Why We Created Elements
27 Jul, 2018 by David Seamans
Businesses fail through a lack of understanding about what a business is and how to build one. A business that is stable, effective and stress free.
Elements focuses and empowers advisors who want to build better businesses.
We want businesses to understand where their revenue is coming from.
Revenue, turnover, moolah, cash in the bank.
The business must make sales. More customers, bigger sales and more often sales.
Gurus talk of a secret formula; a mystical spell; an equation; a silver bullet.
It is no secret - just understand the equation.
Income = Buyers X Average Sale Value X Number of Transactions
It was great in theory but not so good in practise.
In the PC days (pre-cloud), we had “land based” accounting systems. Some of these names - Quickbooks, Reckon, MYOB, Greentree, SAGE - that ran on the computer on your desk.
Business coaches talk of increasing the average sale value and the frequency of sale.
Accountants and bookkeepers even told the business person to get more clients.
So to see what made up revenue, this information was not hard to find.
But to put in place was quite a different story.
You had to sit down and run a bunch of reports, transfer the data to Excel and then figure out what it meant.
Hard work!! Who has the time for that effort?
Nobody had worked out the terms or the definitions so you were guessing in some grey areas.
The numbers never reconciled to that magic number - the business revenue figure. So no one was ever quite sure that the numbers were right; that they were doing the right thing.
If the Income from our equation did not agree with the real one then nobody believed in anything. The company accountant did not believe. The sales manager had his own “feelings”.
Everyone was guessing. Nothing scientific.
The business owner was usually standing high and dry, on their own, solo.
Coaches would wave their magic wand. They said that these handles had to be deduced (read "guessed at") and that “near enough was good enough”.
That is a bit like saying “You have cardiac problems but we have no ECG machine to monitor you”.
That did not stop accountants, bookkeepers and company coaches from trying to help.
They would suggest strategies and if some improvement was detected, they celebrated. If not, they would suggest another strategy.
A bit like using leeches to draw blood. To react when the patient dies, all is a bit pointless.
But we now have Cloud based applications which like modern business, operates 24/7.
Quickbooks Online, Xero and more arriving everyday.
The savvy business owner is impatient.
They are "switched on".
They want to see what is happening - NOW.
They want succinct notifications telling them how they are progressing - NOW.
We have the technology.
So we created Elements
Elements takes the guesswork out of terms like Active Clients.
Elements does the calculation of average sales value by client on every transaction.
Elements does the calculation of number of transactions by clients.
Elements provides clear and concise definitions for the every term.
But Elements is far more than that.
Elements tells you when you have or have not reached targets via your phone, your watch, whatever.
Elements is immediate and NOW. Elements will tell you every day, every week or every month how the business is trending.
So the accountant, bookkeeper, company coach knows immediately. They know which growth strategies are working and on what handle.
And what strategies are not.
There is no need for:
- paper reports
- defining "handles" and
- determining trends.
Elements does all that for you.
But Elements goes beyond that.
Elements motivates you to deal with those clients that are special to you and Elements shows you why.
Elements discourages you from dealing with those not so good clients and shows you why.
All this to your phone or your watch or a press of a button. Now; this instant; 24/7.
Elements has worked it all out.
Elements has the details for:
- the accountant,
- the bookkeeper,
- the company coach at their finger tips.
It is the instrument, the tool they must have.
Elements shows exactly what is going on.
And that is why we created Elements.