Owner To Owner Podcast

@Ben Tuszynski from @Judo Bank, shares his insights on the importance of banking relationships for small business owners. Ben is currently the Managing Director of Judo Bank in Victoria and Tasmania. He has over a decade of experience in the banking and finance sector. Joining Judo in 2017 as one of the pioneering employees, Ben has played a pivotal role in the bank's substantial growth over the years. His primary focus lies in supporting small and medium-sized enterprises, aligning with Judo's commitment to providing tailored financial solutions to businesses, in an age of #industrialisedbanking. Our conversation covers;Judo's  nimble and responsive approach to #smebankingThe four C's of creditBen's tips for business owners, such as the value of having open discussions with banking professionalsWhat to do if you're feeling frustrated by the lack of support and opportunities from your current bankTrusted advisors for small businessesVendor finance in #businesstransitionsExplore better banking relationships through skilled finance brokers"No one business is the same from the other, so how do you industrialize that whole process? We really want to have a look at what's their management experience, what's their skill set, how have they gone through the ups and downs of the economy and weathered those storms?" Ben TuszynskiTimestamped summary of this episode:00:00:14 - Introduction and Technical Difficulties Michael and Julie from Judo talk about technical issues regarding Ben's recording for the podcast.00:03:13 - Catching Up and Personal Background Ben and Michael catch up on their personal backgrounds, discussing Ben's move back from Perth and his role at Judo.00:07:02 - Judo's Mission and Target Audience Ben explains Judo's mission and target audience, focusing on small and medium-sized enterprises (SMEs) with turnover up to $100 million.00:13:07 - Judo's Approach and Importance of Personalized Banking Ben elaborates on Judo's approach, highlighting the importance of personalized banking relationships for SMEs and the industrialization of the banking market.00:17:21 - The Importance of Reviewing Banking Relationships Michael and Ben emphasize the importance of reviewing banking relationships and the role of a trusted banker in supporting the growth and success of SMEs.00:20:02 - Importance of Collaborating with Accountants and Business Coaches Ben emphasizes the importance of engaging with accountants and business coaches to navigate complex business situations and provide added value to customers.00:21:48 - Judo's Customer Base and Industry Focus Ben discusses Judo's industry-agnostic approach, catering to SMEs across various sectors such as accommodation, manufacturing, financial services, and property investment.00:25:17 - The Four C's of Credit Ben explains Judo's credit assessment framework based on character, capacity, capital, and collateral, with a focus on character and the ability to walk the factory floor for a deeper understanding of the business.00:29:39 - Importance of Credible Cash Flow Forecasts Ben emphasizes the significance of credible cash flow forecasts and the business owner's ability to endorse and explain the assumptions, fostering trust and communication in the lending relationship.00:33:29 - Funding Opportunities for Growing Businesses Ben highlights Judo's approach to lending against trading businesses, supporting growth plans beyond traditional equity in property and enabling businesses to access funding based on their strong balance sheet and income generation.00:35:25 - Understanding Debt Servicing Capability Ben explains the importance of understanding a client's capability to service debt on a case-by-case basis. He emphasizes the need for deeper conversations and not missing out on growth opportunities.00:36:43 - Business Growth and Financing Ben discusses the dynamics between business owners and potential buyers when it comes to taking on debt for growth. He highlights the role of trusted relationships and the importance of considering alternative financing options.00:40:54 - Vendor Finance and Business Sales Ben and Michael explore the concept of vendor finance and its potential in facilitating business sales. They emphasize the need for effective structuring and collaboration between the buyer, seller, and banker.00:43:32 - Loyalty Tax and Customer Relationships Ben delves into the concept of "loyalty tax" and emphasizes the importance of delivering strong relationships and support to existing customers. He also discusses the role of finance brokers as an effective channel for improving banking relationships.00:47:34 - Economic Outlook and SME Support Ben shares his views on the economic outlook for small and medium-sized enterprises (SMEs), highlighting factors such as labor market conditions, property market trends, and sector-specific considerations. He reaffirms Judo's dedication to supporting SMEs.00:53:09 - Building Trust and Long-Term Relationships Ben discusses the importance of building long-term relationships with customers and becoming Australia's most trusted SME bank. The focus is on delivering quick and confident solutions to customers for their business needs.00:53:46 - The Value of Banking Relationships Ben emphasizes the importance of evaluating the effectiveness of banking relationships and suggests reaching out to judo or a finance broker for a better understanding. The conversation highlights the mission of fintechs like judo in providing special opportunities to clients.00:54:19 - Experienced Business Bankers at Judo Ben reinforces the fact that judo, as a new bank, is staffed with experienced business bankers. He encourages businesses to start chipping away at any loyalty tax they may be paying and acknowledges the efforts of other fintechs in the industry.00:55:11 - Access to Opportunities and Different Ways of Financing The conversation touches on how judo and other fintechs have enabled clients to tap into opportunities that may not have been accessible before. The focus is on freeing up capital and exploring different ways of financing for businesses.00:55:33 - Ways to Reach Out to Judo Ben shares the various ways to reach out to judo, either through their website, phone, or LinkedIn. He emphasizes their willingness to help and collaborate with businesses, concluding the conversation with a message of appreciation for the opportunity to share insights about judo.  Thanks for listening.  Visit the Owner To Owner Podcast website to subscribe, listen back, or check out any resources or information mentioned on the show.Search @ownertoownerpodcast on your favourite podcast player to subscribe and listen to the episodes.Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.michael.kerr@kerrcapital.com.auwww.ownertoownerpodcast.com.au 

@Stu GregorStu and his @fourpillarsgin co-founders recently sold the last 50% of their business to Vanguard Luxury Brands, the Lion-owned distribution business. Four Pillars is an Australian success story. Stu's has a lengthy background in food, wine, hospitality and travel. His other business and personal experiences include;Founding  @LiquidIdeas in 2013 - Australia's leading communications agency for food, drink, travel and lifestyle brandsCo-owning of luxury travel business Gregor & Lewis Bespoke TravelPresident of the Australian Distillers Association (2014-current)Director RUOK Day and OzHarvest for nine yearsFormer panellist on ABC's Gruen and regular media commentatorMasters in Marketing from the Melbourne Business SchoolDiploma in Wine Marketing from Adelaide UniversityGraduate of the AICD.Has a daughter, a son, a wife and a passion for every sport imaginable.We discuss;starting a business,going through an exitcontemplating life after that businessthe power and importance of marketingthe value of external counsel in important business decisionshow to prepare for a business exit and ensure a smooth transition when the time comes to move onthe importance of passion in small business - learn how to harness your enthusiasm and drive to create a thriving and fulfilling venture.Stu opens up about the emotional aspect of selling a business, the need for a strong plan for what comes next and debunks a some myths. Myth #1: Exiting a business means you've made it and can retire happily. Myth #2: Life after a business exit is all relaxation and no challenges. Myth #3: The traditional concept of work-life balance  Timestamped summary of this episode:00:00:01 - Introduction Stu Gregor is the guest on the Small Business Banter Podcast. He discusses his recent sale of Four Pillars gin and his role as co-founder of Liquid Ideas.00:02:16 - Background and Experience Stu shares his journey from journalism to the wine industry and eventually founding Liquid Ideas, a communications agency. He highlights the value of being both an advisor and a doer in business.00:07:08 - Lessons Learned from Four Pillars Stu reflects on his experience with Four Pillars gin and the lessons he learned as he built the brand. He acknowledges the value of lived experience and how it enhances his advisory role.00:09:09 - Transition and Future Plans Stu discusses the challenges of transitioning out of Four Pillars and the conflicting advice he receives about what to do next. He expresses his energy and excitement for new ventures and ideas.00:10:45 - Uncertainty and Possibilities Stu shares his current state of uncertainty and the various ideas he has for his future endeavors. He highlights his desire for change and the constant generation of new possibilities.00:15:13 - The Role of the Ex Co-founder Stu Gregor discusses his role as the ex co-founder of Four Pillars and compares it to being a loose player in the back line in the AFL. He highlights the freedom he had to roam and go where he pleased, without an official role.00:18:29 - The Genesis of Four Pillars Stu shares the story of how Four Pillars started in the back of a friend's shed in the Yarra Valley. He explains how they raised money from 20 investors and focused on building the best gin distillery business, without initially considering an exit plan.00:21:18 - Building Something Worthy of Attention Stu emphasizes the importance of building something successful before considering an exit plan. He cautions against starting a business with the sole intention of getting out, and highlights the need to be all in and passionate about what you're building.00:23:35 - Timing and Luck Stu acknowledges the role of timing and luck in the success of Four Pillars. He mentions that they entered the gin industry at a time when there were fewer competitors, giving them an early mover advantage. He also highlights the need for a world-class product to stand out in a crowded market.00:26:04 - Expertise and Industry Knowledge Stu emphasizes the importance of expertise and industry knowledge, citing their combined 50 years of experience in the drinks industry as a major advantage. He advises aspiring entrepreneurs to assess00:31:37 - The Beginning of Four Pillars Gin The guest talks about how Four Pillars Gin started gaining recognition, winning awards, and expanding its distribution. They emphasize the importance of not just having a great product, but also marketing and selling it effectively.00:32:57 - Building a Business The guest explains that their goal was to create a viable business that would employ many people and contribute to the development of the gin category. They reflect on their success in creating unique gin flavors and establishing themselves as a leading brand in Australia.00:34:21 - Attracting Attention The guest shares that larger spirits companies, like Diageo, started taking notice of Four Pillars Gin's success. They had meetings with representatives of these companies, who expressed interest and admiration for their brand. This sparked the guest's curiosity about potential opportunities for the business.00:37:02 - Seeking Advice The guest realizes the need for external advice and engages the services of Canterbury Partners, an advisory firm specializing in mergers and acquisitions. They stress the importance of getting expert guidance in navigating the complex process of potential acquisition or investment.00:40:58 - Getting Expert Counsel The guest emphasizes the value of having external counsel during negotiations with potential buyers. They believe that having a third party advocate for your interests can help maintain a positive relationship with the buyer and prevent conflicts that may arise during the negotiation process.00:46:55 - Building a Strong Relationship with the Buyer The guest discusses the ups and downs of the deal but emphasizes the importance of having a strong relationship with the buyer, which provides comfort and allows for continued investment in the business processes.00:47:30 - Challenges and Distractions in 2019 The guest shares that finalizing the deal in 2019 was a stressful process as it required a lot of time and expertise. They also mention their decision to sell only 50% of the business and work on unfinished projects.00:49:13 - Navigating the Challenges of 2020 The guest discusses the impact of the pandemic on their business, with international markets and on-premise markets closing down. They had to adapt by selling gin online, delivering cocktails, and even making hand sanitizer.00:51:23 - Negotiating the Second Tranche of the Sale The guest talks about how the pandemic affected the mechanics of the second tranche of the sale and the need to renegotiate the terms. It took several months to reach an agreed price that would benefit both parties.00:54:57 - The Importance of Building a Brand The guest emphasizes that a brand is the most valuable asset in the industry. Buyers are not just interested in physical assets but also in the brand's customer loyalty, awareness, and love. Building a brand can differentiate a business and make it more attractive for sale.01:04:02 - The Challenges of Small Business Stu emphasizes that starting and running a small business is challenging but incredibly satisfying. He encourages people to pursue their passions and find work that stimulates and fulfills them.01:05:21 - Work-Life Balance and Personal Growth Stu discusses the concept of work-life balance and suggests that if work is enjoyable and fulfilling, the need for balance diminishes. He shares how his experiences in small business have helped him grow as a person and become a better human.01:06:30 - The Relentless Slog of Small Business Stu acknowledges that running a small business is a relentless and challenging journey. However, he highlights that the hard work can be highly gratifying and invigorating, especially if you are passionate about what you do.01:07:17 - Leaving with Grace and Planning for the Future Stu advises that when the time comes to exit a small business, it's important to do so gracefully and not criticize or undermine those who take over. He also emphasizes the need to have a plan for what comes next to maintain a sense of purpose and fulfillment.01:08:21 - Reaching Out to Stu Stu shares that anyone interested in connecting with him can reach out to him on LinkedIn. He thanks Michael for the conversation and expresses his enjoyment.  Thanks for listening.  Visit the Owner To Owner Podcast website to subscribe, listen back, or check out any resources or information mentioned on the show.Search @ownertoownerpodcast on your favourite podcast player to subscribe and listen to the episodes.Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.michael.kerr@kerrcapital.com.auwww.ownertoownerpodcast.com.au 

@Garik Tate   has more than a decade of experience as a successful entrepreneur. He grew up in small business family and founded companies spanning Software Development, Outsourcing, and Publishing with up to 75 employees.Garik is a sought-after speaker on AI’s future, and its practical application in business. His expertise and passion for the subject have earned him a reputation as a respected voice in the AI community, and he is often sought out by companies looking for advice on how to leverage the power of AI to drive growth and success.Our discussion focuses on how to incorporate #AI into #exitplanning for small business owners. You'll understand how to;Maximize the value of your small business with AI-driven planning strategiesBoost your small business operations with the power of AIDiscover the benefits and strategies of outsourcing to elevate your small businessSolve small business problems faster and more efficiently with no-code AI toolswww.valhalla.team - Product Developmentwww.2xyou.com - Virtual Assistantwww.blvnp.com - Publishing @michael kerrTimestamped summary of this episode:00:00:03 - Introduction to Garrick Tate Garrick Tate is an AI futurist, investor, and AI strategy consultant with a decade of entrepreneurial experience. He has founded and led successful companies in software development, outsourcing, and publishing, specializing in AI, IQ, and EQ.00:01:14 - The Role of Outsourcing in Exit Planning Garrick discusses how outsourcing can be used in exit planning to increase profits and ultimately raise the value of a business. He emphasizes the importance of utilizing AI and automation to free up human resources for more complex tasks.00:07:07 - The Value of Human Intelligence Despite the rise of AI, Garrick highlights the unique complexities and capabilities of human intelligence. He believes that humans are still the best assets in business and that their potential should be fully utilized alongside AI technologies.00:09:55 - The Last Mile Upgrade in Exit Planning Garrick introduces the concept of the "last mile upgrade" in exit planning, which involves integrating the latest technologies, such as AI and automation, to remove constraints and significantly increase a business's potential value before a potential acquisition.00:11:16 - Considering the Decision to Sell or Keep a Business Garrick discusses the factors to consider when deciding whether to sell or keep a business. He emphasizes the importance of reducing owner dependency, increasing EBITDA, and factoring in opportunity costs before making a decision.00:17:19 - Introduction, Garik Tate explains the various components of the business, including the VA company and software company. He focuses on the new offering related to exit planning and how they help businesses remove constraints and reduce risk to increase acquisition potential.00:19:19 - Detailed Process Analysis, Garik discusses their process of creating a whiteboard diagram of every process in a company, from prospecting to sales to fulfillment. They then create a metrics dashboard to track key performance indicators and identify constraints. With this information, they provide a prescription list of areas to address within 90 days.00:20:08 - Theory of Constraints, Garik explains the theory of constraints, emphasizing the importance of identifying and removing the biggest constraints in a business. He mentions the 90-day window as a timeframe to focus on the lowest hanging fruit that contribute to constraint removal and capacity adjustment.00:23:29 - Opportunities in Remote and Local Businesses, Garik notes that the theory of constraints applies to any industry, but their specialization in remote and internet-based businesses allows them to control inputs and outputs through software and remote teams. He also highlights the potential for digitizing customer interactions in local businesses.00:27:40 - Implementing AI and Automation, Garik shares an example of improving their VA company's recruitment process through systematization and tripling the number of people processed. He emphasizes the importance of clear inputs and the possibility of adding AI and automation to processes once they are systematized.00:36:13 - The Value of No Code Tools, No code tools are accessible to anyone and can be used to solve problems without having to learn how to code. They provide an easy way to add functionality to websites or create interactions with viewers.00:37:19 - The Importance of Having a Goal, To effectively learn and use development skills, it's important to have a specific goal in mind. Setting clear objectives and learning the necessary skills to achieve them is more effective than aimlessly learning without a purpose.00:38:08 - Empowering Your Team, Business owners can use no code tools as an opportunity to empower their team and delegate tasks. This allows for leadership training and the addition of AI or automation to the company. It's a way to prepare the business for future growth and success.00:39:26 - Quicker and Cheaper Solutions with AI, AI enables quicker and cheaper solutions to business problems that may have seemed impossible in the past. Business owners should embrace the capabilities of AI and use it to improve their businesses.00:42:35 - Solving Business Problems with AI, No code tools, such as Zapier, Google Sheets, and Chatgbt Playground, can be used to solve various business problems. From automating follow-up sequences to integrating tools, these tools provide a stack that can significantly enhance business operations.00:53:05 - The Evolution of Entrepreneurship, In medieval times, entrepreneurs engaged in arbitrage by buying high in one place and selling low in another. Today, modern entrepreneurs play arbitrage with the future, disrupting industries and capitalizing on emerging trends. As a result, prices will decrease, but businesses will provide more value in the long run.00:54:26 - Seizing the Moment of Disruption, The next five to ten years present a unique opportunity for businesses to position themselves ahead of their competition. By embracing new technologies like AI, businesses can stay in parity and avoid falling behind. It's a crucial time to invest in the future and take advantage of the creative potential it offers.00:57:35 - Being a Great Business, Being a great business requires effort, regardless of the level of success. Embracing new technologies and adapting to change is crucial. The current wave of technological advancements presents a challenge and an opportunity for businesses to excel and provide value in different areas.01:02:06 - Looking Forward and Backward, Small businesses are essential in keeping powerful entities in check. Looking to the future while reflecting on the past can help businesses thrive. It's important for small businesses to have a voice and contribute to the development and improvement of our society.01:03:06 - Connecting with Garik Tate, If you're seeking to increase your business valuation or need virtual assistant services or product development, reach out to Garik Tate on LinkedIn.  Thanks for listening.  Visit the Owner To Owner Podcast website to subscribe, listen back, or check out any resources or information mentioned on the show.Search @ownertoownerpodcast on your favourite podcast player to subscribe and listen to the episodes.Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.michael.kerr@kerrcapital.com.auwww.ownertoownerpodcast.com.au 

The hum of a steam train, the rhythm of blues and roots music and the energy of a live audience. These are the ingredients @Hugo T Armstrong mixed over 30 years to create and grow the legendary @The Blues Train in Queenscliff, Victoria.Now it's time for Hugo to move it on and he's currently in the market to find a new owner for this iconic business . We cover a lot of ground in this episode and Hugo talks about;growing up in the music-soaked town of Queenscliffemaking mixtapes and DJing school socialsdreaming of a life centered around the magic of music#communityradiothe revitalization of the @QueenscliffMusicFestival#bellarinetourismhow he honed his skills in marketing and promotionsyearning for more and how that led to him kicking off  The Blues Train transforming an ad-hoc event a thriving businessthe bumps (technical mishaps and operational challenges)perseverance preparing a business for sale and the importance of having;an exit strategy (at least 5 years in advance) an operations manuals and compliance to make a business more attractive to potential buyersa team of professionals to assist in the selling processa focus on maintaining the business's performance and value during the saleTimestamped summary of this episode:0:00:00 - Introduction, Michael introduces the podcast and welcomes Hugo T Armstrong, the owner of the legendary Blues Train in Queenscliffe, for a discussion on business sales and exit planning.00:01:13 - Hugo's Background in the Music Industry, Hugo shares his extensive background in the music industry, including his early days at PBS FM and his passion for broadcasting and DJing. He also talks about his involvement in the St Kilda music scene and his role in saving the Queenscliffe Music Festival.00:05:29 - Saving the Queenscliffe Music Festival, Hugo explains how he took on the challenge of saving the bankrupt Queenscliffe Music Festival in 1996. With the support of the local community, he successfully transformed the festival by adopting the PBS FM model and showcasing a diverse range of Australian music.00:10:15 - Growth and Success of the Queenscliffe Music Festival, Hugo discusses the exponential growth of the Queenscliffe Music Festival under his leadership. He mentions his proudest moments, including the launch of the first digital radio platform in Australia and the festival's partnership with the ABC.00:12:47 - The Blues Train and Other Ventures, Hugo briefly mentions the Blues Train, his other successful business venture that started in 1994. He also mentions his involvement in curating other festivals and his past roles in Ballerine Tourism and Queenscliff Council's financial advisory.00:15:09 - The Beginnings of the Blues Train, The Blues Train started as a small winter concert series with a variety of musical performances. It was an organic and unplanned venture that gained popularity through word of mouth. The immersive nature of the show and its ability to provide a unique experience to repeat customers contributed to its success.00:17:14 - The Evolution of the Blues Train, The Blues Train initially had no intention of becoming a business. It was a DIY project with limited resources and technical difficulties. However, over time, it grew into a successful venture, attracting investment and government support. The internet played a crucial role in expanding its reach.00:18:52 - Ownership and Infrastructure, The Blues Train operates on railway tracks owned and managed by Victrac, a division of the Victorian government. The rolling stock is maintained by the Geelong Steam Preservation Society. The vintage trains, some of which are over 100 years old, add to the unique appeal of the experience.00:22:56 - Saving the Blues Train, When COVID-19 hit, the Blues Train was the only business worth saving for Hugo Armstrong. Its positive impact on the local community, including economic benefits and music tourism, made it a priority. The investment in the railway infrastructure and government support helped ensure its survival.00:27:45 - Music Tourism in Australia, Hugo highlights the lack of focus on music tourism in Australia's tourism industry. He believes that showcasing Australian music and leveraging its global success could00:30:41 - The Local Economic Benefits of the Blues Train, The Blues Train has brought in $3.1 million of local economic benefits and has the potential to attract more tourism with its new track. The Byra Bay blues and roots festival is a prime example of the economic impact of the music scene, generating millions of dollars. The festival could be complemented by an annual music festival featuring larger bands of various genres.00:31:37 - Framing the Business as a Saleable Asset, The Blues Train is positioning itself as a business that appeals to a range of potential buyers. While there is a limit to the number of people the train can accommodate, there is significant opportunity for growth. One suggestion is to introduce an annual music festival on the train, featuring different genres to attract a diverse audience.00:32:31 - Planning Exit Strategies and Removing the Figurehead, To plan for the future sale of the business, it was necessary to address the perception that The Blues Train was dependent on one person, in this case, Hugo T. Armstrong. Steps were taken to remove Hugo T. Armstrong from marketing and on-site activities. However, during COVID, he had to be brought back to maintain government support. The business underwent a rebranding process to establish itself as a separate entity from the figurehead.00:36:12 - Importance of Having an Exit Strategy, Many business owners do not have an exit plan in place, which can lead to difficulties when unexpected circumstances arise. It is essential to think about a future exit strategy when00:45:24 - Importance of Operations Manuals, Hugo emphasizes the importance of having operations manuals to ensure that a business can run smoothly even if the owner is absent. He believes that a business should not rely solely on the owner's knowledge and that having documented procedures is crucial for compliance and risk management.00:46:01 - Planning for Business Sale, Hugo advises small business owners to start planning for a potential sale at least five years in advance. He warns against relying on a miracle buyer and suggests removing the temptation of cash from the business, as cash is not a reliable indicator of the business's value.00:47:45 - Tax Implications and Preparation, Hugo shares his experience of working with his accounting firm to understand the tax implications of selling his business. He highlights the importance of staying up to date with tax laws, capital gains exemptions, divisional loans, and other financial factors that can significantly impact the selling process.00:51:50 - Compliance and Business Value, Hugo emphasizes the importance of compliance in making a business sellable. He compares a non-compliant business to an unroadworthy car, stating that compliance should be the core of every business. He also warns against letting the quality of the business decline once it's on the market, as it can negatively impact its value.00:56:48 - Reconnaissance and Richard Branson's Advice, Hugo encourages business owners to do their homework and reconnaissance when planning for an exit strategy. He also shares Richard Branson's advice to always00:58:57 - Working on Multiple Platforms, Hugo discusses their current focus on multiple platforms and digital marketing, highlighting the success of their content strategy.00:59:09 - You Can't Sell a Secret, Hugo emphasizes the importance of having a visible online presence and mentions that if the Blues Train is not easily found on Google, it would be a significant setback for their business.00:59:37 - Casting a Wide Net, Hugo advises that when looking for buyers or clients, it is necessary to reach out widely and not limit oneself to a small pool of potential opportunities.01:00:02 - Learning from Resources, Michael expresses gratitude towards Hugo for sharing his insights, acknowledging that resources like this podcast can provide valuable knowledge that helps small business owners avoid learning things the hard way.01:00:10 - Time in Reconnaissance, The conversation ends with a quote about the importance of research and preparation, highlighting that time spent gathering information is never wasted.@michaelkerr@kerrcapital www.linkedin.com/linkedin.com/smallbusinessbanter Thanks for listening.  Visit the Owner To Owner Podcast website to subscribe, listen back, or check out any resources or information mentioned on the show.Search @ownertoownerpodcast on your favourite podcast player to subscribe and listen to the episodes.Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.michael.kerr@kerrcapital.com.auwww.ownertoownerpodcast.com.au 

In this episode of the Small Business Banter podcast I'm joined by Louise Broekman, CEO and founder of Advisory Board Center. We cover the importance of strategic decision-making in business, but specifically the role of advisory boards in exit planning.  Key messages for #businessowners #founders #familybusinesses from Louise include the importance for shifting from on-the-run decision-making to a more thoughtful and how Advisory Boards;provide a space for businesses to think and problem-solve over a 90-day periodhelp business owners  make confident decisions that focus on long-term investment and growthprovide benefits including external perspectivesupport strategic decision-makinghelp  navigate the complexities of exit planning"To grow means that the business needs to be different, which means that the way that we make decisions on day-to-day things needs to be different" - Louise BroekmanLouise has a compelling  20+  year journey as a business owner, entrepreneur and advisor. Timestamped summary of this episode:00:01:18 - Background of the Advisory Board Center, Louise explains that the Advisory Board Center is a professional body for the advisory board sector, focused on best practices and ethics. They offer membership and certification for advisory board professionals, and operate in over 25 countries.00:03:35 - What is an advisory board, Louise distinguishes advisory boards from governance boards, explaining that advisory boards are focused on problem solving and thinking, rather than decision making. They provide business owners with a second set of ears and different perspectives to help them make confident decisions.00:08:41 - Types of businesses using advisory boards, Louise discusses the wide range of businesses that use advisory boards, including startups, mid-sized businesses, family businesses, partnerships, and those looking to exit or scale. She emphasizes that the market is growing and that businesses are starting to adopt advisory boards at an earlier stage.00:15:07 - The Importance of Making Decisions, Making decisions on the run can be addictive and fulfilling, but to grow a business, different decisions need to be made. An advisory board can provide the space and time to think through decisions and explore different options, transforming it from a working capital discussion to an investment conversation.00:16:45 - The Addictive Nature of Busyness, The busyness of running a business can feel satisfying, but it's important to focus on the top strategic issues that will truly change the way the business operates and performs. The key is to concentrate on the decisions that will have a significant impact and prioritize them over other tasks.00:18:14 - The Need for Guidance and Confidence, After experiencing a challenging business situation, the guest realized the importance of having good people around her and gaining confidence in her decision-making process. By creating an advisory board, she sought outside perspective and support to make more informed and strategic decisions.00:23:17 - Using Advisory Boards for Exit Planning, Advisory boards can play a crucial role in exit planning, whether it's evaluating the decision to sell, preparing the business for sale, or maximizing the asset value of the business. They can provide external perspective and guidance to help owners make the right choices and achieve successful outcomes.00:26:57 - Exploring Alternative Exit Strategies, Exit planning shouldn't be limited to a binary decision of selling the business. There are various options to consider, such as staged exits.00:30:42 - The Importance of Having a Clear Plan, It is crucial for business owners to have a clear plan and some ideas about what they would do after selling their business. Without a plan, an identity crisis can occur after leaving the business.00:31:24 - Shortcomings of Exit Planning, Exit planning often focuses on financial aspects, but fails to address the question of what the owner wants to do afterwards. It is important for owners to seek advice from others who have been through the experience and explore different options.00:32:10 - Alternatives to Selling, Some business owners may fall back in love with their business after preparing it for sale, leading them to reconsider selling. Other owners may choose to maintain a smaller business or scale back to focus on income rather than revenue.00:33:46 - The Value of Advisory Boards, Advisory boards can bring many advantages, such as a network of contacts, industry experience, and unemotional detachment. They can provide objective frameworks, accountability, and help owners see their business from a buyer's perspective.00:37:21 - The Importance of Outside Counsel, Owners should consider seeking outside counsel to help them navigate the challenges of running a business. It is important to have someone who can hold them accountable, provide objective advice, and help them focus on what really matters. The resources mentioned in this episode are: @Advisory Board Centre  - there you can learn more about their services, how they can help your business and explore the membership model offered by the Advisory Board Centre to become a credentialed advisory board professional and join a global community of like-minded individualsConnect with me here:@michaelkerr @smallbusinessbanter  Thanks for listening.  Visit the Owner To Owner Podcast website to subscribe, listen back, or check out any resources or information mentioned on the show.Search @ownertoownerpodcast on your favourite podcast player to subscribe and listen to the episodes.Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.michael.kerr@kerrcapital.com.auwww.ownertoownerpodcast.com.au 

@Ed Scott is the founder of @Resolve which is a small medium enterprise marketplace. In other words it's a website where people can search for and browse businesses to buy. The goal of Resolve is to create a single place for supply and demand, and democratizing access to hidden gems that are often overlooked due to lack of available knowledge or resources.Resolve caters for;Businesses with an Enterprise Value of between $1M AUD to $40M AUD, and Urgent business sale campaigns such as recapitalizations and external administrations. Some key takeaways from our discussion;According to MGI Institute, 60-70% of business owners are open to selling if approached properlyWhy business owners should research the selling process by speaking with their accountant,  lawyer or friends & colleagues who have also owned businesses.Ideal timeframes for planning an exit The key steps to prepare a businessThe availability of various financing options to enable small businesses to purchase a businessEd also shares how he manages to personally 'maintain the rage' as the founder of fast growing startup by;drawing inspiration from his business partner, and focussing hard everyday on doing what he knows he'll regret not doing@Michael Kerr @smallbusinessbanter Thanks for listening.  Visit the Owner To Owner Podcast website to subscribe, listen back, or check out any resources or information mentioned on the show.Search @ownertoownerpodcast on your favourite podcast player to subscribe and listen to the episodes.Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.michael.kerr@kerrcapital.com.auwww.ownertoownerpodcast.com.au 

@bronwynreid  is a Business Owner, Author and Mentor who specialises in helping small businesses connect with bigger players. The benefits for owners are enormous and opportunities plentiful in the current post-covid environment.Her book is titled @SmallCompanyBigBusiness and it focuses on how small businesses can find, win, and retain big customers.In our discussion we talk about the why and how small businesses should engage with larger businesses and government entities.  Bronwyn  covers;why big businesses are increasingly interested in engaging with smaller businesseshow the COVID-19 pandemic brought about changes in the business landscape, including;disruptions in supply chains, and a reevaluation of business practiceshow this has created new opportunities for small businesses to engage with larger entitiestapping into government procurement opportunities and why Governments are showing more interest in working with local and small businessescollaborations and joint ventures , and partnering with complementary businesses or experts in specific areas to access better opportunities and to increase success rates in winning contractsexploring opportunities within their local council as many local governments have websites where they list tender opportunitiesthe databases and resources available for finding government procurement opportunities (refer to @bronwynreid, her website)looking to cooperative and mutual ownership models as a way to support local communities and ensure businesses remain locally operated and ownedthe value of continuous learning, networking, and seeking guidance from mentors and experts to navigate the ever-evolving business landscape@kerrcapital @michaelkerr  Thanks for listening.  Visit the Owner To Owner Podcast website to subscribe, listen back, or check out any resources or information mentioned on the show.Search @ownertoownerpodcast on your favourite podcast player to subscribe and listen to the episodes.Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.michael.kerr@kerrcapital.com.auwww.ownertoownerpodcast.com.au 

@amybett is a businessowner and entrepreneur. In this episode we discuss the importance of understanding financial health in business and managing cash flow effectively.Amy shares her personal journey as a founder and owner;how  (and the very personal why) she transitioned from working for a corporate events business to starting her own venturethe up's and down's that led to a focus on cashflow Amy introduces the concept of @ProfitFirst - a cash flow method that involves breaking down finances into different categories to gain clarity on expenses, profits, taxes, and more. We cover;how business owners can make informed decisions about their finances and allocate funds more strategicallywhy understanding financial reports is crucial to gain insights into the health of a businesssome of the 'mechanics' of the Profit First approachthe importance of seeking advice and guidance from advisors, coaches, and mentorsher new #startup @melo a non-alcoholic drink made from kava extract@kerrcapital @michaelkerr  Thanks for listening.  Visit the Owner To Owner Podcast website to subscribe, listen back, or check out any resources or information mentioned on the show.Search @ownertoownerpodcast on your favourite podcast player to subscribe and listen to the episodes.Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.michael.kerr@kerrcapital.com.auwww.ownertoownerpodcast.com.au 

In this episode @SimoneDouglas, multi-business owner based in Adelaide, shares her experience, motivations and 'secret-sauce' for starting and successfully running 5 diverse businesses. Being #seriouslysocial is the connector, as she explains in our discussion.  Simone owns;@digitalmarketingaok@bninorthadelaide@dukeofbrunswick hotel #adelaide @portadmiral hotel #portadelaideOur discussion covers;why #goodteams are really 'the secret'being all in on your #firstbusiness replacing yourself as a business ownerbringing your #onepercent of genius the importance of being human in a digital landscapebuilding human connections and relationships while AI and automation can enhance efficiency, the power of building emotional connections with customers remains essentialthe benefits of #networking with other business owners as a support system and as a way to exchange experiences, challenges, and ideasher sources of inspiration;@patricklencioni     (The Five Dysfunctions of a Team)@chrishelder embracing #seriouslysocial leveraging both digital tools and personal connections for success@kerrcapital Thanks for listening.  Visit the Owner To Owner Podcast website to subscribe, listen back, or check out any resources or information mentioned on the show.Search @ownertoownerpodcast on your favourite podcast player to subscribe and listen to the episodes.Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.michael.kerr@kerrcapital.com.auwww.ownertoownerpodcast.com.au 

@LachieMcColl  is a #smallbusiness #valuation expert. He fell into the world of business valuations 18 years ago after working but not enjoying time as a qualified accountant.He now works from his hometown of #geelong.A core part of his business  is market research to find relevant data and help better understand what drives business values. Some of the interesting data includes;currently there is around $1.2B (billion) worth of small businesses for sale about half of those had an asking price of less than $200K\of 1.3M (million) businesses in Australia, about 60% have revenue or sales less than $200K paWe also covered;#microbusinesses are going to be valued at some multiple of the earnings or the wage the owner pulls out of ithow small businesses (worth from a few hundred thousand to maybe $5M (million) are val;uedhow to deal with the disconnect between what the #taxreturn shows the business is making vs what the 'real' return by cleansing your numbers seeing what your numbers might look like through the eyes of a potential buyer#multiples - pre-tax and pre-interest multiples normally we find around the one times to five timesWhy it's important to understand value of your business today so because then you've got the opportunity to shape the valuation in that range from one times to five times.The two main drivers for needing a valuation;Reactive - something has happened in your business or your life that's causing you to be either forced to get a valuation or told to get a valuation. And that'll be things like;you're going through a dispute with a business partneryou're getting divorcedyou're losing interest in your business, so disinterest If you like, the three Ds Proactive - thinking about your future. I'm thinking about;maybe exitingmaybe handing my business over to my childrenwanting to offer some equity to staffwhat  my business is worth now? how do I maximize it in two or three or four years time?The rationale for an annual valuation, in the same way as you pay for #financialplanning (at say 1% of the value of your portfolio). www.smevaluations.com.au  Thanks for listening.  Visit the Owner To Owner Podcast website to subscribe, listen back, or check out any resources or information mentioned on the show.Search @ownertoownerpodcast on your favourite podcast player to subscribe and listen to the episodes.Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.michael.kerr@kerrcapital.com.auwww.ownertoownerpodcast.com.au