Walker Begley have co-written a book entitled ‘57 Ways to Grow Your Business’. It’s packed with useful stuff but I’m often asked by Directors and Business Owners about the most important areas to concentrate on when running a business. Minimising risk, improving efficiency, strategic planning, compliance with legislation are all big topics which need addressing but if I had to name the most important priorities the following six would be high on my list.
- Concentrate on winning and keeping customers. Continually improve your understanding of customers and the competitive environment to refine your marketing plans and take advantage of new opportunities. Above all make sure you keep what you have!
- Monitor your cashflow closely. Cashflow is the balance of all money flowing in and out of your business, with the main inflow usually coming from sales. The more warning there is of cashflow peaks and troughs, the more time you have to deal with them. You must know when to focus completely on sales and when to concentrate on getting paid. Planning ahead will make it easier to arrange any additional funding you may need.
- Make sure your employees are performing effectively and are overcoming any problems. Start by recruiting the right people. Lead and motivate your employees. Monitor your team’s performance by holding regular reviews. Discuss and resolve any problems and frustrations your team may have.
- Develop your selling skills. Make sure that you, and all employees who interact with customers, have the right training, attitude and approach.
- Control your costs carefully. This is often the easiest way to improve your short-term profitability.
Don’t forget your tax bill. Is your Tax adviser working hard to mitigate it? Often a pre year end tax planning meeting with good management accounts is a great way of spotting opportunities to reduce or defer tax. If your not having one ask your Accountant why!
Written by Kevin Begley for the South Warrington News.
