Debbie Boulton is passionate about working with aspirational business owners and entrepreneurs. Here are her tips for businesses facing up to the challenges of the current economic environment.
- Be on top of your numbers – it’s important a business knows where it is financially on a day to day basis to enable business decisions to be made based on real time information. Although businesses focus on turnover, watching your margin is key to achieving profitability! We see lots of businesses where the owners have focused on the top line and then have been confused as to why they haven’t made enough profit – it is usually down to pricing and margin. Monitoring overhead cost is also important particular with current inflationary pressures
- Have the right funding in place – we see businesses where they are growing in terms of turnover and profit, but cashflow is a big concern. There can be worry over taking on debt, but sometimes this is needed to achieve growth. If you have to pay staff every month but your customers pay you in 60 days, there will be a cashflow impact. Choosing the right debt to suit the business need is important, whether it’s an overdraft, a loan or invoice financing.
- Be adaptable and reactive – Covid showed how adaptable businesses can be and being flexible with your plans is important. If you’ve launched a new product but it’s not achieving the results you need it to, don’t be too slow in reacting and taking the business in a new direction. Be mindful of changes in your industry and the external market and adapt as needed.
- Think ahead – it’s easier said than done, but it is important to take time out of the business to plan and consider the strategy for the business. By looking at where the business is now, where you’d like it to be in 3-5 years time and then working out how to get there, you can come up with an action plan to achieve your future goals. Without planning, very often one year can look very much like another and nothing changes.
- Take advice – being a business owner does not make you a business expert! Owning a business can be a lonely place, particularly if you don’t have a business partner, so having the right advisers around you to help you navigate the business minefield is key. We work closely with our clients to give them the support they need and also introduce in other professional advisers as needed, giving the client access to a whole suite of experts.
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