Plumbing Connection 4-2015

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There’s another lesson right there: if
your staff aren’t giving you feedback
that can be acted upon, then that in
itself is feedback. In this case no news
is definitely not good news.
LEARN THE WARNING SIGNS BEFORE
THEY SMACK YOU IN THE HEAD
All of the businesses featured on
Gordon’s show are in dire straits and
months away from running out of
cash and closing. Learning to read
the warning signs earlier can create
opportunities to turn businesses
around, or even shut them down to
prevent losses from accumulating.
Declining customer numbers and
regular customers that no longer
return are an obvious non-financial
sign that something is wrong.
From a financial perspective, cash
flow is the key to any small business.
Struggling to pay your bills on a regular
basis, constantly seeking extensions
from suppliers (including the ATO) and
using credit to operate on a day-to-day
basis are all signs that the business is
no longer self-sufficient.
Staff turnover can also be a warning
sign. Disgruntled staff working at the
coalface often see the writing on the
wall before the owners do and quickly
jump ship. Always be on the lookout
for ways to innovate and grow your
business, don’t just go with the flow,
but learn to steer your own ship. If
you don’t, you will invariably end up at
the mercy of the creditors and banks.
Making slight adjustments to the course
of a sailing ship is much easier than
doing nothing for hours on end and then
trying to do a complete 180º turn.
EMPLOY THE RIGHT STAFF AND
LISTEN TO THEM
Family businesses can and do succeed.
Like every other business, all
roles within the business need to
be clearly identified and have a staff
member allocated to them. Sadly,
many family businesses end up with
everyone involved in everything. This
just doesn’t work.
Segregate your key business
functions and employ staff that are
experienced in such roles. As a
business owner you don’t need to know
how to do everything and nor should
you. Your job is to manage the business
as a whole, not to stand over the kitchen
staff or to tell everyone that if it’s not
done your way it’s wrong.
Allow your staff to be innovative and
encourage them to do so in their chosen
roles, your business will benefit.
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