“Clients in financial strife
   – innovative ways of
   helping them help
   themselves”




    © Copyright – One Sherpa ...
In today’s presentation we will cover



An introduction to a new way of
thinking


                         © Copyright –...
In today’s presentation we will cover
An introduction to a new way of thinking




    Tips on getting into a small busine...
In today’s presentation we will cover
An introduction to a new way of thinking
Tips on getting into a small business owner...
In today’s presentation we will cover
An introduction to a new way of thinking
Tips on getting into a small business owner...
In today’s presentation we will cover
An introduction to a new way of thinking
Tips on getting into a small business owner...
Let me ask
you three
questions
on numbers


             © Copyright – One Sherpa Pty Ltd 2010
1. Why is it
some people
just don’t ‘get it’
when it comes to
the numbers of
a business?
                      © Copyright...
2. Why is it that the finance people seem to
 have a different way of looking at things?
                  © Copyright – O...
3. Why is it that finance people make
some things seem very complicated?




                © Copyright – One Sherpa Pty ...
© Copyright – One Sherpa Pty Ltd 2010
Most small business owners feel like
they’re chasing the money ALL THE TIME




                © Copyright – One Sherpa P...
They have no
financial context
  from which to
    make their
     decisions

                    © Copyright – One Sherpa...
As a result they have
no way to make
clear cut decisions
nor measure how
they’re really going

                  © Copyrig...
They understand words and
can use them quite forcefully
            © Copyright – One Sherpa Pty Ltd 2010
But for many,
numbers look like ants walking up a page
                © Copyright – One Sherpa Pty Ltd 2010
Many small business owners walk around in a
              fog financially
                  © Copyright – One Sherpa Pty L...
So how can
               accountants help them?




© Copyright – One Sherpa Pty Ltd 2010
We have to
jump into
their world
rather than
expecting
them to jump
into ours
               © Copyright – One Sherpa Pty ...
Most small
business
owners hate
numbers
and will do
anything to
try and
forget them
              © Copyright – One Sherpa...
They normally trust their accountant but often
  have no idea what the numbers really say




                   © Copyrig...
This is a golden opportunity to put that trust
into effect and get them to help themselves




                   © Copyri...
However most small
business owners see
accounting as a cost
and not a benefit so
they’re always
looking to minimize
the ac...
So they appreciate
advice about helping
themselves
Particularly because
they often have no
training in being a
business ow...
They often ‘fall into
                                        a business’ with
                                        lit...
They may be excellent
                                  at their trade

                                  Or have great te...
They may know the operational side of their business well
  BUT this is not enough to succeed as a business owner
        ...
Business owners need a broader range of skills




                  © Copyright – One Sherpa Pty Ltd 2010
One of those broader skills is:




           FINANCE

           © Copyright – One Sherpa Pty Ltd 2010
Three tips on how
                                        to help small
                                        business o...
1.             2.                                         3.
Think simple   Think visual                               Thi...
1.
                      Think simple



© Copyright – One Sherpa Pty Ltd 2010
One of the
most famous
advertisements

What was the
tag line?

                 © Copyright – One Sherpa Pty Ltd 2010
Keep numbers
                                        really simple
© Copyright – One Sherpa Pty Ltd 2010
                 ...
Small business
owners usually
only focus on a
few numbers




                  © Copyright – One Sherpa Pty Ltd 2010
The single
biggest reason
why small
business
owners fail is
NOT because
they fail to do
a business
plan              © Cop...
It is because the business model
which the plan is based on is
completely flawed




                   © Copyright – One ...
So helping business owners to understand
the financial part of their business model
   makes helping themselves possible

...
There are many ways to think of business
 model but the simplest and best we’ve
     found is to think of three parts




...
Customer Value




Does the business earn enough margin after
       including a market wage for
            the business ...
Transaction Flow




Is there enough sales volume
 flowing through a business
           © Copyright – One Sherpa Pty Ltd ...
Money Flow




 Is the working capital (inventory, accounts receivable
and accounts payable) the right size for the volume...
Presenting these in
                               a simple way will
                               help small business
  ...
Easy simple dials that can be
   understood intuitively




          © Copyright – One Sherpa Pty Ltd 2010
There is a FREE tool available to do
              this at
www.oneminutebusinesscheckup.com




               © Copyright...
2.
Think visual




               © Copyright – One Sherpa Pty Ltd 2010
Remember .. most small business owners
 see numbers as ants walking up a page
               © Copyright – One Sherpa Pty ...
Pictures , graphs
and analogies help
them understand
what the numbers
mean

                     © Copyright – One Sherpa ...
Presenting lots
of graphs does
 not show the
WHOLE business


    © Copyright – One Sherpa Pty Ltd 2010
One way of doing this is using a tool called




                  © Copyright – One Sherpa Pty Ltd 2010
It presents a profit and loss account,
balance sheet and cash flow in the analogy
of a fence




                 © Copyri...
This tool helps small
business owners
understand why they
can be making great
PROFIT but have no
CASH to pay their TAX
   ...
Traditional Reporting



                        OPENING




                        © Copyright – One Sherpa Pty Ltd 2010
Traditional Reporting



                        FOR THE PERIOD




                         © Copyright – One Sherpa Pty ...
Traditional Reporting




                        CLOSING




                        © Copyright – One Sherpa Pty Ltd 2010
BALANCE SHEET                                                                                            BALANCE SHEET
   ...
A online version is available at
www.onesherpa.com with FREE
bronze membership




                   © Copyright – One Sh...
3.
Think story




              © Copyright – One Sherpa Pty Ltd 2010
The numbers
of a business
always tell a
story




                © Copyright – One Sherpa Pty Ltd 2010
Getting a business owner to understand the
 story gets far more benefit for them than
   being ANAL about the exact number...
Filing a TAX return on behalf of a client
is completely different to telling a story
about what’s happening in their busin...
Business owners
are most likely not
worried about the
last cent EXCEPT in
relation to the
accountants bill

              ...
They want to
know what’s
going on so
they can be
more
successful

               © Copyright – One Sherpa Pty Ltd 2010
More
successful in
                                     SALES
their eyes is
often just
more sales


                © Copy...
Tell them the
story about
their business
model




                 © Copyright – One Sherpa Pty Ltd 2010
Customer                                            Put it in the three
Value                                             ...
Then they can help themselves by knowing
             WHERE to focus
                © Copyright – One Sherpa Pty Ltd 2010
Remember
you’re
succeeding
when they ask
you questions

                                                        not the ot...
The best measure
of whether they’re
helping themselves
is the quality of
questions they ask
you when you are
talking to th...
We have to
jump into
their world
rather than
expecting
them to jump
into ours
               © Copyright – One Sherpa Pty ...
1.             2.                                         3.
Think simple   Think visual                               Thi...
To access a copy of this presentation go to

www.onesherpa.com/presentations


                    © Copyright – One Sherp...
This presentation has been brought to you by:




  An online global resource centre and membership
community dedicated to...
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Clients in Strife - Innovative ways to

  1. 1. “Clients in financial strife – innovative ways of helping them help themselves” © Copyright – One Sherpa Pty Ltd 2010
  2. 2. In today’s presentation we will cover An introduction to a new way of thinking © Copyright – One Sherpa Pty Ltd 2010
  3. 3. In today’s presentation we will cover An introduction to a new way of thinking Tips on getting into a small business owners world © Copyright – One Sherpa Pty Ltd 2010
  4. 4. In today’s presentation we will cover An introduction to a new way of thinking Tips on getting into a small business owners world 1. Think Simple © Copyright – One Sherpa Pty Ltd 2010
  5. 5. In today’s presentation we will cover An introduction to a new way of thinking Tips on getting into a small business owners world 1. Think Simple 2. Think Visual © Copyright – One Sherpa Pty Ltd 2010
  6. 6. In today’s presentation we will cover An introduction to a new way of thinking Tips on getting into a small business owners world 1. Think Simple 2. Think Visual 3. Think Story © Copyright – One Sherpa Pty Ltd 2010
  7. 7. Let me ask you three questions on numbers © Copyright – One Sherpa Pty Ltd 2010
  8. 8. 1. Why is it some people just don’t ‘get it’ when it comes to the numbers of a business? © Copyright – One Sherpa Pty Ltd 2010
  9. 9. 2. Why is it that the finance people seem to have a different way of looking at things? © Copyright – One Sherpa Pty Ltd 2010
  10. 10. 3. Why is it that finance people make some things seem very complicated? © Copyright – One Sherpa Pty Ltd 2010
  11. 11. © Copyright – One Sherpa Pty Ltd 2010
  12. 12. Most small business owners feel like they’re chasing the money ALL THE TIME © Copyright – One Sherpa Pty Ltd 2010
  13. 13. They have no financial context from which to make their decisions © Copyright – One Sherpa Pty Ltd 2010
  14. 14. As a result they have no way to make clear cut decisions nor measure how they’re really going © Copyright – One Sherpa Pty Ltd 2010
  15. 15. They understand words and can use them quite forcefully © Copyright – One Sherpa Pty Ltd 2010
  16. 16. But for many, numbers look like ants walking up a page © Copyright – One Sherpa Pty Ltd 2010
  17. 17. Many small business owners walk around in a fog financially © Copyright – One Sherpa Pty Ltd 2010
  18. 18. So how can accountants help them? © Copyright – One Sherpa Pty Ltd 2010
  19. 19. We have to jump into their world rather than expecting them to jump into ours © Copyright – One Sherpa Pty Ltd 2010
  20. 20. Most small business owners hate numbers and will do anything to try and forget them © Copyright – One Sherpa Pty Ltd 2010
  21. 21. They normally trust their accountant but often have no idea what the numbers really say © Copyright – One Sherpa Pty Ltd 2010
  22. 22. This is a golden opportunity to put that trust into effect and get them to help themselves © Copyright – One Sherpa Pty Ltd 2010
  23. 23. However most small business owners see accounting as a cost and not a benefit so they’re always looking to minimize the accounting cost © Copyright – One Sherpa Pty Ltd 2010
  24. 24. So they appreciate advice about helping themselves Particularly because they often have no training in being a business owner © Copyright – One Sherpa Pty Ltd 2010
  25. 25. They often ‘fall into a business’ with little knowledge on being a business owner © Copyright – One Sherpa Pty Ltd 2010
  26. 26. They may be excellent at their trade Or have great technical skills BUT does that make them a good business owner? © Copyright – One Sherpa Pty Ltd 2010
  27. 27. They may know the operational side of their business well BUT this is not enough to succeed as a business owner © Copyright – One Sherpa Pty Ltd 2010
  28. 28. Business owners need a broader range of skills © Copyright – One Sherpa Pty Ltd 2010
  29. 29. One of those broader skills is: FINANCE © Copyright – One Sherpa Pty Ltd 2010
  30. 30. Three tips on how to help small business owners with finance © Copyright – One Sherpa Pty Ltd 2010
  31. 31. 1. 2. 3. Think simple Think visual Think story © Copyright – One Sherpa Pty Ltd 2010
  32. 32. 1. Think simple © Copyright – One Sherpa Pty Ltd 2010
  33. 33. One of the most famous advertisements What was the tag line? © Copyright – One Sherpa Pty Ltd 2010
  34. 34. Keep numbers really simple © Copyright – One Sherpa Pty Ltd 2010 because …..
  35. 35. Small business owners usually only focus on a few numbers © Copyright – One Sherpa Pty Ltd 2010
  36. 36. The single biggest reason why small business owners fail is NOT because they fail to do a business plan © Copyright – One Sherpa Pty Ltd 2010
  37. 37. It is because the business model which the plan is based on is completely flawed © Copyright – One Sherpa Pty Ltd 2010
  38. 38. So helping business owners to understand the financial part of their business model makes helping themselves possible © Copyright – One Sherpa Pty Ltd 2010
  39. 39. There are many ways to think of business model but the simplest and best we’ve found is to think of three parts © Copyright – One Sherpa Pty Ltd 2010
  40. 40. Customer Value Does the business earn enough margin after including a market wage for the business owner © Copyright – One Sherpa Pty Ltd 2010
  41. 41. Transaction Flow Is there enough sales volume flowing through a business © Copyright – One Sherpa Pty Ltd 2010
  42. 42. Money Flow Is the working capital (inventory, accounts receivable and accounts payable) the right size for the volume of the business © Copyright – One Sherpa Pty Ltd 2010
  43. 43. Presenting these in a simple way will help small business owners because they can SEE what’s going on in their business © Copyright – One Sherpa Pty Ltd 2010
  44. 44. Easy simple dials that can be understood intuitively © Copyright – One Sherpa Pty Ltd 2010
  45. 45. There is a FREE tool available to do this at www.oneminutebusinesscheckup.com © Copyright – One Sherpa Pty Ltd 2010
  46. 46. 2. Think visual © Copyright – One Sherpa Pty Ltd 2010
  47. 47. Remember .. most small business owners see numbers as ants walking up a page © Copyright – One Sherpa Pty Ltd 2010
  48. 48. Pictures , graphs and analogies help them understand what the numbers mean © Copyright – One Sherpa Pty Ltd 2010
  49. 49. Presenting lots of graphs does not show the WHOLE business © Copyright – One Sherpa Pty Ltd 2010
  50. 50. One way of doing this is using a tool called © Copyright – One Sherpa Pty Ltd 2010
  51. 51. It presents a profit and loss account, balance sheet and cash flow in the analogy of a fence © Copyright – One Sherpa Pty Ltd 2010
  52. 52. This tool helps small business owners understand why they can be making great PROFIT but have no CASH to pay their TAX © Copyright – One Sherpa Pty Ltd 2010
  53. 53. Traditional Reporting OPENING © Copyright – One Sherpa Pty Ltd 2010
  54. 54. Traditional Reporting FOR THE PERIOD © Copyright – One Sherpa Pty Ltd 2010
  55. 55. Traditional Reporting CLOSING © Copyright – One Sherpa Pty Ltd 2010
  56. 56. BALANCE SHEET BALANCE SHEET “AS AT” “AS AT” THE FINANCIAL FENCE ® WORKING PROFIT & LOSS ACCOUNT WORKING CAPITAL “FOR THE PERIOD” CAPITAL COST CONTRIBUTION INFRASTRUCTURE NET SALES EXPENSES PROFIT OF INTERACTION MARGIN FIXED CASH FLOW STATEMENT FIXED CAPITAL “FOR THE PERIOD” CAPITAL MOVEMENT MOVEMENT NET OPERATING NET IN WORKING IN FIXED PROFIT CASH FLOW CASHFLOW CAPITAL CAPITAL DEBT DEBT EQUITY EQUITY © Copyright – One Sherpa Pty Ltd 2010
  57. 57. A online version is available at www.onesherpa.com with FREE bronze membership © Copyright – One Sherpa Pty Ltd 2010
  58. 58. 3. Think story © Copyright – One Sherpa Pty Ltd 2010
  59. 59. The numbers of a business always tell a story © Copyright – One Sherpa Pty Ltd 2010
  60. 60. Getting a business owner to understand the story gets far more benefit for them than being ANAL about the exact numbers © Copyright – One Sherpa Pty Ltd 2010
  61. 61. Filing a TAX return on behalf of a client is completely different to telling a story about what’s happening in their business © Copyright – One Sherpa Pty Ltd 2010
  62. 62. Business owners are most likely not worried about the last cent EXCEPT in relation to the accountants bill © Copyright – One Sherpa Pty Ltd 2010
  63. 63. They want to know what’s going on so they can be more successful © Copyright – One Sherpa Pty Ltd 2010
  64. 64. More successful in SALES their eyes is often just more sales © Copyright – One Sherpa Pty Ltd 2010
  65. 65. Tell them the story about their business model © Copyright – One Sherpa Pty Ltd 2010
  66. 66. Customer Put it in the three Value easy pieces Transaction Flow Money Flow © Copyright – One Sherpa Pty Ltd 2010
  67. 67. Then they can help themselves by knowing WHERE to focus © Copyright – One Sherpa Pty Ltd 2010
  68. 68. Remember you’re succeeding when they ask you questions not the other © Copyright – One Sherpa Pty Ltd 2010 way round
  69. 69. The best measure of whether they’re helping themselves is the quality of questions they ask you when you are talking to them © Copyright – One Sherpa Pty Ltd 2010
  70. 70. We have to jump into their world rather than expecting them to jump into ours © Copyright – One Sherpa Pty Ltd 2010
  71. 71. 1. 2. 3. Think simple Think visual Think story © Copyright – One Sherpa Pty Ltd 2010
  72. 72. To access a copy of this presentation go to www.onesherpa.com/presentations © Copyright – One Sherpa Pty Ltd 2010
  73. 73. This presentation has been brought to you by: An online global resource centre and membership community dedicated to helping small business owners succeed and prosper www.onesherpa.com © Copyright – One Sherpa Pty Ltd 2010

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