So what’s been our experience with prospective clients?
I personally have been struggling for over seven years to get prospective clients to give us their books so we can begin a journey of understanding how their business is going.
Often the books are behind and need to be brought up to date. Sometimes they don’t even contain all the information about the business.
Well…the net result is that this is a very torturous and difficult process which many business owners don’t have the inclination to complete. There has to be a better way to get a quick overall view of a business. And there is!!!
Ask the business owner the key questions about their business because their intuitive answers are often closer than the books and the intuition always contains up to the minute latest information!!
For example I was speaking to a mortgage broker who kept his ‘mortgages in progress’ in a completely different place to his books and only put entries through his books when the cash was received.
This meant that he had no idea as a whole what his business was doing because the systems weren’t integrated and were never going to be.
So how can you bring all the information into one place and get a better view of your business?
Ask a few simple questions and you’re done!
You may be interested to know the questions that we ask. Well they’re listed below.
- What sales did you make for the period?
- How much did you pay for purchases of stock or materials?
- How much did you pay for wages, salaries and contractors?
- How much did you pay yourself or take out of the business?
- What was the total cost of your marketing and advertising?
- How much did you pay for ADMINISTRATION wages and salaries?
- What is the TOTAL of all your other expenses
- How much Interest did you pay?
- How much stock do you have?
- How much work in progress do you have?
- How much do your customers or clients owe you?
- How much do you owe your suppliers?
- How much do you owe your staff eg holiday pay, long service, etc?
- How much GST and PAYG do you owe?
- What’s the value of your business assets?
- Plant & Equipment
- Motor Vehicles
- Property
- Other Assets
- How much Income Tax do you owe?
- How much cash do you have in the bank?
- How much do you owe on Hire Purchase or Lease?
- How much do you owe to banks or other financiers?
That’s less than twenty questions and you’ve got a real diagnostic on how your business is doing!





