These days the world is seemingly moving at a faster pace than ever before. Deadlines have been squeezed, workload has increased, and to do lists are getting longer. At least it feels this way, so if you are a business owner, when do you ever get the time to look at your business to see how it’s measuring up?
Finding the time to stand back from the day-to-day running of your business and take stock of its performance can be a challenge, yet if you are a small to medium size business owner, taking a look at the fundamentals of your business and its performance is crucial.
Being efficient should be one of your top priorities if you want your business to grow. Without reliable systems and practices in place, you are more likely to be presented with more issues in the future and maintain a cycle of inefficiency which wastes time and costs money!
Your first step should be about understanding your financial position. Without stating the obvious, your cash flow is the lifeblood of your business and must be closely monitored to ensure your business thrives. Secondly, being familiar with the basic concepts of cash flow will also help you plan for any unforeseen eventualities.
To help identify efficiencies try asking yourself these questions?
- Can you strip out any unnecessary costs that add little or no value?
- Are you getting accurate, reliable and timely information from your accounting records to support your decision-making?
- Are you working closely with your accountant to ensure your plans are aligned?
If you take a closer look, can you honestly say that everything is working to its maximum potential?
Whether the review of your business is simple or complex, formal or informal, by doing so, it could help you reduce costs, increase efficiency and maybe one or two good ideas might come out of it too. So, however busy you are, our advice is to add this to your to do list and make it your number one priority!