Most businesses never actually make it to the point where they can be sold for a decent price. The main reason for this is that the owner didn’t set out to build a business to sell; when they started the business, they just wanted an income to replace the salary they earned when they had a job. Read the rest of this entry »
In all sports, keeping track of your score in comparison to a predetermined expectation is vital if you want to improve your game. Golfers have a handicap system while most athletes have personal bests and records to measure themselves against.
I often get asked, what is the most common mistake business owners make when they are growing their business? While I could say it is not having a vision, setting goals, planning their time, generating enough sales or having an effective marketing strategy, the true factor must be the lack of financial understanding that some business owners exhibit. Knowing your numbers is absolutely vital, if your business is to thrive – or even to survive! Read the rest of this entry »
Most businesses that fail do so purely and simply because they run out of cash and are unable to pay their bills as they fall due. Unfortunately, this doesn’t just happen to those that are “bad businesses.” Take for example the high profile bankruptcy of Lehman Brothers in 2008, which was the biggest bankruptcy filing ever in the USA. This was one of the oldest and most successful investment banks in the world, and it failed not because it ran out of clients or sales, but because it had insufficient assets to cover its liabilities – i.e. not enough cash to settle its debts. Ignoring this basic business principle brought down an organisation with $600 billion in assets. Read the rest of this entry »
The quickest way for any business to make 10% more profit each year is to put its prices up by 10% each year, but if it were as simple as that, then we’d all doing it, wouldn’t we? The reason we don’t make price increases is that we have the fear that if we do so, we are going to lose our customers. Read the rest of this entry »
The object of being in business is generally to make profit, so it stands to reason that as business owners, we need to be able to understand our financials in order to make sure that we’re achieving that objective! We may have bookkeepers and accountants to help us get the numbers right, but really we need to be the ones reviewing the performance of the business and making decisions based on those numbers. Read the rest of this entry »
If you’re a sports lover, you may be looking forward to a summer of watching, or taking part in, your favourite sports. There are so many different types of sports, each with their own unique scoring systems, and clearly competitors need to understand the scoring system within their chosen sports to play effectively and improve their performance. Read the rest of this entry »
What gets measured, gets improved – in this brief video, Business Coach Kevin Stansfield explains how to pick the right KPIs for your business to drive growth and improvement.
In this short video, Business Coach Kevin Stansfield explains why setting an annual budget for your business, and regular monitoring of progress against the budget, is important if you want your business to grow.
In this short video, Business Coach Kevin Stansfield explains why cash flow management is so important, especially in a growing business, and they key areas to focus on to ensure your business doesn’t run out of cash.
If you need more help managing your business finances, visit our What’s On page to book your place at our next Finance Mastery workshop.