08 Mar Grow Your Business In 2019
It’s the start of another calendar year. What resolutions have you made to grow your business in 2019? If you made any resolutions you probably made them around 6 weeks ago. How have you gone on the all-important implementation tasks?
If your business is established and it is operating fairly well but you want to grow the business to be a big business, the following are some suggestions on what strategies you might introduce:
- Internal control review to determine whether each aspect of your business is working appropriately.
- Review of your processes relative to registrations on the Personal Property Securities Register – have you implemented a system? Do your team members understand their duties relative to that system?
- Analyse your investment in stock to determine whether improvements could be made. Could your investment in stock be reduced? Could the stock turn be improved?
- If you operate a work in progress system, is it functioning satisfactorily? Is a review undertaken at the end of each month to enquire as to why jobs have remained within the work in progress system for more than one month? (In many cases businesses do not raise invoices until a job is completed – this means that, if a job is taking a long time to complete, the business is receiving no cash – it is a good idea to implement a system of progress payments).
- Have you reviewed your Budgets and Cashflow Forecasts for 2019?
- When the Budget is completed it is an appropriate time to undertake a complete review of your charge out rates (for trades and professional businesses) to ensure that the business’ budgeted overhead costs and targeted profit have been factored in to the calculation of charge out rates for the various categories of team members in your business.
- If you are operating a retail business it’s an appropriate time to prepare a forecast relative to the product mix, mark-ups, business overhead expenses and desired profit to determine whether the anticipated sales will generate an appropriate gross profit to pay for the overhead expenses and generate the targeted profit.
- A system that enables the preparation of monthly financial accounts (departmentalised profit and loss accounts, balance sheet, inventory analysis, debtors analysis, work in progress analysis, comparison to budget) for consideration by management.
- Preparation of reports on the month’s activities by the manager responsible for each of those sections of the business.
- Preparation of key performance indicator reports for each activity undertaken by the business so as to assist the responsible manager to manage that activity and to ensure that senior management receive an overview of the performance of each individual business activity within the business.
- A monthly board of advice or board of directors’ meeting to consider the financial performance during the previous month and to assist in determination of strategies to be implemented in the future.
To be continued next month…..
If you would like to have a discussion with us on any aspect of growing your business in 2019, please do not hesitate to contact us.