Starting a business is an exciting time with many possibilities waiting to be explored. It can be tempting to want to stay ahead of the curve by doing more; perhaps it’s starting another business venture altogether, or perhaps you are prioritising quantity of products over profitable products because you just want to get your products out there?
This is a trap I have found many entrepreneurs and business owners fall into. If you want to experience real growth for your business and enjoy considerable profit, focus is the secret ingredient every business owner needs.
Focus can be challenging to achieve while running a business but it is essential if you want to grow a sustainable business for the long term.
Stick to your plan.
Every business has a plan whether it be a formal document that outlines actions, initiatives and objectives for your business or an informal mindset that is adopted by employees and advisory members (i.e. Our business plan is to make enough money to (insert goal here)). Yes, it can be that informal.
Giving your energy and focus to your business’s profitability can help get you from where you are today to where you want to be in the future by helping you meet the goals and objectives outlined in your plan. A lack of focus can cause your business to stagnate which can hinder the ability to meet your goals and objectives in a timely and cost-effective manner.
A business plan is the foundation of any business and traditionally includes the following elements:
- Vision statement – what the business is to achieve
- Action plan – what has to be done when to realise the vision
- Product, service and market analysis
- Marketing strategy and plan
- Forecast profit and forecast cash-flows
- Sales strategy
- Digital services
- Legals and risk management
- Operational plan – who will do what, when, where, and how
- Human resources plan
Focusing on one business venture at a time, not only helps you make sure your business is growing profitably, it can also help you avoid unnecessary expenses that can negatively influence your cash flow. Providing yourself with the information you need to focus on the product or area of your business that will help you reach your profit goals is a key element for any successful business plan.
Prioritising the long-term value. While my team and I at Bentley Consulting pride ourselves on knowing the processes and direction a business owner needs to take to become successful, we also acknowledge that the path to get there is not always straightforward.
Exploring alternative solutions to overcome financial hurdles might seem like a good way to manage risk in the short term, but it could actually lead to more problems in the longer term.
Sometimes letting go of an idea to better focus on a more profitable product or service can actually add more value to your business in the longer term. For example, a client we worked with recently started two different businesses at the same time, both of which were not experiencing substantial growth. By focusing on just one of these businesses and the product with more potential, he is now seeing growth and improvement in the retained business. This focus has allowed him to hone into his business and market segment in order to better meet his market and, in turn, move closer toward his profit goals.
All our work starts by gaining a snapshot of where you are and where you want to be. We then provide operational and financial advice on the systems and processes that can not only help reduce your workload and stress but also help you achieve your goals by ensuring financial information is always at your fingertips.
Grow your business with the right financial modelling.
A financial model is a proactive way to manage your business outcomes and small business finance goals. By turning your business plan into figures, you can clearly see what your future profit and cash flow outcomes will be.
A financial model generally includes:
- Assumptions and drivers
- An income statement
- A balance sheet
- A cash flow statement
- Supporting schedules,
- Valuations
- Sensitivity analysis
- Charts
- Graphs
Together, we work with you to create a financial model that helps you identify the ways different actions and events can impact your business. Our financial modelling helps give you a clear understanding of your profitability and cash flow to support you in making informed decisions that address problems before they occur.
With this data on hand, you have the confidence to identify actions and changes to improve your business profit and meet your business goals. If you are looking to lenders for support financially, this information can be invaluable in gaining their trust, and we have helped many gain lender support by supplying key financial information on your behalf.
Discover how my team and I can help you regain focus and control to grow your business today.
Book your FREE 15-minute consultation with us today.
