Are you building on sand?
As a child who remembers making sandcastles on the beach? They’re easy to do but there’s a knack to it.
• Begin with a flat patch of sand.
• Fill your bucket with sand of the right consistency.
• Flip it over and tap it to loosen the edges.
• Then carefully remove the bucket revealing your masterpiece.
If you follow that process you’ll get great results every time.
OK so we’ve all prepared sandcastles but who’s built a high-rise tower block? I’m guessing very few of us, but think about how it might differ?
• For starters the foundations would be completely different. They’d be solid and sturdy. A firm base to properly support the structure.
• We’d choose durable materials that are fit for purpose and designed to last.
• Professional help from architects and building contractors would be a good idea.
• You’d follow strict building controls and the end result would be something that lasts and you could be proud of.
These principles apply to the financial structure of your business too.
The accounts foundations, tools and controls of a small business are very different to what’s needed in a larger business.
If your financial structure in inadequate the early warning signs might include:
• Loss of control
• Poor and delayed financial information
• Duplication of effort
• Inability to plan ahead
• Financial errors and emergencies
• Figures feeling ‘off’
Building or growing your business on an unsuitable financial foundation is virtually impossible.
Don’t waste time and effort shoring up failing systems that will eventually let you down.
Sometimes the best thing to do is start over again with the right tools to get the job done properly.