Now is the time to stop and take stock of your business

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Now is the time to stop and take stock of your business

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Now is the time to stop and take stock of your business

By , December 4, 2019
Stop and take stock of your business

When we own and operate a business of any size it’s very easy to get caught up in the everyday issues of running that business. Keeping on top of operational matters, staffing issues, customers and financial management can all be very much a full-time job.

Sometimes we can easily fall into the trap of just coping with everyday life and troubleshooting, rather than taking stock, identifying the real issues and then putting in place some strategies and an action plan to address them.

Take a break for a few minutes and honestly answer the following questions:

  • Is your business underperforming from a cash flow perspective and requires action?
  • Are you having trouble attracting, retaining and motivating good employees?
  • Are you concerned about market share and how the business stacks up against its competitors?
  • Is your lifestyle and work-life balance out of whack?
  • Do you have a real and documented succession plan?
  • Do you know the current value of your business?
  • Is there a gap between your business’s current value and where you want it to be?

Where you have identified areas of concern it’s now important to take some affirmative action to address them. Issues and problem areas won’t solve themselves.

Operations

As with our health or our fitness, we may need some help to address these issues in a truly effective way. An enormous amount of money can often be tied up in our business’s stock or work-in-progress and debtors. With an effective management plan in place, much of this capital can be better utilised to grow the business or reducing debt or perhaps even put in the business owner’s pocket.

Employees

A business’s staff or team members should be its greatest asset. They should also often form a vital part of the business’s succession plan. In both financial and operational terms, the cost of either carrying unsatisfactory staff members or recruiting new people can be substantial. In most businesses, it doesn’t have to be this way. With the right systems and culture, you can have a genuine cohesive team environment.

Growth & Succession

You may also need help with growth strategies and managing your work-life balance. Succession and maximising the value of your business is one of the real and looming issues facing a huge number of business owners over the next five to ten years. To deal with this effectively you need a structured, sustained and disciplined approach.

The missed opportunity through not dealing with the issues outlined, can be significant and have a real impact on your lifestyle in retirement. Most people really do need help here, not only to develop their plan and strategies but vitally to keep us accountable so that the plan gets implemented.

scottpatterson

Scott Patterson

Director | Succession Plus

Scott Patterson has extensive business and professional experience, including over 20 years as a principal of a highly successful public accounting and financial planning firm. His passion is working with clients to improve the value of their businesses, and create a more certain future for them, their stakeholders and their families.

Scott's aim is to deliver strategic thinking, tailored advice and integrated solutions for family businesses, SME's and agricultural enterprises.