G’day, I’m David Kuempflein. I’m the Director of Premier Mechanical Australia. We specialize in onsite machinery and highway transport mechanical repairs. We’re based in the Geelong and surrounds area. Today here, we’re in Werribee servicing some client’s gear.
I decided to get a business coach because I’m a tradesman and I don’t really know a hell of a lot about business, and I wanted to make sure that throughout the whole process that I made as little and as few mistakes in the business side of things as possible. And so far, it’s been fantastic.
We were a sole operator, it was myself and a ute, and as soon as we wanted to expand, we decided to engage the services of Hugh and we haven’t looked back. We’ve now got three vehicles, we’ve got two mechanics, our second mechanic is about to start or will be our third, including myself, he’s about to start at the start of next month.
We’ve expanded and we’ve taken on a lot more work and servicing all our client’s needs.
Hugh has helped us with the human resources side of things, making sure that we get the right people to help us grow our business.
I would say that initially, it’s probably an expense that you certainly try and overlook, and try and get away from that initial outlay. But we’ve found that throughout the process, we have made a lot more money and Hugh has helped us avoid making any costly mistakes throughout the process.
I thought it would be a great idea to go and look for a business coach. I did a bit of exploring. I met with a few other people, and he was probably the best. Definitely the best. That was why I went with him. He’s local, understands Geelong and the other areas, Surf Coast and Bellarine, how businesses operate within the region. He gave me great guidance in getting everything set up correctly.
The coaching is awesome. Hugh answers the phone when I ring him, and I’ll be in a tricky situation sometimes. He’s always there to guide me through it. Any advice, always very helpful, great ideas.
We catch up every four weeks. We sit down for about two or three hours sometimes and going through how the business is operating, if it’s profitable, and he makes sure that we’re achieving the right profit and goes through all my pricing and makes sure the business is doing well and lets me know if it’s not and what I need to do to change things. Everything’s been going really great so far.
When I started first, I was a bit unsure what direction I wanted to go in and what jobs I should take on. We looked at a few different jobs, and I told Hugh what I wanted to do. I eventually do more new custom homes, and Hugh helped me set up in that direction. Now, I’ve got probably four custom homes currently on the go, including other renovations and extensions, all lined up for next year. Next year is pretty much booked out. I did not think that would happen, but with the right marketing and guidance, it’s actually been quite easy.
How Coaching Help Me
It doesn’t hurt to speak to someone. A lot of people think they know everything. You don’t. When you’re starting a business, there’s a lot to learn, especially involved in building or a trade, as well to owning a business. Then just the trade side of things, the building side of things, it’s almost not where you make the money. The business side of things is where you make the money and you definitely need… If you haven’t done it before, definitely getting some help in those areas, it doesn’t hurt.
There’s been situations where I feel I’ll make the call on this, and I’m like, “No, actually I might ring Hugh first.” Probably saved me thousands of dollars, just that phone call. That covers Hugh for a fair while just there. I think every bit is worth it. I hope to have Hugh there for the whole time, for the rest of the journey, because I hope to expand the business, and I want him to help me in those areas, in employing the right people and having the right structure for what I want to do. He’s done it so many times. He’s done it with a lot of other businesses. I just want to make sure I set up right with everything I do, and I think he’s the man for the job.
My name’s Lee from Twilight Glamping. We provide luxury, pop up accommodation along the Great Ocean Road in Bellarine Peninsula. We also specialise in large weddings and corporate events where we go and we curate the whole event. So we’ll take 5,000 bell tents, set them all up as a bell tent village. We do large yurt style marquees for weddings as well that can seat up to a couple hundred people.
We decided to go with Hugh. Business was going quite well. I just felt like we needed a little bit more direction, a bit of good decision making/risk taking it got us to a point where we were, and I felt like we needed a bit more business guidance to be able to understand our company properly and how we could best grow. It’s been really good in the last few months, actually, since we started with Hugh, it was quite a big decision/gamble for us to start working with him, a big step.
It’s actually been really beneficial. I think probably one of the best things I’ve taken from it is it just gives you a sounding board and it gives you the confidence to make good decisions and your own decisions, but it just gives you the confidence to make them and make them quickly. And then you can move on quite quickly and progress. I’d say working with Hugh has had a real positive effects on our business. Hence why we’re still using him. We’ve taken on a full time, couple of full time permanent members of staff, casual numbers have increased a lot.
Revenues Have Increased
Bookings have increased, revenues increased. And I think just the general understanding of our business, myself and Beth, my wife, who runs the business with me, it’s just given us a lot more of an understanding about the business fundamentals. Making the investments to bring Hugh on board to engage him was quite a big decision. It was quite a decent chunk of money, but it gave us the confidence.
I mean, guarantees for a start that it pays for itself in the first 12 months, I think it is. And now it was a big decision at the start, but now it’s an expense that we get, we pay out and we kind of just move on. I don’t think it worries us too much anymore.
Which is code for saying you are too busy working in your business delivering your product or service and too busy to work on your business.
Do you find yourself saying you are Too Busy?
I’ve talked to a lot of business owners recently, and one thing I’ve just heard again and again, and again: “I’m just too busy!” “Too busy?” I say. “I can’t believe it. So what are you doing? You raking in the dollars?” And they say, “Oh, well, maybe not.” And I go, “Okay, well, that means you probably should be working more on your business, then.” Or if it was a “Yes, raking in dollars,” I go, “Well, what are you so busy for? You should be going fishing, sitting on the beach, or learning how to improve your business even more, so you can do more sitting on the beach and more going fishing.”
This is what I really think they should be doing. If you’re too busy, you’re saying you’re too busy to be working on the systems in your business, systems that create a better quality product or service or systems to make it easier to employ people that can do a particular job and then more easily do it. So you can educate or train staff more easily or things like that.
A chance to improve
So are you too busy to improve systems in your business? That doesn’t make good sense, right? Too busy to train your team? After all, you’ve got a better-trained team, you get better, more happy customers. So, hey, that’s really high value.
Too busy to plan or set goals? Let’s face it: If you don’t know what the plan is, you’re not going to get there. Or you’re already there now.
Too busy to review staff? The one thing you want to try and improve your staff, you’ve got to review and talk to them, improve them, and set goals with them, and listen to them and work out what they really want to learn and what they want to do or like to do.
Too busy to learn more or work on their own education? I say, “Well, unless you get better yourself, that’s where you’re going to cap your business potential.”
If you find yourself saying you’re too busy, have a real think about if you are too busy and what should you really be working on instead?
As a business owner, understanding what is in your Balance Sheet is fundamental in growing a great business. This video discusses what things are and why in your Balance Sheet.
What is A Balance Sheet?
Today I want to talk about balance sheets or what are otherwise known as a statement of position.
A balance sheet provides you with the financial position of your business. It includes and lists the assets, liabilities, and owners’ equity at any given point in time and illustrates the financial health of your business and its net worth.
Your balance sheet is the most important statement of three, the other two being the income statement and cash flow statement.
What I found is the balance sheets are a bit more complex to understand but they fulfil the picture with the profit and loss.
What you might expect to be in a profit and loss pops up in the balance sheet and so without both of them you don’t actually get a full understanding of the business. For people who are very knowledgeable such as accountants will love the balance sheet. They will say ” everything’s in there that we need to know”!
As a business owner you need to understand the components of a P&L and where certain things appear in there and what they mean and why are they there helps you out.
Check out the video above for a typical balance sheet derived from Xero accounting package.
If you got any questions don’t hesitate to contact me and keep your eyes out for other videos that are coming up especially around break-evens and and profitable losses that i’ve done previously and the best way to get informed of those is to subscribe to my channel so thanks for listening again and any questions are welcome to hear from you.
As a business owner, understanding what is in your Profit and Loss is fundamental in growing a great business. This video discusses what I like to see in a Profit and Loss for a small business.
Your Profit & Loss Statement
Today I want to talk about how to read a profit and loss statement out of your accounting program, like Xero or QuickBooks. What I’ve found is that business owners, without a great understanding, or in depth understanding of what’s in their profit and loss, they have difficulty in making great decisions in their business about spending money in certain areas or where to take it to.
I’m going to look at a real life, Xero profit and loss statement, and talk you through exactly the things that I would expect in that statement and how you can maybe adjust the one you have in your business to get some more information out of it, to help you make great sort of management decisions. So let’s jump onto my computer, and we’ll have a quick look.
Looking at a P & L containing historical information. We’re looking at previous months here, and I guess this is the first thing to point out is I like to see the break up on a monthly basis here. For example, we’re in October here and we can look at the previous months, September, August, and July, and most accounting packages will split it up into months for you, but I think this is really important as a management tool, you need to look at your P and L every month.
Some businesses are hooked on just looking at annual P & Ls from their accountant, but a monthly summary is something that is really, really useful. And another key feature or the main key features of the P & L is obviously we’re showing our income here, having cost of sales and expenses with the profit at the bottom.
Carving Up Your Income
And so let’s dig into each of these sections and cover off a couple of things that are what I would like to see in most businesses in each of their sections here. So income, this is all the income that comes into the business and it could be mistaken. This business here is largely, all the income is thrown into virtually one bucket here, but it’s good to be able to split it up into several buckets. If you’ve got a business that does installation and service, for example, you might want to put at least two.
Even better, if you’ve got certain regions or multiple core services, you can actually record your sales, you might have sales for excavations and sales for roofing and sales for Melbourne work, so you can start to understand exactly where the work is. So that’s a great thing to see in my view.
Now, in terms of being able to derive that sale or deliver that good or service, there’s going to be some costs involved. The cost of sales are usually the material and labor to deliver that job. So materials, for example, in say a business site might be flooring materials. Without that material, you can’t deliver that job. Subcontractors are usually under cost sales if they are an installer, for example. But also all of the guys or employees in your business that actually work on the job to deliver that job, their salaries and wages are a core part of that too.
Not all wages are a part of cost of sales. And quite often they’re put down here in expenses, but it’s a much better way for on the job guys to put them up here in cost of sales.
If they happen to be a admin person or a salesperson or general manager, they’re not used to deliver the job, so they would be down here in wages under expenses.
These expenses are typically things like power, heating, postage, rent, motor vehicle expenses anything that incurs a cost that you have to pay out, even if the job is not going ahead. So if you don’t have any work for a week, you might put your guys off and tell them to go and have a holiday, but these are things you’re going to have to pay.
I think that pretty much covers off the fundamentals of a P & L. So I’m hoping that what I’ve just gone through on the screen here has helped you have a greater understanding of what’s in your profit and loss. If you have any questions, don’t hesitate to call me, and keep your eye out for other videos that I’ve got along these lines, I’ve got one on balance sheet and break even coming up as well, which go hand in hand with the profit and loss video. And the best way to get that is by subscribing to my channel, so you can see all the videos coming up.
Have you ever wondered how many sales or turnover you need to know that you are not losing money? Or if you are purchasing a new piece of equipment, how much work it needs to do to make it pay? Or a sales person, how many sales they make to cover their costs?
Then watch this helpful video to show you how to calculate your break even in all these situations.
McGuane Constructions is a small building construction based business in Colac. We have four employees, four builders on the tools, a receptionist, and my wife helps out in the business. We focus mainly on renovations, we do do new homes, small, large, you name it, we do it.
We got on to Hugh through Tim Clark of the accounting firms, Sinclair and Wilson. Tim referred us to Hugh because I’m always in there annoying Tim for information regarding business and business strategies. And he referred us to Hugh knowing that Hugh specialises in our types of business and has the tools to help us grow the way we want to grow and we’re trying to grow in the future.
So, and what I’ve got out of the business planning session today is a lot of information comparing other businesses and being able to ask questions and direction of Hugh. I found he’s very good at being able to lead you in the right direction, letting you work out what you need to do, but giving you, I suppose, the tools and knowledge to affect those changes.
I think get out of these what you put into them so that I think that by Hugh giving you the tools, if you don’t do the work, you’re not going to reap the rewards of it. We’ve learned a lot today. We’ve got a lot of notes to go away and study, processes to put in place, goals to achieve.
And as my wife stated before these days are great because they force you to sit down and review your business properly, not just have a constant running, shaking your head where you think you’re doing stuff when you’re not really actually ticking off these goals.
And by doing this, it gives us goals to achieve and tick off as we go, so that we feel like we’re achieving something on the business development side, which is where we’ve always battled. So, yeah, thanks to Hugh and thanks for the day.
Northwest install, air conditioning systems, and heating and cooling systems, and our niche market would be the boutique style builder and your retail builders, where you’re building the custom design homes. We do a lot of work where a lot of other companies can’t do, and we kind of say, “Well we can do it.” Yeah, so our target market would be the retail builder and any custom built homes, in terms of air conditioning.
Hugh has been our action coach for 18 months now and has been helping us with profit, which we’re actually up by 200%, which is fantastic. Since we started with Hugh we have work on:
– processes with all our work, making sure that our processes are nice and streamlined, which is ongoing, and that’s been a huge, huge help in that area. – our target market, making sure we’re targeting the right work for our business.
Coaching has really helped us just step out of the business and look back into the business, say you get out of the hustle and bustle, and you get to actually have a good conversation with a professional and just get a better clarity in moving forward and making sure you’re making the right decisions. Yeah, it’s just really good to have a professional there to have conversations around issues, you know daily issues.
Hugh’s really helped me understand the P and Ls of the business. So when I first bought into the business, I kind of didn’t have any idea really what I was doing, but I would just want to jump in the deep end and figure that out.
That’s when I got Hugh on board and then just understanding our profit and loss, he’s been really, really good for me personally, just to understand where we’re at with the company and just makes me feel more comfortable with the direction heading forward.
It’s really helpful with us three owners to sit down with Hugh, any issues that we have, Hugh always has some sort of tool to help us to move forward and implement a strategy or anything moving forward to resolve that issue. He’s just an easygoing bloke with a lot of industry knowledge I guess.
Another really good thing about Hugh is he has a lot of expertise and a lot of good tools that he can forward on to us to resolve any issues at hand, quite quickly as well. So, I think his expertise is really good with helping us move forward, especially to resolve any issues quickly.
Hi, I’m Ben from BM Floors in Newtown. We’ve got a showroom at 23/5 Bridge Street, Newtown. We do custom design projects, engineered oak, parquetry. I manage the project from start to finish, so you’ll get expert advice, 25 years’ experience in the industry.
Business Planning Session
Doing the business planning session with Hugh and others was great. We met some fantastic people, first and foremost, so we’ve got an insight into their businesses because a lot of the fundamentals in business are very, very similar.In terms of Hugh running the process, I suppose from start to finish, it was run very well. It sort of reinvigorated my business because I’ve got a business plan to focus on.
It was like analysing a lot of the business that I’ve got and a lot of areas of the business that I needed to focus on. You can’t do all that yourself. Having that sort of stuff in front of you and being able to look at that sort of stuff, as a rolling business plan, would be invaluable for my business.
I find Hugh easily relatable to, speaks on my level. His insight and knowledge over years, has been fantastic. Just getting a lot out of it at the moment. He’s actually got me to read a book, which is quite interesting because I haven’t read for years. It’s been really good for my business. From a coaching point of view, I would certainly recommend not only Hugh, but ActionCoach. I think it sort of relates to my level in terms of business.
I’m only a new startup business. I wanted the right people and the right processes in place, which he’s developing for me, which is fantastic because you can’t do that yourself when you’re just a one-man show running a business in a warehouse. I would certainly recommend Hugh’s ActionCoach. Definitely.