Tag Archives: Insights

DELF OZ May 2020 Highlights

Gary Bolles -Chair for the Future of Work, Singularity University

The Great Digital Reset

Gary Bolles: Chair of the Future of Work, Singularity University

The Corona Virus (C-19) Shutdown has hastened the “Digital Reset” globally – Robotics and automation were already causing job loss and business disruption, but the C-19 has favoured existing digital marketplace monopolies, like Amazon, eBay, Uber, hollowing out the middle class and family businesses, replacing customer loyalty with a “platform thinking paradigm – access, quality & price.

But, at the bottom, start-up opportunities abound digitalizing inefficient “legacy “business processes (faster, cheaper, better) plus localisation e.g. farmers markets, quality local products or services. In the USA 97% of new jobs are created in these nimble “start-up” businesses [less than 5 yrs. old] Sadly, 100 000 US businesses will NOT reopen post CV-19 leaving market gaps for new start-ups.

Emerging Management Models – CV-19 has also fast tracked working from home – a new distributed “worker skills” network challenging traditional command & control HR models. Australia & NZ have dispersed regions, so find talent where talent lives and let it stay there, is the new normal. “Management by surveillance” hierarchy will go – leaders must empower & mentor workers to reach goals, a disruption mind-set of continually solving customers problems -rather than slaves to process. It’s easier to innovate at the edge of organizations and work in towards the calcified core (John Hagel) The New Construct is digital skills for ALL workers – non digital jobs won’t exist soon.

Emerging Digital Supply Chains Within supply chains bits are free (info) v expensive atoms (moving physical goods), so digitally track atoms (physical goods) to create digital information, for example selling and tracking food exports digitally into Asia. Digital flows are very high in Asia but low digital flow between Aus./NZ and Asia reflect poor infrastructure speed which MUST strengthen, because communities & organisations MUST have strong digital supply chains + digital worker collaboration.

Government Jobs Role – Strong communities with high social cohesion, can utilise existing skills and retrain workers to adapt to new market opportunities – reinvent themselves. If you allow older workers or handicapped to become irrelevant – the community and government is failing. It is tempting to import migrant labour vs. retrain. Strong cohesive communities can collectively reinvent themselves and retrain, for example, AI robotics programming, organic foods export etc. Post CV-19 the governments (globally) MUST first kick-start demand (customer spending), help communities Develop strong Capital, HR networks, help political leaders understand they (as change leaders) need new skill sets, need to take risks. Our political leaders must be Competent, Compassionate, Courageous – as drivers of change within the Great Digital Reset.

Gary Bolles: The Future of Work: planning for what’s next webinar playlist

Related links:

To learn more about Gary: https://www.gbolles.com

You can read more about this topic and latest on Techonomy: The Great Reset

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We hope you will join us for our June 2020 webinar  to gain new insights and learn about digital technology & investors trends in the US & China from Silicon Valley expert: Edith Yeung

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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.

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