This is the 3rd in a series of blogs that will detail how we work with small businesses to put them on a path for profitable growth and longevity. Please feel free to comment – we would love to hear from you!
Most companies develop trends over time. These trends can dictate how well or poorly the company runs. Here are some of the internal trends that businesses may experience but may not be cognizant of as they go through day-day operations.
Trends are both internal and external – We analyze both so that we can recommend the best way in which to position a company going forward – both the internal and external workings of a company need to be healthy in order for a company to sustain long term growth and profitability.
Internal Issues/Trends:
§ Are the company’s Admin and financial processes & procedures giving them the data and results needed to understand how well/poorly they are currently performing?
§ Is the Owner aware of growth or declines in revenue on a monthly or weekly basis?
§ Is the Owner aware of the company’s expense structure? Does the expense structure make sense given the level of revenue?
§ Is the staff sufficient for the current level of growth or for the growth plans the Owner has in place for the next 1-3 years?
§ What is the status of Accounts Receivable and Accounts Payable – are these key items in line with the business plan? Are there any customers who are falling behind in payments? Accounts Receivable can dramatically affect cash flow – how healthy is your A/R?
§ Personnel Policies – are company employees both happy and as productive/efficient as they can be? What, if any, improvements can be made?