispublic record.
So we do try and do a positivebalance sheet.
You know we often have clientscoming, come in and go oh well,
we made a loss this year butwe'll get a?
Um, we'll get a tax refund.
You know, that's it, say lovey,and then we might sit there and
(06:20):
go.
That's fine.
But your suppliers that you relyon that go to credit
referencing the agency may evenfactor that your debt are
suddenly going to get hit withall their reports saying your
balance sheet is insolvent andtherefore your credit limits are
going to be cut or you're on aupfront payment, and that can
(06:43):
really devastate a business.
So if you don't understand that, whilst it's, you know oh, it's
okay, I'm not paying any taxthis year and you've kind of
resolved yourself to that.
You need to make sure thatbalance sheet is positive.
You need to make sure it'sbetter or as good as the year
before, especially if you'retrading with big suppliers and
when I say big suppliers it canbe down to a builder, you know,
(07:05):
dealing with the big, the bigsuppliers like travis perkins,
mkm, you know those sort ofthings.
Speaker 1 (07:11):
They're going to be doing credit checks on you and
they're going to monitor yourbusiness all the time, and they
have software to do that yeah,and I mean equally, if you
understand the balance sheet andwhat it's for, you could be
checking your people um so thatyou can adjust your credit terms
, you know yeah, absolutely ordeciding whether you're going to
(07:33):
use a person or not.
Speaker 2 (07:35):
You could be checking their balance sheet as well, if
you understand it yeah, so yourability to make you basically
make sure balance and understandwhat lenders want.
Speaker 1 (07:45):
Yeah.
Speaker 2 (07:46):
I remember sitting in front of someone who wanted to
borrow a significant amount ofmoney from Barclays Bank, one of
the high street banks, and thatbank would have been happier if
they'd have been effectivelyhiring their equipment rather
than buying their equipment.
Yeah, because that made adifference on their um how they
(08:07):
were funded.
Speaker 1 (08:08):
It's understanding that and understanding what is
right for your business in termsof the way that your balance
sheet is structured yeah, andalso, if your goal is to sell
your business, you need a strongbalance sheet to you know, be
in a good position there as well.
Is that right?
Speaker 2 (08:27):
yeah, so you know you need to have the working
capital there.
So ie funds that can, that can,at least you know, operate your
business for one, two, threemonths ahead, um, without you
know, with a proper sales dropand if you want to sell your,
yeah, it is making sure that isa much stronger balance sheet.
(08:48):
And in a small business, thething that normally crucifies a
balance sheet is the director'sdividends, and what I mean by
that is that not understandingthe effect of dividends can be
such a nightmare.
And what often happens forthose that don't understand it
(09:09):
and just concentrate on profitand loss and not on their
balance sheet is, for example,if they've got £20,000 in the
bank account, the owner will go,I'll have that £20,000.
Puts it in their bank, spendsit, goes on holiday, goes on
holiday, etc.
Etc.
But there's tax on that.
So a dividend is a distributionafter tax.
(09:32):
So what they've not done isallowed for the tax side of it.
And often we come to the yearend and go your balance sheet's
insolvent.
They go well, it can't be,because you know, still got 20
quid in the bank, yeah, butyou've spent the tax money and
that dips them out.
So it's so.
I mean, I just can't emphasiseit enough.
It's so important to look atthat balance sheet and
(09:54):
understand it.
Speaker 1 (09:55):
Yeah.
Speaker 2 (09:56):
So just again, so that people really, really
understand all of the terms thatwe're using, just explain what
an asset is, why it's important,what like what it is so an
asset is something that you use,ie a fixed asset which will be
the top of the balance sheet issomething that you use in the,
(10:16):
in the business, for, um, youknow, over a period of time.
So in our business, our biggestassets are probably our laptops
.
Yeah, so we'll buy a laptop forargument's sake.
They're about they've gone upnow, they're about 1400 pound.
We spend on one and we mightsay that's going to last us
three years.
Yeah, so we'll say for everyyear we'll waste that asset,
(10:39):
we'll waste and it'll be calleddepreciation.
Yep, so it drops down in value,but it hasn't gone straight
onto the profit and loss account.
So that's an asset and that'sthe value of the assets.
We would expect the value ofthose assets.
If the business had to be sold,that would be the value that
would be put to those assets asa crude way of thinking.
(11:05):
But then you have the next line, which is your current assets.
This is stuff that can beconverted to cash within 12
months, and your current assetsare typically money in your bank
, um, your trade debtors, yeah,something called pre-payments,
which is an accounting termwhich I'm not going to go into
because that's a whole differentsubject.
(11:26):
And stock is another one.
You know we talked about stockon the last podcast, didn't we?
And how we turn that over andconvert it to cash?
Yeah, obviously you know, andstock turnover is really
important to be able to do that.
They're sort of like your bigcurrent assets.
And then you've got yourcurrent liabilities.
So current liabilities areloans, high purchase that you
(11:49):
are going to pay back within 12months yeah the next 12 months
on that.
Your suppliers, um ie what youowe people for the goods that
you buy that you either resellor use within your business, and
you've got credit terms umcredit card accounts.
A lot of people use capital ontap.
I see a lot of people thenextend that to funding on it and
(12:10):
it's a really expensive way offunding your business.
But that's another area thatneeds to be repaid, money you
owe to the government, ie VAT,corporation tax and PAYE and
employee taxes, such as taxes,is it?
I call it taxes?
It's your 3% pensioncontribution as well, that you
(12:31):
owe.
All of these, hopefully, areless than your current assets
and that will give you your netcurrent assets.
Speaker 1 (12:41):
Yeah.
Speaker 2 (12:42):
And then you have long-term liabilities.
Long-term liabilities typicallya loan will be five years.
Speaker 1 (12:47):
Yeah.
Speaker 2 (12:48):
So this will be the four years left on the loan or
any balance of the loan after 12months.
And you might owe the businessowner some money and that
business owner might turn aroundand say, well, I don't want
paying back for five years.
So that would be a long-termliability as well.
And then that's your value ofyour balance sheet.
(13:09):
And then the bottom section isthe shares typically 100 shares
in a family-run business,typically two family owners, 50
shares each.
Your profit and loss reserves,ie what you don't take out of
the business, what is left inthe business.
That's after dividends.
That is added to that figure.
(13:31):
There I won't worry aboutrevaluations because that's a
different topic, but those twofigures together should equal
the balance sheet on top,assuming that is correct.
And, to be quite honest, mostsoftware deals with the ins and
outs of this.
For any sad accountantslistening to that.
It used to be.
(13:51):
Debit was on the left-hand sideby the window, credits on the
right, but your software dealswith that that was a bit geeky
for this podcast.
Speaker 1 (13:57):
That was very, very geeky.
Speaker 2 (14:01):
But yeah, in the good old days when you had proper,
proper, you know handwrittenledgers, you know that.
So and that's really is, thenthat's, the value of your
business okay.
Speaker 1 (14:18):
So just for my understanding, because I can
never work out why the balancesheet balances.
My head doesn't do the maths,but basically that the middle
figure in the in the report, um,it should be the same as the
bottom figure yes essentiallyyes and that's what you've got
to look out for to make sure itall works.
Just make sure those figures arethe same and if, like me, you
(14:40):
can't understand for the life ofyou why they are the same, just
accept that they should be, andif they're not, there's
something wrong and ask youraccountant.
Speaker 2 (14:48):
If they're not, a there is something severely
wrong with the software beingused and B your accountant is
proper old school and probablydoing it on Excel.
Speaker 1 (14:57):
Yeah, but just make sure those figures balance.
Speaker 2 (15:00):
They have to balance, and then they have to balance.
Speaker 1 (15:03):
That's why it's called a balance sheet.
Just accept that, and if itdoesn't balance, just ask
someone.
That's the theory I'm going togo with.
Speaker 2 (15:10):
Hopefully ask your accountant, and if they don't
understand, just ask anaccountant.
Speaker 1 (15:14):
that is competent, fine, cool.
So a common misconception.
You sort of touched on this,anyway, but I think we should
just circle back, because thisis something we get asked all
the time.
People assume, if they've gotmoney in the bank, that they're
doing well, but that's notalways the case, is it?
Speaker 2 (15:38):
no.
Speaker 1 (15:40):
Tell me more.
Speaker 2 (15:51):
This is where working and understanding your numbers
regularly really helps.
So you might have collectedyour money in because someone's
paid you up for an invoice.
For all I'm saying yeah, yeah,so someone's given you an
invoice.
You've given someone an invoice, they've paid you.
Yeah, yeah.
So someone's given you aninvoice.
You've given someone an invoice, they've paid you.
It's gone into your bank, butthen you've got your suppliers
to pay.
Speaker 1 (16:09):
Yes.
Speaker 2 (16:10):
So if your trade debtors ie how people are paying
you is going down, which isgreat because cash is king.
Speaker 1 (16:16):
Yeah.
Speaker 2 (16:18):
But your suppliers' days are going up, then all
you're doing is you're puttingmoney in your bank account and
not paying your suppliers.
But if you've only got 20 grandin your bank account, your
suppliers are 25 grand,automatically you're five grand
the wrong way.
So it is all aboutunderstanding what's in your
(16:38):
bank, what your stock is, whathold your stocks holding, what
your turnover on stock is, yourdebtor days, etc.
Against what you're paying out.
Yeah, um, and I would say youknow us as a business.
We keep a daily cash flow andwe are one month in advance on a
daily cash flow.
We know exactly what we've gotto pay out in the month and on
(17:00):
what day with the money thatcomes in and how we pay it.
I would urge any any businessto do that.
And we also forecast from acash flow point of view where
we're going to be now six months, 12 months, two years down the
line we know what those figuresare and I look at that.
(17:22):
You know some of our clientslook at it monthly with us.
Speaker 1 (17:25):
Yeah.
Speaker 2 (17:25):
A lot.
Look at it quarterly.
We look at it as a business,probably weekly.
Speaker 1 (17:31):
Yeah, yeah, because it's really important.
Knowing your numbers is reallyimportant and understanding them
is just really important, andit's not.
I think, like we said last week, there's such a dark art around
all of this stuff that it'sjust unnecessary.
I think if you're running abusiness, you are definitely
110% capable of understandingyour numbers.
(17:53):
It's not as difficult as peoplethink it is.
Speaker 2 (17:59):
No, and ask your accountant.
Speaker 1 (18:01):
Yeah.
Speaker 2 (18:01):
Ask them, ask them for support.
I mean, how many times do wehave someone going um no and ask
you, ask your accountant?
Yeah, you know, ask them, ask,ask them for support, you know?
I mean, how many times do wehave someone for not?
This is a really dull question.
Speaker 1 (18:06):
I'm really sorry to ask it, but bring them on, ask
the questions absolutely ask thequestions and I think just in
life, like not even with thisjust ask.
If you don't know something,just ask someone.
Nobody is going to be upset byyou asking.
You'll learn, and everyone notno one knows everything, so you
have to just continuous learningwell, apart from me.
(18:28):
That's such a lie.
Moving on everybody, I think.
I think we've probably doneenough about the balance sheet.
Speaker 2 (18:42):
I think we've bought enough people.
Speaker 1 (18:43):
I think yeah, we'll probably get about three
downloads on this one this week.
Speaker 2 (18:49):
But it is so important, please, please,
please, ask your accountant,please do that and challenge
them about your balance sheet,and if they just waffle, just go
.
I want to understand this.
Speaker 1 (19:00):
Yeah, you know, just ask the questions, and if you're
really really struggling aswell and you don't know who to
ask, just get in touch with usand we can talk it through with
you.
Speaker 2 (19:10):
Yeah.
Speaker 1 (19:10):
No problem at all.
Speaker 2 (19:13):
When you say we, is that you?
Speaker 1 (19:16):
I can try.
You'll get a very fluffy answerfrom me.
Speaker 2 (19:21):
Oh, your assets are your theatre.
Speaker 1 (19:24):
It's not a lie, is it Absolutely Indeed?
You've got to understand it inyour own way, yeah absolutely.
So anyway, moving on to ourunfiltered minute.
So I'm going to start with mystory today.
Speaker 2 (19:40):
Oh, here we go.
Speaker 1 (19:41):
Here we go.
So my car, my poor car, wassitting outside.
Speaker 2 (19:47):
Your poor company car .
Speaker 1 (19:49):
My poor company car.
That doesn't matter, it'sneither here nor there, it's my
car.
Speaker 2 (19:52):
Well, it does when you actually go into your detail
.
Speaker 1 (19:55):
Anyway, the car was sitting outside Josh's parents'
house and some Amazon deliverydriver reversed into it and it's
got a great big dent in it now,which you know is fine.
The delivery driver was reallygood.
He did knock on the door and heapologized when you said you
know he's fine.
Speaker 2 (20:14):
That's not what you've been saying it's not fine
anyway.
Speaker 1 (20:18):
So this has happened, but the annoying thing is the
lease on my car comes to an endin two weeks time and now I've
got to get the car fixed anddeal with the insurance company,
which has taken up an awful lotof my time this week, even
though it was not my fault oranything.
So this is my mini rant is thatif somebody does hit your car,
(20:40):
even when it's parked, it'sgoing to take up your time and
you need to prepare for that.
Speaker 2 (20:44):
I mean it's lucky you're not busy, it's lucky that
you've got the time to do that.
Just for the listener out there, Jade has just put her hand on
her hips and given me that lookthat her mother gives me Dad's
scared, and he should be.
I am now going to just Look,you can tell in my voice I'm
(21:06):
scared.
So because it is lucky you'renot busy, because we haven't got
a cute, you know a qualitycontrol visit.
Next week have we from ourprofessional body, you're not
being prepared for that.
So are you no and we haven'tjust moved offices, have you?
Speaker 1 (21:18):
no no, and I'm not doing a master and it's not like
mega hot and you're notsleeping very well no, no.
Speaker 2 (21:25):
None of that.
So you know, a little dent inthe car has just kind of made
you just have something to do.
Speaker 1 (21:31):
Yeah, it's just made me busy.
Yeah, no, this week is probablyone of the busiest weeks I've
had in a long time, and I couldhave done without somebody
reversing into my car.
Speaker 2 (21:41):
At least I can look out and there's no bird pill in
the car, because that's mum'scar and not Josh's and yours.
Speaker 1 (21:49):
Yeah, at least the car might get cleaned now, who
knows.
Anyway, that was my littleunfiltered moment.
What's yours Dad.
Speaker 2 (22:00):
It's not completely unfiltered, though, is it?
It's not only a little moment,it's one we've had for ages.
Mine's not going's notcompletely unfiltered, though,
is it, and it's not only alittle moment, it's one we've
had for ages.
Speaker 1 (22:06):
Mine's not going to be a rant.
Speaker 2 (22:07):
Okay, that's not a bad thing, no, mine's actually
going to be, and I did put it onLinkedIn the other day about my
new fitness regime oh so it'snot a rant.
I'm actually really pleasedwith what's going on at the
moment.
Speaker 1 (22:20):
So, jen and I, your mom, oh, really, yeah, oh, I
didn't know that.
Did you know that?
I thought her name?
Speaker 2 (22:27):
was mom.
Yeah, um, we joined a new gymabout eight weeks ago yep um a
bit more, a bit more sort ofone-to-one training in that um
with small groups of up to six,and we're doing really well.
It's mainly looking at weights.
Yeah strength building.
(22:48):
Strength building because weare getting a little bit older,
Hitting the next decade in a fewyears' time, which is
interesting.
So we're trying to buildstrength, lose a bit of body fat
, etc.
And it's working, which isgreat.
So my regime this week has beenMonday I went to the gym.
Speaker 1 (23:12):
Well done, yeah, which was good.
Speaker 2 (23:14):
Tuesday I can't remember what I did on Tuesday.
Speaker 1 (23:17):
Probably played golf.
Speaker 2 (23:18):
I did play golf, did 10 holes of golf.
Speaker 1 (23:19):
There you go then Wednesday.
I did play golf Again.
Speaker 2 (23:28):
Yeah, golf again.
Yeah, yeah, this morning wentto the gym, nice um, and tonight
we're gonna walk betsy whenit's a bit colder yeah, because
it's too hot for her.
At the moment, um friday, I'mgonna go on my peloton oh
saturday golf nice and thensunday I've got to take mum
shopping because apparently I'vebeen playing a lot of golf.
Speaker 1 (23:44):
Oh, really, yeah, oh, it didn't sound like that from
all of the exercise.
Speaker 2 (23:51):
However, I am on the last hole of the belt on my
shorts.
Well done.
Oh and on Tuesday I cycled tothe epicentre and back.
Speaker 1 (24:01):
Yeah, there you go, well done.
Speaker 2 (24:02):
Get that.
But it's doing really well.
But the good things about it,my BMI is down.
Speaker 1 (24:10):
Yep.
Speaker 2 (24:10):
Yep, so that's my body fat and all that stuff.
My blood pressure is down Good,which is great, and my sleep is
phenomenal.
Speaker 1 (24:20):
So we've got these, because you've got air con.
Speaker 2 (24:22):
Yeah, we do have air con.
No, it's because I've got agood fitness ratio, so we've got
these aura rings and my lowestheart rates have all have been
up to about this last week.
Um, I've been around about thesort of 49 50 mark.
they're down the 46 47 mark oh,wow doesn't seem like a lot, but
(24:42):
it's a really good trend, whichmeans apparently I'm fitter
good, well done and now mycardiovascular age has gone from
two years ahead to only half ayear ahead, so I think that
that's really good and Iactually feel a lot better for
it, which is great good um, so,uh, so yeah.
So that's my.
It's not a rant, it's a bit ofa.
Invested a lot of time myselfand I have had outside coaches
(25:05):
as well, so obviously a coachfor my fitness yeah I've got a
coach for my golf yeah um, we dohave a coach for the business
as well, but I think that kindof you look it all back if you
want to be better, you know,want to understand your numbers.
You do need a coach and someoneon your side just steering you
in the right direction.
Yeah, um, but don't tell mum,because Ollie has said I now
(25:30):
need some new golf clubs no, hetold you you didn't need them
the other day.
He's changed his mind and I neednew golf clubs.
So don't tell mum she won'tlisten to this she will but at
about 6 o'clock tonight we needanother podcast on how she's
wrapped the old golf clubsaround my head.
So of course now he's told me Ineed new golf clubs.
I'm looking at TaylorMade P790s.
Speaker 1 (25:52):
Oh God, he's looked for them already.
Speaker 2 (25:55):
I've looked on the YouTube.
I've done a lot of research.
Speaker 1 (25:58):
I've asked Chachi PT Can you tell Mum before I come
round on Saturday.
I don't want to be involved inany awkward conversations.
Speaker 2 (26:11):
It's my birthday, coming up in august I know, but
I can buy myself an earlybirthday present, okay, so
anyway, that's all good reallywell done with the fitness as
well.
Speaker 1 (26:18):
I've been doing my own fitness thing too and it's
very different from yours andit's been working as well.
So I think sometimes as wellit's finding what, what's right
for you and what fits in yourroutine, because I've been doing
little exercise videos everymorning by MK Fit.
If anyone else uses her, shedoes little dance videos and
Pilates videos to music.
(26:39):
I like, so Disney songs and popmusic.
You've been doing Jane Fondastuff as well, haven't you?
Oh yeah, she does a Jane Fondaworkout and that's great fun.
That's really good fun.
Yeah, proper 80s.
Yeah, proper, proper 80s.
That was really good.
I did that the other day.
And then I've been doing weighttraining as well, especially
squats with my weight, and I'vebeen walking jango as well,
(27:02):
although it's too hot at themoment, so getting my 10 000
steps in at least a day.
So it's finding what fits foryou.
And yeah, with that I've I'velost weight and my bmi's down
and yeah, we have to go shoppingagain.
Oh yeah, I'm gonna need newclothes at this rate, but as
well, with with what, what yousaid, like I, I feel so much
(27:25):
better.
I've got more energy, eventhough I'm doing more exercise
like yeah, it's great um, apartfrom this heat now oh yeah, the
heat's the heat's ruining it.
It's so hot I feel like I'mburning calories just standing
here, but no cool.
Have you got anything else tosay on your, on your fitness?
Speaker 2 (27:45):
no, not at all okay.
Speaker 1 (27:47):
So we didn't get a listener question this week, so
please, please, please, send usin your questions, but we have
instead.
So you got a phone call, didn'tyou, from your friend.
Speaker 2 (27:58):
Yes.
Speaker 1 (27:59):
And we set a challenge a few weeks back about
the word proactive on ourwebsite.
And you tell the story, Dad.
Speaker 2 (28:13):
So we said that we don't like the word proactive on
our website.
Yeah, I said that.
I think jade actually knew wehad it on our website.
Yeah, you did know.
So.
My mate dan your mate dan, yeah, who runs nine jars in
haverhill.
He phoned me up, laughing withhis son in the car, and he said
pa Paul, you've set a challenge.
And I went what's that?
(28:33):
And he went the word proactive.
It's on your website.
I went oh no, really, where isit?
He went it's on there.
Six times I went oh no, so weneed to get that off.
But it does prove that helistens to it and James as well,
obviously listened to it aswell.
So, um, that's his son, james.
So you know, thanks forlistening, um, and thanks for
(28:57):
pulling us up on the fact thatwe got it wrong and proactive is
on our website yeah six timesum.
So it just means because we'rereally proactive yeah, and
obviously Dan was very proactivein telling me.
In fact, I think he phoned uptwice to tell me, did he yeah?
Speaker 1 (29:16):
He really wanted to rub it in.
Yeah.
Speaker 2 (29:19):
And I don't know why he has to be so competitive with
me.
That doesn't make sense.
Speaker 1 (29:26):
All righty then.
Speaker 2 (29:26):
So thanks Dan.
Speaker 1 (29:27):
Thanks, dan.
Thanks, dan, for your question.
That wasn't a question, um, andif, like I said, if anybody
does want to send us in anyquestions for next week's
podcast, that would be great.
Speaker 2 (29:38):
We haven't got a guest this week again because
still the microphone situation,but if you want to join our
guest waiting list, let me knowand I think, unless you have
anything else, dad I think nextweek's podcast will be the
experience of having ourbusiness turned inside and out
for a review as part of ourregulatory licence, which
(29:58):
arrived last week, which wasgood, or was it this week, I
can't remember what week, but wegot our licence renewed, which
is great, and I think I've hadthat licence for nearly 30 years
, if not more.
Woo Well done.
That's unbelievable, isn't it?
Yeah, so it's nearly as old asyou, and yeah, so I think that
we will, probably next week,discuss on what has been
(30:23):
involved in making sure that weare absolutely compliant as a
regulatory business.
Speaker 1 (30:29):
Yeah.
Speaker 2 (30:29):
I mean obviously from my point of view.
I did find one certificate foryou.
Speaker 1 (30:33):
Yeah, thanks for that .
Yeah, that's okay Again, notbeen busy this week preparing
for that.
Speaker 2 (30:38):
But I think that was helpful.
I mean, I already sent it toyou, didn't I, that ICO
certificate.
Speaker 1 (30:42):
Yeah, but it had the wrong address on.
Speaker 2 (30:51):
Yeah, but you know it was the right address at the
time.
I sent it, but we were movinglike that.
Yeah, I know I hadn't realizedyou'd actually move the address
in the first place, but thereyou go.
Speaker 1 (30:55):
So I think I've been very helpful, okay, but I think
next week's podcast we'll talkabout that and also just like
governance in general overbusiness, because it's important
and it's one of those really agthings that nobody wants to do
but you have to do.
So we'll have a good rant aboutthat.
I think I'll be ready to rant.
(31:15):
I'm ready to rant already.
I'll be ready more ready nextweek lovely.
Speaker 2 (31:19):
Look forward to it.
So next week's podcast willjust be hosted by jade well,
this week's was just you.
Because I'm going golf.
Speaker 1 (31:29):
No, come for the podcast.
I've put it in the calendar.
Anyway, thanks for tuning infor Business with the Donos.
If you've enjoyed this episode,don't forget to subscribe,
share it with your friends andleave us a review.
It really helps us.
But for now, we will see younext week.
Goodbye, bye-bye.
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