What is Profit Growth?
Profit growth is the result of making decisions and then working towards making those decisions a reality. Profit growth is often difficult to achieve because many people don’t realise that profit is an outcome – it is the result of making decisions then taking action, making more decisions and taking more action, making more decisions - and so on. As you know, the process never stops. As with all things in business, the two key steps are decisions and action.
Why focus on Profit Growth?
Growing your profit is the best way to get a financier to loan you more money to grow your asset base. Profit growth is not an accident and will not happen by magic – planning, decision making and taking action are the keys. Like all things in life, what you focus on will give you results and the greater the focus the better the result.
How we can help:
- We can work with you to identify the drivers that cause profit growth.
- We can set up a monitoring and reporting structure that focuses on those drivers that cause profit, and reduce the focus on activities that do not contribute to profit.
- We can also develop sound plans which will help to convince a potential lender to provide you with funding that is repayable with your new increased level of profitability.
What is Cashflow?
Cashflow is the key to business success. Cashflow is what enables you to borrow money to expand your business, borrow money to increase your asset base and spend on the finer things in life. It is also what will make or break your business. There are many aspects of Cashflow, but the most important one is how quickly you collect the money owed to you.
Why focus on Cashflow?
Knowing, managing and focussing on your Cashflow is the best way to succeed in business. Regardless of your technical skills or how well you market your business, it is management of your Cashflow that will determine your business success. It is also good to be aware of potential cash shortages in advance (e.g. the off season) so that these can be planned for – reduction in drawings, temporary bank overdraft extension.
How we can help:
- Develop a spending budget that allows you keep control of your outgoings
- Help you implement and be accountable for plans that increase your Cashflow
- Work with you to identify the best sources of borrowing to match your business needs. An interesting point here: sometimes borrowing to fix a problem is not the best solution.