One is the loneliest number

New year, new you! I think that’s how the saying goes. I have taken this to heart and have started the new year by completing some interesting online professional development courses. The Tax Practitioners Board recently changed their regulations to double the annual amount of study BAS Agents have to complete to maintain their registration. So, 2 birds, one stone. It feels good to get ahead of the requirements and also learn something new.

I have opted for studying additional units on business advisory. Here at Appy Books, we are already offering these services but it never hurts to update your quiver of tricks and skills. This week, I came across a really interesting concept that I thought I would share. It’s called the Power of One.

Pondering all the options to make your business more profitable can be daunting. There are so many things to think about. But what if you could simplify it and break down the changes you need to make into 7 questions? And what if you could show what would happen if you changed those 7 things by just a small amount, say 1%? How would that change your cash flow and bottom line? This way of thinking is the basis of the Power of One.

For this process to be helpful, you will need to have a handle on your current numbers. You will start with up-to-date numbers at a point in time, say 31/12/21. That will be your baseline. Then, you will add values to the following questions and see how that makes changes to your profit and cash flow. The 7 questions are below.

I will be running this rule over all our clients financials during the next few months. I want to test the concept on all manner of small businesses to assess it’s legitimacy as a business snapshot. If you think may be helpful for your business, are inspired to think about your “Uno Power” and you would like some assistance, don’t let “One be the loneliest number”. Reach out or give us a shout.