Building a business is hard work. No surprise there. But, the key to success is in building the infrastructure that is needed for growth while you are building a business. You need to do both and at about the same time. Business owners are, by nature, entrepreneurial. That means they are visionary and can see things others can’t. They can see the need for a product or service that doesn’t exist today or that may exist today but there is room for a better ‘mousetrap’. They are great at building the product or service and sometimes at finding customers. But, typically entrepreneurs are not well-suited for the more mundane aspects of building a business such as: a) building an organization and getting the right people in the right seats, b) implementing an accounting program with good financial reporting that will facilitate and enable growth, or c) managing the business with the discipline and rigor that is the hallmark of all successful companies.
If you are a business owner and want your company to grow, here are some hard questions to ask yourself to determine if you need the help of trusted strategic advisor:
- Do I get financial statements from by accounting team at least monthly and are they accurate? Do they include projections of cash, revenue, and expenses over the next 6 – 12 months and do they help me understand where the business is coming from and what I should expect in the near-term future? Do these reports tell me if, and when, I may have cash problems?
- Do I have cash problems on a regular basis and do I know where my cash is going?
- Do I know what I can and cannot afford to do in terms of such things as hiring and buying fixed assets?
- Do I have an end-goal, i.e. are you thinking about selling your business at some point in the future or leaving it to your employees or children? If so, have you spoken to anyone who knows how to get you there?
You are not alone if you answered yes to any, or all, of the questions above. In fact, most business owners are in the same boat. Being honest with yourself and inviting a B2B CFO® for a meeting may be the best thing you ever did. It certainly can make the difference between success and failure when building a business. And, success can be counted in millions of dollars.
photo credit: SalFalko Man analyzing financial data and charts on computer screen via photopin (license)