Blackburn Accounting

Personal and Business Financial matters:

Mixing money, personal and Company transactions is fraught with danger, including relationship friction and can easily lead to ‘robbing Peter to pay Paul’!

And it is easy to fall into the trap of thinking it's all the same money, same interests but that is a slippery slope, particularly when the 'chips are down'. Moving money, shuffling IOU's and broken promises is a recipe for disaster!

Tips:

Personal and Business matters are different matters.
Keep separate systems and records and avoid ‘borrowing’ from either.
Adopting these practices makes it simpler for all concerned including for providing true and accurate Business financial reports, taxes and audits.
Supports transparency of operations.

Business

Meeting Sibling rivalry, nothing new, but in a Family Business if left unchecked can become a major problem presenting challenges for all concerned!

Addressing it is crucial! Ignore and the consequences can be great!

Adopting proactive strategies, planning and communication is key to taming and tempering negative competition and contentious issues.

Why, how does rivalry occur?

It can happen when emotional needs are not being met. Siblings compete for parental recognition, attention and reward that can translate to and present in the Business environment. If unresolved, rivalry festers and relationships can become toxic as siblings strive to prove their worth.

Strategic differences are also factors, such as differences in Business direction, values or approach. There may also be assumed expectations. All these can manifest as conflict, arguments and disagreements over leadership roles, authority, decision-making or succession planning.

Consequences:

Sibling rivalry if left untamed has the power and potential to impact and threaten the stability of the Business activities, family relationships and future of the family entity. Such disputes are destructive resulting in decreased trust, difficulty in reaching or making decisions, and weakened morale. Worst case scenario family's are torn apart and the Business colapses.

Example:

Strategy No.2

Overdue payments - monies due, owed to you:

Slow and late payments pose the greatest risk to Small Business. Cash in keeps the money flowing, without it the cash river dries up! and so can your Business.

Tips:

Have an efficient invoicing and billing system in place, one that generates accounts at the point of sale
Offers a variety of payment methods and options.
Electronic systems can also monitor receipts and overdue accounts allowing you to better manage and avoid late payments.
Keep on top of your debtor's ledger, remember you are running a Business, it's your livelihood.
Keep in communication - ask for a payment plan or set up a payment plan

Business

Setbacks are inevitable, but as a leader how you respond to them is the difference in how the situation plays out. Your reaction influences the outcome. Bury your head in the sand, give-up, or react without thinking will not solve the problem.

But you can turn the situation around! By acknowledging the setback, reframing it as a learning opportunity and focusing on solutions is a positive and productive way to move forward. You can face and overcome the challenge, build resilience and in doing so, lead by example and inspire your team.

4 Ways to Turn Setbacks around!

Acknowledge and Accept the Setback:

Acknowledge the reality that setbacks occur, don't shy away. Step up as a Leader accept what's happened and face the issue. Take time and delve into understanding the issue, get the full picture then focus on seeking and finding solutions. Plan and develop a course of action. Reflect to learn but don’t waste time dwelling on the what ifs or might have been.

Reframe the Setback as a Learning Opportunity

Life throws us many challenges, both in our personal and professional fields. As a Business owner most likely you will and have experienced setbacks. The COVID pandemic an example. It certainly turned our lives and economy on our heads. Smart operators have used that horrific setback as a learning opportunity. They reframed the challenge, focused on the positives, identified the strengths and lessons learned from the experience. Example, Joe’s café was ‘tested’ with COVID distancing and lockdown rules. With no in-house business Joe had to find solutions and look for opportunities. He did so, by baking takeaway dinners and selling them direct from the refrigerator. Phone, click and collect sales soared and he was able to trade his way through this setback. He turned the situation around!