Carl Spruyt

Last week I spoke with a business owner in Canada. We spoke for about an hour.

The funny thing about business... numbers are just numbers in any country.

We refer to it as the 'Language of Business'.

We've worked with business owners in many different countries, and one thing remains the same. Unless you are clear on your financial numbers, your business will become ineffective - irrespective of how large or small. In this case, a large organisation with $20M+ revenue & 300% growth.....................BUT was struggling!!

Even worse, no one had frankly explained this before including local coaches.

This is what frustrates me about the business coaching industry.

Very few business coaches understand this. Few of them don't know how to speak the 'Language of Business' and translate the blunt facts in a way your prospect/client really "gets" it.

What that means for you. If you're speaking with a coach considering their services but they -
- can't differentiate between your gross profit % & your mark up %,
- what should be in your COGS & what shouldn't,
- why know your liquidity is eroding,
- why you quoted margins are not achieved etc

Don't hire them!

These are the FUNDAMENTAL business concepts vital for risk protection and profit maximisation.

We're looking to take on just 3 new clients in the coming month. If you are ready to grow with better cash flow, more profitably, and with more confidence in your future performance.......

Simply DM me.

Some random points of wealth creation advice from one of the world's top Business Coaches (Karl Bryan) to help you focus during these tough economic times:

“‘7 More Random WEALTH Thoughts”
👉 If you buy stuff you’ll end up with stuff.
👉 Spend your disposable money (after investing) on experiences rather than stuff.
👉 If you want to be wealthy, say this with me:
Delayed Gratification… *breathe* Delayed Gratification… *breathe* Delayed Gratification… *breathe* Delayed Gratification… *breathe*
👉 Use your money to buy your time (quality) back.
👉 Discipline yourself to invest 10% of your income and you won’t notice it missing.
👉 Avoid lifestyle creep and ‘keeping up with the Jones’
👉 When investing… time is your friend and your impulses are your enemy”

A really relevant summary… my personal favourite is #3 -i.e. delayed gratification.

BTW - for most business owners, all their goals when boiled down to the core, usually reflect # 4.

QUESTION:
Which one of these points do you want to focus upon on and why?

Friday Dad Joke:

My friend wants to become an archaeologist, but I’m trying to put him off.

I’m convinced him that career always ends in ruins.

Last week I was invited to speak to the Taieri Business Network on succession planning, a presentation called "Beyond Business - Success To Succession."

Just the second time I've presented on this topic.

A topic relevant for every current business owner, and any future business owner.

Every minute you're in business is a minute closer to your business exit.

To not plan for this is selling yourself short.

Here is some of the feedback:

"Very informed and well presented. A really good snapshot. Honest!"

"Learning about the process but with context has been incredibly insightful. Carl is great, he is able to offer an understandable solution to complex situations. I would recommend."

"There was good content, it had more value to me than I thought. It's helped me know what I have to work on."

"....wish I had heard this 20 years ago!!"

These were just a taste of the feedback I received from the evening.

If you haven't thought about your succession planning then it's worth reaching out to us and having a chat.

A little forethought can create significant upside return on your eventual sale.

Let alone the difficulties it could prevent.

Leverage in business means utilizing specific resources such as financial capital, cutting-edge technology, human resources or expert knowledge to significantly increase your returns.

Now, in the context of Gross Profit, it means leveraging a clear view of your revenue minus direct costs to effortlessly guide your decisions.

Currently, profit margins are tight and competition is fierce, particularly now.

Your Gross Profit can help you identify which parts of your business fuel growth, and which parts are holding you back.

Gross Profit knowledge reveals how much money is available OR required to confidently support expenses and fuel growth opportunities.

This insight is crucial.

Your Gross Profit guides your choices on product pricing, service offerings, and resource allocation ensuring that every dollar spent is an investment towards higher profitability.

Example - Imagine you run a plumbing business.

Once you glance at your Gross Profit, you'll quickly see how residential services outshine commercial contracts in profitability (in this example).

With this insight, you can easily direct more marketing efforts to residential services, smartly adjust schedules, and enable your team to upsell during home visits.

To reiterate what I've said previously, higher volume of sales will always lead to higher profits is a complete fallacy.

Without a quick check on Gross Profit, increased sales might unexpectedly dip into cash flow losses if those sales are low-margin.

These common misconceptions arise from outdated business practices that prioritized sales volume over profitability.

Many companies propose generic quick-fix solutions aimed at increasing sales, without considering the specific impact on your business's profitability and cash flow.

If you haven't determined the profitability of those leads, it's crucial to shift your focus.

Unfortunately, many business coaches & advisors lack a deep understanding of how Gross Profit analysis specifically impacts business decisions.

This is what we do. We make it simple for you to grasp your numbers starting with GP.

If you're adding new clients with inconsistent pricing, or even minimal gross profit percentages...you're using up valuable resources - time, and money - without seeing any benefits - to be blunt, you are becoming a "business/busyness" zombie.

Ultimately, this will be slowing your progress.

It's time to start moving forward.

Entrepreneurial authenticity or business BS?

20% of small businesses fail during their first year.

If you got thrust onto a stage, in front of an audience, with no preparation whatsoever... and had to speak for 20 minutes, what would you speak on? What would you say?

I'd easily fill that time speaking on demographics. Boring as it sounds, turn's out it's anything but boring.

It's exceptionally relevant to every business owner in business now and into the future.

What would your topic be?

Friday Dad Joke:

A turtle is crossing the road when he’s mugged by two snails.

When the police ask him what happened, the shaken turtle replies, “I don’t know. It all happened so fast.

A decision that might seem complex but is actually pivotal for your business’s growth and efficiency: investing in administrative staff.

It's not just about whether your budget allows it; it's about strategically leveraging admin staff to enhance your operations and free up your most valuable asset—your time.

Investing in admin staff is a testament to your business acumen, showcasing that you're not just running your business—you're elevating it.

It involves a deep dive into your gross profit.

Understanding your GP reveals the true health of your operations, guiding you to make informed decisions about expanding your team.

It’s about recognizing that every dollar spent on skilled administrative support could enhance your business’s profitability by improving efficiency, reducing costly errors & improving cash flow via collections.

These admin professionals do more than tasks; they optimize your workflow to free you to focus on growing your business.

The business landscape is evolving rapidly.

Competition is fierce, having quality admin staff manage crucial yet time-consuming tasks is essential for a growing business.

They ensure compliance, organize records, and support customer relations—each a cornerstone for a scalable business i.e. your business value.

Admin staff not only maintain your business's backbone, they enhance its stature.

They transform everyday operations by managing communications, inventory, and financial record-keeping, allowing you to focus on acquiring new clients and exploring new markets.

Consider this: without the right support, every unmanaged minute is a potential for oversight or errors.

Calculate the cost of recruitment and salary against the time saved and the potential revenue generated.

With admin staff, every dollar spent is an investment in your business’s quality output and growth.

There are many that believe hiring admin staff is an unnecessary overhead.

The reality is, by entrusting your daily operations to skilled hands, every aspect of your service improves, paving the way for lucrative repeat business and increased pricing made possible by top-tier service.

A lot of business owners also think to themselves "My business isn’t big enough to need administrators." We've all been in the local mechanics garage and noticed his admin skills - scary!

The reality is, even small businesses can gain significant benefits from admin support.

It's about enhancing operational quality and making strategic use of time, regardless of business size.

Are you risking the potential and security of your team by spreading yourself too thin? Empower your business with the backbone it deserves.

I've been in the financial sector for over 4 decades.

I've never seen it more uncertain for business owners to deal with, on so many differing aspects, than I see it now and ongoing.

What are your views on being in business now. compared to previous years?

With all this talk of student debt, it begs the question:

Is the school of life sufficient?

Test your knowledge, then feel free to leave your opinion in the comments below.

Around 12% of business owners only have their high school diploma.

Running a small business can sometimes feel like a lonely journey, but with the right support and guidance, it doesn’t have to be.

Our client's own words demonstrates the powerful impact of having a dedicated mentor who understands the unique challenges of small businesses and provides tailored, practical advice.

We pride ourselves on helping business owners like you unlock your full potential by overcoming common profitability roadblocks and enhancing business operations.

Are you ready to take your business to the next level?

Friday Dad Joke:

I had a happy childhood. My dad used to put me in tyres and roll me down hills.

Those were the Goodyears.

Just had one of our clients say to us this week...
"I'm sleeping well at night now. Haven't really slept at night for years! Thank you"

This might have been the last decent ride for the season. Beauty day. Corker wee ride to blow some cobwebs away.

When running your own business, it will always be full of ups and downs…

Especially when you sell yo-yos ;)

Send us a message and we’ll see what advice we can give to keep you on the up and up!

In today's economic climate, cash flow remains the lifeline of any business MORE THAN EVER.

If you've ever struggled to make decisions on investments such as purchasing new equipment or technology upgrades as just two simple examples, then read on...

Consider the idea of making an extra $100,000 per year in net profit for you personally.

By understanding that if your Gross Profit is 40%, you would require generating $250,000 in additional revenue (this is simplified, as we've not taken into account tax).

Now of course, you can do the same calculations for purchasing new equipment, shifting premises, or hiring more skilled staff etc.

By understanding what your Gross Profit is, you can make sound decisions by understanding the payoff required QUICKLY...if you know your numbers!?

More importantly, you have a sound starting point to begin thinking about the conversation at all.

You can base your decisions on cold hard facts; it's nice working with facts and much more confidence inspiring than the much bragged about 'gut feel'.

If you know you need $250k extra per year to make another $100k profit... is that viable at all in your business? In your industry? With your current business model? is it possible...if so....how and by when?

ALL MOST ALL of your competitors see Gross Profit as a number the accountant talks about. Unfortunately, as business owners, you've not had someone share this knowledge with you on how it exactly impacts on you and your business - 99% of all business owners I speak with don't understand these basics.

It gets lost in a page of numbers in your profit and loss statement and often it's incorrectly displayed to be of relevance to the business itself. Classic example is often the direct wages is shown as an overhead (hint - check your annual P&L) so for management decision making the P&L holds little value - it should not be this way.

It's part of my mission to change this.

I want business owners to know and use Gross Profit to be more profitable, so to afford more time with their families, to deliver on their goals more effectively.

Understanding your Gross Profit is more than a financial exercise; it's a strategic tool that supports sustainable growth and market leadership.

Give us a test, challenge us to help you find an additional $100,000 of revenue in your business - the first to respond gets the planning session for $1,250 + GST (50% discount). Simply Message us "$100,000" and we Iook forward to the conversation.

Friday Dad Joke...

My dog accidentally swallowed a bunch of Scrabble tiles.

- I think this could spell disaster....
- I took her to the vet... but no word yet
- She's been leaving little messages all around the house
- Now, every time she howls, it's in consonants and vowels.
- I guess you could say she's now got a way with words...

I'm looking for 3 family-owned businesses who are doing $2million+ / year in Revenue to work with me and uncover where you're potentially stuck in your business so we can work on implementing a bespoke plan to move through your current plateau in the next 3 weeks.

The next 9 months is going to be a a battle to "survive to 2025" for many business owners but also a time to truly gain an advantage over the competition - time take action now with a no obligation chat.

Earlier in the week I spoke about how we have been working with coaches from America and how they've helped us fine tune our processes. Empowering us to have more impact on our future clients.

We've just completed what we call 'Foundations for Success' (FFS) for a client for which we're about to present our findings later in the week.

Whats incredibly powerful about the FFS for you, the business owner, is having a 3rd party assessing the bigger picture.

There is always a gap between where you are now, and where you want to be. The size of the gap isn't important.

What is important is recognising the gap. It's important to understand the thinking that got you HERE, won't get you THERE.

By working with the right 3rd party, they're able to shorten the gap between where you are now and where you want to be/should be.

It's not just about the actions you take, it's also about the actions you don't take. Often, a lack of experience by the business owner can lead to decisions that can take years to recover from.

Ultimately, what is it worth to you? What is it costing you by not getting quality strategic advice that shortens that gap?

Potentially... It's costing you years, many years, thousands or hundreds of thousands of $$. Stress. Anxiety. Burnout. Frustration..................and TIME.

We're excited to share our findings with this client. They're about to get advice few, if any other advisors would give them. Advice based on over 40 years of working with business owners in every different industry.

What price are you prepared to pay?

Starting a hot air balloon business, but it just isn't taking off? ;)

Send us a message and we’ll schedule an appointment for our business coaching service, where you will gain the skills and insight needed to make the right calls and follow your dreams!

Here's a secret you probably didn't realise... and most advisors won't tell you.

Understanding your Gross Profit is the secret to strategic hiring.

If you are clear on your gross profit, you can calculate the gross profit on average each team member SHOULD be generate your business.

See, now more than ever, each hire must be an effective investment that generates returns. By mastering your GP, you align your team size with your profit goals.

This understanding allows you to become aware of your operational efficiency.

For example, just last week one one business owner we know (non-client) compared his Gross Profit per staff member to the average of other businesses in his industry.

Based on the numbers reviewed, it was immediately clear his revenue did not justify the amount of staff he had. He was advised to drop AT LEAST one full time employee equivalent.

His next question was - 'How?'

In other words, how do I drop that staff member(s) and keep up with operations as they are. This is where we say - "The business will never out perform it's leader."

Now he's aware of it, he must review why he has been operating with surplus resource that has been eroding his productive profitability.

Very often, by reviewing this one ratio, we can assess your effectiveness as a manager in running your business - if we can do it, so can you.

If you are acutely aware of the Gross Profit each of your team generates, you can make very strategic decisions on your operations.

You can make very strategic decisions on hiring.

And you now have the ability to measure the effectiveness of your teams work.

The misconception here is Gross Profit is just a number on your financial statements. A number no-one has educated you on.

A number which you only ever see once a year when your accountant has you review your accounts.

In reality, that simple figure, that one number, or ratio if turned into a percentage (Gross Profit / Revenue = Gross Profit %) can be used to manage a very good portion of your whole company.

And most business owners are asleep to it.

Don't let that be you.

Over the last few months we've been speaking with business coaches from the USA regularly.

We love the perspective they bring to our experiences. They've shone a few spotlights on where our thinking could be even more effective and highlighted what we are doing well when often we overlook our core strengths.

Very impactful in helping us get even better results.

Not a bad idea to have a coach who's invested in your success is it?!

Friday Dad Joke:

I got hit in the head with a can of Coke today.

Don’t worry, I’m not hurt...................

It was a soft drink.

When was the last time you felt truly confident about your business's financials?

For this business, that confidence translated into doubling their staff, skyrocketing their revenue, and saying 'hello' to a new home —achievements made possible by mastering their Gross Profit with iKULUTU's guidance.

The journey from cash flow confusion to financial mastery is a path paved with knowledge, strategy, and a touch of iKULUTU.com magic.

It's not about selling more at the wrong price; it's about selling right and reaping the rewards.

Over the decades, I've witnessed first-hand how a deep understanding of gross profit transforms all businesses.

Here's an insight that could redefine your approach to business financials, specifically focusing on how it can dramatically improve your closing rates and instil unwavering confidence in your pricing strategies.

Gross profit, simply put, is the resultant difference between sales and the cost of goods sold (COGS).

It's your financial fuel - and stops you becoming a "busy fool" (and broke).

Knowing this number isn't just about keeping your business afloat; it's about steering it with confidence towards prosperity and growth.

In a world where business dynamics shift rapidly, understanding your gross profit is more crucial than ever. It's not just a figure on your financial statements; it's the backbone of all your strategic decision-making.

For SMEs, where margins can be tight, it's your roadmap to scaling and sustainability.

Historically, businesses that thrive are those that adapt by understanding their financial health down to the core.

Your gross profit tells you exactly how much you are making from your primary business activities.

It's a clear indicator of your efficiency AND effectiveness in managing resources and pricing your services or products. Its your business management scorecard!!

AND BEST OF ALL, your competition don't know this - we guarantee it!

Let's take a practical example.

Imagine you're a construction business with a current project.

By accurately calculating your gross profit TARGET, you identify that certain materials or subcontracting services are eating too much into your margins.

This insight allows you to potentially negotiate better rates, find more cost-effective solutions or address underperforming personnel EARLY without compromising quality.

Additionally, understanding your gross profit margin helps you price your projects not just competitively but profitably, ensuring you're not underselling your expertise or overpricing and losing to competitors.

Many believe that a simple increase in sales volume will solve profitability issues. However, without understanding the gross profit, you could be scaling inefficiency to go out of business even faster.

This stems from a surface-level interpretation of financial success—focusing solely on top-line growth rather than what actually contributes to the bottom line.

Reflect on how this deeper understanding of gross profit might shift your approach to pricing, cost management, and overall business strategy.

Could it be the key to unlocking the growth and stability you've been aiming for?

By truly grasping the essence and power of understanding your gross profit, you not only set a solid foundation for financial management but also empower your business to navigate through the complexities of growth with confidence and clarity. It's not just about survival; it's about thriving, scaling, & achieving the freedom every business owner seeks.

Have you ever thought about when and how you wish to exit out of your business?

Life events happen. Whether it's health issues, wanting to change your career, sell your business, or it's time to retire in confidence … how do you plan for the future so that you get the most benefit?

I'm privileged to be invited to speak to the Taieri Business Network... I'll be speaking on the topic 'Beyond Business: Success to Succession' to help you assess where you want to be in 3-5+ years' time, ways to move your business on and ask those hard questions about succession planning.

This is a FREE event. Supper is provided.

Success to Succession is coming up fast, Monday 8th April at 6pm - 8pm.

For catering purposes, click on the link to register: https://forms.gle/WnPNVf2Mp7BWtxfy5

There is a LOT of value in this presentation, and Taieri Network are a great community-based organisation, definitely worth getting involved with.

Looking forward to seeing you there!

Beyond Business - Success to Succession You are in business, but have you ever thought about when and how you wish to exit out of your business? Life events happen. Whether it's health issues, wanting to change your career, sell your business, or it's time to retire in confidence … how do you plan for the future so that you get the most...

Upgraded from a we**am that was more 'Where's Waldo?' to one that’s almost psychic in clarity!!!!

Better stop writing love notes to my wife on the whiteboard, someone might be able to read them now... ;)

“The more that you read, the more things you will know. The more that you learn, the more places you’ll go.” - Dr. Seuss

Tell us: What book influenced your mindset about business and life? 🤔

We’ll start: The Art of War - Sun Tzu

I'm considering doing a short 20min masterclass on Gross Profit.

The reason you might want to watch this masterclass, by the end you'll understand how to make more money from the same work you're already doing right now.

Not a bad investment of 20 minutes is it?

Who'd like the recording? Send me a DM saying 'masterclass'.