Finally Take Control Of Your Business

Finally Take Control of Your Business

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Advantage Accountants SA

Many business owners have strategy of ‘Crisis Management’ which means that they do a little or nothing in controlling of their business until things get so bad and crisis emerge. Ideally as a business owner and manager you should take preventive steps and measures not to allow a crisis to happen in the first place.

The real problem in controlling of your business is that the most of the value of your business is actually intangible asset so controls have to follow this rule as the most important and valuable things in this in life and in business are the ones our eyes cannot see. For example the biggest value of your business could be your clients or suppliers list, your employee’s knowledge or exclusive contracts. The real question is how to control your suppliers to deliver on time or your customers to pay on time, or your employees to be more productive? Cash is king! Cash budget is the ultimate tool for controlling your business. There is a great chance that if you have realistic cash budget and it is on the target everything else in your business will fall in place. Cash is the lifeblood of your and any other business and without cash your business cannot survive. Therefore your have to closely monitor your cash input and output on daily basis. Many business owners have their cash budget in their heads without realizing what they are doing however if your put it on paper you will be able to plan for a longer periods of time. This will allow you to see if you are doing well or it may be better to shut down your business operations. Cash is not the same as profits and having a ‘profit budget’ cannot replace ‘cash budget’. Your business can be profitable and in the same time you may be insolvent and one step to bankruptcy. For a professional service see your accountant. Performance controls Performance controls are related to profitability and if controls over your cash flow are in place this is your next step. Business is defined as ‘an activity with a view for a profit’ and this is possible if you increase your income, cut your costs or increase your prices. Bookkeeping is the ultimate tool and method to control your profitability as you or your accountant will be able to track and analyze all your income and expenses. Key to increase your profitability may be to have better control over your employees by require them to fill up their time sheets for every day. Procedures and policies can be adopted from other businesses or you can create it for you business by yourself. If your employees are happy your customers will be happy and your business will grow. Client controls Then best way of controlling your clients is to make them happy about your products and services and you have to measure your client’s satisfaction which is not an easy task to do. The best way to do this is to set some key performance indicators such as number of complaints about your product or services or to ask your clients for a feedback or to participate in your survey. Competition controls Yes, you have to monitor and control your competition. Ask yourself the following questions: What are the prices of your major competitors for the same or similar products or services? Where they advertise and how to compares to your advertising plans? Did you see their website? What are their mayor products? Who are their suppliers? It is incredible how much you can learn if you monitor your competitors but remember do not simply copy your competition – beat them by your originality and creativity instead. Control yourself ‘Discipline yourself to do the things you need to do the things you need to do when you need to them, and the day will come when you will be able to do the things you want to do them!’ Zig Ziglar Ask for expert help If you do not have cash budget, bookkeeping and other performance indicators in place there is a great possibility of a business failure. If you are not sure how to set up your cash budget, bookkeeping and other performance indicators see your accountant and if she/he is not ready to help simply look for another accountant.

Advantage Accountants SA Pty Ltd – Adelaide – Australia

Accounting, Taxation and Bookkeeping Small Business Specialists Accounting, taxation and bookkeeping services for individuals & small businesses. Wealth creation strategies, tax planning, and business coaching. Free first half hour consultation for new clients. http://advantageaccountantsa.com.au/

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Finally Take Control of Your Business