This is a guest post from Kat Bond, Senior Account Manager at Xero.
As a small business owner, could getting too embroiled in the day-to-day work of your business harm its overall development?
Often, your time is spent working in the business and not on the business.
Yet, in order to grow from a small outfit to a successful, profitable company, and to make the transition from owner-worker to managing director or CEO, you need to invest time managing your business.
Below are a few tips to help you make the transition.
Hold a regular meeting with senior stakeholders and treat it like a board meeting
Holding a regular meeting (preferably twice a month, or quarterly at a minimum) with senior stakeholders gives you the opportunity to discuss progress, current issues, and ideas to boost sales.
Consult good small business accountants
Small business accountants are so much more than end-of-year number crunchers.
Proactive accounting and real-time data allow accountants to really get under the bonnet. They understand the importance of providing strategic advice on a regular basis, so make sure you consult them about any important issues or decisions.
Carry out regular reporting covering all key financial data
If you already have a strategic plan, compare your actual results to your budget. This can highlight issues such as unnecessary expenses or underperforming areas of the business that you may not have been aware of and need to address.
With deadlines looming or customers demanding attention, taking time out to make strategic decisions isn’t the only important activity that can suffer – essential finance admin can also fall by the wayside, especially if you are too small to have a dedicated finance person. However, as many small firms have discovered, cash availability can make or break a business, with too many late payments culminating in debt and even closure.
Check out these top tips for boosting your business' cash flow.