“There are no secrets to success. It is the result of preparation, hard work and learning from failure.” (Colin Powell, United States Secretary of State)
Of course you plan for your business to grow. But in an environment of constant change, it can be hard to know where to place your energy. These three focus areas will help you position your business for growth, regardless of the external circumstances.
1. Clean up your finances
A business that’s ready for growth is one that understands its finances. How much money can you afford to spend on advertising? What investments need to be made to maintain infrastructure or hire the right staff? And can you afford to keep going if there’s a disruption in your supply lines? Businesses with tidy finances are able to answer all of these questions and more.
If you can’t answer every conceivable question about your finances, then you need to ask your accountant (that’s us) to help you get them in order. Here are a few pointers:
- Separate business and personal finances
Business finances that are intermingled with personal ones create confusion and make it difficult to get a clear picture of just where the business is headed. - Introduce bookkeeping software
You may not have the time to stay on top of your finances when you’re running the business – but that’s okay. Using bookkeeping software can keep you one step ahead of the game, and it will definitely save your accountant time. - Regularly update your financial statements
Ask us to keep a set of financial statements up-to-date and on hand at all times. Financial statements can open doors, allowing you to get necessary funding, apply for awards or government incentive programs and/or build an accurate business strategy.
2. Optimise your client base
Improving company finances doesn’t have to mean introducing new products or expanding into new territories. It’s far simpler to maximise the benefit you’re getting from your current market. Do this by ensuring your sales and marketing teams are functioning at the best possible level, getting the right information to your clients, and then maximising the impact they have on those clients.
Focus on building genuine relationships with your customers by engaging with them and their needs, providing top-level service and offering value beyond the sale. If you truly care for your customers they will care for you, and you will find yourself at the front of the queue when it comes to new market information and advice on how your product could be improved. Your sales team should also be encouraged to follow up with potential new clients to ensure opportunities aren’t being missed.
3. Analyse your existing offering
Growth can also be generated by making sure you’re offering the products your clients need at the right price. It’s no good pouring money into a product that’s not right, or which isn’t as good as its competitors. The first step to finding out if you’re on the right track is to ask yourself the question, “If we stopped operating today, would anyone miss us?” If the answer isn’t a resounding yes, then you need to immediately investigate what changes need to be made.
Do you need to bring on new products to fill the missing gaps in your offering? Is there an essential thing that your product could be doing better? If you aren’t continually striving to deliver the best product in the perfect price range, then you’re probably falling behind.
The bottom line
A company is like the human body. It needs to be perfectly optimised to run at its best level. Making the changes to improve your business health today will pay off in the long run. If you need any help with the financial side of things, please speak to us.
Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.
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