Through our Outsourced CFO service, we work with a wide range of business owners. We help retail, professional services, manufacturing, property development and other businesses.
Even though different industries have their specific issues and needs, we have found there are some common issues that keep arising for both new and existing businesses.
We thought this edition of Signal would be a good time to share some of the major issues that we commonly see:
Incomplete market knowledge:
Whatever your marketplace, in order to win customers or clients, you need to understand your market. We often get business owners to re-look at some very simple but searching questions such as – who are your customers – what are their buying habits – which of your competitors are they buying from?
Lack of clarity in value proposition:
As well as being clear about your marketplace, it is also critical to be clear about what makes your product or service different and what are your genuine competitive advantages? You need to be sure you are focusing on what your customer truly values and not just what you want them to value.
The majority of business owners start their business because they have a great idea or can see how to make or do something better. This is a key foundation. However, for a business to thrive and grow, it also needs a thorough understanding of what is necessary to run a business. Good management includes planning, communicating, co-ordinating, taking responsibility and leading by example.
Cash is king. There will always be good and bad periods in your business. One of the keys to good management is to be financially prepared for both trends. To survive the downward trends, you need to have contingencies in place. These may include building and holding a cash buffer and/or having access to additional finance facilities.
However you plan to cover these times, accurate and regular cash flow forecasting is essential as a standard part of your business activities.
Hopefully you are addressing these areas well in your business. If you would like help in improving in any or all of these areas, please contact David or John on 07 3221 4465