Ch-Ch-Changes31st May 2018
The realisation hit me hard.
I suddenly grasped that over the past 9 months, every single Board member in the company where I was working had been pushed out – other than me.
It didn’t take a genius to realise I was probably going to be next.
That’s when I decided to quit my job as Finance Director, and start my own business.
It was more than 25 years ago, but I still remember the total clarity of the moment.
Sometimes, the need for change is blindingly obvious.
But what do you do when it isn’t?
When you half suspect that change is necessary, but are not absolutely sure…. Or when you know that change has to come, but wonder whether it has to be right now… Or whether you should put it off for just a little longer? If your business is growing past £1 million, and you’re rapidly outgrowing the way you’ve always managed your finances, the dilemma is real.
You probably recognise that a business turning over £0.5 million or £1 million can’t handle its finances in the same way as a much larger company.
A small company can get by with simple spreadsheets for accounting and trusted teams to keep operations ticking over. It’s even OK for you to head to the office over the weekend to balance the books and chase unpaid invoices.
But when both revenue and operations begin to grow but your systems and processes remain the same….
And you add more products, locations and clients, but still use the same spreadsheets and accounting software you started with….
Disaster can strike.
Invoices aren’t raised on time. Suppliers leave due to consistently late payments. You may want to buy more assets but aren’t sure if you can afford it, because your numbers aren’t clear. Or maybe you’re losing more money than you make and don’t know how you arrived here.
You feel like you’re chasing your tail and there’s a constant cloud of stress over the entire team.
It’s clear that you need to switch up the way you handle your finances – perhaps investing in new accounting software, or bringing in an FD to create a clear picture of your financial status, and professionalise your financial management.
But when exactly?
It’s easy to stick to what you know, even when the cracks are apparent. It’s comfortable, even.
Change also feels like a big risk. What if your expensive new software turns out to be too complicated ….? Or it perhaps you weren’t quite ready for an FD? And spending that money means you have no funds left for other important investments?
Luckily, there are some clear signs that it’s time to make that change.
I’ll walk you through them over the next few blogs, so you can easily recognise when the time is right for your company – and don’t get stuck with outdated financial systems that hold you back.
You’ll learn more about how to assess your company’s growth and make key decisions to help manage that process.
But meanwhile, if you feel that you are outgrowing your financial systems, and that it might be time for change, just hit ‘reply’ to this message, and let’s talk.
We can work with you on streamlining your financial processes and creating efficiencies – paving your way to a turnover of £5 million, £10 million and beyond