Martin Cattach from Finance For Business on where and how owners can access alternative finance to help support their small business

Martin Cattach from Finance For Business on where and how owners can access alternative finance to help support their small business

Host @Michael Kerr and @Martin Cattach , founder of Finance for Business, discuss the stranglehold the big four banks on small business lending, and explore alternative options for financing.

Martin outlines alternative #financing options, especially the diverse and fast growing range of #fintechlenders for #smallbusinesses

We cover;

1. The role of #workingcapital in business growth
2. The entanglement trap that owners often find themselves in
3. The importance of understanding your financial position
4. How to get more value from your accounting software package and bank account data
5. Planning ahead to avoid cash flow problems
6. The role of fintech lenders in providing quick and flexible funding solutions

Martin shares examples of clients he has worked with and the positive impact alternative financing has had on their businesses.\

@kerrcapital

@finforbiz

Thanks for listening.  Visit the Small Business Banter website to subscribe, listen back, or check out any resources or information mentioned on the show.

Search @SmallBusinessBanter on your favorite 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.

[email protected]

www.smallbusinessbanter.com.au

Mark Rubbo from Readings Books on what it takes to create and sustain an iconic business, and why handing over was harder than expected.

@MarkRubbo from @readingsbooks shares his personal take on buying and building this iconic business. We cover a lot of ground including;

• How the opportunity to buy Readings came about
• Laving the music industry (Professor Longhair) for book retailing
• The linkage of Marks business ambitions with the impact on;
  • the Australian book industry
  • the broader literary community (writers, publishers)
  • the local community
• Mark's ambition and opportunistic mindset to expanding Readings into multiple other locations, and the establishment of an online presence
• The importance of community engagement, author events and creating a vibrant bookstore
• The physical bookshops as a unique experience, with the opportunity for discovery
• Why Government support for bookshops is crucial in preserving the cultural value they bring to communities
• Transitioning out of the CEO role and ensuring a smooth succession to maintain the unique flavor of Readings
• The challenges and rewards of running an independent bookstore
• The impact of Borders Books when it opened directly opposite in Lygon St in the early 2000's
• The impact of online retailers like Amazon
• His experiences of succession planning, and advice for other small bookshop owners - to ensure the continuity of their business and to pass on their legacy.
• He also talks about his current projects;
  • The Book Sellers podcast - https://podcasts.apple.com/gb/podcast/the-booksellers-podcast/id1683259417
  • #Indigenousarts
  • #literaryprizes
  • @beyondblue
• And finally what it's really like to 'move on', and hand over day to day management

QUOTES:

"Sometimes founders rightfully wrongly put everything they've got into it and other people get to benefit from it."

"I hope Readings has been a sort of community focused business."

Thanks for listening.  Visit the Small Business Banter website to subscribe, listen back, or check out any resources or information mentioned on the show.

Search @SmallBusinessBanter on your favorite 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.

[email protected]

www.smallbusinessbanter.com.au

Earl Eddings business founder, chair, mentor and adviser shares his experiences from both sides of a business sale

@Earl Eddings has started, sold and acquired multiple businesses. Along the way he's had high profile roles including as Chair of Cricket Australia, and served as Non Executive Director, Advisory Board member, Adviser and Mentor to other business owners and businesses. He's had wins. He's also learned a lot from experiences where things didn't go to plan. These experiences were however formative and continue to shape how he continues to approach his work, the support he provides to other business leaders and business owners.

In our discussion we cover;

• Earl's background and his journey as a business owner, including his first owned business and its sale
• Turning around businesses and the importance of planning for an exit
• The key factors to consider when selling a business, such as having a clean balance sheet and strong systems
• The significance of trust, open communication and integrity in mergers and acquisitions, as well as the importance of proper due diligence
• The importance of expert advice and representation
• Managing expectations to avoid unrealistic valuations
• Planning for an exit and the starting point, and the future vision
• Ways to increase the value of the business
• The importance of identifying potential buyers and scanning the market is highlighted
• Mitigating risks and ensuring sustainability
• Working with the buyer and transitioning
• The use of non-binding indicative offers and deal negotiations
• Why to avoid lengthy exclusivity periods is emphasized
• The vital importance of personal aspirations and family considerations
• The role of non-executive directors and advisory boards
• Why seeking guidance and building networks is encouraged as a way to navigate the complexities of selling a business

Some of the key takeaways;

1. When starting a business, it's important to have an exit plan in mind and be prepared for a potential sale.
2. #Culturalfit and alignment of strategic intent are crucial considerations in mergers and acquisitions.
3. Plan for an exit by starting with a clear vision of the future.
4. Identify potential buyers and scan the market to find the right fit.
5. Consider personal aspirations and family dynamics when planning for an exit.
6. Engage non-executive directors and #advisoryboards for guidance and support.
7. Build networks and seek guidance from experienced professionals.

@kerrcapital @michaelkerr

Thanks for listening.  Visit the Small Business Banter website to subscribe, listen back, or check out any resources or information mentioned on the show.

Search @SmallBusinessBanter on your favorite 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.

[email protected]

www.smallbusinessbanter.com.au

Pete Seligman Search Investor on finding and inspiring the next generation of business owners.

@Pete Seligman talks about and #eta (Entrepreneur through Acquisition) and #searchfunds and their impact on small business owners. He's an investor and co-owner of multiple businesses.

Pete explains the concept of search funds and how they provide a vehicle for investors to back #acquisitionentrepreneurs.

We talk about;

• the importance of finding the right fit between the entrepreneur and the business
• current market challenges and opportunities
• how business owners should handle an approach from a search fund or investors
• the role of #earnouts in business sales and how they can bridge the gap between buyer and seller
• the common misunderstandings in relation to earnouts, and the potential benefits they can offer
• creative deal making and risk sharing to improve the prospects for getting a successful transaction
• why business owners need to augment their existing advisors with subject matter experts for a sale process
• the importance for owners to reflect on their mission and have honest conversations with co-owners to align their goals

Takeaways

• Search funds provide a pathway for entrepreneurs to buy existing businesses instead of starting one.
• The fit between the entrepreneur and the business is crucial for success.
• Business owners should be open to conversations with search funds and investors, as it can lead to new opportunities.
• Co-investing and joint ventures can be options for owners who want to grow their business with additional capital and expertise.
• Owners should be prepared for potential exit opportunities and have a clear understanding of their role in the business. Earn outs can be a valuable tool in bridging the gap between buyer and seller in a business sale.
• Creative deal making and risk sharing are essential for a successful transaction.
• Owners should consider the potential benefits of earnouts and not reject the concept of deferred payment outright.
• Business owners may need to augment their advisors with additional expertise for a sale process.
• Reflecting on the owner's mission and having honest conversations with co-owners are crucial for aligning goals.

@kerrcapital

Thanks for listening.  Visit the Small Business Banter website to subscribe, listen back, or check out any resources or information mentioned on the show.

Search @SmallBusinessBanter on your favorite 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.

[email protected]

www.smallbusinessbanter.com.au

Sandy Chong CEO Australian Hairdressing Council and 2023 COSBOA Small Business Champion on pathways from a trade to business ownership.

@Sandy Chong brings 39 years experience as a salon owner to her current role as CEO at @The Australian Hairdressing Council. She's the current @cosboa #smallbusinesschampion and has multiple other board and advisory roles that involve advocacy and improving effectiveness for industry bodies.

Sandy sold her own salon during 2023 to focus on her CEO role. In that role she is actively involved in advocating for small businesses and shaping the future of the industry. Her extensive background as a business owner gives her valuable insights to guide those aspiring to venture into entrepreneurship and business ownership after completing their trade apprenticeships.

In our discussion we talk about;

• the crucial role industry bodies play in supporting and advocating for small businesses
• the importance of education and training in helping #apprentices become skilled professionals, and then business owners
• how vital apprenticeships are for the growth and sustainability of industries
• why small businesses, like hairdressing salons, have such a significant impact on the community and contribute to people's self-esteem and mental wellness
• nurturing and developing homegrown talent
• navigating the impact of Government Regulations on hairdressers
• addressing #skillshortages and Workforce Sustainability in trades
• what she learnt running a salon with up to 45 staff (all but 1 apprenticed by Sandy!) over 39 years
• shedding light on the unique challenges and opportunities within the hairdressing industry
• inspiring entrepreneurs in the trades industry

I think hairdressers often give back and I think that's one thing that really stands out for me, is they have really incredible business structures. They're incredibly generous to their staff, but it's the community generosity. - Sandy Chong

Visit the Australian Hairdressing Council website at www.ahc.org.au to learn more about the organization and its initiatives.

Timestamped summary of this episode:

00:00:12 - Introduction and Purpose of the Podcast
Michael Ker introduces the Small Business Banter podcast and its relevance to business owners, especially those looking to sell or buy a new business. He emphasizes the stress, emotions, and challenges involved in these processes.

00:01:21 - Sandy Chong's Background and Role
Sandy Chong shares her extensive background as the CEO of the Australian Hairdressers Council and her experience as a past salon owner for 39 years. She highlights the importance of developing relationships with clients and the unique challenges of the hairdressing industry.

00:07:20 - Career Opportunities in Hairdressing
Discussion on the potential career opportunities in the hairdressing industry, including the potential for financial success, international work, and diverse roles beyond salon ownership. Emphasis on the importance of education and training for career growth.

00:09:50 - Apprenticeship and Business Ownership
Sandy Chong reflects on her commitment to apprenticing her staff and the importance of finding the right buyer for her salon. She discusses the need for a pathway to guide talented practitioners toward business ownership and the challenges of running a business.

00:14:59 - Industry Support and Sustainability
Sandy Chong emphasizes the role of industry associations in educating and supporting business owners, particularly in navigating complex issues such as industrial relations and HR. The importance of belonging to an association for access to industry-specific information and support is highlighted.

00:16:25 - Migration Review and Industry Concerns
Sandy discusses the release of the migration review and expresses concern for the hairdressing industry's exclusion due to high sponsorship costs. She highlights the industry's need for sustainability and lower tismet.

00:17:37 - Challenges and Solutions for the Industry
Sandy addresses the skill shortage in the predominantly female hairdressing industry and emphasizes the importance of investing in apprenticeships and adapting to the changing preferences of younger workers. She also mentions the potential benefits of new jobs and skills councils.

00:19:38 - Encouraging School-Based Apprenticeships
Sandy discusses the potential of school-based apprenticeship programs and the benefits of group training organizations for higher completion rates. She also highlights the challenges faced by single operator salons and the financial barriers for young people entering the industry.

00:21:41 - Financial Management and Small Business Challenges
The conversation shifts to the financial challenges faced by small business owners, particularly in managing cash flow, profit and loss, and the complexities of industrial relations. Sandy emphasizes the need for education and support in understanding basic finances and business value.

00:32:01 - The Value of Small Businesses in Communities
Sandy and the host highlight the vital role of small businesses, including hairdressing, in supporting community well-being and mental health. They emphasize the personal and social aspects of the hairdressing experience, going beyond just a haircut.

00:33:05 - Passion for Small Business and Cosboa Small Business Champion Award
Sandy Chong discusses her deep passion for small business and receiving the Cosboa Small Business Champion Award in April. She highlights her role as an ambassador and her commitment to lobbying and advocacy work for small businesses.

00:35:36 - Driving Force behind Small Business Ownership
Sandy Chong shares her motivation for becoming a small business owner, emphasizing the inclusivity and culture of the hairdressing industry. She also discusses her desire to be a successful business person and contribute to the industry through education and training.

00:37:01 - The Mindset of Small Business Owners
The conversation delves into the mindset of small business owners, highlighting their humble beginnings, lack of strategic planning, and the drive to seize opportunities. The discussion also touches on the purpose, financial benefits, and challenges of small business ownership.

00:40:38 - Small Business Heroes and Inspirational Figures
Sandy Chong mentions several inspirational figures in the hairdressing industry, recognizing their ethical standards, charitable work, and community generosity. She emphasizes the impact of these individuals on the industry and their ability to inspire the next generation of small business owners.

00:43:22 - Reaching Out to Sandy Chong
Sandy Chong provides information on how to reach out to her as the CEO of the Australian Hairdressing Council and the current small business champion. She encourages individuals to visit the council's website and emphasizes her accessibility for inquiries and support.

Thanks for listening.  Visit the Small Business Banter website to subscribe, listen back, or check out any resources or information mentioned on the show.

Search @SmallBusinessBanter on your favorite 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.

[email protected]

www.smallbusinessbanter.com.au