Monthly Archives: August 2018

Have you mastered your business finances?

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Many owners/managers of small businesses (and larger ones for that matter) struggle to understand their business finances. This lack of understanding can make it very difficult for them to make the right decisions for their business.

Now, I am sure my accounting colleagues would not mind me saying that, most accountants make lousy entrepreneurs. We just lack the creativity and drive which makes entrepreneurs so effective at getting new business ideas off the ground.

So why should entrepreneurs/business owners be great accountants?

Each role requires an entirely different skill set and way of working and, indeed, a different personality type (if you are familiar with DISC profiling). So don’t be shy about admitting that you are stuggeling with the money side of your business.

Many business owners do not seek the proper help and guidance, or have the right level of financial information, to help them make decision.  To me this is a huge mistake which can lead directly to business failure. As a responsible business owner/entrepreneur you do not need to be a trained accountant but you do need to have enough knowledge of financial issues to run your business effectively.

So what do you need to do to get this knowledge? Well, for starters:

  1. Ask lots of questions of your accountant about why the figures are as they are.
  2. If you only receive figures from your accountant once a year, several months after the year has finished, this is not enough! You need to have regularly updated financial information to make decisions on a timely manner.
  3. Have a properly thought through profit and loss and cash flow forecast so you can manage your cash – and make sure it is regularly updated for what has actually happened.
  4. Don’t just be happy with knowing how much you have sold in total and the margin on this total figure. Ask how you can get information on individual customers, products and projects so you are clear which activities are profitable – and which not.

It is not good enough these days to just shrug and say “Well, I am just not good with figures”. You started your business to make a living for yourself, and any staff you have, and you owe it to yourself, and them, to have a good handle on the money in your business.

To help I have written “your guide to understanding business finances” which can be downloaded for free from my website www.fionabevanfinancialmanagment.co.uk

Good Luck

Fiona 🙂

How does your garden grow?

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It’s that time of year when a plethora of gardening and flower shows spring up encouraging us into our gardens – whether we are competent or not.

I have found that there are three types of gardener. There are those whose gardens are a jungle left to their own devices; those who primp and prune their plants to within an inch of their lives; and those who strive for a balance between the two.

As with all things I think the best approach is the third one – although we have until recently gone for the jungle option (only hacking back when it was absolutely necessary!).

Each of these three gardening routes can be metaphors for business management techniques.

Some business owners prefer a hands off management style. They let their staff get on with it with little guidance or direction. This means less short term hassle for the owner, but is unlikely to give them the results they require.

Others are over-bearing, stifling creativity and self-confidence in their team so much that no-one can work effectively. Certainly no decisions, or positive actions, are made without the business owners express involvement. This again hampers the ability of the business to successfully meet the owners goals.

I think the best way to run teams, is encapsulated in this four step approach:

  1. Recruit with care – as the saying goes it is better to have a hole than an asshole in your business!
  2. Make sure that all your team has the skills and training they need to do their job to the best of their ability.
  3. Be clear on what the business goals are and each team member’s role in meeting those goals.
  4. Let your team do the jobs for which you have recruited them without stifling interference from you. Yes, be there for them when they need you but trust that you have the right people in the right roles. If you doubt that this is so you need to review your team.

Tend your team with care and you may be amazed at the results. Incidentally the same four steps can apply to employing suppliers and other key partners to your business.

Fiona