to contact us call
0800 11 33 99
jamie@e3accountants.co.nz
Office: 10 Oxford Terrace, Christchurch, NZ
Invitation
If you're still paying your accountant for how long  it takes to do your work, you're not paying for the efficient production of your accounts.

For an accounting quote or free business advice, please call me on
(03) 379 2343 or email jamie@e3accountants.co.nz

Would you like a copy of the booklet "The business owner's guide to choosing the right accountant for your business"? Just email me with your name and postal address
Jamie Tulloch
Managing Director
PROFIT TIP
WHERE IS THE REAL PROFIT IN YOUR BUSINESS?
Gross Profit is the start of every dollar of profit in your business. if your Gross Profit is poor, then there's not much else in your business you can do to save it.

Sure you can strip back expenses, move on staff and trim everything to the bone - then what? If your Gross Profit is low, selling more will most likely exacerbate the problem and you'll be driven out of business because you've run out of working capital and can't fund any increase in sales.

To get your Gross Profit up, you need to raise your prices (either directly or indirectly), lower the cost of sale or a combination of both.

To be successful in business, you must know and measure the Gross Profit of every single item, product or service you sell.   

You must also benchmark your business against others in the in industry and aim to be in the top 25% of performers.

BUSINESS TIP
DON'T WAIT TO LEARN FROM FAILURE
In the business world, failure has become an expected rite of passage, You hear all the time how nine out of ten new businesses fail. You hear that your new business’s chances are slim to none. You hear that failure builds character. People advise “fail early and fail often.”

With so much failure in the air you can’t help but breathe it in. Don’t inhale. Don’t get fooled by the stats. Other people’s failures are just that; other peoples failures. If other people can’t market their product, it has nothing to do with you. If other people can’t build a team, it has nothing to do with you. If other people can’t price their services properly, it has nothing to do with you. If other people can’t earn more than they spend …. Well, you get it.

Another common misconception: you need to learn from your mistakes. What do you really learn from mistakes? You might lean what not to do again, but how valuable is that? You still don’t know what you should do next.

Contrast that with learning from your successes. Success gives you real ammunition When something succeeds, you know what worked – and you can do it again. And the next time, you’ll probably do it even better. Failure is not a prerequisite to success.

A Harvard Business School study found already successful entrepreneurs are far more likely to succeed again. But entrepreneurs whose companies failed the first time had almost the same follow-on success rate as people starting a company for the first time. People who failed before have the same amount of success as people who have never tried at all. 

Success is the experience that actually counts. That shouldn’t be a surprise. It’s exactly how nature works. Evolution doesn’t linger on past failures. It’s always building upon what worked. And so should you.
(Extract from the book Rework. By Jason Fried and David Heinemeier Hansson) 

INVESTMENT TIP
BEST RETURN POSSIBLE - GUARANTEED
  • If you had purchased $1000 of Nortel stock one year ago, it would now be worth $49.00.
  • With Enron, you would have $16.50 left of the original $1,000.
  • With WorldCom, you would have less than $5.00 left.
  • But if you had purchased $1,000 worth of Beer one year ago, drank all the beer, then turned in the cans for the aluminum recycling price, you would have $214.00.

Based on the above, current investment advice is to drink heavily and recycle.

TRIVIA

What Do Earthquakes Do?

busticate \BUHS-ti-keyt\, verb:
To break into pieces.

What did one earthquake say to the other?
 
It's all your fault!
(sorry)
IRD JOKE
The Dying Businessman 
A businessman on his deathbed called his friend and said, "Bill, I want you to promise me that when I die you will have my remains cremated."

"And what," his friend asked, "do you want me to do with your ashes?"

The businessman said, "Just put them in an envelope and mail them to the IRD.
Write on the envelope, "Now, you have everything."
Q: A blonde and her boyfriend hoped on a plane to leave Christchurch to escape the earthquakes. When the plan began to shake she grabbed her boyfriend and said "Oh no - not another aftershock!"
(sorry again)

Ever noticed how businesses expand to consume all funds available?
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