“What sank the titanic?…” the top of the iceberg or the bottom!”

“What sank the titanic?…” the top of the iceberg or the bottom!”

…asks Peter Hickey, President of the Institute of Business Advisors & CEO of MAUS. “What concerns me is that so many people are starting or building a Business Advisory but their seems to be a lack of training on the fundamentals of strategic metrics and Business Planning.
I want you to imagine a typical iceberg. At the top of the iceberg we have KPI’s (Key Performance Indicators” such as Sales, profit and Cash. All extremely important and determinants of success and failure – but these are what we called lagged KPI’s

MAUS Sample KPI
MAUS Iceberg Sample KPI

When you look at this picture above you can see that the areas below the waterline, drive the top level goals. The clear message that we send to Business Owners is that monitoring sales, profit and cash at the end of each month is the starting point of good business management…but you need to expand your monitoring to include non-financial KPI’s.

Two simple examples…
• Number of leads or web visitors is an indicator that future sales are likely to occur.
• 0r if we ensure that staff have weekly telephone script training sessions then this ensures that sales conversion rates remain high and the business continues to meet sales targets. In this case a KPI could be a monthly target of 4 (ie 4 sessions)

As a Business Advisor we strongly recommend that you encourage your clients to expand into a greater level of KPI’s. Below are some more examples of KPI’s. The Institute of Advisors is running a course on this on May 24th in Sydney as well as a Certified Business Advisor credential. Contact Chris Palmer sales@maus.com.au for more details.

Sample KPI’s

CUSTOMER
 Number of customers
 Market share
 Average value sale
 Customers lost (no. or %)
 Average time spent on customer rel’s
 Sales closed / sales contacts
 Satisfied customer Index
 Number customer service calls
 Customer loyalty Index
 Number of complaints
 Refunds
 Marketing expenses
 Average duration customer relat.
 Number customer visits

PEOPLE
 Employee suggest’s for improvements
 Employee suggestions implemented
 Patents pending
 Satisfied employee Index [research]
 Ratio new / established products
 Employee buy-in ($ or %)
 Marketing expense / customer
 Investment in devel’ment new markets

FINANCIAL
 Revenue
 Profit
 Cash
 Total assets
 Total assets / employee
 Revenues / total assets
 Revenues / employee
 Profits / total assets
 Return on capital employed
 Profit margin
 Return on investment
 Total costs
 Market value

SYSTEMS & PROCESSES
 Number of calls by accounts receivable, sales or customer service.
 Administrative expense / totals revenue
 On-time delivery
 Average lead time
 Lead time, product development
 “ “ , from order to delivery
 “ “ , suppliers
 “ “ , production
 Average time for decision-making
 Inventory turnover time
 Improvement in productivity

PEOPLE
 Employee suggest’s for improvements
 Employee suggestions implemented
 Patents pending
 Satisfied employee Index [research]
 Ratio new / established products
 Employee buy-in ($ or %)
 Marketing expense / customer
 Investment in devel’ment new markets

INNOVATION
 Revenue from new products
 Expense on R & D
 R & D expense / total expenditure
 IT development expense / IT tot. expense
 Hours, R & D (no. or %)
 Investment in training
 Investment in research (e.g., customer)

Exit & Succession – The Next Economic Bubble

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Have you ever encountered a client who is planning to sell their business? Or do you have clients asking for ad-hok advisory services? You would be a rare case if you answered ‘no’ to each of these questions! It is due to questions such as these that Accountants and Advisors are needing to diversify the services they are providing to their clients to ensure they remain competitive in the market.

The good news is, diversity means opportunity! And for Accountants and Advisors, there is a fantastic way to tap into an up and coming ‘Blue Ocean’ or potential industry whilst leveraging the vast experience you already possess. And this is called Exit Planning.
 

WHY EXIT PLANNING?

Over the next 10 years, 75% of business owners will be knocking on your door needing an exit plan.

Consider that there are over 2 million business in Australia, with a combined worth of approximately $1.5 Trillion. Throw into the mix that that nearly 50% of these businesses are owned by Baby Boomers. At an average of 61, you will begin to be inundated with one common question; ‘how do I maximise my personal wealth, given so much of it is tied up in my business?’

Position yourself now to benefit from the greatest transfer of wealth in history, worth approximately $600 billion in Australia alone.
 

WHAT IS EXIT PLANNING?

Exit planning is the process of maximising business and personal wealth for your clients.

What must be stressed here is Exit & Succession planning is in every sense a process, not an event! Exit planning is the conscious effort to maximise the business value, while enabling the conversion of the business ownership into personal financial freedom and peace of mind.

“I don’t want to sell my business?” is a common misconception made by business owners when speaking with them about Exit & Succession. Exit planning is not just about selling! It includes not only maximising the business value, but managing personal financial issues such as tax planning and estate planning.

As Accountants and Advisors you are already in a great position! You have developed a client base in which you are a trusted advisor who already manages and handles client’s personal financial issues. – What a great way to expand your services and shift your engagement with them as they look to transition out of their businesses in the future.
 

HOW DO I LEARN MORE AND TAKE ADVANTAGE OF THIS BOOMING MARKET?

Take your fist steps and gain an overview so you can discuss the topic with your clients

To ensure you are at the forefront of this opportunity and capture your own slice of the market, there is an internationally recognised introductory training that takes place over the course of a single day. Obtain a certificate in Exit Planning, hosted by MAUS Business Systems and endorsed by the Exit Planning Institute, an internationally renowned organisation at the forefront of Exit & Succession training. Contact MAUS on (02) 9907 1669 or email Graham Martin to proceed. Alternatively visit http://www.maus.com.au/certificate-exit-planning-one-day-course/ for more information.

MAUS announces today the expansion of the international consulting group and adds another 5 consulting partners.

MAUS a SME software publishing and consultancy group continues to build and grow MAUS throughout Australia and around the world.

“We are very proud to announce the successful addition to our ranks of 5 highly capable business advisors that will service the Western Australian, Queensland, NSW and Canberra markets”  says Peter Hickey, the CEO and founder of MAUS. “These new advisors that have just completed training will offer business advice and help small to medium sized businesses. Our tools and training are designed to help business advisors, accountants and financial advisors around the world to build a successful practice based on our methodologies which have been implemented in over 60,000 businesses around the world.”

Having just completed our May training we would like to welcome Jonathan Lucas, Vic Ernst, Simone Mills, Kenneth Andersen and Michael Altenburger to the MAUS Network!

Our offer to consultants, accountants, financial advisors and anyone wanting to startup a new consultancy

Are you passionate about helping business owners achieve success? Do you want someone to provide you with hand holding, step by step instructions and mentoring? If you want to have one of the most respected brands in this area work with you and provide you with all the tips, secrets and best practices that we have learnt over the last 20 years. Don’t re-invent the wheel! Learn how to become a highly successful business consultant / coach just like our most recent graduates through the MAUS accredited training program.

Learn how to:

– Attract new clients using state of the art marketing and lead generation tools

– Justify your fees by adding value to your clients with resources costing millions of dollars to develop

– Grow your business by turbo charging your first few months with training, confidence building and proven client acquisition models

– Implement best of breed client methodologies

For more information about future training and the accredited partner program, visit the website at www.maus.com.au or send a quick email to request a free more information pack to sales@maus.com.au