The Wizard Chronicle
How to Attract, Convert, and Delight CustomersBy: Wizard of Ads Partners Editor: Craig Arthur
About - Authors - Archives - Subscribe - Visit Wizard Partners Australia
Entries in Financials (5)
How to Choose a Financial Adviser
Your business is booming... now what to do with the money?
By Jason Fittler, ABN AMRO Morgans Townsville
I recommend that you interview at least three Financial Advisers then choose the one who understands your concerns and goals.
Would you trust a Doctor who gave you a diagnosis and suggested a course of treatment without asking you any questions? A good Doctor takes a personal interest in you, asks lots of questions and listens. So too should your Financial Adviser. A scenario you may have experienced: You go to see a Financial Planner and within minutes of meeting you, they’re telling you how they have the perfect solution to all of your financial concerns? How can they have the answer if they do not understand the problem? In short they can’t. Simply put, a Financial Planner with a set agenda to encourage you to buy what ever product they sell, is merely a sales person. Is this who you will trust with your financial future?
The perfect financial adviser (I use the word “adviser” as a good Financial Planner does more then give you a plan, they are there to assist with the implantation of the plan and any necessary ongoing advice) will spend at least 70% of the initial interview listening to you and about 30% of the time explaining to you what it is they do and how much it will cost.
A good financial adviser knows if they are to help you, they need to understand your concerns and goals. They need to spend the time getting to know you to see if they can assist in achieving your goals. Much like a doctor if they do not have the expertise or tools to assist, then they will refer you to someone who does, even if this means loosing your business. That is the difference between a professional and a sales person.
I recommend you interview at least three financial advisers then choose the one who understands your concerns and goals. But where do you find this person?
• The yellow pages or internet.
• The person with the most impressive qualifications.
• The one your family or friends recommend.
It’s all of the above and none of the above. The only way to know if this person understands you is to talk to them. Spend the time to interview potential Financial Advisers until you’re satisfied you’ve found the one who understands you. This should not be taken lightly, like a doctor, you will build a relationship with this person over a very long time so you need to make sure it’s a fit from the start.
What to look for in a financial adviser.
1. Qualifications. Make sure they have the necessary degrees to do the job.
2. Experience in the industry. How long have they been doing this type of work?
3. Passion. Do they love what they do? Is it part of their life or just a job?
4. Support. Do they have a large national backed company behind them or are they a small one man band? The more people your adviser has to draw information from the better the advice they can provide you.
5. Depth of the practice. Do they have staff that specializes in different types of investments? Does the company have a range of investments they can choose from or do they only have the one product to sell.
6. Are they experienced in all aspects of the market from index funds, managed funds, direct shares, international shares, property trusts, self managed super funds, hybrid fixed interest products, options, warrants etc.
7. Can they relate to you? Do they speak to you in a way which helps you understand what they’re doing? If they simply confuse you with a lot of technical jargon then either you won’t understand what they’re doing, or worse they’re covering up their incompetence with technical jargon. Neither will have a good result.
Once you’ve found the right person, then comes the hard part, you must commit to them. To do their job properly they need a lot of information from you. You need to be 100 percent honest, or else they can’t do their job. Commit to this, and what started from “instant attraction” will grow into a very profitable relationship.
When you are ready to grow your wealth, we are ready to be interviewed.
Sep 24, 2007Effective Credit Control for Small Businesses
By Wizard Partner and CEO/CFO of Wizard of Ads Australia, Angela ArthurIf you are in a small business and you extend credit to your customers, you owe it to yourself and to the health of your business to implement some effective credit control procedures.
Here are a few simple steps you can take to ensure your cash is flowing inwards on a regular and timely basis.
1. Make sure your Accounts Receivable function is computerized. If you refer to my previous article "Is Your Book Keeping Up to Scratch?" you will remember that it is time to come out of the dark ages, and get your business computerized. A computerized Debtors System will enable you to print reports that show exactly how much money is owed to you, who owes it and how old the debt is.
2. Before you take a new credit customer on, have them complete a Credit Application Form. Your form should request information such as their:
• full legal status (eg Sole Trader, Partnership, Trust or Corporation)
• full legal name
• trading name
• address both physical and postal
• phone number, fax number and email address
• drivers license numbers of the owners/directors
• the amount of monthly credit they wish to have extended to them
• the names, addresses and contact numbers of at least three of their other suppliers so you can do a credit reference check
3. If your would-be customer is a corporation, have the Directors sign a guarantee. This means that if for some reason the company no longer exists, you have the right to pursue the directors personally for the debt.
4. Once you have approved credit for your new customer, make sure that they are advised in writing and made fully aware of your terms of trade.
5. Offer discounts to customer who pay earlier than their credit conditions as an incentive for them to pay promptly.
6. Make it the responsibility of a staff member to follow up outstanding debts. I have always found that a phone call once the account is a few days overdue is the most effective way. Letters are usually ignored.
7. If a customer tells you they are posting the cheque today, say you will be passing that way today and offer to pick the cheque up if it is feasible.
8. Once a debt has become too delinquent for your liking, it is time to consider suspending the customer’s account for all further purchases and enlisting the services of a professional debt collector.
Remember, it is up to you and your businesses cash flow as to how long you can sustain a delinquent account.
Comparing Prices
"Price is only relevant when you compare it to value."
- Joe Shlegeris, Stockbroker & Author,Easy Investing, Abundant Income
How Much Should You Invest in Advertising?
Every business owner must decide for themselves what percentage of their profits to take out of their company and how much to re-invest in facilities, equipment, advertising and people. Sadly, due to the near-universal fear that "If it doesn't work, I've wasted my money," very few business people are willing to advertise as aggressively as they should.
Consequently, unrestrained growth is available in most categories to those who can afford the dollars and stomach the risk.
- Roy H. Williams
Go here to use the Wizard online ad budget calculator.
Is Your Book Keeping Up to Scratch?
Do you know how much profit your business is making?
By Wizard of Ads Partner & CEO/CFO of Wizard of Ads Australia, Angela Arthur
"Revenue and profitability should be tracked on at least a monthly basis."
As an accountant, when dealing with small businesses, it never ceases to astound me just how many business owners have no idea of what sort of profit they are making or if indeed they are making any profit at all. They go about their business with limited knowledge as to how financially healthy it is. They work very hard in their business, but neglect to work on their business.
In this age of technology, it is amazing how many clients, still come to their accountants at the end of a financial year with manual cash books and bank statements. The accountant dutifully prepares a set of financial statements and tax return and the client trots off for another year of business. You could ask these clients at any time during this year how their profit is going, and they wouldn't have a clue.
If you really want to be successful in business, you need to pull your head out of the sand and start keeping creditable records.
Invest in Quickbooks or MYOB and either hire a book keeper or learn how to do it yourself. Revenue and profitability should be tracked on at least a monthly basis. Once you start keeping these records, you will be surprised at how useful this information can be. You will start to gain a better understanding of the ebbs and flows of your business and you will probably even start questioning aspects of your business. The information will also allow you to measure key performance indicators and compare them to benchmarks for your industry.
Once you are fully aware of what your profit is on a monthly basis, you are in a much better position to make business goals and plans for the future. You will have a very clear picture of where your business is today and this in turn will make it easier to set goals for one, five and even ten years time. You can then develop a business plan and piece together how to achieve it.