The 8 BIGGEST MISTAKES made by small business owners – are YOU making any RIGHT NOW?
When a small business is growing, visibility is key to managing profitability and ensuring that growth is sustainable. Too many small business owners start losing track of the true picture of performance once the size and complexity of the business increases – typically by the time turnover has reached $1M+.
Is your business making any of these 8 BIGGEST MISTAKES RIGHT NOW?
MISTAKE #1: Incorrect profit figures
If your profits vary significantly from one month to the next and you are not clear why, you have little clarity on how you are actually performing
MISTAKE #2: Poorly structured general ledgers
If your accounts are not structured correctly you will have little chance of preparing meaningful reports
MISTAKE #3: Poorly constructed financial reports
Reports need to reflect the operational characteristics of the business – if they do not, you will have difficulty understanding the drivers of performance
MISTAKE #4: Undefined benchmarks
You must have clear targets to measure your performance against – this can be previous year performance or properly-constructed forecasts
MISTAKE #5: Not knowing the profitability of different parts of the business
If you have multiple business lines, sell into multiple markets, and/or sell through different channels, you must know how each individual segment is performing
MISTAKE #6: Not understanding cost behaviours
“If you can’t measure it, you can’t manage it” – it’s a well-known saying but few business owners know what to measure and how
MISTAKE #7: Running out of cash
Managing working capital is very important but it will NOT save a business that is making insufficient profit
MISTAKE #8: Making commitments that cannot be supported
Many businesses have good growth opportunities but managing growth can be highly risky without a clear financial and operating plan
If your business is currently making any of these 8 biggest mistakes – or growth and increasing complexity could put your business at risk – act now and get a ceefo!
Your ceefo (dedicated time-share CFO) will work with you, inside the business, to ensure you have all the information you need to do what you do best (manage your business), and your accountant and any other advisers have the accuracy and clarity of record-keeping and reporting needed to perform their roles more effectively. From just $550 per month, getting a ceefo could be one of the best business decisions you’ve ever made.