Beyond Business Finances

Web Articles Beyond Bus Finances

Many businesses, particularly in the early stages of growth, focus their attention on the financial side of the business -  increasing sales, controlling costs, implementing cash flow management systems and aiming to increase levels of profitability.   These are of course important.

However, as the business grows and improves in sophistication, a broader perspective is needed to give the business an edge over its competitors.
Concentrating on exclusively financial matters will be insufficient to ultimately achieve ambitious business goals.  Below are some examples of how you can benefit from taking a broader perspective.

Key Focus Areas for Growing Businesses

  • employees – they can be your greatest source of innovation but often do not have the training, particularly in SMEs,  to allow them to make a worthwhile contribution to business improvement.
  • customers – communicate with and listen to your customers.  A greater customer focus has been shown to result in an increase in sales and profitability.
  • suppliers  -  potential strategic, as opposed to merely operational,  benefits can be achieved from working with suppliers.
  • systems and processes – the SME can benefit significantly from having an  appropriate support system to allow them to develop and manage their business.

Achieving the Benefits of looking at business ‘Beyond the Finances’

Some of the benefits of taking a broader perspective on your business can be facilitated by:

  • use of a performance measurement tool such as the balanced scorecard (developed by Kaplan and Norton)
  • following a continuous improvement path, perhaps with the aim of achieving a top European Excellence quality award (EFQM)
  • employing staff who can bring key expertise not currently available in your team.
  • engage non executive directors to your Board, bringing knowledge and challenging your existing direction
  • engaging an experienced business improvement consultant to give a a ‘cold eyes’  review and improvement action plan tailored to your business

A Final Word

As a business grows and owners agree to embrace the assistance of others, the organisation will undergo significant change which will not be welcomed by all.   It is by embracing changes and continually innovating and responding to internal and external changes that the business can continue to grow and outperform others in their sector.

If you would like help in making business improvements where finances is only part of the solution, we would be happy to help. Contact us for more details of how we can help you get the most from your employees, customers, suppliers or systems.

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