Three essential tools to help you regain control of your business
It’s a common complaint that we hear from our clients at Lombard Accountants, business owners complaining that feel like they’re not in control of their business anymore. The number of hours they’re working starts creeping up, they start experiencing more stress, and it starts affecting their business.
So, how do you regain that much-needed sense of control over your business?
There are three essential tools the Lombard Accountants team know from experience that all businesses must have:
- An annual Business Plan.
- An annual forecast.
- Ongoing reporting and accountability.
The annual Business Plan
Your Business Plan shouldn’t be a lengthy document living in a drawer. It should be on one page and displayed somewhere highly visible so you and your staff can review it regularly.
Best developed using an independent facilitator, your Business Plan should articulate exactly what you want from your business; the hours you want to work, the holidays you want to take, and the income you need.
You’ll identify Key Performance Indicators (KPIs) to monitor, vulnerabilities to manage, and opportunities to act upon. You’ll set four key goals for the year, breaking these down into quarterly goals with clear actions to complete will help you become more goal orientated and achieve your goals.
The annual forecast
Your forecast will help you record how cash must flow throughout the year to give you what you want from your business. Too often business owners only create a forecast because the bank has requested one.
The forecast highlights you to evaluate your business’s weaknesses, when cashflow problems might arise, and how you need to manage your business financially to achieve the goals in your Business Plan. Don’t wait for your bank to request a forecast; it’s an essential tool to ensure the success of your business every year.
Ongoing reporting and accountability
The value lies in the implementation of your Business Plan and annual forecast. Constantly reviewing your progress against your targets is crucial. Ongoing reporting allows you to track actual results against your forecast to ensure progress towards your goals.
The best way to ensure you don’t fail to implement the plan is to be held accountable by someone independent. Every business owner needs a third party to review their results. A third party will uncover the root causes of problems in your business and empower you to do better. Most importantly, they’ll hold you accountable for getting the important stuff done. Consider using someone you trust or offer to do the same for a fellow business owner you know in exchange for reviewing their business plan.
The Lombard Accountants team understand that there are no magic bullets to building business success overnight. We believe that all businesses can prosper using these three tools and that you can regain control of your company by implementing them.
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