Any small business owner is well aware that the financial year begins on April 1st and runs until March 31st the following year. Getting your finances in order is the most important aspect of running any successful business. Without positive cash flow, nothing else works.
Being organised is imperative where your finances are concerned and the more you understand the financial side of your business, the more successful it will be. Sticking your head in the sand won’t work! 82% of all businesses fail due to poor cash flow management or poor understanding of cash flow (source: paypie.com).
Within the Socially Shared network, we have several qualified accountants who can offer you the help and advice you need. Take a look at the members’ directory on our website for more information.
Prompted by the financial tax review, it’s a good idea to evaluate other areas of your business at regular intervals. By doing this, you can see what’s working and the areas that may need attention, and put together a growth plan for the next quarter.
What should you review?
Sales and Marketing Strategy
Goals and Growth
Products and Services
Reviewing your sales allows you to determine how well your business is performing, only then can you consider how your marketing impacts a project. It can take some time, and a fair amount of trial and error when first starting out, but recording the data will help you build your strategy for the future. By keeping a close eye on the marketing channels you are using for your products or services, you’ll be able to gauge what works and what doesn’t. If something isn’t getting results, then it may be time to try an alternative tactic.
Reviewing your goals regularly keeps you focused on the direction you want your business to go. Goals are adaptable and can change with you and your business as it evolves. However, setting yourself a few realistic and manageable tasks that you can track is well worth the effort. Being honest about your strengths and weaknesses is beneficial when setting goals as you can plan around your strengths, and reduce any threats associated with your weaknesses (outsourcing where possible can help with this).
Understanding how your product or service fills the needs of your client is another important aspect worthy of review. As mentioned above, our businesses evolve and what your client may have wanted and needed five years ago might not apply today. By reviewing your products it can allow you the clarity and focus on discontinuing a range and starting fresh, or with a service, it can prompt you to shake up your current portfolio.
When reviewing your business ask yourself the following questions:
What do I want from my business?
What do my clients need from my business?
What makes my product/service successful?
Which products/services are not as successful? Why?
What improvements can I make?
How do I provide my clients with what they need?
A basic review, done regularly, can have a beneficial impact on the day to day running of your business. Working on your business is just as important as working in your business.