At Cambridge Accountants we focus on increasing the value and profitability of your business. We don't believe in waiting until retirement before getting your business ready to sell. Why not get your business ready to keep?
Many business owners spend years working long hard hours in their businesses, and never step back to take a closer look at where they're heading. A business adviser can look at your business with a fresh set of eyes and identify areas where you can make simple improvements that have a massive impact on your profitability and cash flow.
Below are some of the areas we work on with our business partners:
1. Vision & Goals
What did you originally set out to achieve? Have your goals changed? Are you headed in the right direction?
With the ongoing day-to-day pressures of business it's easy to lose sight of your goals. We help you take a step back and refocus to ensure your goals are aligned with your vision.
2. Your road map
A goal without a plan is a wish. It is critical to break down your goal into achievable, measurable steps. What do you need to achieve in the next three years, the next 12 months, and the next quarter?
3. Getting it down
It is a well established fact that those with written goals are far more likely to achieve them than those without. Unfortunately many business owners spend less time on business planning than they do on planning a holiday.
What are the benefits? A documented plan helps you to focus on reality. It gives you the opportunity to invite input from your mentor or business adviser. Most importantly it lets you communicate your goals with team to get their buy-in and support.
We help clients track progress each month or quarter against their goals to help keep them on track.
Starting a business without any capital is hard work. Believe me. I've tried it myself.
There are two sources of funding. Equity, which are funds the owner has contributed to the business. And debt, funds the owner has borrowed from a bank or other lender.
How much of your business do you actually own? Is your business financially stable? We can help you answer these questions and give you tips on how to improve.
Suppliers: Do you have reliable suppliers providing quality products at the best prices? Is any single supplier making up 20% or more of your purchases? Do you need better payment terms?
Customers: Did you know that in many cases 20% of your customers account for 80% of your sales volume? The sad fact is that some of your customers are actually costing you money to deal with. Which of your customers do you need to fire? Which of your customers do you need to spend more time with? Do you know your 'ideal client' profile? Is your marketing material targeted to your ideal client?
Employees: Your team is one of your most valuable assets. In many cases they are the voice and the face of your business. Do they have a clear idea of where the business is headed? Are they clear on how their role is helping to achieve the business goals? How productive is your team?
Shareholders: Are you as a business owner or shareholder receiving a suitable return on your investment after allowing for owner's salaries? Smart investors watch their return on investment closely to ensure they are receiving a satisfactory return for the risk. Unfortunately many business owners discover that they are getting a lower return than they would by investing their funds in the bank.
6. Business Processes
When did you last review your business processes and procedures? Procedures need to be regularly reviewed to identify opportunities to improve workflow and eliminate unnecessary operations. 'Lean' principles refer to creating more value for customers with fewer resources. A 'lean' organisation understands customer value and focuses its key processes on continuously increase it. The ultimate goal is to provide perfect value to the customer through a perfect value creation process that has zero waste.
While we're on that subject, have you moved your accounting system to the cloud? Our clients have reported massive productivity gains by moving to the cloud. Find out how we can help you make the switch.
Business owners are extremely dedicated and often spend a massive amount of hours each week working in their business without spending any time on their business. The sad fact is that after many years of hard work, some business owners discover they have made less money than they would have earned at a stress-free 9-5 job. It doesn't have to be like this. We help our clients understand their financial statements and identify areas they can improve. We set benchmark targets and offer monthly and quarterly reporting to help them keep on track towards their goals.
Many businesses fail due to running out of cash, even though they are actually making a healthy profit. What is the cash situation in your business? Is your business generating positive or negative cash flow?
Discover the seven ways you can improve your cash flow immediately.
Get in touch with a business advisor today! Call 07 4635 4616.