Last month, our family had their second “Christmas in July” get-together. It looks like it’s going to become an annual tradition.
Our gathering in 2021 was really exciting because it was the first time we’d all been together since COVID.
But this year’s was even better…
…Because there was a “big reveal”.
My son and daughter-in-law announced that Thelma and I are going to become grandparents in January!
What a life-changing moment.
I remember making the same announcement to my own father. It seems like yesterday, even though my son is 33…
He made that old quip about grandchildren being great, because at the end of the day you could give them back.
All these years later, I finally get it. I’m looking forward to spoiling this child without having to change any nappies or get up in the middle of the night.
And I’m gradually coming round to the idea that our family is changing – and so is my role. I’m transitioning from “hands-on dad” to “wise patriarch” of our growing tribe… 🙂
My only concern? My son and daughter-in-law live in the Peak District, so we won’t get to see this little baby as often as we might like. We’ve already told my son that he’s going to have to send us pictures every few days, so we can see every change and milestone.
There’s a parallel between my status change… and your business.
You see, as your company grows, your role changes too.
In your company’s early years, you’re the “hands-on parent” who does a lot of the work yourself – because there’s no one else to carry out a lot of the tasks. In addition to managing the clients yourself, you might do some of the admin or bookkeeping, get involved even in minor hiring decisions or attend most meetings…
But as your company matures, your “baby” becomes more independent.
You hire people to take on some of the roles you used to fill – and suddenly, they take decisions without you! There are now so many clients that you’re no longer involved with every detail.
Before you know it, you really don’t want to deal with all the day-to-day work yourself. That’s what your team is for.
Instead, you’re the wise, experienced owner who determines the strategic direction of the company and gives sage advice…
Congratulations. You’re the company grandparent 🙂
After years at the coalface, most business owners I work with find that they are mentally and emotionally ready for this evolution of their role, and welcome it.
One of the challenges, though, is the same one I suspect I’m going to have as a ‘real’ grandfather…
They feel remote from the ‘action’!
Because they are now involved with their operations from a growing distance, their finger is not on the pulse the way it used to be.
So for example, they used to know *exactly* how their company was performing, where its strengths and weaknesses were, which clients were most profitable, which staff members were most effective…
Now it’s more of a vague sense.
And that makes it difficult to make confident decisions about your company’s future.
I’ve already told you my solution as a grandparent… Frequent photos of the little one, so we can stay in close touch even when we’re physically remote.
It’s no different as a company owner. You need reports from the frontlines, which allow you to understand your company’s position even when you’re not so intimately involved.
In the financial realm, we call these Management Accounts. Delivered monthly, these ‘financial snapshots’ give you the financial information you need to make good decisions.
For example, they might cover how profitable you are, breaking down which parts of your company are performing well financially and which are not. And they would typically include any specific KPIs you need to track in order to improve your company’s financial performance.
It’s the kind of information you might once have understood instinctively, but now need to see laid out…
Monthly management accounts are a key part of our Outsourced Finance Department service…
…Because we’re not ‘just’ here to support your company in general. Our role includes working with you, the CEO, personally, to make sure you understand your company’s financials in detail and have all the information you need to do your job effectively and confidently.
If that’s something you feel would be useful, please get in touch with me today, by email or call us on 01279 647 447. I’ll get right back to you.
Warmly,
