Home
>
Small Business
>
Small Business - A Thing Worth Doing Is Worth Doing Badly

Small Business - A Thing Worth Doing Is Worth Doing Badly

A thing worth doing is worth doing badly. Yes I know that it should be 'well'. My grandma drummed into me that whatever I did I should do it as well as I possibly could.

But grandma said that there was another side to it. If it were worth doing, even doing it badly was better than not doing it at all.

"Never be put off from doing something that ought to be done because others can do it better", said Grandma, "The others may not do it and then it never gets done".

So it's hard for you to estimate sales ? take a stab at it anyway!

I wish I had a dollar for every small business operator who told me that it was impossible to prepare a projection of cash-flow requirements because their sales were so sporadic and uneven.

It's strange in a way that although it is true that each business is unique, it is also true that all small businesses are the same.

Most small retail firms average about 30% as a gross profit. That gives them an average mark-up on purchases of about 42%. It doesn't matter what sort of shop, you can use that as an average.

Similarly, all other expenses average out at about 20% which gives a net return on sales of 10%. Aren't there firms that do better than this? Too right there are?but some do much worse.

So a projection based on averages for your industry will probably be badly out-of-whack. You might think the result is a bad job but it will be one hundred times better than none at all.

The owner will know quite a number of concrete figures without having to guessitimate.

She will know many of her outgoings:

Rent
Average wages (these will fluctuate a little)
Loan repayments
Plant lease payments
Her private spending requirements
Accounting and bookkeeping fees (she should have been told on engagement)
Insurance premiums
Registration fees
Subscriptions

And with all this information her advisor can estimate the amount of profit which will be required to keep cash-flow positive. From the required profit it is a simple task to calculate the sales that are needed to produce the required profit.

"Hey! I hope to have higher sales than that".

But now we've made a start, we can build in some of your expectations, and now we have a projection that we thought couldn't be done.

"But will it be right"!

No it will never be right on the money, but it doesn't have to be. Each week/month we will compare what actually happened with what we had hoped to happen and work out our strategies accordingly.

If sales fall short by 10% in the first month we have a far greater chance of recovery over the 11 months than if we had no plan at all (even if we thought it was a bad one).

And for those proprietors who do a plan and do not compare it to actual until the end of the year any shortfall will be lost forever.

A thing worth doing is worth doing badly.

It applies to all aspects of business ? and life.

I often hear owners say, "I can not up-sell. I'm no good at it".

Maybe, but it is necessary. Who is going to do it if you don't? Get a little training and start doing it badly. You'll be surprised at how good you get.

A thing worth doing is worth doing badly.

The Author

Kelvyn Peters is one of Australia's longest serving Tax Agents. He was registered in 1962 and became a CPA in 1964.

He's served on many charitable boards including St Aubyns Hospital, Alzheimer's Association and Older Peoples Advocacy Service.

As a young man he won the Outstanding Jaycee Award three times. Kelvyn is a compassionate, generous man who loves people. That's why he is so skilled at helping people in trouble.

Kelvyn Peters was Mayor of Kingaroy Shire Council from 1982 to 1987 and campaigned as the 'Young Man of Action"

Over 20 years later he still calls himself a 'Young Man of Action'.

He is a director of Restaurant Catering Qld Inc the peak employer representative in Queensland, and has advised the hospitality industry for many years.

His specialty is moving in to rescue a sick business.

Kelvyn has spent over 20 years experimenting and researching methods to help small business in ways that are affordable.

He has perfected it with local clients now he is going global and he is only an email away.

http://www.profitstrategies4business.com

Berwick Chicago charter limousine .. Lockport Chicago limo O’Hare

In The News:

The CyberGuy breaks down five mobile privacy terms that could make a difference when it comes to keeping your personal information safe.

A groundbreaking robot that's like a real-life Wall-E uses advanced artificial intelligence to replicate natural gestures and deliberate actions with striking accuracy.

If not properly managed, Windows Defender Application Control, a security feature with Windows, could be a potential security vulnerability.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

FlashBot Arm, a semi-humanoid robot, acts more like a human than traditional robots, and you may see it working at a restaurant, healthcare center or hotel.

There are multiple ways to find your missing Android phone after it goes missing. One method involves using a smartwatch to ping your phone.

The NeuroOne OneRF Ablation System is a new device with FDA-cleared technology designed for both diagnosing and treating neurological disorders in one procedure.

The CyberGuy provides tips to protect yourself from criminals who use various methods to make unauthorized transactions using your account information.

New drone technology maps land and water with stunning accuracy, giving researchers and conservationists a new way to understand our planet.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

X hit with massive data breach with 200 million records leaked, including emails. Tech expert Kurt “CyberGuy" Knutsson offers seven tips to help protect yourself.

Atlas robot by Boston Dynamics amazes tech expert Kurt “CyberGuy" Knutsson with its breakdancing moves.

Tech expert Kurt “CyberGuy" Knutsson talks about how Google kept Android SafetyCore details quiet until it scanned users' photos.

Hydrogen trucks debut in Georgia, sparking debates on costs and green freight gains. Kurt “CyberGuy" Knutsson comments on this promising chapter in green logistics evolution.

Tech expert Kurt “CyberGuy" Knutsson says ChatGPT learns from chats, but you should avoid sharing sensitive information to protect your privacy.

Beyond Aero's BYA-1: Hydrogen-electric jet with zero emissions, reduced costs, 2030 launch. Kurt “CyberGuy" Knutsson discusses a potential game changer in the evolution of air travel.

Kurt "CyberGuy" Knutsson explains how you can creatively repurpose your old unused Android devices, which are full of potential and hidden value.

Mech the super-humanoid robot can lift up to 132 pounds and is designed to tackle stressful and repetitive tasks that often lead to workplace injuries.

Double-clicking is something we all do, often without giving it a second thought. But it could be giving hackers permission to do something dangerous.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Kurt the CyberGuy offers some of his easy expert tips to free up storage space on your Android if your device is running short on storage.

You can reset your internet router remotely if you're not home when your power goes out. Kurt "CyberGuy" Knutsson explains how this can be done.

The EO Canopy is a self-sustaining, solar-powered camping platform designed to provide all the comforts of home while completely off the grid.

Experts say hackers who used to focus on Windows operating systems are increasingly targeting Apple IDs as part of a new phishing campaign.

Unitree, a Chinese robotics company that developed a backflipping robot, has now introduced a humanoid robot capable of doing a side flip.