Operation Transformation has well and truly kicked off at this stage. After the season’s indulgences, your body could well do with some TLC. But what about your business?
We’ve put together a short 3 step guide to getting your business ready for 2015.
Step 1 – Set targets and make a plan.
Step 2 – Create a Cash Flow Forecast.
Step 3 – Remove the Waste & Get Lean.
Do not go blindly into 2015. Grab it, shake it up and make it yours!
Step 1 – Use your Vision, to set Goals and create a Plan
Running a business is challenging – there’s always so much going on with so many issues requiring attention and critical decisions to be made along the way, so planning ahead is vital to keep you and your team focused.
The golden rule is to revisit the plan every week. Joe Schmidt doesn’t stick unbendingly to his plan as the match progresses, so don’t be afraid to change yours as the year progresses. Use your management accounts as Joe uses the scoreboard to update and change the plan when necessary.
Step 2 – Monitor and Plan your Cash in 2015
Cash is the lifeblood of any business and good Cash Flow management can mean the difference between success and failure. However, creating an effective Cash Flow Forecast forces the business owner to answer some timely questions….
– What payments are expected?
– What income is expected?
– Is there a shortfall?
– Can some payments be deferred?
– Can customers be encouraged to pay early?
– Are external sources of finance available?
Give your forecast 15 mins per day. And rather than being a Prophet, predicting the future through divine inspiration, become a Futurist, and create the cash flow based on hard facts.
Step 3 – Think Lean in 2015
An additional, effective way to drive profit growth and efficiencies in 2015 is to adopt lean strategies for your company.
Waste is the enemy. Identify it, isolate it and remove it from your value stream. Waste can be selling product with no margin, it can be activities that don’t add value or it can be paying for an external service that could be delivered at much less cost in house.
Remember if you don’t reduce waste then your competition will and consequently offer the market better value. So start working with your people to create a culture of efficiency and competitiveness.
AND, if you need an extra watchful eye over your business… our sister company, CloudKPI has developed a dynamic Business Intelligence App that not only provides anytime access to key performance analytics, but also features easy Cash Flow Management & Credit Control functionalities. www.cloudkpi.com
Contact Us at Accounting for Growth for more information and guidance on how to Generate More Cash, Increase Profits and Apply Business-Building Strategies.
We offer a Free No-Obligation Meeting to talk about Your Business and discuss the proven strategies that are absolutely right for it!
Brenda Jordan, M.D., Accounting for Growth and CloudKPI
01 2764254
4 Carlisle House, Adelaide Road, Bray, Co. Wicklow.
