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There is no denying that COVID 19 has been particularly difficult for small business owners. With forced lockdowns and tightened restrictions to prevent the spread of the pandemic, many small business owners have had to dig deep in order to overcome these challenges and stay afloat. Today, I want to shine a spotlight on a fantastic retail business in Brisbane Australia that has not only survived, but literally thrived despite the global pandemic.

I want to welcome Jennah Grimsey to the show representing Vault Entertainment Pty Ltd. (Vault Games), located at \\u2013 Lower Ground, 62 Queen Street, right in the heart of the city in Brisbane, Australia.\\xa0 Jennah is in partnership with her husband Dylan Shearer and their mutual friend Cassandra Varian.

Financial Foreplay\\xae Highlights:

1.\\xa0 \\xa0 \\xa0 More sales often does not fix cash flow problems, in fact, it can make them much worse

2.\\xa0 \\xa0 \\xa0 High growth periods will highlight cash flow and working capital problems very quickly

3.\\xa0 \\xa0 \\xa0 Less than 30 days of cash reserves in the bank to deal with an emergency is very unsafe

\\xa0 \\xa0 \\xa0 a.\\xa0 \\xa0 \\xa0 Businesses should strive to have 4-6 months of cash reserves in the bank

4.\\xa0 \\xa0 \\xa0 Top 3 lessons learned from coaching

\\xa0 \\xa0 \\xa0 a.\\xa0 \\xa0 \\xa0 Cash flow is the #1 metric + you need to have enough working capital to fund the operating cycle and growth

\\xa0 \\xa0 \\xa0 b.\\xa0 \\xa0 \\xa0 It never makes sense to drop prices in retail just for the sake of driving high volumes of sales (i.e. Black Friday sales)

\\xa0 \\xa0 \\xa0 c.\\xa0 \\xa0 \\xa0 Supplier terms are critical \\u2013 often an extra 2-3 weeks to pay is much more valuable than a discount on price

5.\\xa0 \\xa0 \\xa0 Bank lending is very difficult for small businesses to get even with the government backed guarantees offered during COVID19

\\xa0 \\xa0 \\xa0 a.\\xa0 \\xa0 \\xa0 Non-bank lenders are much more flexible and approve loans more quickly but the trade-off is higher interest rates which much be factored into your costs

\\xa0 \\xa0 \\xa0 b.\\xa0 \\xa0 \\xa0 Paypal is roughly 14% and Prospa offers a 24% interest rate \\u2013 you need to adjust your business model to ensure you can cover these additional costs of doing business

6.\\xa0 \\xa0 \\xa0 Top 3 impacts on Vault Games from having a coach during the past 12 months

\\xa0 \\xa0 \\xa0 a.\\xa0 \\xa0 \\xa0 Net profit margin increased from 0.5% to 13%

\\xa0 \\xa0 \\xa0 b.\\xa0 \\xa0 \\xa0 Cash flow up 750% with 2.5 months cash buffer in the bank for emergencies (and working towards 4 months of cash buffer)

\\xa0 \\xa0 \\xa0 \\xa0 \\xa0 \\xa0 \\xa0 \\xa0 \\xa0 \\xa0 \\xa0 \\xa0 \\xa0 \\xa0 \\xa0 \\xa0 \\xa0 \\xa0 \\xa0 \\xa0 \\xa0 \\xa0 \\xa0 \\xa0 \\xa0 \\xa0 i.\\xa0 \\xa0 \\xa0Allowed business to expand by moving to larger premises and pay for all leasehold improvement and fitouts with cash

\\xa0 \\xa0 \\xa0 c.\\xa0 \\xa0 \\xa0 Took first fully paid vacation as owners (in four years of operations)

Do You Need Some Help to Get Your Cash Flow & Business Turned Around?

For those of you who are listening to this podcast and thinking \\u201chey that is exactly where I\\u2019m in my business and I could use some help to boost my cash flow and also put more systems in place so that my business works without me\\u201d, please know that help is available if you are open to learning and willing to do the work.\\xa0

Reach out now to speak with Rhondalynn about your suitability and readiness for coaching:

\\U0001f989 Rhondalynn Korolak \\U0001f468\\u200d\\U0001f393\\U0001f4e2 | LinkedIn