Expanding Business

On the Up

Expansion in a business can be very tricky. Timely and accurate figures form the backbone of any business, especially when you are trying to grow. Building forecasts and establishing underlying trends are vital components to moving a business forward. An action plan to monitor costs and increase sales needs to be in place.

Extra Reporting and Analysis can add Invaluable Benefits

Generating management accounts on a regular basis is paramount for keeping control of the business finances and also helps with decision making. However, those accounts can form the basis of far more benefits in the form of various reports. If there is a reliable system in place for producing the accounts, all the connected data will also be up to date.

Whilst we appreciate that too many figures can clog the brain and not be representative of individual business operations, there are also many that would make a huge difference in terms of growth and performance.

For instance:

Break Even Analysis – establishes the turnover you need to cover all your costs and expenses. Anything above break even becomes profit
Various Ratios – know whether you are heading in the right direction, are your debts better managed, is performance improving.
Trend Analysis – using historic data, this report will indicate good and bad trends enabling you to take corrective action if necessary.
Industry Analysis – compares your performance to others in the same sector
Profitability Reportshelps with pricing, margins and profit
Supplier Review– shows where you need to make changes and ensuring you get the best deals available adding to gross profit
Use of Graphs– graphically displays your key performance indicators in an easy to read format

If you already use an accountant, but are not receiving information you think would help to move your business forward or even help correct the situation you’re in, please let us know. A brief discussion should allow us to give you an approximate cost of any additional reports.

If you would like further information on any of the above please give us a call on 01428 727313

Survival of the Fittest

Growing a business in an economic downturn is definitely not easy. However, if you can ride the storm, the reward will be a solid business that can outstrip competition and grow exponentially once the market picks up.

How to Ride the Storm

Use a Business Plan– Even if a business is well established, a detailed business plan helps to clarify and highlight various areas to focus on.
Put your finances in order – Prepare a detailed cashflow to anticipate any shortfall.
Look after your existing customers – Treat them like gold dust and look for ways to add value for minimal cost.
Ask for referrals– Set up a referral system that will generate new leads and hopefully new customers.
Review all your costs – Cut back and negotiate where possible. Don’t be shy of changing suppliers if the same quality can be guaranteed.
Keep marketing– Look for other (not so costly) avenues to pursue or change the method used to attract more leads. Create and use a marketing plan to aid the process.
Systemise – Wherever possible devise systems in order to save time and facilitate operations.

If all or even most of the above is carried out on a regular basis and monitored throughout, not only will your business survive, it should also thrive and come through the recession stronger and healthier, ready to capitalize on future potential growth in the marketplace.