Geoff loves his business nearly as much as he loves his family, in fact his wife Sue sometimes thinks it is even more. It’s not just the succeeding he says, but the striving for success that makes it so rewarding.
Like many business owners Geoff had not really considered life after business till he heard us speak at one of out small business events. Whilst he made sure that his family never went without, any surplus cash the business generated was ploughed back in the hope that the business would continue to grow. He had made no real contributions to super for himself for years, and was only paying himself enough to keep the family afloat – just.
We began by examining Geoff’s business cash flows, and observed that there were a number of areas impacting on the day to day cash flow, including collections and stock control. We also made some recommendations in connection with pricing which will have long term impacts on the ability of the business to fund the personal needs of Geoff and his family. Encouraging Geoff to increase his prices was one of the more robust conversations we have had with a client!
The most important part of our work here was recommending that Geoff pay himself appropriately, including setting aside money into superannuation. As Geoff had a long term goal to purchase business premises, we encouraged him to maximise his contributions to the extent allowed by his cashflow, and worked on projections which would allow him to accumulate sufficient funds to use some of his superannuation money to achieve this in five years time.