Do you feel out of your depth when discussing your financial statements with your accountant?
Being an ActionCOACH Business Coach over the last 6 years, I have come to realize that to be a successful business owner, depends heavily on your financial skills. Being an Astute Financial Manager is at the heart of running a successful business. Good financial skills are vital, from managing cash flow and tracking business performance in an income statement, to developing business plans that ensure that the business can make the most of key strategic opportunities.
Running your own business can be intensely satisfying but at the same time hugely challenging. There are also numerous hats that you must wear, from marketing and sales to service delivery and finance. Fitting them all in is not always possible. Setting priorities based on urgency and importance is key to self-management.
Although as an entrepreneur, you may well be driven by a passion for the products and services you offer, the importance of raising finance to grow your business and managing the relationships with your banker is also of key importance. A business that grows needs cash and the lack of cash can seriously hamper business growth.
Proper financial management will contribute significantly to achieving your business goals and proper business planning will ensure that you identify, assess and capitalize on these new strategic opportunities. The key to being an astute financial manager is setting proper financial budgets and having monthly review meetings to track performance. Reviewing financial results lets you think through your options and create an action plan that minimizes costly mistakes. It is also a crucial tool if you need to convince financiers and others to support your business.
Unfortunately, not all business owners start a business with a degree in Accounting, that is why we believe in business education. We are holding a one-day workshop to help business owners better understand how all their financials should be managed in their business. CLICK HERE for all the information and to register.
I believe that skilled financial management is critical for putting your business plan into practice and having an effective admin process and proper cash flow management is the starting point. With sound financial systems you can track and measure performances, identify problem areas and new opportunities, and minimize risks
We know that studies on small business owners and their families have repeatedly demonstrated that poor financial management is one of the leading causes of business failure or under performance, family relational damage, and poor physical health...
Shrewd financial management is the "key" to running a successful business. To be a success, you must know how to collect, track, save, and spend the money you earn. You must be in control of your money…
Maintaining the correct financial capabilities remain vital throughout the life of your business, whether you are just starting out, running an established business or if you are looking to sell your business. Your financial management needs will continue to grow as the business grows and circumstances change.
We also know that successful, growing businesses take a proactive approach to financial management and ensure that they have the right capabilities. Financial management is key in both day-to-day management of the business and longer term strategic planning.
As business owner you must recognize how the needs of the business change as the business grows, and make sure that the organization has the financial skills that will help the business grow.
As business owner or manager, you need to recognize the importance of financial management. You may be able to delegate some of the tasks involved – to employees or outside experts, but you yourself need to be always looking ahead, ensuring that your business continues to develop the financial capabilities it will need to achieve its full potential.