This story is an adaption of one I have seen several times online.
A woman enters a dimly lit foyer of the only hotel in town, she disturbs a tired looking innkeeper busy moving paper around his desk.
“I require a room for two nights, do you have any available?”
“You are in luck, we do have a room” Remaining seated on a chair listing slightly to one side the innkeeper rolls himself across the office floor and selects a single key, from a board full of keys. It was several days since the last room was let and he wished he had got around to dusting the surfaces of at least one.
“I will require a one-hundred-dollar deposit.”
The traveler placed her credit card on the desk.
“I am sorry, credit cards are not accepted in this town any longer, the fees are way too high.”
Her head moved ever so slightly up, then down “I understand.”
The one-hundred-dollar note she removed from her wallet was one of several, the sight of this well-stocked repository produced an involuntary widening of the innkeeper’s eyes followed by a chain reaction of facial movements including a gathering of creases on his forehead and the widening of the mouth into a supercilious smirk, eventually settling into a welcoming smile.
In exchange for the note the innkeeper handed the woman a key.
“I am sure you will enjoy your stay, just ask if there is anything you need. Rooms are on the first floor, room three is the second on the left.”
Before she reached the top of stairs the innkeeper was in the street, one hundred dollars in hand, making his way to the grocery store.
Head down, feet shuffling in an almost skipping gait; a limp wave was his only acknowledgement to the young checkout attendant standing at her station adjacent the grocery store entrance. He bellowed a question he did not require an answer to, or wait to receive.
The innkeeper dodged three townsfolk and their shopping carts as he made his way down aisle four and to the back of the store, pausing briefly at a grubby white door with a faded sign “office”, he pushed the door open before the proprietor had time to respond to his light knock.
“Good afternoon Paul, I can finally pay off my account, her is the one hundred dollars I owe you. Must run I have a guest in the hotel”
As the innkeeper bustled back to the hotel, Paul the grocer crossed the road and entered the freight company office.
“Mary, I am so sorry I am behind again, but I can at least pay one hundred dollars of my account.”
“Thank you Paul, it is a start.”
By this stage the innkeeper was back in his wobbly chair moving more paper around the desk, he looked up and was pleased to see his friend Mary enter the lobby. At the same time the traveler was coming down the stairs. Both now stood before the innkeeper’s desk.
“You were here first.” The traveler motioned Mary to transact her business.
Handing the one hundred dollar note to the innkeeper Mary was brief. “I can see you are busy, I will come back later, this should be enough to pay my account for last month. See you soon.”
The innkeeper was excited, after a slow week he had received two hundred dollars in the one morning, and the traveler stood before him, perhaps ready to spend more!
“How can I help you?” asked the innkeeper
“I am very sorry but the room is filthy, I am going on to the next town and will stay there, please refund my deposit.”
The traveller left town without spending a cent, the innkeeper, grocer, and the freight operator reduced their indebtedness to each other courtesy of the traveler’s temporary deposit. The combined net wealth of the local economy increased by three times the sum of money injected into it for a period less than ten minutes.
Those skilled in the dark art of double entry bookkeeping will tell us this is an absurd tail, and they are correct. However, it serves to illustrate the interdependence of businesses within the same economic community, when one does well, there is a positive flow on affect, a true win-win situation.
This is the basis for the business model of buildabetterbusiness.com and the reason courses are offered to owners and managers free. Those who successfully complete the courses will be operating better businesses producing more profit and cash flow. The businesses will become “better” clients of the accounting firms they work with because they will be asking the finance professionals to do more for them, generating more fees.
The revenue of buildabetterbusiness.com is generated from the training provided to accountants. I train accountants how to help owners and managers of growing businesses improve performance.
The more enterprises enrolling in the free courses, the more interest there will be from accountants in the training I offer.
A win-win–win situation.
But there will be other winners as well. The delivery of the build a better business program has the potential to significantly increase economic activity. The economic premise behind this statement is simple to understand:
If you want to stimulate economic activity, do something to increase the profitability of small businesses in a region. Profits drive employment growth and business spending, and there is a direct and circular relationship between profit, employment and spending.
Seven times, that is how often a dollar generated in a regional economy is turned over according to a 2010 Nuffield Scholarship Report prepared for the Eyre Regional Development Board. Every additional dollar in profit generated by businesses in a regional economy will result in $7 of additional spend. When revenue and profits are on the rise so too are employment opportunities.
So I encourage you to enrol in the courses available, they are all free, invite your friends and associates to do so as well, and bring this site to the attention of your accountant.