Business and Money Tips

If your business struggles with: late payments,  constant discounting,  high customer churn,  unpredictable revenue The issue is not your spreadsheet. It’s your leadership. Most cash flow problems are caused by: avoiding difficult conversations,  tolerating weak boundaries,  chasing revenue instead of building trust,  fearing conflict more than protecting margin Let’s be honest. You don’t have a pricing issue. You have a courage issue. You don’t have a collection issue. You have a boundary issue. You don’t have a retention issue. You have a relationship issue. Care Protects Revenue Customers don’t leave because of price alone. They leave because they feel unheard. Businesses that listen deeply retain longer. Retention stabilizes recurring revenue. Stable revenue improves cash flow. Care is not softness. It’s revenue protection. Courage Accelerates Cash Flow Many companies allow invoices to sit unpaid for 60–90 days. Why? Because they’re afraid to upset clie...

I dare to claim that a healthy cash flow is even more important than your business's ability to deliver its goods or services! That may be placing a bit too much importance on your cash flow, but consider this: if you fail to satisfy a customer and lose that customer's business, you can always work harder to please the next customer. But if you fail to have enough cash to pay your suppliers, creditors, or your employees, you will be out of business!   A healthy cash flow is an essential part of any successful business.  It is just like blood flow in your human body.  We know that if your blood is not flowing smoothly in your body, you will suffer stroke and eventually die.  Same as business.  If cash is not flowing smoothly in your business, your business will be stuck and eventually fail. No doubt about it, proper management of your cash flow is a very important step in making your business successful. So understanding cash flow is the first step in...

Most people have high IQ, but low FQ - Financial Intelligence.  Just look at the many people who prefer freebies to discounts (like buy 5 get 1 free is more popular than 25% discount) and you'll know what I am talking about. By the way, I think I am qualified to talk about this subject because I am a Chartered Accountant by training, and have a  Second-class Honours Degree in Accountancy  from National University of Singapore in 1988, in addition to a MBA from Scotland in 2000.  There are 3 simple ways that you too can be financially intelligent today: Know that Cash Flow is better than Profits, and Profits are better than Wages .  Cash Flow is money coming in and out whereas Profits are just what you make in a period.   Profits can be boosted by one-off event s (like a big business deal) but Cash Flow is difficult to be manipulated because it is over a period of time (like 4 years).  Of course profits are always better than wages because you nee...

It always amazes me to see how our good government come up with so many handout schemes for businesses, like free consultancy, free ISO etc. Handouts are good, but for how long?  As a entrepreneur, the motivating factor is not free money, but an environment where they can have a fair fight and prove their capabilities. So when the government gives out money to the small businesses, they government need to follow-up with more business opportunities. Otherwise, the money is not put to good use.  We know that in business money grows money, and handouts are good if they can be put to good use to generate more business. Otherwise, the money will be gone in no time. What I think the government should do to give more business opportunities for small businesses include: Law requiring the public sector and all big companies to, before asking for quotes from foreign companies, to put up their purchase requisition in a website whereby  only local companies can quote, say ...

Yes, business as usual is dead long ago, which I'm sure you're aware of this long ago. 'As usual' means companies, employers and the government are in full control. Today we know the person using his mobile phone, phablet, tablet and laptop can exert so much control that no one can ever imagine. If you're still doing business the same old way as before, you're heading for trouble. Here are 5 things that you must know and do: 1.   What People Say About You = Your Reputation A company's branding is no longer built on massive advertising that builds up its name. Instead, a company's branding is built on what people say about you on social media like Facebook, Twitter and Youtube. Just look at the massive unhappiness about the non-issuance of TV license to Hong Kong TV and you'll know what I'm talking about. The Hong Kong Government is now facing a confidence shake-out that it lacks transparency, meritocracy and disclosure. If you were a M...