Following a tumultuous period in both their professional and personal lives, Luke Harney and his partner Anita Cheung turned to Be the Business for support with their growing business, Ah-Ma’s Dumplings.
Luke joined Anita’s business two years ago, following the birth of their child, and joined The Productivity Programme “looking for help with running a business”.
“With the baby coming along we needed to make more concrete plans, so I got involved in the business and we put in some money. Because of that we’ve hit a growth phase, and I’ve had a steep learning curve in learning what the business really is and how to run it,” he said.
Hitting the VAT threshold
Expansion wasn’t the only significant change Ah-Ma’s Dumplings was going through.
“We hit the VAT threshold as the baby arrived, and the biggest shift was from being a sole trader and thinking about business that way, to hitting that threshold and becoming a limited company. Anita has always just been able to work harder to fix problems, but you can’t do that in a bigger business, so it’s been a challenge to shift our way of working,” Luke said.
“That’s where the Be the Business guys have been absolutely incredible, and very supportive. They said it sounds like a fantastic business, which was good to hear, and that this is always what it’s like. It’s the same steep learning curve for every business going through this phase.”
Luke added that the board were also able to provide practical tools to see them through these challenges:
“It’s been a combination of really useful advice and perspective, and getting into the nitty gritty as well. We have foresight that a VAT bill will be coming built into how we work now, so we’re putting money aside to cover it,” he explained.
Managing the business’ finances
The agenda for Luke and Anita’s first board meeting was all about accounting.
“The board has really given us perspective on managing a business of this size, in terms of planning and financial management and forecasting. It’s a complete uprooting of all the ideas we had about managing money as a small trader because it just doesn’t work like that anymore,” Luke said.
“From the first meeting I had actions to set targets for increasing revenue and getting money coming in. I’ve been self employed, managing projects and budgets and things but never running a business, and finance is causing a lot of stress and strain at the moment.”
It’s not just the board meetings that have benefited Ah Ma’s Dumplings, but one-on-one support too, as Luke explained:
“I had a good one-to-one meeting with one of the board members, who is a finance and operations person, and he was super helpful. I’m hoping to have another session with him before the next board meeting.”
Identifying high-value revenue streams
Following the board’s advice, Luke’s attention has been on pursuing the most lucrative activities.
“One of the board members said that problems seem a lot smaller when you’ve got money in the bank, which really stuck with me. So I’ve been putting attention into the highest-value revenue streams and that’s really borne fruit. I found the best margins are in private and corporate catering, so I’ve pushed to get more of those gigs and it’s really paid off.
“We’re now looking at funding for the next phase of the business, to get the restaurant open comfortably. The bank is optimistic that we can get finance but need to see cash flow sheets, so we’re meeting with the board to get those finalised,” Luke said.
SME-specific advice
Luke highlighted that the board has been useful in helping Ah-Ma’s Dumplings to navigate managing a small food business.
“It’s shown us what a business should look like at this age and stage, and how I should be using my time and making decisions. A lot of management ideas are appropriate for businesses on a bigger scale.
“For example, we’ve been looking into stock management systems for when the restaurant is open and lots of software is pitched at big businesses. So having their advice about whether these systems are suitable for us and whether the price is appropriate has been great,” Luke explained.
“There’s been plenty of encouragement that there’s lots that can be done with the business long term, but they’re also really helping us to stay focused on where we are now and reminding us when we’ve got enough on our plates.”
We’re going to follow Luke as he continues to work with the board through Be the Business’s The Productivity Programme, and will update this story as his journey progresses.
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