Today's business owners need to be presented with live, current, up to date management information, including their profitability and cash flow status.
Far too many businesses struggle due to a lack of accurate, timely management information, forewarning them of the trends occurring within their own business. Turnover is down, costs are up, overheads are soaring, and cash flow is suffering. Debtors are averaging in excess of 60 to 90 days.
All issues that need to be addressed as they occur - not 6 months after the financial year end, when the company's financial accounts are presented and it’s too late!
You need to concentrate on the important issue of running your business, and dedicate your valuable time to production, service and sales. Provide regular reviews of progress at both a strategic and/or detailed level to assist with short and long term planning and commercial business decision making.
Make commercial decisions and a lot of them!
1. Always have business plan:
This can become the blueprint the company works towards it sets out its goals and aspirations in the market place over a period of time. It can be used to gauge strengths and weaknesses within your organisation to assist with future planning. It can also help when approaching major customers, Banks or other finance houses, as a means of demonstrating the company's professionalism and commitment to progress.
2. Do you need venture capital investment:
Venture capital is a type of private equity capital typically provided to undeveloped high-potential, growth companies in the interest of generating a return through an eventual trade sale of the company. Venture capital investments are generally made as cash in exchange for shares in the invested company. Venture capital typically comes from institutional investors, business angels or high net worth individuals and is pooled together by dedicated investment firms. Venture capital is most attractive for new companies with limited operating history that are too small to raise capital in the public markets and are too immature to secure a bank loan or complete a debt offering. In exchange for the high risk that venture capitalists assume by investing in smaller and less mature companies, venture capitalists usually get significant control over company decisions, in addition to a significant portion of the company's ownership.
3. Do you need a mentor?
It maybe an option that you cannot raise funds for investment or no budget to employ a management team to take your company forward, in this case you may offer shares of your company in return for a mentor.
Some more useful tips here, published by First for Business