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How To Scale Up Your Service Business

Scale-Up-Your-Service-Business

It can be hard to grow a service business. Customers are buying your expertise, and if all you have to sell is your time, the size of your business will always be limited by the number of hours in your day.

There are several ways you can scale your service business. One way is to ‘productize’ your service offerings. You offer a relatively short menu of standardized service offerings, the sales and provision of which can done by your staff. This way your business can become less dependent on you, the business owner.

Posted in Value Builder

5 Ways To Get Your Business To Run Without You

Some owners focus on growing their profits, while others are obsessed with sales goals. Have you ever considered making it your primary goal to set up your business so that it can thrive and grow without you?

A business not dependent on its owner is the ultimate asset to own. It allows you complete control over your time so that you can choose the projects you get involved in and the vacations you take. When it comes to getting out, a business independent of its owner is worth a lot more than an owner-dependent company.

Posted in Financial Modeling, Value Builder

Does Your Business Have A Financial Plan?

Does your business have a financial plan

Would you fly on a plane if you knew the pilot had not filed a flight plan and if you knew there were no air traffic controls to ensure the plane kept to its flight path?

So why do so many businesses operate without a financial plan and without regular reviews of actual results against their plan?

Posted in Value Builder

What Would Happen To My Company If Something Were To Happen To Me?

What Would Happen To My Company If Something Were To Happen To Me

The risk in your company can be measured by what would happen if: You as the business owner became sick and was out of action for several weeks; or you lost the company’s biggest customer; or you lost your major supplier you lost one or more key employees.

The higher this risk, the lower the company value and for a business owner who want to sell the company, steps should be taken to reduce these risks and increase the company value.

Posted in Value Builder

Three key financial numbers for start-ups

Three key financial numbers for start ups

For any new venture it can be daunting to answer important financial questions such as when will revenue occur, when will your business become profitable and how much financing will you need.

It is vital for any new company to know the financial numbers that can provide answers to these questions. Generally speaking, knowing your start-up costs, your operating costs and cash flow will put you in a good position to know where your business stands.

Posted in Financial Modeling

3 Reasons You Need A CFO

CFO

Imagine you are the owner of a company with $5 million in sales. It has been operating for a number of years, and is profitable, but you want to grow the business.

Say you would like to double sales over the next five years. Before you start the growth process, you should ask yourself: why double sales? What will a doubling in sales mean to profits? What cash is needed to double sales?  Quite often, you know that you are profitable but are not satisfied with the level of profits and you do not know exactly why profits are where they are or what should be done to increase them.

Posted in Business Planning

5 Internal Controls Needed To Grow Your Business

5-Internal-Controls

Internal controls are needed to

1) Protect the cash and other assets of a business,
2) Maintain the integrity of the financial information used to make business decisions and assist in fraud detection; and
3) Maintain compliance with laws and regulations, especially those where being offside can cause major risk to your company.
In small business, the owner can control every single transaction, and this is a very good control mechanism. However, it severely limits the size a company can get.

Posted in Business Planning

5 Numbers You Need To Run Your Business

5-numbers-you-need-to-run-your-business

How can you outsmart your competition and grow your company?

Let’s say you are the owner of a small company. It is profitable, because bills are paid and money is in the bank. However, the company is not growing or becoming more profitable.

Many companies devise corporate strategies to achieve these goals and some include very specific interim goals. But a great number of strategies are poorly executed and goals are not achieved.

Posted in Business Planning

Does Your Business Require Outside Funding?

Business-Require-Financing

Does Your Business Require Financing?

Before you can answer this question, you have to ask yourself:

  • Have you unlocked all the internal sources of cash that could be hidden on the balance sheet in terms of increased accounts receivable and inventory turnover, monetization of other unused assets such as old and unused equipment and payment of accounts payable that better matched your business cash flows?
Posted in Cash