Are you executing your business strategy?

Are you executing your business strategy?

Execution is an easy concept to talk about, but it can be a hard one to… well… execute. The main problem is that it is a real challenge to measure and manage a concept.

If we are honest about it, “Gut-level” decision making is a practice of the past. With so many amazing tools and software resources available, you can now have access to all the organisational data you would ever need to inform and guide your decision-making process.

When Warehouse Stationery asked their BizReward customers what they wish they had known about before going into business, almost half of the respondents said accounting and finances (49%).

This was followed by:

  • Marketing and advertising (39%);
  • Business development (38%);
  • Technology (33%), and;
  • Relevant regulations (25%).

Interestingly, when people were asked what they wish they knew more about now, the same top five appeared, just in a slightly different order; however, accounting was still number one.

There are two components that help with executing your business strategy:

  1. Having the right accounting software – set up, and working, and;
  2. Having the financial knowledge and information available to help make informed business decisions.

The better you understand your business, the easier it is to make decisions – therefore, the easier it will be to make more money. Management decisions rely on a sound understanding of the financial implications for a business. GoFi8ure offers a service which helps enable business owners to fully understand and interpret their numbers, so they have a strong foundation on which to grow their business.

How many of these questions can you answer, with confidence?

  1. How much profit have I made this year?
  2. Why has my profit increased, but I have no cash?
  3. Is my cash level increasing, or decreasing?
  4. What is affecting my cash level?

Any time is a good time to improve your understanding of your financial reports to improve business performance.  The sooner you start executing your plan, the sooner you will have a better understanding of financial results and their implications, and the more control you will have over outcomes.

Are you confident you have the right software and tools in place to help you achieve your strategic goals? Today’s technology provides advanced reporting and business analysis capabilities, to help you gain a deeper understanding of business performance, customer preferences and market trends. Your executives and business managers can access performance metrics and analytical reports, enabling them to use this information to work together to set or redesign strategy.

Remember: Failing to plan is planning to fail, and it is vital to plan-ahead to have a successful business. Contact us to book in your complimentary meeting, to discuss how GoFi8ure can proactively help you stick to your plan and achieve business success.

 

Do you have a strategy for your business?

Do you have a strategy for your business?

When it comes to Business Strategy there are two rules:

Rule #1: Have a strategy.

Rule #2: Make sure everyone is literally on the same page in understanding the components of the strategy, and how to implement it.

All too often strategies contain words or concepts that take on as many meanings and interpretations as the number of people who read them. Having a clear and focused strategy is critically important to the success of your business. Without a well-defined strategy, your business may stall – or even fail.

You need to have a plan for day-to-day business, and you also need to spend time looking at and listening to the changes that are happening in your industry. To ensure you make progress towards your long-term goals, it is a matter of having a daily plan to get things done, in conjunction with an overarching strategy to guide those daily plans.

Success is about planning, and planning is about success; if you plan to succeed, you will succeed. Here are some questions to ask yourself to help you plan your success:

  1. Do you have a current Business Plan?
  2. Have you set realistic and measurable goals?
  3. Do you have clear strategies to achieve your goals?
  4. Can you identify what you will need to achieve your goals?
  5. Do you regularly review your goals with regards to changing circumstances?
  6. Have you set up a platform to develop Financial Forecasts?
  7. Do you have the right systems and tools in place to help you achieve your strategy?

The key aspect of strategic planning is aligning all members of the team with the purpose and vision of the company; both in the short- and long-term. Strategy challenges are indicated by a slowing in top-line revenue growth. If revenue is not growing as quickly as you like, then it is time to re-examine your strategy.

Any time is a good time to make a Business Plan if you do not have one; however, it is particularly relevant at the start of a New Financial Year.  If you are contemplating a major change in your existing business, or starting a new venture, a Business Plan is crucial.  You will also require a Business Plan to support any financial applications.

Do you have a GST return due this month? Worried about not getting it done in time? Remember, you have until the 7th of May to submit your return. For all current GoFi8ure clients, your GoFi8urine will be in touch shortly to ask for your paperwork – aka “source documents”.

Do you need a hand getting your GST completed and ready to file? Never fear, GoFi8ure are here to help. Please send us an email, or call us on 0800 463 488, and we will help get you sorted.

 

 

 

 

What are the four most important areas you need to consider in your business?

What are the four most important areas you need to consider in your business?

As a business owner, you must be committed to constantly evaluating your business practices and making the necessary changes if you want to see growth. If your business is stagnant, or not as profitable as you would like it to be, doing the same thing repeatedly will not help your business move forward. Your success is the total sum of all the decisions you make!

So, what are the four most important areas you need to consider in your business? They are:

  1. People
  2. Strategy
  3. Execution
  4. Cash

Good decisions equal success. Even though most growing businesses face continual challenges in all these areas, the challenges in one area at any one time can impact the others.

Let us start with the “People” strategy.

In 2016, Warehouse Stationery conducted a survey of over 1000 of their BizReward customers. From that survey, 9 out of 10 customers were small businesses.

When asked about the personal challenges they faced in business, half of the respondents to this question (51%) selected work-life balance. Work-life balance was the most common concern, followed by time management (41%) – which is a necessary tool to achieve the sought-after work-life balance, by ensuring work does not take over every aspect of your life.

One of the most critical components of growing any business is working with the right people. Get it right, and your business’s growth trajectory is likely to continue, or accelerate. Get it wrong, and your tentative step forward might lead to the proverbial three steps back. The purpose of hiring staff or outsourced specialists is to free the business owner from some of their multiple “hats”, and the wrong hire can have the opposite effect as it can be costly, stressful and time-consuming to manage the consequences. Having someone who fundamentally understands their role, and what is required to do it successfully, is crucial for any business.

Where do you start? Ask yourself why you need to hire someone – and do not accept obvious answers such as, I am busy, tired or overworked.

Below are some core questions you should ask yourself:

  1. What do I expect the new hire to do in their first month, and in the months that follow?
  2. What can I reasonably expect them to achieve, how quickly, and what can I do to help them?
  3. What core skills and attributes are absolute necessities for my business?
  4. Is an employee the right way to go, or should I look at outsourcing?

The last question is an interesting one. There are advantages for either hiring an employee or outsourcing to a specialist. To make this a little easier for you, we have put together a list of steps that will help you determine which option is best for you:

  1. Identify what areas you can outsource.

Before you figure out whether to outsource, you need to identify what areas you can outsource, and whether any of these areas are where you need help right now.

  1. Identify business-critical functions.

If the function you need help with is not a core function of your business model, outsourcing will probably create fewer headaches for you.

  1. Assess the market availability of skills.

You may prefer having someone in-house, but if you cannot find the right talent, outsourcing may be your only option.

  1. Identify all the costs for both in-housing and outsourcing.

When you are considering the financial difference between the two options, remember to include the costs of your time and emotional energy.  While hiring in-house is generally cheaper on paper, there are a host of responsibilities that go along with managing a new staff member including holiday and sick leave, training, downtime, and so on.

Remember, when it comes to making the decision of in-house or outsourcing you do not need to choose either/or; it is pretty common that one part of your business may be better off with an employee, while another may be better off with an external company managing it.

If you are ready to outsource the financial side of the business come then you need GoFi8ure. This is what we do – it is in our DNA and we are passionate about helping ease the accounting pain that business owners face. Send us an email or call us on 0800 463 488 today.

Tip: Gazelles has a one-page “People” tool that will help you sort out these accountabilities and metrics.