Financial Management – Things All Business Owners Should Know to Succeed
3 min readStatistics show that 87% of small business failures are due to one reason: Lack of proper financial management skills! This is a horrible statistic and it can easily be turned around for you! The formal definition of financial management is “the planning, directing, monitoring, organizing and controlling of the monetary resources of an organisation.” Basically; do you understand, track and control where and when your cash flows in or out of your business.
I have seen evidence of this statistic over and over again. There are so many small business owners out there that pay a fortune every year for their financial statements to be prepared by their accountant, and have very little understanding of what this document actually means. No sooner have they written out the cheque (with a very heavy heart) to their accountant, and the next cheque is on its way out -to the tax man!!!
Financial Management is not something you only worry about after year end, when you need to report to the tax man. Its a process of understanding and tracking how your business is performing on at least a monthly basis. Some business’ require a more frequent review depending on its size or even how desperately the business needs it. To prevent you from becoming part of this 87%, I have formulated a few DIY tips in my report so make sure you sign up for it before you go!
It is designed specifically for you (the local business person with little or no understanding of financial numbers or processes) and you can use them to gain an understanding and eventually confidence in your business today, and tomorrow…… your business’ future. You can also sign up for our DIY templates package to get you started “understanding, tracking and controlling” your business. Be part of our database and you will be able to get started “number crunching” the Turnover you desire – and qualify for 30 minutes extra expert time for FREE.
Financial management is a big part of a running a business and it’s likely to determine your long term success.
Every business owner should have a strong skill in the area of financial management. If not, it is important to have someone on your team who is a specialist. You should take on financial management with great focus and importantly, take into account the strategies and plans that offer growth, stability, as well as continuous profit for the business. Managing your finances will always involve some risks but these can be reduced with the assistance of experts like the team from “Confident Cashflows.”
Don’t become an all to common statistic!
You can learn and understand the basics of financial management, but as a business owner, it doesn’t mean that you need to know everything. It is your role to steer the ship and have an understanding of what is going on in the engine room is critical.
Sign up for our “Financial Health Check” which can help you truly understand how “healthy” or how “not-so-healthy” your business is. Don’t wait – tomorrow may be too late!
Regardless of what specific tools you adapt for managing your finances, you will certainly be on the right track if you consider a team of financial experts who can help and guide you well on how to handle your finances.
Benefits of working with financial experts
- Financial experts let you focus on your technical and operational expertise of your business – but help identify potential stumbling blocks along the way – BEFORE your business falls down!!
- Financial management experts help you employ BIG business principles to small(er) business enterprises. Remember you will never be able to handle BIG profits if you cannot manage smaller profits NOW!
- Financial experts give you advice based on your specific industry and your specific business. Every business is unique – with its own strengths and unfortunately its own weakness’. Without the knowledge of where you stand – it’s very difficult for you to make informed decisions about your business’ future!
The key to success is always a solid foundation and knowing your goals and more than anything else, choosing the best financial management experts to help you reach your financial goals and run your business effectively.
