The challenges facing small business
posted 25th June 2021
Business is complex
Business owners are drowning in information but lacking in knowledge
Cash
Poor cash management, lack of access to cash and funding and understanding of the difference between profit and cash
Meaningful data
Lack of reliable financial data and key metrics and poor understanding of Financial Statements and numbers in general
Planning
A clear resistance to formulate clear plans, strategies or projections or budgets/targets
Mothern framework
Establish where clients are now
What are their key numbers, what systems and processes are in place, bookkeeping effectiveness, tax position, strategic SWOT etc
Share where clients could get to
The levers of success, asking dumb questions, cost the future, benchmark against competitors, insights from other clients to inspire
Identify the gap
Sensitivity analysis,, calculate and understand the gap between where they are now and where they want to get to
Crate a plan
Budgeting, projections, strategic plan, financial model, create a route map to bridge the gap, create actions and set out who/what/when
Measure/monitor results v plan
Install accounting application/reporting framework, cloud, journals, quarterly/monthly check-ins, CFO support, board meetings, and accountability
