Episodes

  • 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
    May 3 2024

    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.

    michael.kerr@kerrcapital.com.au

    www.smallbusinessbanter.com.au
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    51 mins
  • Mark Rubbo from Readings Books on what it takes to create and sustain an iconic business, and why handing over was harder than expected.

    Mark Rubbo from Readings Books on what it takes to create and sustain an iconic business, and why handing over was harder than expected.
    Apr 5 2024

    @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.

    michael.kerr@kerrcapital.com.au

    www.smallbusinessbanter.com.au
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    1 hr and 18 mins
  • Earl Eddings business founder, chair, mentor and adviser shares his experiences from both sides of a business sale

    Earl Eddings business founder, chair, mentor and adviser shares his experiences from both sides of a business sale
    Mar 8 2024

    @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.

    michael.kerr@kerrcapital.com.au

    www.smallbusinessbanter.com.au
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    59 mins
  • Pete Seligman Search Investor on finding and inspiring the next generation of business owners.

    Pete Seligman Search Investor on finding and inspiring the next generation of business owners.
    Feb 9 2024

    @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.

     

    michael.kerr@kerrcapital.com.au

     

    www.smallbusinessbanter.com.au

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

    Sandy Chong CEO Australian Hairdressing Council and 2023 COSBOA Small Business Champion on pathways from a trade to business ownership.
    Feb 1 2024
    @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 businessesthe importance of education and training in helping #apprentices become skilled professionals, and then business ownershow vital apprenticeships are for the growth and sustainability of industrieswhy small businesses, like hairdressing salons, have such a significant impact on the community and contribute to people's self-esteem and mental wellnessnurturing and developing homegrown talentnavigating the impact of Government Regulations on hairdressersaddressing #skillshortages and Workforce Sustainability in tradeswhat she learnt running a salon with up to 45 staff (all but 1 apprenticed by Sandy!) over 39 yearsshedding light on the unique challenges and opportunities within the hairdressing industryinspiring entrepreneurs in the trades industryI 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 ChongVisit 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...
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    45 mins
  • Jonathan Roberts on how he and 2 business partners achieved their unconventional exit from One Rabbit after 27 years of working together.

    Jonathan Roberts on how he and 2 business partners achieved their unconventional exit from One Rabbit after 27 years of working together.
    Jan 16 2024
    @JonathanRoberts  co-founded @OneRabbit with 2 partners 10 years ago.  He'd worked with those same partners for 17 years prior in a marketing and design business, which ultimately morphed into One Rabbit.  Along the way he's founded, owned and exited multiple other businesses. In this episode and based on that deep experience as an entrepreneur Jonathan shares high value insights on the challenges and rewards of making a strategic exit.  Specifically he talks about;how 3 partners exited their marketing firm with friendship Intactthe importance of recognizing when passion and energy wanehow assessing one's satisfaction and enthusiasm regularly can be pivotal in determining the right time for a changethe significance of exit planning, building systems into the business, diversifying income streams, and maximizing profitshis unconventional approach to exit planninghis success in transitioning to new ventures@ZeroWasteProject@fridgefriendthe value of finding new passion and purpose beyond the businessA must-listen for potential business sellers and entrepreneurs seeking to exit on their terms and with confidence."Enjoy it, stay there while you enjoy it, make it as profitable as you can. And then when you stop enjoying it, pull the trigger, move on." - Jonathan RobertsRESOURCES:Visit www.zerowasteproject.com.au to explore the Zero Waste Project and learn more about their products and initiativesSearch for www.fridgefriend.com.au to find the domestic product offered by Zero Waste Project and discover how it can help reduce food waste at homeConnect with Jonathan Roberts on LinkedIn for further insights and updates on his entrepreneurial journey and business ventures.Timestamped summary of this episode:00:00:06 - Introduction and Purpose of the Podcast Michael Kerr introduces the Small Business Banter podcast and discusses its focus on business owners at different stages of ownership, such as selling, being approached by potential buyers, or aspiring to buy a new business.00:01:13 - Guest Introduction and Business Background Jonathan Roberts shares his extensive background in sales and marketing, including founding and growing One Rabbit, a professional services marketing firm. The discussion touches on the unique approach taken by One Rabbit and its transition into a consulting firm.00:05:42 - The Transition to One Rabbit and Business Philosophy Jonathan explains the transformation of One Rabbit, emphasizing the decision to focus solely on professional service firms. The discussion also delves into the philosophy behind the name "One Rabbit" and the shift towards a no BS approach in marketing.00:09:27 - Knowing When to Wind Up a Business Jonathan discusses the natural progression towards winding up One Rabbit after 27 years, citing a loss of enthusiasm and a desire to pursue other business interests. The impact of COVID-19 and the exploration of potential alternatives, including selling the business, are also mentioned.00:16:55 - Navigating Business Partnerships and Personal Reflection The conversation touches on the dynamics of business partnerships, personal attachment to a business, and the gratitude for accomplishments over 27 years. Jonathan shares insights on communication within partnerships and the departure of co-founders.00:17:23 - The Importance of Conscious Business Decision-making Jonathan discusses the importance of conscious decision-making when it comes to exiting, not exiting, or selling a business. He emphasizes the need to have a plan and be aware of the options available.00:19:27 - The Trade-off in Exiting a Business Jonathan shares his experience of stepping away from his business after 27 years. He discusses the factors that led to the decision, including being passionate about other business opportunities and feeling less motivated in the current one.00:25:32 - Renewed Purpose in New Ventures Jonathan talks about his new business ventures related to reducing food waste and the positive impact it has. He highlights the renewed vigor and purpose he feels in his current endeavors, compared to his previous consulting business.00:28:51 - The Entrepreneurial Spirit and Continuous Growth Jonathan discusses his entrepreneurial spirit and the excitement of building new businesses. He emphasizes the importance of continuously investing time and energy into new ventures and the satisfaction it brings.00:31:23 - Maximizing Earnings and Exit Planning Jonathan advises business owners to maximize their earnings while in the business and invest in exit planning. He acknowledges the challenges of selling a business and the need for conscious decision-making throughout the process.00:34:27 - Building Business Systems Jonathan reflects on the need for more business systems in their knowledge-based business to diversify income streams and maximize profits. He emphasizes the importance of smart marketing and working with enjoyable clients.00:37:18 - Becoming an Expert Jonathan discusses the...
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    42 mins
  • Shane Cheek owns Continua Software and shares his deep experience from starting, selling, buying and operating multiple software businesses.

    Shane Cheek owns Continua Software and shares his deep experience from starting, selling, buying and operating multiple software businesses.
    Jan 11 2024
    @ShaneCheek is the CEO of @ContinuaSoftware which is a private company that specialises in acquiring, operating and growing B2B software companies.Shane is an experienced founder, builder, business seller and investor. His  expertise and practical insights make this episode a must-listen for #businessowners who are potential sellers looking to understand the best strategies to sell their business, especially when they are selling to an industry buyer. In this episode we cover;how to best manage the process of selling your business to an industry buyerthe fast growing trend of #searchfund buyers making direct approaches to business ownershow to best prepare for a direct approach preparing for sale negotiationsunderstanding the value of your companythe importance of building relationships with potential acquirershow to effectively qualify incoming inquiries from a search fund or industry buyer navigating negotiations with #privateequity buyers like a propreparing for a fulfilling life after sellingthe crucial role of trusted advisors in the selling process"People are messy, businesses are messy, people are imperfect, and businesses are imperfect as well. Acknowledging that and then approaching any potential transaction or sale with that as a realization makes things smoother and hopefully more enjoyable and fun along the way as well" - Shane CheekVisit @continuasoftware.com to learn more about Continua Software and their focus on acquiring businesses in the software and technology space.Contact Shane at Shane@continuasoftware.com to connect with him regarding business opportunities or discussions related to small businesses in the software and technology sector.Timestamped summary of this episode:00:00:06 - Introduction to Small Business Banter podcast Michael Kerr introduces the Small Business Banter podcast, highlighting its focus on business owners and their advisors at various stages of business ownership.00:02:34 - Continua Software and Outreach Model Shane Cheek discusses Continua Software's focus on acquiring B2B software companies and their outreach model to directly connect with business owners. He emphasizes the importance of building relationships and understanding the people behind the businesses.00:10:14 - Reasons for Considering an Exit Shane highlights the reasons why business owners consider selling their businesses, including reaching a plateau, feeling tired, and personal factors such as upcoming travel or personal fulfillment.00:14:30 - Importance of People in Acquisition Shane emphasizes the significance of prioritizing people in business acquisitions, focusing on aligning values and building rapport with business owners. He discusses the importance of understanding owner's goals beyond financial aspects.00:17:22 - Flexible Operating Model and Partnership Shane explains Continua Software's flexible approach to business acquisition, accommodating varying levels of owner involvement post-acquisition. He emphasizes the importance of aligning owner's strengths with the business's needs for mutual success.00:20:46 - Challenges in Business Transition Shane discusses the tensions and challenges in making new business decisions, especially for sellers who have built successful businesses.00:23:39 - Key Elements of a Good Business Opportunity Shane highlights the importance of consistency, predictability, and clarity of roles and responsibilities in evaluating a business opportunity.00:27:28 - Importance of Building Relationships Shane emphasizes the importance of building a relationship with the owner of the business, comparing it to dating and marriage, and the role of a good advisor in the process.00:31:48 - The Role of an Advisor in Selling a Business Shane discusses the significance of having an advisor to guide the seller in the sale process, and the impact of having an advisor on the certainty of closing the deal.00:39:32 - Managing Inquiries and Interest Shane addresses the increasing inquiries to owners from various sources, emphasizing the need for credibility and genuine interest in potential buyers, and the importance of managing the pipeline effectively.00:41:47 - Qualifying Inbound Inquiries The owner needs to quickly validate the quality and intentions of inbound inquiries. Key questions to ask: Why do you want to buy my business? What is your capital source? What are your values and alignment?00:44:28 - Evaluating Potential Buyers It's important to assess the track record and intentions of potential buyers. Owners should approach incoming inquiries as they would a long-term sales prospect or a potential business partner.00:47:48 - Initial Steps in the Sale Process After an initial conversation, gathering historical financials, customer lists, and staff lists is crucial. Advisors can help prepare the business for sale by cleaning up and organizing key information.00:55:53 - Reflecting on Business Performance Owners should reflect annually on their business ...
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    1 hr and 13 mins
  • Ben Tuszynski on how Judo Bank is fuelling greater success for small business owners by getting back to relationship banking.

    Ben Tuszynski on how Judo Bank is fuelling greater success for small business owners by getting back to relationship banking.
    Dec 19 2023
    @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 ...
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    52 mins