IT DOESN’T MATTER
It doesn’t matter how low your business has performed through the global economic slowdown. Your current business realities may be far from your expectations, yet you can re-engineer your plan. This can in turn help you achieve a turnaround in your business.
This re-engineering will drive you in a direction that will help you yield better results. All you need to do is to follow the recommended principles that are highlighted in this article.
If your performances have been shattering your projections, you can still do more by comparing notes with all that is being addressed in this article.
MY BUSINESS EXPERIENCE
In the early stage of my business and as a new business owner, I found myself juggling many roles.
My business was still young, and I couldn’t afford to pay experts within the said roles for their services. I had to learn to play many key roles myself.
I functioned in varying capacities from business owner to business developer; to marketer; to accountant; to brand manager; to human resources manager; to customer service manager; to the sales executive, while running my business full time.
This brings us to the subject of what’s important and key in every business.
KEY CONCERNS EVERY BUSINESS OWNER MUST HAVE
It is good to note here that the goal of every business is to maximize profit-making (of course, without compromising the quality of products and services).
You would want to establish that your business is not only able to make profit, but also to optimize that profit.
That is only achievable when you can use the information you get from your bookkeeping and accounting to:
– Increase your business cash flow.
– Reduce your cost.
– Design a systematic process to maximise all your resources.
(Resources here refer to human, intellectual, current, and fixed assets, etc., to your organisation’s goal).
WHAT MATTERS TO YOUR BUSINESS AND PROFITABILITY?
- It doesn’t matter whether you studied Accounting or Arts and Mystical Music, you’d still need to keep records for your business.
Your financial records will need to be meticulously and accurately captured, and if you don’t have a delegated accountant, then you have to gain a good mastery of the role yourself.
If this is equally challenging for you to do, the options of outsourcing the functions to a consultant, or subscribing to accounting apps are available for you to explore.
You would need financial education to record the business’ loans, invested capital, salaries, sales, cash payments, credits, and track your inventories, purchases, and other related subjects.
We will have discussions about this in subsequent editions of our Business Show, so ensure you subscribe to our YouTube Channel here for prompt notifications.
- As you interact with cash, your business must design policies that would guard what percentage goes to reinvesting, overhead, profit sharing, wages, stocking, etc.
You have to be able to process your revenue versus your expenses and make a comparison on paper. You would then use the information generated to make new decisions.
You would be able to answer questions like, should you stock more raw materials? Can you get a cheaper warehouse? Should you manufacture some things yourself?
The answers to these questions will deliver the turnaround you are expecting for your business.
- As your business grows, you would need to outsource your many hats’ roles to professionals who have expertise in specific roles. You can no longer grow the business with the jack of all trades approach.
One key role that’s important to outsource is your accounting and bookkeeping.
Engaging a firm that would manage your business records and books is key. This firm will in turn provide recommendations needed for your business. This is not only cheaper but also much more efficient and time-saving.
Additional roles you can consider outsourcing are Human Resource Management, Brand Management, Administrative Duties and Customer Service. This will help you focus on strategic planning and empower you to scale your business.
OTHER KEY MATTERS THAT REINFORCE WHY YOU SHOULD PAY ATTENTION TO GOOD BOOKKEEPING AND ACCOUNTING PRACTICES.
- You will need to determine the frequency of bookkeeping and key things to focus on when keeping your accounts.
- You will need to learn to understand and interpret simple financial statements or management accounts that includes Profit and Loss accounts, Cash flow analysis, Balance Sheet, etc.
If you have accounting and bookkeeping challenges in your business, we can help you chart a way forward.
To get started, please send an email to support@streetsmartlab.com or send us a WhatsApp Chat via +234 909 777 0126.
We will discuss business solutions and varying options you can consider for your action.
I am Adeyiga Awomuti,
Towards the smartest you
