When taking stock of your financial situation within a business, it is helpful to take a step-back and look at the bigger picture. In doing so the fundamentals become clearer and go a long way to showing you the way ahead.
Here are a few nuggets of wisdom that will help you along the way.
- Clarify Your Resources
What are the resources that you currently have at your disposal? What can you use and in what can you re-invest that will ensure a greater return later on?
Cash, stock and assets are the first things that come to mind, but also consider longer term elements that may mature to eventually pay out generous dividends. If they have been accumulated over time you may need to do a little detective work to establish a comprehensive list of all such assets.
You should also include resources such as your staff, branding and market presence.
- Determine Your Goals
This may sound like an obvious one but you need to establish what it is that you want to get out of what you are doing. Don’t be afraid to get specific about your hopes for your business.
Dream big, but realistic. Put down what you want to achieve. Target income, for example, may be a goal for you. Your timescale for growing your business and achieving your income target is a goal in itself.
What will you want to achieve next? What if things go better than expected? Don’t be afraid to think of a longer-term strategy. On the other hand, also come up with a fall-back plan if things don’t go according to plan.
- Prioritise Good Data
Detailed accounts are essential if you want to base your business decisions on the best and latest information available. The latest, and most accurate, accounts will allow you to determine areas of improvement for your business and expand your operations as you see fit.
But don’t just rely on the accounts. Take market analysis, sales and other demographics into consideration when forecasting the future of your business.
- Pick Good People
At the end of the day people do business with people and so you need the right people working for you in order to get your kind of sales and business through the door.
The relationships you have with your staff, customers, and even competition, will determine how well your business performs. On paper things may look rosy, but if the foundations aren’t there to support a long-term future you may need to rethink things.
- Clarify Your Options
Nobody likes to be cornered. Instead, we all like to have options. Options usually come from having creative thinkers around who can look at accurate information and come up with good ideas that can they can implement.
It is up to you and your colleagues, with your industry insight, to find the relevant opportunities and quickly take advantage of them to stay ahead of the competition.
Remember that a cool head is always the better option when considering how to use money wisely. While rash decisions are to be avoided, acting quickly on solid information will always see you on the winning track.
Getting Back on Track
Take these suggestions onboard and we’re sure you will gain greater insight into how your business is performing and find the right way to get ahead.
Remember, a few minutes of careful consideration can save you hours and pounds of problems later on.
Able Accountants are local accountants with an active blog providing help and advice on all forms of personal and business finances.
