Zhejiang Economic & Trade Polytechnic University delegates visits UQ to learn about innovation in Queensland


Earlier this month the New Ventures Australia Group was invited to host Vice Dean (Business, Tourism, IT, International Trade), Mr He from the Zhejiang Economic & Trade Polytechnic University in Hangzhou, China and a delegation of lectures to visit The University of Queensland (UQ) St Lucia campus and learn about innovation and commercialization in Queensland as well as how entrepreneurship and innovation skills are taught to students.


The delegation started their Australian visit in Sydney, attended educational workshops and tours of numerous New South Wales academic institutions ended the trip in Brisbane, with visits to Griffith University and The Queensland University of Technology before finishing at the St Lucia UQ campus.

After a tour of The Great Court, Dr Cameron Turner presented a overview of the commercialization activities at UQ and invited the delegation to attend one of his entrepreneurship lectures to observe student interactions. Two of the class’s top Chinese students also shared their current projects and experiences with the delegates in Mandarin.

Feedback from the delegation on the insights gained by the group from Dr Turners presentation was overwhelmingly positive with continued dialogue between the institution’s possible. Being Alumni’s of UQ the New Ventures Australia team is proud to be contributing towards UQ’s international relations and Australia’s too.

The 9 Secrets to Supercharge Your Business Bank Account

Anyone who has been in business understands one undeniable truth.  If there is no money in the bank, you are in deep trouble.  I am not talking about the trouble you get into if you forget your partner’s birthday.  No, no, no. This is worse than that.

This is BIG trouble. Huge.  Anyone who has been down this track will tell you, no money in the bank means your business is going down the gurgler and fast. When I say gurgler, I mean going out the back door sideways. Liquidation.  Not a pleasant word.

Can anything be done? Well, yes. If you take care to follow the points below early enough you just might be able to steer a course towards success and prosperity.

I say might because I do not know your personal circumstances and whether your business has already gone to far for saving.

If you don’t follow these points you might wake up one day and realise you do not have a business.

If you follow the 9 points below and get professional advice you can hopefully sidestep the bad news and go on to bigger and better things.

Hopefully you never experience the sinking feeling one gets when you look at the bank account and realise there is no money left.

So if you find yourself running out of money take immediate action and consider the following;

1. Where is my money – Cash Flow
Cash flow is the lifeblood of the business and as such a number of business inputs and outputs will affect this.

2. Who owes me what – Debtors Collection
Try and keep debtors to less than 45 days if at all possible. Your business should not be the bank for everyone else.
Now is the time to get on to those hard to collect debts. After all, it’s your money. You have a valid reason for making the call.  The only difference is that your money is in someone else’s bank account. Not good. Go and collect it.

Don’t be put off by excuses such as the boss is not here to authorise it, or the accountant is away.  Keep asking when the money will be transferred to your bank account. Don’t hang up until you have a date locked in. Oh, and don’t forget to be nice about it.  Keep it conversational, but stay on track. You don’t want them refusing to take your calls in the future. That is not good.  Anyway, they are probably a good customer. It would be good to keep them.

If the money does not appear in your bank account on the promised date, ring them again.  Let them know they promised to put the money into your account.

3. Who do I owe money to- Creditors
A lot of the amounts owing will be to your suppliers. You don’t want to upset them. So, if you are having trouble paying them, talk to your bank about a temporary increase in the overdraft for say 3 to 6 months. Also talk to your largest creditor/supplier and see if they can extend trading terms for you to get over this period. No one wants to loose a good customer.  If you do it nicely you could end up having a great customer/supplier relationship for a long time.

4. Who has leant me money – Bank/Financier
Arrange to meet with your Bank as soon as possible. Ask your Accountant to prepare an updated P&L with budget comparatives and a 13 week rolling Cash flow forecast. It is a good idea to also have your business plan ready as well.

Keep the bank informed about your progress because you can bet head office will be keeping a close eye on things.

Remember, your banker is your friend. This is really important.  Keep in regular contact with you banking advisor and shout him or her a coffee every now and then.  You will be amazed what a friendly banker can do for you if they have confidence in you and your abilities to manage the business.

5. Leasing/Hire Purchase commitments – If you have a Finance Broker meet with them and provide similar information as for the Bank above. If you are behind in your monthly repayments you really need to let them know that you are on top of things.  You can bet their credit people will know and when they ring your broker he can tell them the things that have been put in place to manage your account.  Once again, the broker does not want to loose a customer and should be treated as a good friend.

6. The difference between a good business and one not so good is your Staff 
Some of your staff will be on the ball and have picked up something is not quite right. It is up to you whether you tell them or not but make sure the good staff don’t leave because they are worried about the future of their job.

7. Lock up the Cheque book – Managing Costs
Do a review of all your business costs and see if there are any items that can be deferred or cut altogether.  Staffing is usually one of your biggest expenses. It may be appropriate to ask staff to take some more holidays while you get things sorted or perhaps to reduce the number of days worked for a few weeks. You will need to be careful here, as staff will not want to feel they are being taken advantage of.

8. What am I selling – Inventory
If you are holding inventory and have some stock that has been around for a while, consider discounting to clear. Alternatively, work with your sales team to make an effort to clear this stock. Clearing out of date or old and dead stock is one way of generating some quick cash.

9. Tax
If your BAS and superannuation payments are not up to date it may be a good idea to talk to your accountant. You don’t want the ATO breathing down your neck.

Summary
While business isn’t always easy, one thing is for sure: if you can put the above into practice you will grow in confidence and stature to a level previously unattainable. The above is a summary of just some things to be considered when your business is experiencing cash flow difficulties. Start now, don’t delay.

It is up to you to consider your personal requirements and seek professional advice suitable to your particular circumstances. The hardest part always is picking up the phone, so don’t delay.

David Cotton is a Turnaround specialist and Chartered Accountant. He can be contacted on 0424 025 209 for a confidential no obligation conversation.
May 2014

Grow Family Businesses to Grow Regional Communities

Regional Queensland Australian communities are richly endowed with mineral, agricultural and environmental resources supporting our four-pillar economy.
Similar primary industry clusters in Europe, Canada, United States, China, India have created multi-national businesses, such as Caterpillar, Bechtel, Tata, Adani, Phillips, George Weston, Blackberry, Microsoft, Google, Kraft, H.J. Heinz.

Yet our Australian regional communities have very few locally-owned very large national businesses. Small businesses often grow to medium size; suffer growth pains, and then stall.  Like Peter Pan they never grow up, leaving them vulnerable. If helped to grow into national companies they could employ hundreds or thousands of high paid workers, grow more local businesses, support research and innovation, and philanthropically grow their community.

Around the world countries are successfully focusing on growing their local businesses into big businesses, through productivity grants, export assistance, government trials and contracts. The great companies of the US were grown from a mixture of government research grants, agricultural subsidies, government contracts, and protective trade barriers.

Yet ask our politicians how they can help improve grow our small businesses in global businesses and we hear our “businesses must fend for themselves” on “a level playing field”, or, “the best thing government can do is to get out of the way of Australian business”, or, “we will help businesses by reducing red tape”.

How can we grow small regional businesses into large national and global companies to strengthen communities and broaden their economic base?

There is a general apathy to helping our businesses to grow. Perhaps it is too hard?

Historically we have waited until a crisis:  the mine, crops or tourists fail.

Australia faces such a crisis now, as our large manufacturing sector fails. The United States and Canada went through this “rust belt” crisis in the 1980s. Both countries fostered innovation, small business creation and business growth policies. The author studied these policies, programs and public/private partnerships over a decade from 1998 -2008 travelling across both continents, leading to the development of the Mentoring for Growth program, Brisbane Angels and other public/private partnerships in Queensland.

World Best Practice Productivity
Around the world countries are focusing on growing their local businesses into big businesses.  All Australian businesses need to operate at world’s best practice to remain competitive or face being acquired by global competitors.  Adequate reserves to fund growth, survive downturns or natural disasters are a pre-requisite.

Economic theories assume two things, perfect knowledge and continual growth.

Overseas global companies, close to major customers and with access to superior global market knowledge, advice and large cash reserves, can turn knowledge into global growth strategies.  Our small regional businesses do not have access to global knowledge or the resources to grow or grow fast enough.  They are easy pickings for predators.

If the State Australian Government was to facilitate a program to address the longevity and profitability of Queensland’s Australia’s best family businesses it would be as:

  •  the inward dissemination point of world best productivity practices; and,
  •  the  as an outward conduit to global business networks

to enable our best family businesses to take advantage of the latest efficiencies and market opportunities. Such a program might be called Productivity Australia or simply Grow Australia.

Stewart Gow LLB, MBA, GAICD is a company director, business owner, angel investor and University of Queensland Industry Fellow. He has access to global business networks with 20 years experience advising and mentoring hundreds of business owners from all industry sectors in his role as Australian Vice Consul (Silicon Valley), Senior Executive in State Development (Qld) and as founder of the award winning Mentoring for Growth programs, Brisbane Angels, the Australian Association of Angel Investors Ltd and now Facilitator in the Business Excellence Roundtable.

Stewart can be contacted at: stewgow@gmail.com or 0403 310520