Our Business Philosophy
The monthly and quarterly packages entail spending 1 day a month, or quarter working in your business as well a being available at other times for queries or problem solving requirements, all for the flat fee.
During our decades of experienced, the following philiosophy on business has been developed as it covers all the areas we have found that a business requires from a finance professional to be successful. A good Financial Controller working with you in your business will be able to give you sound advice using the rules laid out below. In our experience, most business failures occur due to a lack of good decision making having ignored one or more of the below rules, whereas successful businesses routinely seek advice on all business decisions from a finance professional.
Cash is King!
Many people have challenged this philosophy saying that rule 2 should come first, however as all accountants know, rule 1 is necessary before anything else in business. When talking about cash, we are talking about the big three decisions in your business
- The Financing Decision. How do I finance my business and with what mixture of debt and equity?
- The Investment decision. Once I have the finance, how do I invest it? i.e Capital Expenditure, Overheads, Staffing etc
- The Dividend Decision. When and how much should and can I take out of the business and in what way?
Have what you can get rid of rather than trying to get rid of what you have!
Successful businesses make this distinction, however knowing how to make this distinction requires good advice. A Financial Controller working in your business can give the strategic business insights and knowledge of growth strategies to ensure your business can make this important distintion.
This takes a deeper and broader look at the investment decision. You need to understand the risk/return dynamic and the 3 R’s of investing.
Understanding your risk appetite and the strategies for dealing with risk will allow you to make good investment decision and understand if the potential return on an investment is justified by the risk involved. This rule, also involves having good forecasting and budgeting within your business. Some business owners I have known say budgeting and forecasting is uneccessary, only to have ended up wishing they had undertaken this type of process when their business came up for sale. That is because, having good evidence of such rigourous processes gives a prospective purchaser a good basis upon which to understand the business during due dilligence, and hence help provide insight into any uncertainty and lower the discount rate they use in their model and hence increase the businesses sale price.
Keep It Simple Stupid
Einsteins axion of “everything should be as simple as possible but not simpler” is very true in business. It also applies to all areas of your business. If you or your staff can not simply explain your product/service and understand your market price point you will lose sales.
If you have invested in complex business systems that cannot be simply explained and used, you will likely end up spending big money on consultants to fix problems. Having a Financial Controller in your business will save you a lot of unecessary expenditure.
A good Financial Controller working with you in your business will be able to give you sound advice using the set of rules.
In our experience, most business failures occur due to a lack of good decision making having ignored one or more of the rules, whereas successful businesses routinely seek advice on all business decisions from a finance professional
Communicate, Communicate, Communicate!
If your business does not have an audience it will make no sales. A good Financial Controller can help guide you to make the best spending advice using the best channels to achieve this. Whether it be traditional advertising, leather on pavement sales or more modern CRO, SEO or web analytics, knowing the ratio of spend vs return is key in deciding how to use your limited budget on marketing and sales.
All business need good internal controls to prevent revenue leaks and maintain overhead controls. This is the bread and butter of a good financial controller.
Good corporate governance is essential in the modern world. Corporate governance can be looked at as walking the tight rope between performace (required by shareholders) and conformance (required by all branches of government).
As conformance can be expensive, and counter productive to financial performance, a good financial controller will be able to help you navigate this conformance efficiently, maintaining this balance.
A good financial controller will contribute to your business and ensure that an environment exists in your business that ensures management is contributing and staff members have the right opportunities to contribute.