Financial Management is a critical component of building and running a resilient business. Many business owners get a bookkeeper to do their annual tax returns and pay no further attention to the financial aspects of being in business. This is a really big mistake.
I believe there are 3 key elements to having a financially resilient business.
Step 1 – Understand Financial Control – what it is, whether you have it
It’s important to understand what’s meant by financial control and to find out if you have financial control in your business. It also helps to know the key financial terms and what they mean. If you’re not sure if you have financial control in your business why not request my free guide to Financial Control ?
Step 2 – Know the Current State of your Business at all times
Sometimes business owners get a massive shock when they look closely at their business – they may find its not making much if any profit; that it’s carrying a very high level of debt; it’s owed money by clients; the pricing is too low; the cost base is too large; it has cashflow problems and the list goes on. It’s vital to know the current position of your business so that you can make any necessary changes as early as possible.
Step 3 – Record Keeping
It’s important to keep the right records and to keep them up to date. This makes it so much easier to see how your business is performing. Having up to date records also makes year end accounts and tax filings far less painful – and no nasty surprises!
My Rock the Financials programme – will help you achieve financial resilience in your business. It’s content rich, inexpensive and easy to follow and implement.
Get Clarity – Take Action – Build Resilience