Four key areas you must have clearly identified to know your business.
So you’ve been in business a while and you’ve overcome some of the common frustrations of operations that plague every small business; too much work in the business vs on the business, no more time to get things done, not growing fast enough, not making enough money for the effort put in, uncertainty about accounting, revenue and expenses.
We get it. That’s the reason many clients come to us. They’re looking for solutions to those common frustrations and they want to know they’re not alone. We can promise and assure you, you are not alone! So what are some of those solutions? From our perspective there are 4 key areas you have to have clarity on to successfully evaluate your business operation:
- A strategic plan. A solid strategy for the business and it’s growth. Is there a strategic plan for your business that outlines the steps to success?
- Accuracy in forecasting. What have you put together from a revenue and expense perspective to know that you’re on track? Can it be monitored easily and often?
- A solid budget. We know from experience this can be one of the most daunting tasks as it takes time to build it properly and then discipline to execute it correctly as planned.
- Cash flow projection. Clearly, this is a result of all of the above but it’s the most critical because with money coming in, your going concern continues to be a going concern. Without cash on hand or in the bank, you’re dipping into debt. Or, worse yet, your sliding into big trouble of running out of cash for payroll, rent, taxes, etc. All business ending issues if they’re allowed to accumulate.
Understanding why you’re in business in the first place is always a good place to start to build out any of the steps above. What pain points are you relieving for your customers? How are you different? What is it you hope to achieve with the business?
Do you have the necessary information to help you make wise spending decisions? Do you have a road map of sorts? Like many others, you’ve probably been operating on “trial and error”. Sometimes, that’s fine when there are more trials that work and less errors. But what if it’s the opposite? What’s it going to take to get it flipped to more successes and less “gambles” on a company investment? Very few businesses have the luxury of making too many errors when it comes to spending money.
Knowing the right questions to ask when you’re sitting in the monthly business review of your P&L makes all the difference. We’ve found though, that many business owners are afraid to ask the questions that might give them an answer they don’t want to hear or they’re not even sure what questions to ask to get the answer they need to hear.
Our objective is to help your business be on the right track to give you a crystal-clear picture of how to build it the way you want it built. We’re here to help you understand the right questions to ask to be sure you can make the right decisions on next steps. And most importantly, to give you the tools and support to make those decisions based on the 4 steps above with transparency and immediate access to your numbers 24/7.
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