April 13, 2026 • 16 mins
Tom Griffiths helps small business owners have a growing and more profitable business so they can achieve their personal and professional goals. Tom's website: https://synergycfosolutions.co/16drivers/ Show notes: https://successgrid.net/sg264/ If you love this show, please leave a review. Go to https://ratethispodcast.com/successgrid Join AI Marketers Club: https://www.successgridacademy.com/3a30d0c6
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Speaker 1 (00:00):
Hallo, I welcome to the Success Great Podcast with also Stale.
I am excited to introduce you to a series of
conversations with some of the most successful and sparing individuals
from various industries. My aim is to dive into their
stories behind their success and explore the knowledge, strategies, habits,
mindsets and wisdom that have propelled their success. Each hipishode
(00:21):
of the Success Great Podcast will feature a different guest
who will share their unique journey, the challenges they faced,
and the ressons they have learned along the way. I
would also be covering topics from entrepreneurship and innovation to
leadership and personal development. Whether you are inspiring entrepreneur, a
season business profession, or just someone looking to improve your life,
(00:41):
the Success Great Podcast is for you. My goal is
to bring you valuable insights and inspiration that will help
you achieve your own success in business and life. So
get ready to learn and be inspired. The Success Great
Podcast starts now. In this episode of the success a
Great Podcast, I am joined with Tom Griffith talk about
how to improve profitability and cash flow and how to
(01:03):
have a healthy, growing and profitable business. Tom helps small
business owners have a growing and more profitable business so
they can achieve their personal and professional goals. Tom, Welcome
to this episode of the Secxissicret podcast.
Speaker 2 (01:16):
Thanks for having me his own pleasure to be here.
Speaker 1 (01:18):
Awesome to have you here with me on this one.
So this is the Sexisticret Podcast. I want you first
to tell us what do you think success is and
what do you see other people have certain misconception of
what success is.
Speaker 2 (01:29):
Yeah, so I think everyone's got their own definition of success,
that's for sure. So for me, it's time freedom and
financial freedom, and I think for most people they does
coincide with those two terms in some way, shape or form.
But a key part of what I do is understanding
(01:50):
exactly what success means to an individual person a business owner,
and then reverse engineering that into how they can get
there by using their business to help them.
Speaker 1 (02:00):
So you're working with other people and businesses, why do
you think that business owners or entrepreneurs are overwhelmed or
assisted out above their businesses? Yeah?
Speaker 2 (02:10):
Good question. So it all starts with not knowing the numbers,
not understanding the numbers, not reviewing the numbers, and therefore
not knowing what to do to improve them and to
improve the situation. So that's really where all the problems starts.
It's not knowing or reviewing the financials of the business.
(02:30):
And there's not really a surprise because most business owners
they start their business because they're experts at the craft.
So a dentist starts a dental practice, a builder starts
a construction company, plumber starts a plumbing business, and they
start that business because they want to become more focused
on their craft and they want to focus on providing
(02:53):
the best service they can in their craft. But very
often business owners will start their business in their craft
and then in a few years down the line, they'll
realize that they've been focusing on their craft all this time,
and they've actually neglected the finances and they haven't looked
at actually managing the business and focusing on improving cash
ben profits so they can have a healthy, growing and
successful business. And so they kind of lose sight of
(03:16):
the reason that they started the business in the first place,
which was maybe to focus on their craft, but ultimately
it was to get to some end goal, whether that
be time freedom, financial freedom, or whatever that looks like
to them.
Speaker 1 (03:27):
So most businesses feed because they are ignoring their finances.
So this is one of the Greas's businesses feed actually
because we are own business to make money. In general,
it's not like a charity. But in one of the
things that we should focus on is the financial side
of things.
Speaker 2 (03:46):
Yeah, exactly. So the Small Business Administration in the US
they quote that around fifty percent of all businesses fail
by their fifth birthday. So that means all of those businesses,
all of those yeah, hopes and dreams of the business
owner just disappearing with them, okay. And the reason all
(04:06):
those businesses fail Whilst it may, you know, they may
come up with those of different reasons, but what it
all comes down to at the end of the day
is cash. The businesses didn't have enough cash and the
businesses weren't making enough cash, because nobody will close a
business that is making enough cash. And so, like I mentioned,
business owners will generally start a business because they want
to focus on one craft or their craft, and they
(04:27):
think that by focusing on their craft because they're really
good at it, they'll be able to make lots of money.
But then they actually go into business and they realize
actually they have to understand business and they have to
understand the finances and cash blow and how it all
works and how it all sinks together, and that's not
what they're good at, and that's not why they went
into business in the first place. So what business owners
really need to do is either they need to get
(04:48):
somebody to help them with the finances, like a financial guide,
or they need to understand it themselves and get familiar
with how it all works, educate themselves, and really focus
on using their business as a tool to generate cash
so that they can achieve their personal and professional goals
instead of being a tool for them to just focus
on their craft. And when they focus on their craft,
(05:10):
what they really end up creating is a very stressful job.
One of my clients, Reese, he runs a sports events business,
and he said to me when I first started working
with him, he said that I've been running this business
for four years and I've been paying myself the bare
minimum for that time. I've been working really long hours,
(05:30):
and I have very little to show for it. The
business isn't worth anything because it's entirely dependent on me.
And I could have even should have just got a job,
because it would have been far less stressful and I
would have actually made more money from it. And more
to show for my family, and I would have been
able to be more present with my family during that
time as well.
Speaker 1 (05:46):
Cush Flow is really important in business, Like we need
to make sure that our custlow is always positive because
if the cushtlow is negative, we would have a loss
at the end of the year. So like working with
your clients and yourself, what are the most important things
in order to make sure that the business owner is
making sure that cashflow is positive.
Speaker 2 (06:08):
So when we talk about cash flow, just we have
to be clear that cash flow or cash is the
total amount that goes into the business or the total
amount of the business makes or what comes into the
business account minus all of the money that goes out.
It just measures cash. It doesn't look at profits. Profit
and cash flow two different things. So we can we
can post a profit one year, but actually cashpur can
(06:31):
still be negative. So cash flow is the amount of
the business owner actually gets to keep I just wanted
to say that first just so that anyone was saying
knows what the difference between those two terms are. And
then in terms of staying on top of cash flow
and improving cash flow for a business, the way I
break it down for anyone who I speak to is
I break it down into sixteen drivers. So there are
(06:52):
sixteen drivers of revenue, profits and cash flow. Doesn't matter
whether you're Uber or Amazon excuse me, or a one
person banned running from a high street in a quiet town.
They're exactly the same sixteen drivers. And so you just
need to get familiar with what those sixteen drivers are
for your business, calculate them, and then review them regularly,
(07:14):
and then work out which ones you can improve that
will have the biggest impact on cash blow, which is
the amount that you get to keep at the end
of the day.
Speaker 1 (07:21):
Are there certain drivers in this sixteen that are more
important than others or all.
Speaker 2 (07:25):
This seem so they all have a significant impact on
the amount that you actually get to keep at the
end of the day. I would say, I mean, I
would say they're all as important as each other, because
if one of them is it is bad enough, then
the bottom line impact is going to be very significant.
So yeah, they're all very important. What any business owner
(07:49):
can do today is get familiar with those sixteen drivers,
calculate them for your business, and then work out which
ones you could improve, which ones are lower than they
should be. And which ones you can improve and then
make that the objective for your next thirty days to
focus on improving. And that's pretty much the process that
I improm them with my clients. And so yeah, for
(08:11):
anyone who is interested in understanding more of what these
sixteen drivers are, then there's going to be a link
somewhere around this, somewhere around this webinar where anyone listening
can go and can go and get a copy of
that report. You can download. It's absolutely free, and yeah,
like I said, you'll be able to work out what
those sixteen drivers are for your business and then understand
what the impacts of each one is.
Speaker 1 (08:32):
And when we talk about these drivers are for example,
seals and marketing one of these drive boards because eventually
a visit, if a business does not save their services
or their product in this way possible and delivered to
as many people though that they can, we won't have
a positive cash flow and profits at the end of the.
Speaker 2 (08:51):
Year, That's right. So sales and marketing they do, they
do become part of the sixteen drivers, but we break
them more specifically into you know, something a bit more specific.
So for example, sales that that's a revenue driver. And
the way we measure sales is the conversion from leads
into actual sales. Okay, so the number of leads you get,
how many of those become sales. That's how we That's
(09:11):
how we measure the effectiveness of the sales function. And
then marketing, we measure marketing. That's that's one of the
profit drivers. We measure marketing as a percentage of revenue,
and we would aim to keep marketing as a percentage
of revenue within a certain range.
Speaker 1 (09:24):
What do you think in general, if someone if you'll
come to a business and they want to fix it quickly,
what do you think are the quick fixes or all
these materially quick fixes that they need time to take
an impac.
Speaker 2 (09:38):
Yeah, so it really depends on the situation of the business.
There are quick fixes, but it really depends on the situation.
So I would say for any business owner who wants
to have a quick impact and the fastest impact, that
the way to do it is to get familiar with
these sixteen drivers, calculate them for your business. There's going
to be a number for each one of them, and
(09:58):
then work out which one a lother than they should be,
and then work out which ones you can change the
easiest or improve the easiest over the next thirty days
so that you can improve your cash broad And that
would be what I would do. That's going to be
the most effective strategy to improve any business owner situation.
And it is actually the exact process that I do
(10:20):
with my clients, and I just do it on repeat,
so instead of it being just a one off for
thirty days, every thirty days we basically follow that same process.
So we look at the business now, we take a
snap shot, we look at what's happened, and we work
out where we are. We understand what's working and what's
not working in the business, and we break it down
into really clear colors like red, amber, green, so that
anyone can understand it. And then we work out which
(10:41):
one of those colors we want to turn green, which
one is not green that could be green, and that
we can turn green, and then we focus on that
for the next thirty days and that's it, and then
then in thirty days time, we just repeat the process.
And by focusing on the most important things every thirty
days and the drivers, they're going to improve your cash
flow by the most every single thirty days. You naturally
(11:05):
remove yourself from the business so you're not stuck in
the job anymore and you're focused on working on the business.
And that's how you transform from being stuck in a
job that you created for yourself into a high performing
business owner that's running a healthy, growing business.
Speaker 1 (11:22):
So when we talk about question flow, talking about positive
quests from moment money coming in, like you said that
money came going out. Which do you think is more
important to focus on money coming in and having more
clients or focusing on the money coming out and how
we can improve or let's say decrees the expenses of
the business.
Speaker 2 (11:39):
They're both really important because if you focus on just
improving the money coming in and you don't focus on
the money going out, then what happens if you spend
if you have more money going out than you have
coming in. You know, if you focus on improving the
money coming in but you're still spending too much, then
you're still going to have big problems. So really you
(12:00):
have to focus on both and you have to look
at everything. So what I would recommend in order to
get on top of the cash flow, if for business
owners who are feeling a bit lost, is you can
just get a very simple Excel, or you can even
do it on a piece of paper and map out
the next thirteen weeks and then write what is going
to come in in terms of cash and what is
(12:20):
going to go out. And that is what a cashlow
forecast is. It just tells you what's going to happen
over the next however long in this case thirteen weeks,
so that you know if you've got any upcoming issues
when it comes to cash flow, or if you might
be cashblow positive and you might be in a healthy position,
which is great, but it helps you just firstly know
that there aren't any looming issues that you need to
(12:40):
be aware of. But secondly, once you are aware of
the cashplro situation, you can work out what to do
to improve it, whether you need to focus on bringing
more cash in or whether you need to stop cash
going out.
Speaker 1 (12:50):
Once you mentioned you have the example is looking at
the table for for example, thirty weeks to see the
picture for the next six months or so. So this
is a good idea because we want to know that
at a certain time, would we have a certain bill
to pay or a certain contractor vendor to pay for
(13:13):
and also have a certain estimate of how much cash
is coming into the business based on the estimates that
we already have. So this is a good idea or
a good tool I would say to use in that regard.
Speaker 2 (13:26):
That's correct, exactly.
Speaker 1 (13:28):
Definitely, definitely in your opinion. If someone asks you that
I have a business for for example, if we talk,
always talk about that you mentioned the first five years
is the hardest for the business to get going and
grow from there. Should we focus on operations on how
we do things, or we should forget the operation aside
(13:51):
and only focus on getting more clients.
Speaker 2 (13:54):
I mean, you can't have one without the other. So
the answer to that question is again, it really depends,
and we'd have to have a look at the exact
situation in order to come up with a strategy. I
think rather than saying focus on just getting clients or
focus on just getting you know, providing the best service
or operations or whatever, it needs to be a mix
of all of those. But if if the end goal
(14:18):
is cash cash flow and that becomes the focus, then
all of the rest of it will will take care
of itself.
Speaker 1 (14:25):
Do you think pricing is involved in all of this?
Like if you look at the clients work and their profits,
that's our income or and do you think that sometimes
increasing the prices of the service or the product is
a good idea to do because sometimes the margins are
not that good for the for the business.
Speaker 2 (14:46):
Yeah. Yeah, so sometimes increasing pricing is is the right
thing to do and other times is not. So again,
we would need to look at the exact situation to
work out what's going on, and the pricing mix, if
you like, would form part of those sixteen drivers that
I mentioned. So once you get clear on those sixteen drivers,
we would we would work out what needs to be moved.
(15:10):
So if your margins are not high enough, then we
could compare them to say industry averages and work out
that actually, you're you're not charging enough, You're not making
enough compared to your your peers, and you should you
should either be charging more or you should be able
to deliver this service at a lower cost. And we
would look at that and review and work out what
can change.
Speaker 1 (15:28):
So in your experience, what are the toolist resources or
books for people or business owners to look and to
look into.
Speaker 2 (15:35):
Yeah, there's a few that I would recommend. One is Attraction,
the e myth is another one. Those are probably the
main two. Those are probably the main two.
Speaker 1 (15:46):
So Tom, where can people learn more about you and
to get to know you and see what you do
with their business owners and how you can improve their
business and cash flow to make it more profitable.
Speaker 2 (15:57):
Yeah, So what I would say is, for anyone who's
interested in what I've talked about today, you can visit
you can visit the page. There'll be somewhere around this
webinar or podcast. It's it's where you can download the
sixteen drivers that I've talked about today. So it would
explain each of the sixteen drivers, how to calculate them,
and then what to do to actually use those to
(16:18):
improve your business. So that's free for anyone who wants it,
So you can go on the landing page and download it.
The other one for anyone who doesn't want to do
this themselves and you want some of them to guide
them through it, there will be a link on that
page where you can also schedule a call with me directly,
or you can contact me directly, so you're welcome to
do that.
Speaker 1 (16:38):
Tom, thank you very much for joining me for a
suit of the Success podcast. Really insightful things and very
important for people to identify the drivers and their business
so they can know where the leakage is for example,
or know where they can boost their business in regards
to profits.
Speaker 2 (16:54):
Thanks for saying pleasure to be here.
Hallo, I welcome to the Success Great Podcast with also Stale.
I am excited to introduce you to a series of
conversations with some of the most successful and sparing individuals
from various industries. My aim is to dive into their
stories behind their success and explore the knowledge, strategies, habits,
mindsets and wisdom that have propelled their success. Each hipishode
(00:21):
of the Success Great Podcast will feature a different guest
who will share their unique journey, the challenges they faced,
and the ressons they have learned along the way. I
would also be covering topics from entrepreneurship and innovation to
leadership and personal development. Whether you are inspiring entrepreneur, a
season business profession, or just someone looking to improve your life,
(00:41):
the Success Great Podcast is for you. My goal is
to bring you valuable insights and inspiration that will help
you achieve your own success in business and life. So
get ready to learn and be inspired. The Success Great
Podcast starts now. In this episode of the success a
Great Podcast, I am joined with Tom Griffith talk about
how to improve profitability and cash flow and how to
(01:03):
have a healthy, growing and profitable business. Tom helps small
business owners have a growing and more profitable business so
they can achieve their personal and professional goals. Tom, Welcome
to this episode of the Secxissicret podcast.
Speaker 2 (01:16):
Thanks for having me his own pleasure to be here.
Speaker 1 (01:18):
Awesome to have you here with me on this one.
So this is the Sexisticret Podcast. I want you first
to tell us what do you think success is and
what do you see other people have certain misconception of
what success is.
Speaker 2 (01:29):
Yeah, so I think everyone's got their own definition of success,
that's for sure. So for me, it's time freedom and
financial freedom, and I think for most people they does
coincide with those two terms in some way, shape or form.
But a key part of what I do is understanding
(01:50):
exactly what success means to an individual person a business owner,
and then reverse engineering that into how they can get
there by using their business to help them.
Speaker 1 (02:00):
So you're working with other people and businesses, why do
you think that business owners or entrepreneurs are overwhelmed or
assisted out above their businesses? Yeah?
Speaker 2 (02:10):
Good question. So it all starts with not knowing the numbers,
not understanding the numbers, not reviewing the numbers, and therefore
not knowing what to do to improve them and to
improve the situation. So that's really where all the problems starts.
It's not knowing or reviewing the financials of the business.
(02:30):
And there's not really a surprise because most business owners
they start their business because they're experts at the craft.
So a dentist starts a dental practice, a builder starts
a construction company, plumber starts a plumbing business, and they
start that business because they want to become more focused
on their craft and they want to focus on providing
(02:53):
the best service they can in their craft. But very
often business owners will start their business in their craft
and then in a few years down the line, they'll
realize that they've been focusing on their craft all this time,
and they've actually neglected the finances and they haven't looked
at actually managing the business and focusing on improving cash
ben profits so they can have a healthy, growing and
successful business. And so they kind of lose sight of
(03:16):
the reason that they started the business in the first place,
which was maybe to focus on their craft, but ultimately
it was to get to some end goal, whether that
be time freedom, financial freedom, or whatever that looks like
to them.
Speaker 1 (03:27):
So most businesses feed because they are ignoring their finances.
So this is one of the Greas's businesses feed actually
because we are own business to make money. In general,
it's not like a charity. But in one of the
things that we should focus on is the financial side
of things.
Speaker 2 (03:46):
Yeah, exactly. So the Small Business Administration in the US
they quote that around fifty percent of all businesses fail
by their fifth birthday. So that means all of those businesses,
all of those yeah, hopes and dreams of the business
owner just disappearing with them, okay. And the reason all
(04:06):
those businesses fail Whilst it may, you know, they may
come up with those of different reasons, but what it
all comes down to at the end of the day
is cash. The businesses didn't have enough cash and the
businesses weren't making enough cash, because nobody will close a
business that is making enough cash. And so, like I mentioned,
business owners will generally start a business because they want
to focus on one craft or their craft, and they
(04:27):
think that by focusing on their craft because they're really
good at it, they'll be able to make lots of money.
But then they actually go into business and they realize
actually they have to understand business and they have to
understand the finances and cash blow and how it all
works and how it all sinks together, and that's not
what they're good at, and that's not why they went
into business in the first place. So what business owners
really need to do is either they need to get
(04:48):
somebody to help them with the finances, like a financial guide,
or they need to understand it themselves and get familiar
with how it all works, educate themselves, and really focus
on using their business as a tool to generate cash
so that they can achieve their personal and professional goals
instead of being a tool for them to just focus
on their craft. And when they focus on their craft,
(05:10):
what they really end up creating is a very stressful job.
One of my clients, Reese, he runs a sports events business,
and he said to me when I first started working
with him, he said that I've been running this business
for four years and I've been paying myself the bare
minimum for that time. I've been working really long hours,
(05:30):
and I have very little to show for it. The
business isn't worth anything because it's entirely dependent on me.
And I could have even should have just got a job,
because it would have been far less stressful and I
would have actually made more money from it. And more
to show for my family, and I would have been
able to be more present with my family during that
time as well.
Speaker 1 (05:46):
Cush Flow is really important in business, Like we need
to make sure that our custlow is always positive because
if the cushtlow is negative, we would have a loss
at the end of the year. So like working with
your clients and yourself, what are the most important things
in order to make sure that the business owner is
making sure that cashflow is positive.
Speaker 2 (06:08):
So when we talk about cash flow, just we have
to be clear that cash flow or cash is the
total amount that goes into the business or the total
amount of the business makes or what comes into the
business account minus all of the money that goes out.
It just measures cash. It doesn't look at profits. Profit
and cash flow two different things. So we can we
can post a profit one year, but actually cashpur can
(06:31):
still be negative. So cash flow is the amount of
the business owner actually gets to keep I just wanted
to say that first just so that anyone was saying
knows what the difference between those two terms are. And
then in terms of staying on top of cash flow
and improving cash flow for a business, the way I
break it down for anyone who I speak to is
I break it down into sixteen drivers. So there are
(06:52):
sixteen drivers of revenue, profits and cash flow. Doesn't matter
whether you're Uber or Amazon excuse me, or a one
person banned running from a high street in a quiet town.
They're exactly the same sixteen drivers. And so you just
need to get familiar with what those sixteen drivers are
for your business, calculate them, and then review them regularly,
(07:14):
and then work out which ones you can improve that
will have the biggest impact on cash blow, which is
the amount that you get to keep at the end
of the day.
Speaker 1 (07:21):
Are there certain drivers in this sixteen that are more
important than others or all.
Speaker 2 (07:25):
This seem so they all have a significant impact on
the amount that you actually get to keep at the
end of the day. I would say, I mean, I
would say they're all as important as each other, because
if one of them is it is bad enough, then
the bottom line impact is going to be very significant.
So yeah, they're all very important. What any business owner
(07:49):
can do today is get familiar with those sixteen drivers,
calculate them for your business, and then work out which
ones you could improve, which ones are lower than they
should be. And which ones you can improve and then
make that the objective for your next thirty days to
focus on improving. And that's pretty much the process that
I improm them with my clients. And so yeah, for
(08:11):
anyone who is interested in understanding more of what these
sixteen drivers are, then there's going to be a link
somewhere around this, somewhere around this webinar where anyone listening
can go and can go and get a copy of
that report. You can download. It's absolutely free, and yeah,
like I said, you'll be able to work out what
those sixteen drivers are for your business and then understand
what the impacts of each one is.
Speaker 1 (08:32):
And when we talk about these drivers are for example,
seals and marketing one of these drive boards because eventually
a visit, if a business does not save their services
or their product in this way possible and delivered to
as many people though that they can, we won't have
a positive cash flow and profits at the end of the.
Speaker 2 (08:51):
Year, That's right. So sales and marketing they do, they
do become part of the sixteen drivers, but we break
them more specifically into you know, something a bit more specific.
So for example, sales that that's a revenue driver. And
the way we measure sales is the conversion from leads
into actual sales. Okay, so the number of leads you get,
how many of those become sales. That's how we That's
(09:11):
how we measure the effectiveness of the sales function. And
then marketing, we measure marketing. That's that's one of the
profit drivers. We measure marketing as a percentage of revenue,
and we would aim to keep marketing as a percentage
of revenue within a certain range.
Speaker 1 (09:24):
What do you think in general, if someone if you'll
come to a business and they want to fix it quickly,
what do you think are the quick fixes or all
these materially quick fixes that they need time to take
an impac.
Speaker 2 (09:38):
Yeah, so it really depends on the situation of the business.
There are quick fixes, but it really depends on the situation.
So I would say for any business owner who wants
to have a quick impact and the fastest impact, that
the way to do it is to get familiar with
these sixteen drivers, calculate them for your business. There's going
to be a number for each one of them, and
(09:58):
then work out which one a lother than they should be,
and then work out which ones you can change the
easiest or improve the easiest over the next thirty days
so that you can improve your cash broad And that
would be what I would do. That's going to be
the most effective strategy to improve any business owner situation.
And it is actually the exact process that I do
(10:20):
with my clients, and I just do it on repeat,
so instead of it being just a one off for
thirty days, every thirty days we basically follow that same process.
So we look at the business now, we take a
snap shot, we look at what's happened, and we work
out where we are. We understand what's working and what's
not working in the business, and we break it down
into really clear colors like red, amber, green, so that
anyone can understand it. And then we work out which
(10:41):
one of those colors we want to turn green, which
one is not green that could be green, and that
we can turn green, and then we focus on that
for the next thirty days and that's it, and then
then in thirty days time, we just repeat the process.
And by focusing on the most important things every thirty
days and the drivers, they're going to improve your cash
flow by the most every single thirty days. You naturally
(11:05):
remove yourself from the business so you're not stuck in
the job anymore and you're focused on working on the business.
And that's how you transform from being stuck in a
job that you created for yourself into a high performing
business owner that's running a healthy, growing business.
Speaker 1 (11:22):
So when we talk about question flow, talking about positive
quests from moment money coming in, like you said that
money came going out. Which do you think is more
important to focus on money coming in and having more
clients or focusing on the money coming out and how
we can improve or let's say decrees the expenses of
the business.
Speaker 2 (11:39):
They're both really important because if you focus on just
improving the money coming in and you don't focus on
the money going out, then what happens if you spend
if you have more money going out than you have
coming in. You know, if you focus on improving the
money coming in but you're still spending too much, then
you're still going to have big problems. So really you
(12:00):
have to focus on both and you have to look
at everything. So what I would recommend in order to
get on top of the cash flow, if for business
owners who are feeling a bit lost, is you can
just get a very simple Excel, or you can even
do it on a piece of paper and map out
the next thirteen weeks and then write what is going
to come in in terms of cash and what is
(12:20):
going to go out. And that is what a cashlow
forecast is. It just tells you what's going to happen
over the next however long in this case thirteen weeks,
so that you know if you've got any upcoming issues
when it comes to cash flow, or if you might
be cashblow positive and you might be in a healthy position,
which is great, but it helps you just firstly know
that there aren't any looming issues that you need to
(12:40):
be aware of. But secondly, once you are aware of
the cashplro situation, you can work out what to do
to improve it, whether you need to focus on bringing
more cash in or whether you need to stop cash
going out.
Speaker 1 (12:50):
Once you mentioned you have the example is looking at
the table for for example, thirty weeks to see the
picture for the next six months or so. So this
is a good idea because we want to know that
at a certain time, would we have a certain bill
to pay or a certain contractor vendor to pay for
(13:13):
and also have a certain estimate of how much cash
is coming into the business based on the estimates that
we already have. So this is a good idea or
a good tool I would say to use in that regard.
Speaker 2 (13:26):
That's correct, exactly.
Speaker 1 (13:28):
Definitely, definitely in your opinion. If someone asks you that
I have a business for for example, if we talk,
always talk about that you mentioned the first five years
is the hardest for the business to get going and
grow from there. Should we focus on operations on how
we do things, or we should forget the operation aside
(13:51):
and only focus on getting more clients.
Speaker 2 (13:54):
I mean, you can't have one without the other. So
the answer to that question is again, it really depends,
and we'd have to have a look at the exact
situation in order to come up with a strategy. I
think rather than saying focus on just getting clients or
focus on just getting you know, providing the best service
or operations or whatever, it needs to be a mix
of all of those. But if if the end goal
(14:18):
is cash cash flow and that becomes the focus, then
all of the rest of it will will take care
of itself.
Speaker 1 (14:25):
Do you think pricing is involved in all of this?
Like if you look at the clients work and their profits,
that's our income or and do you think that sometimes
increasing the prices of the service or the product is
a good idea to do because sometimes the margins are
not that good for the for the business.
Speaker 2 (14:46):
Yeah. Yeah, so sometimes increasing pricing is is the right
thing to do and other times is not. So again,
we would need to look at the exact situation to
work out what's going on, and the pricing mix, if
you like, would form part of those sixteen drivers that
I mentioned. So once you get clear on those sixteen drivers,
we would we would work out what needs to be moved.
(15:10):
So if your margins are not high enough, then we
could compare them to say industry averages and work out
that actually, you're you're not charging enough, You're not making
enough compared to your your peers, and you should you
should either be charging more or you should be able
to deliver this service at a lower cost. And we
would look at that and review and work out what
can change.
Speaker 1 (15:28):
So in your experience, what are the toolist resources or
books for people or business owners to look and to
look into.
Speaker 2 (15:35):
Yeah, there's a few that I would recommend. One is Attraction,
the e myth is another one. Those are probably the
main two. Those are probably the main two.
Speaker 1 (15:46):
So Tom, where can people learn more about you and
to get to know you and see what you do
with their business owners and how you can improve their
business and cash flow to make it more profitable.
Speaker 2 (15:57):
Yeah, So what I would say is, for anyone who's
interested in what I've talked about today, you can visit
you can visit the page. There'll be somewhere around this
webinar or podcast. It's it's where you can download the
sixteen drivers that I've talked about today. So it would
explain each of the sixteen drivers, how to calculate them,
and then what to do to actually use those to
(16:18):
improve your business. So that's free for anyone who wants it,
So you can go on the landing page and download it.
The other one for anyone who doesn't want to do
this themselves and you want some of them to guide
them through it, there will be a link on that
page where you can also schedule a call with me directly,
or you can contact me directly, so you're welcome to
do that.
Speaker 1 (16:38):
Tom, thank you very much for joining me for a
suit of the Success podcast. Really insightful things and very
important for people to identify the drivers and their business
so they can know where the leakage is for example,
or know where they can boost their business in regards
to profits.
Speaker 2 (16:54):
Thanks for saying pleasure to be here.
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