Leap of Faith19th January 2022
Every few months, I face the same dilemma...
We take on new clients and need more help in the office. But there’s not quite enough work to justify hiring a new person quite yet.
If we bring on a new accountant, it’s going to be hard to cover their cost...
But if we wait too long, until there’s definitely enough work for them, we’re going to end up under a lot of pressure and risk letting people down.
So do we hire a little early, or a little late?
(Somehow, the timing is never “just right”!)
It’s one of the challenges of growth...
You want to plan ahead for your business, so you can grow smoothly and efficiently.
But that often means investing in people, products and offices before they can pay for themselves.
I’ve seen this problem in so many different guises... And you may have experienced it yourself.
Perhaps you’ve hesitated to hire a top business coach who can add tens of thousands to your annual turnover - because right now, it feels like a huge expense... (Talk about chicken and egg!)
Or maybe you’ve dreamed about buying an expensive piece of equipment that could potentially serve lucrative new customers - but hesitated, because there’s no guarantee they’ll come.
Investing in your own future can require a leap of faith.
You might not see your money back for a very long time. Worst case scenario, you might waste your money completely.
The result is that too often, company owners hold back on investing in their own businesses...
...Even though they need that cash injection to grow and to thrive.
It’s almost like self-sabotage.
So how can you make this process less risky....
...And invest in your company with confidence?
The truth is, whenever you decide to spend large amounts on an unproven project, it can feel like a bit of a gamble. So you might always feel out of your comfort zone.
But you can take calculated, careful risks, rather than wild, implusive risks.
The key is not to make investment decisions based on gut feeling, but on cold, hard numbers.
This means working with your finance director to map out the financial implications of your decision...
For example, if you lose the money you’re planning to invest, can you really afford it?
What will be the impact on your bottom line, if it takes longer to recuperate your investment than you expect?
How much is really available to spend? (You’d be surprised how many companies don’t know the answer to this basic question!)
If everything goes to plan, what will be the impact on your revenue and profits, month-by-month?
And - critically - what if you don’t invest? There are financial implications here too!
Playing with these scenarios doesn’t erase your risk. But going through this structured process and consulting real numbers helps you make better-informed choices. So you’ll feel more comfortable with them, too.
That’s exactly where we help, when we work on your company’s financial management.
As CEO of your company, we give you the insights you need to make better financial decisions for your future...
...and maximise your profit.
And that makes you a better, more confident leader.
If that sounds like a result you want, email or call me on 01279 647 447, to arrange a no-obligation chat.
I’ll get right back to you.
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