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 regular 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 »
A question I am often asked is: “what is the most common mistake business owners make when they are trying to grow their business?” Well, there are a multitude of factors that will hold back business growth. Not having a clear vision, failing to set goals, inadequate planning of time, not generating enough sales or having an ineffective marketing strategy to name a few. But by far the most important factor is 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 »
Many businesses will fail each and every year. But what is the reason that so many fail? Well, in most cases, it’s purely and simply because they run out of cash. They can’t pay their staff, their rent and their suppliers, and then they can longer function. Unfortunately, this doesn’t just happen to “bad businesses.”
Take for example the high profile bankruptcy of Lehman Brothers in 2008 – the biggest bankruptcy filing ever in the USA. This was one of the oldest and most successful investment banks in the world. 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 »
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. Obviously, competitors need to understand how their chosen sport is scored in order to play well and improve their performance. Read the rest of this entry »
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.
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 »
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.