Why you should upgrade your financial management BEFORE you're ready21st April 2021
Think back to the early days of your business, right when you were starting out...
Perhaps you were working alone or with a small team. Your business was showing lots of potential, but your turnover was low compared to today.
But there was one thing you had in abundance: Vision.
Chances are that even at that early stage, you made one big investment...
...Paying for a business coach who had been there, done that before you...
...And who could give you the guidance and focus you needed to grow much faster than you could do alone.
It probably felt like a stretch financially - maybe even an extravagant expense.
But you recognised that you needed to invest in your future.
That’s what I remind people of, when they come to me once their business is turning over £1 million or more...
...Telling me that they really need financial advice and guidance, because they’re never quite sure they’re making the best financial decisions...
...And they really need to sort out their accounting, because they’re not 100% sure their figures are correct or that their money is being handled as efficiently as it could be...
But they’re just not sure they’re ready for the next “financial step up”, which is a finance director or outsourced finance department.
It feels like a financial stretch...
“We’re not quite there yet... Maybe we’ll make do for the moment, and be ready next year?”
Here’s the truth.
The best time to invest in good financial management is before you feel you’re completely ready.
It’s about investing in the future of your business and preparing it for significant growth, even if it feels a little uncomfortable at the time.
Yes, you could hold out until you can afford it very comfortably. But without good financial management, you may never achieve that point. It will certainly take longer.
People who try to build their business without a mentor are likely to make more mistakes because they have to figure out everything on their own.
Similarly, if your company is turning over £1 million or more but is still trying to handle your finances with a bookkeeper, a fairly average accountant or you’re even trying to do some of the financial management yourself, you’re going to struggle.
Your accounts might get done, but you’re never going to get the financial information and insights that a company that size really needs in order to scale significantly. There’s simply no one on staff qualified or able to give them to you.
That means wrong turns... Investing in the wrong places... Finding it hard to make decisions, because your cash position is never clear...
...And worst of all, a massive drain on your time (and mental wellbeing) as you try to grow a company in the financial dark.
It may be cheaper short-term. But it will cost you big long-term.
The alternative is not to wait, but to build the kind of financial infrastructure larger companies take for granted even when you’re relatively small.
It takes a mentality switch...
...Understanding that businesses grow most easily with the right equipment, systems and processes in place. It’s much harder to grow big and then put the infrastructure in retroactively.
And nothing is more important in your business than managing your money well. Your growth literally depends on it!
I’m reminded of a client who was only serving 100 customers a month, but needed a way to speed up the process of sending out his product to buyers.
The technology he bought could handle 1,000 customers a month.
Yes, it was a little premature. And it probably felt like a financial stretch.
But having that capability in place meant that he could process 900 new customers smoothly and efficiently, building up his reputation and earning lots of repeat business. Because he could process each order quickly, his profit margins also went up.
Ultimately it helped him reach 1,000 customers faster.
Upgrading your financial management is, similarly, an investment in your future.
Are you ready to do it?
Today I urge you to contact me, even if your answer is “I’m not sure... I can see the need, but it feels a little early... We’ll be able to afford it more comfortably at the end of the year.”
Those are all signs you’re probably ready right now.
Hit ‘reply’ to this email or call us on 01279 647 447, and let’s talk about how we can help you grow from £1 million or £2 million to £5 million, £10 million and beyond.
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