Don't be a victim of your own success
Let me set the scene…
You have a great idea and decide to set up your own business to capture a gap in the market/offer something new or different. You are highly passionate about your subject matter and plough all the available time you have to getting your enterprise off the ground. You then grow it into a successful, profitable business.
You take on extra staff to cope with the increasing demands and complexity your success has brought you. The company continues to go from strength to strength, growing turnover and profit, and you are able to reap the rewards from the risks taken at inception.
But then you encounter a problem. Your business has grown to the point where you are so focused on your core subject matter, that you now can’t keep a handle on every aspect of the business and you become more reliant on the people around you. If they are also core subject matter experts, then those areas appear to remain under control. One of the main areas I have noticed lose control quickly is, finance. It can be a number of things including; competitive pressures on your pricing, costs from suppliers, increased overheads at a greater pace than turnover… it doesn’t take much to start seeing profit margins shrink.
In some instances, I have seen a reliance on the resident book-keeper and/or external accountants to try and tackle these issues. But often they are not the best placed people to help in this situation, as they either manage the day to day running of the accounts or they only ensure compliance with accounting standards and HMRC / tax rules. You need someone who can interrogate your financials and make sense of what has happened; providing trends on customer profitability and the scalability of your overhead base. These vital insights can help you take positive action to take advantage of successful areas and to implement corrective action in problem areas, quickly, instead of waiting until you get your annual accounts, at which point it may be too late.
You have done all the hard work in making your business a success, so getting an independent expert in to maintain the financial trajectory can actually be a small price to pay in the scheme of things.
Foxtrot Twenty can provide that independent financial analysis and insight that can give you the direction you require to stay on track. We have experience in working with successful companies who needed a deeper understanding of finances in their company. We are passionate about seeing small businesses succeed, and from undertaking a one-off project or to providing guidance on a regular basis, we are a cost-effective solution for clarity, peace of mind and improving profits.
Find out more and get in touch today.