This week I started working out with a friend. For the first time in about 10 years I started doing some weights training. So far I’ve been twice (I know you’re probably not that impressed). I’ve been told that doings weights is good for me, it will make me lose weight, make me stronger and generally make me fitter and healthier. I truly believe that these workouts will be good for me. But you know what? It sure doesn’t feel like it at the time or for the next couple of days. During a workout I generally feel like a bit of a goose because I have no idea what I’m doing or even worse still I feel like I’m going to be sick. For the next couple of days after a workout I feel pretty sore and sorry for myself. Bending down to pick up a piece of paper has suddenly changed for being a simple task to hard painful work. So why do I put myself through all this? Because I know it’s good for me and it will get better as I become more used to what I’m doing.
The same is true for your business and your finances. Just like your body needs to workout to improve your business needs to workout to improve. So how can your business do a financial workout? Below are some tips:
- Review your cash flow: Cash is King. It’s an old saying but a good one. Without good cash flow your business might be profitable but you’re unable to pay your bills. You should review your cash flow to work out where you can make improvements. Are your customers paying you late? Can you cut unnecessary expenditure? Can your debts be refinanced to reduce interest? Are you able to pay your debts as and when they fall due or is this a struggle every month?
- Review your accounting system: Accounting software isn’t exciting but it is essential and it’s often the cause of many headaches for business owners. Have you reviewed whether your accounting software is still right for your business? What was cutting edge and right for your business 10 years ago when you first signed up for a particular package may no longer be the best solution for your business. Do you make use of automatic bank feeds to reduce the time spent on bank reconciliations? Have you considered whether it would be better to outsource your bookkeeping to a qualified bookkeeper?
- Get a coach: Do you have a group of experts to help your business grow and prosper? Experts like accountants, lawyers and financial planners can help you identify and implement strategies to help you meet your financial goals. When I workout I have no idea what I’m doing so I’m so glad I go with a friend who knows exactly what he’s doing and can help me improve without hurting myself. The same is true for your business.
If you want to know more about how we can help your business grow and prosper please get in contact with us.