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Welcome to our July newsletter. This month will again be briefer than normal as I know many of you are busy with completing and analysing your previous financial year-end figures. As a result, there will not be a special topic subject this month.

This month’s quote and blog focuses on creating a team environment in a business for the common good of all within the business.

The conundrum this month asks do you have the time and resources to work ON your business, or only to work IN your business?

Our inconvenient truth confirms how hard it is to predict the future.

This month’s Tradies Hints and Notes is about taking over a part completed project.

Kim is available to help with your questions and concerns if you need any assistance, and as always, the first chat is always free of charge or obligation.

Quote Of The Month

“So what happen? The opinions are many and varied. But one commonly accepted diagnosis is that too much funding was diverted to support the top while clubs and communities were starved of capital and attention. Now the whole pyramid is weak and unstable – grassroots rugby lacks funding and the national team is underwhelming.” In the article about Eddie Jones by Jonathon Shapiro in August 2023 AFR Magazine

Monthly Business Observation

The fact is, a business is no different to that of a sporting club or league.

As I have written about many times before, and more importantly in recent times, a team environment is essential in these difficult economic times. When not all departments in the organisation are offered the same access to financial and support resources, it is likely there will be two major negative reactions.

First, certain areas of the business cannot achieve their maximum potential to assist in the survival and growth of the business. Typically, the warehouse, accounts payable and receivable, risk and fraud employees, and other general administrative employees can often be under resourced. The result then is that these employees are unable to achieve their maximum efficiencies and results.

Meanwhile, other areas of the business are overly generously supplied with resources and financial incentives to complete their basic work, and are often also able to achieve bonuses for excellence. Furthermore, marketing, sales and accounting, can often get away without achieving positive goals because any mistakes or problems are minimised, or some other factor is to blame.

Worse still, because of the above situations, these same employees can also assume because of their preferential treatment, they know better than anybody else in the business.

The second outcome is that there will be employees in the under resourced departments can often feel their contributions which benefit the business are ignored, marginalised or even ridiculed. As you can imagine, this then creates a barrier for a positive team-like environment where all employees feel valued.

The consequences of failing to create a team-oriented business culture will inevitably compromise the business’s ability to earn a dollar at every opportunity. In today’s fragile and debt-ladened world, this outcome makes it even harder for a business to survive, let alone prosper and grow.

This Month's Business Inconvenient Truth

No one can predict the future, except those who already know that their own business is no longer viable. The rest of us need to look at the facts of business life, the environment, government actions and legislations, and the actions of those around us.

It may appear you thought all was okay and you managed your business operations for today’s world. The pace of change is increasing, and with world wars, civil unrest in many countries, accidents or sudden death of key stakeholders, not to mention the actions of those mentioned above, all bets are off.

Although the super-rich are not totally immune from the actions of others, for most of us, we may not survive financially or emotionally from any changes that affect our financial or business assets negatively.

Nevertheless, there are always actions we can take as individuals to minimise any negativity which may occur, often without warning. It is important therefore that you constantly review your actions to ensure you have multiple options of action and resources available to try and minimise any changes that may occur unexpectedly in the future.