About Colin

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So far Colin has created 37 blog entries.
11 03, 2020

How a business can emerge as market leader following a crisis

By |2022-06-22T15:10:18+10:0011 March 2020|

Lessons learned from the GFC... The severity of COVID-19 has sent shockwaves through the economy and affected businesses on a massive scale. As the outbreak continues, business owners are counting their losses and wondering how they’re going to survive. The government has offered support measures and lifelines to assist businesses and their employees to endure periods of partial and perhaps total lock-down. For businesses forced to hibernate temporarily, it's time to plan and position for rapid recovery on the other side. Economists are forecasting tough times ahead, with most suggesting that a global economic recession is imminent. But while [...]

29 01, 2019

How expert financial reporting helped Detector Inspector grow quickly from micro to major-sized business

By |2022-06-22T15:19:54+10:0029 January 2019|

Jordan Kagan Gescheit and Jason Radolnik started a simple side-gig as university students. Now, with the help of a virtual CFO (Colin Wright), their side-gig is a multi-million dollar company expanding into other countries. Often the most successful business ideas are founded on the simple premise of identifying a need or gap in the market and developing a service offering that fills it. Detector Inspector have done just that and grown into a multi-million dollar business within about ten years. Rapid growth can be challenging for business owners and in 2014 directors Jordan Kagan Gescheit and Jason Radolnik engaged [...]

26 11, 2018

Good business decisions are supported by accurate financial reports!

By |2022-06-22T13:17:59+10:0026 November 2018|

Accurate financial reports are essential for making key business decisions. How do you know if your financial reports are accurate? This article discusses the critical areas of business performance and how to ensure your metrics are meaningful. No doubt you rely on your financial reports for many of your key business decisions. Of course, there will be a range of metrics that you rely on to understand how the business is performing, but it is the financial reports that are your final arbiter of your business’s performance. Some of the critical performance areas you will want to know in [...]

20 11, 2018

The 3 BIGGEST REASONS why your monthly reports are MISLEADING you!

By |2022-11-17T15:06:55+10:0020 November 2018|

When a business relies on financial reporting for vital decision-making, it can be extremely concerning to learn that these financial reports are incorrect. Here are the three most common reasons for misleading financial reports. Our virtual CFOs have worked with numerous small and medium sized businesses over many years. Without exception the first few months tend to always the same. When we review their financial reports at the end of each month, it’s very common to find that their financial results are inconsistent. So we ask a range of questions about how their business is handling a number of basic [...]

25 08, 2018

“Why I love having a virtual CFO” (by a serial start-up entrepreneur)

By |2022-06-22T15:06:25+10:0025 August 2018|

The owners of high-growth businesses can really benefit from having a virtual CFO to help guide their decision-making and ensure that growth is sustainable. This story tells how even an experienced entrepreneur can be more sure-footed going forward with a virtual CFO as their expert inside advisor. In my latest start-up adventure, a kind of D-day occurred when the P&L showed turnover would hit $1m in the current financial year. "Performance is on-track with your budgets and objectives," our bookkeeper said. "Well done," said the accountant. While most business owners would celebrate this 'Magic $1M' milestone now looming, I felt [...]

7 08, 2018

The 8 BIGGEST MISTAKES made by small business owners – are YOU making any RIGHT NOW?

By |2022-06-22T13:18:21+10:007 August 2018|

When a small business is growing, visibility is key to managing profitability and ensuring that growth is sustainable. Too many small business owners start losing track of the true picture of performance once the size and complexity of the business increases - typically by the time turnover has reached $1M+. Is your business making any of these 8 BIGGEST MISTAKES RIGHT NOW? If your profits vary significantly from one month to the next and you are not clear why, you have little clarity on how you are actually performing If your accounts are not structured correctly you [...]

26 04, 2018

What margin should we target?

By |2022-06-22T14:34:34+10:0026 April 2018|

Over the years I have been asked this question on many occasions. The enquirer is looking for a number but the number depends on many factors. So the answer is to explore a range of principles that apply to these factors. Let’s look at this for both from the “gross profit margin” and the “net profit margin” perspectives. Gross profit margin The first issue to explore is how vertically integrated the business is. From procurement through production/delivery through to sales & marketing. What activities is the business responsible for and how complex are these activities? The growth phase the business [...]

19 04, 2018

Gross profit explained without numbers

By |2022-06-22T14:30:59+10:0019 April 2018|

How front of mind is the meaning of gross profit for most business managers. If asked to describe what gross profit is, they would invariably say it is sales revenue minus cost of sales. Of course that is correct, but what does it truly represent? For me, it represents a measure of customer value created by the business in the reporting period. Another way of describing this is that it is a measure of wealth created by the business. As such, it is the most important measure for the business to focus on. Why do businesses exist? In the [...]

5 04, 2018

Don’t assume when making assumptions

By |2022-06-22T15:14:00+10:005 April 2018|

Planning is one of the key drivers of success in business. We all know that a proactive management approach is critical for achieving successful outcomes. A key element of your business plan is the financial plan, or forecast. This is used for budgeting purposes. For a budget to be a valuable performance management tool it must be based on the drivers of financial performance. It must be constructed from the ground up. For example, your revenue forecast must include: The volume of sales in each products/services category Where will they be sold (markets) What channels will they be sold [...]

23 03, 2018

Warning! Major risks ahead

By |2022-06-22T15:12:40+10:0023 March 2018|

You’re in business. Risks are all around you and many of them are capable of doing major harm to your business. Some could even destroy your business. This is a given. So how do you manage your risk exposures. For SME businesses this is a difficult, and often poorly managed, element of accountability. There is usually some focus on liquidity risk (having enough cash) and this is from necessity. Many SME businesses manage key risk exposures such as product risk or system risk through well developed Quality Assurance procedures. Once again, often through necessity (e.g. I can’t supply Coles [...]

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