Do your business finances keep you up at night?
Imagine if you could transform the performance of your business, simply by improving your finance function… We reveal how you can breathe new life into your business and make it profitable again.
Adam is the owner of a small furniture-making business. When he inherited the business and took over the responsibility of running it, Adam had limited experience in finance. He excelled at crafting fine furniture but preferred to avoid the finances, because he didn’t fully understand the numbers he should be looking at – or how to improve them. He felt out of his depth and frustrated.
Failing, age-old financial management processes within the business didn’t help the situation. Invoices weren’t being chased (sometimes not even being sent), and unhappy suppliers were banging on the door, demanding to be paid. Adam knew his company had the potential to be more successful and he was eager to step up to the challenge, but its growth was being stunted by inadequate financial procedures.
Business owners need visibility to succeed
Adam had big goals but no idea how to achieve them, because of a distinct lack of transparency in the business. With no visibility of profit or cash flow forecasts, he had no idea where the business was heading. As a result, he felt a little overwhelmed with the constant, day-to-day firefighting – he was simply getting through each day with no clear sense of direction.
One of the reasons that businesses fail is because of a lack of financial control and visibility of the numbers. This leads to reduced margins and profits, and cash constraints. Not having visibility also makes planning difficult, which makes it even harder to break out of the cycle. With a clear path ahead of you, and some numbers to help you stay on track, you know what you can afford to do and by when.
It’s not uncommon for business owners to struggle, get discouraged and lower their expectations because they don’t have the skills, experience and tools to see and really understand what’s going on with their business numbers.
So, what’s going on in your business? How does your cash flow look? Do you have enough cash to pay your tax bills? Are you leaking money? What’s your net profit? What does the next year look like? Can you afford to employ more people, or should you be reducing your costs?
If you struggle to answer these questions, it could be that you need some help to gain control of your finance function and gain some essential visibility. Without this, you can’t identify issues that may significantly affect your future business success. If you have clarity on the true performance of your business, you can make strategic decisions fast – which ultimately gives you more time to spend on growing your business, or with your family.
Not enough money or time?
Adam had 10 staff, who had the potential to be highly efficient. But they weren’t working at full capacity, because he didn’t know how to delegate responsibility to them. To feel in control, he felt the need to be personally responsible for all areas of the business – which only added to his stress.
Adam also wasn’t paying himself enough. So he couldn’t afford the holidays he and his family wanted. He worried about other personal finances too, because he didn’t know what the future held for his business. Every day, Adam worked long hours, struggling to navigate the financial minefield and busily firefighting ongoing problems. He was trying to do everything himself, constantly fielding interruptions and distractions, without ever really achieving much. Worrying about it was keeping him up at night.
Adam knew he needed to relinquish some control and let someone else relieve some of the weight on his shoulders – he couldn’t continue as he was. Still, it was a big decision to decide to work with someone from outside the company. Money was tight, so he wanted the assurance that he would get best value. He needed to feel confident that he could move the business into the best financial position it could be, so he could take back some valuable time.
Getting the support you need as your business grows
As finance professionals, the priority of the Your Right Hand team is to diagnose and treat your business’s financial problems – and to reduce your pain as quickly as possible. We have a single-minded focus: to put your business on the fastest possible road to growth.
Our priority is to understand how your finance function works today, benchmark that against our own proven best practice (built out of the disciplines of larger companies who have already pushed through this growth challenge), and quickly streamline and optimise the way your day-to-day accounting is done. Our aim is to provide you with insightful and easy-to-understand management information, which nearly always has an immediate positive impact on your cash position. Over time, it also improves your margins and profits, and reduces your business risk.
Once we’ve started to stabilise your business in this way, we’ll use our 12 Key Areas of Impact Programme to touch on and enhance every aspect of your finances. Whether it’s failing systems or inadequate forward planning, we’ll suggest changes to streamline your processes and professionalise your finance function. We’ll then map out a bespoke growth plan for your business – we’ll track and measure your performance, and set you on a clear path to success.
A little expert help can go a long way
First on the list for Adam’s business was to professionalise his finance function. The processes and controls for his bookkeeping, payroll, credit control and VAT needed an overhaul. Through the introduction of powerful and efficient accounting software, he gained the benefits of simplified invoice and receipt processing, expense tracking facilities and reliable business forecasts. With this information at his fingertips, Adam had the confidence to make big decisions and could adjust his business strategy accordingly and take back control.
Then, with the support he needed to manage the financial aspects of the business, he found he could plan for the future. Monthly financial reports helped him see what was going on and allowed him to make decisions based on clear figures. We talked these through with him every month and helped him understand not only what they were saying but also what actions he could choose to take to change the profit and cash position.
When Adam received the expert help he needed, he began to see a world of opportunities open up. The business was transformed from a firm struggling under the weight of bad processes and lack of clarity to a successful organisation that was generating more profit. Suddenly, Adam was able to stop worrying and spend more time on leisure pursuits because he felt reassured that the business was in a good position. Most importantly, he felt in control – which led to better sleep and the development of many new ideas about how to scale the business, supported by solid financial forecasts.
Why work with us?
Running a business can be stressful enough without the pain of inadequate and inefficient internal accounting processes and a lack of financial visibility about actual and potential future performance.
Our in-house finance experts give you the help you need as your business grows, ensuring you have a fully comprehensive understanding of your business finances. In-sourcing your finance department ensures you benefit from the experience and expertise of professional and commercial finance people – without the associated costs of a full-time employee.
When you partner with us, we take the time to get to know you and your aspirations, understand how you run your business, and get to grips with the ins and outs of the unique circumstances of your business and industry. Our commercial experience and understanding will help you see how your internal financial practices are holding your business back – so that you too can look forward to heading up a streamlined and efficient operation, with plenty of time for identifying new opportunities for growth.
Much like pressing the re-boot button, engaging our financial support is an effective way to refresh and kick-start your business – giving you the clarity, focus and confidence to live the life you really want.
Discover how to breathe new life into your business and make it profitable again…
Give us a call on 01252 820 002 to arrange your free financial health check.
If you’ve enjoyed reading this blog why not read our article “Are you confident about your business finances“