What Will Make My Business Sustainable?

Running a small or micro-business is no small feat, especially in regional areas. 

It requires vision, resilience, and a keen understanding of what keeps a business not just afloat but thriving over the long term. 

Let's dive into some essential elements that can help make your business sustainable, drawing insights from our podcast episode with Johan Czanik, Your Number Man, and Shelley Cox, Founder of The Regional Collective.

Gain Financial Clarity: Your Navigation System

Financial clarity is like having a reliable navigation system for your business. Johan Czanik emphasises the importance of understanding your numbers to ensure your business stays on course. 

"Well, you think about an airplane, you know, you can't fly blind in an airplane. You need a navigation system. You need clarity to know where you're going." - Johan Czanik

By keeping a close eye on your financials, you can make informed decisions that steer your business towards sustainability. 

• Regularly review your budget
• Manage your cash flow
• Forecast your financial future to avoid unexpected turbulence.

Leveraging Your Strengths and Skills

As Shelley Cox points out, leveraging your natural skills and affinities can keep your business dynamic and engaging.

"And that's the fun thing, I think, as well, is being able to use the skills and that natural affinity that you have for numbers, and make sure it works for you to keep your interest up." - Shelley Cox

Identify your strengths and find ways to integrate them into your business operations. Whether it’s financial management, marketing, or customer service, using your strengths can keep you motivated and your business thriving.

Building a Solid Foundation

Creating a sustainable business model involves building a strong foundation before seeking rapid growth. This includes having a clear understanding of your gross profit margin and ensuring your operations are efficient.

"Growth takes money, you know. You’ve got to buy new machines and you’ve got to perhaps employ people to help you grow before you get your return." - Johan Czanik

Take the time to

• streamline your processes
• understand your costs, and 
• ensure your pricing strategy supports profitability. 

This will provide the stability needed for sustainable growth.

Practical Steps for Sustainability

Here are some actionable steps to incorporate into your business strategy:

• Create and Stick to a Budget: Develop a budget that aligns with your business goals and monitor it regularly. This will help you manage your resources effectively and anticipate financial needs.
• Regular Financial Reviews: Conduct weekly or monthly financial reviews to stay on top of your numbers. Use accounting software like Xero or MYOB to simplify the process and keep your records accurate.
• Cash Flow Management: Implement practices to manage your cash flow, such as timely invoicing, monitoring expenses, and keeping a buffer for unforeseen expenses.
• Utilise Tools and Resources: Take advantage of available tools and resources to enhance your business operations. This can include mentorship programs, business planning workshops, and financial management tools.

Embrace a Growth Mindset

Sustainability is not just about maintaining the status quo; it’s about adapting and growing. Embrace a growth mindset by being open to new ideas, continuously learning, and staying connected with your business community.

As Johan reminds us, "Clarity is power. It gives you so much confidence if you know where you're going." By maintaining clarity and leveraging your strengths, you can build a sustainable business that not only survives but thrives.

For more tips and insights on building a sustainable business, listen to our full podcast episode with Johan Czanik and Shelley Cox Here. And remember, at The Regional Collective, we’re here to support you every step of the way. Join Us