Astute business owners take sound business advice and then implement the advice into their business activity to ensure
- sustainability and
- predictable results.
The key action is implementation.
Business owners need to be accountable and to take actions based on good small business advice and ensure that this becomes an integral part of the way in which the business operates.
A business that has a culture of continuous improvement is easily identified and valued.
Choose both your Advisor and Accounting service provider carefully.
Small Business Advice should cover:
- Financial Performance
- Financial Management must be the top priority
- Financial Management must be easy to understand and be fully understood
- Applying the practical application of accounting is not expensive or difficult to do
- Your investment should give you a significant ROI on both your time and capital
Any decisions made must be an informed decision based on sound Financial Management
Preparation of Financial Management Reports must be based on good accounting records
Implementation is critical to any progress toward predictable financial performance
Your objective should be to:
- Ensure there is a high probability of a Return of your Capital invested
- Pay yourself at least the market rate for the role you play in the business
- Generate a ROI on capital invested of 30% or greater
- Strengthen your balance sheet by retaining profits
- Grow business equity by retained profits
- Fund future growth from retained profits
To maintain the business as ‘ready for sale’ and to ‘be attractive to a willing buyer’.
Your Target Outcomes should be :
- Maximise sustainability, productivity, and growth potential
- Enable systems and processes to free the owners time
- Establish Key Performance Indicators to measure progress toward desired outcomes
- Establish a value proposition for all Financial Management Services you use
- Focus on managing financial performance, cash flow, and working capital required
- Transition to full cloud technology integration for greater functionality
- Establish Jobs to track financial performance per job
- Establish quoting system integrated with Xero online accounting, project management and inventory
Do you now understand and appreciate the value of experience and expertise?