As a business owner, how do I best influence the financial and operational performance of my business, and so improve my returns and business value, today and into the future?
Our new ebook – Tips to improve financial and operational performance – examines some of the key actions, data and reporting that successful business owners implement and utilise on a regular basis to positively impact their business performance.
Top 4 business elements to monitor and analyse
Like valuation, running a business is both an art and a science. We can’t be too prescriptive, because each business is different and each successful owner’s methods have been honed and developed in line with their specific risk profiles, style of management, business ownership and resourcing circumstances.
With that caveat, let’s turn to the four main business elements we’ve identified that an owner or manager needs to monitor, review and analyse to effectively manage and improve their financial and operational performance:
- Financial performance – utilising the Profit & Loss or Income Statement, Balance Sheet and Cash Flow Statements
- Business health factors – including customers, suppliers, people, delivery, and forward orders and momentum
- External factors – market trends and changes, competitive pressures, advantages and dynamics
- Business value indicators – how are indicators of business value tracking over time, relative to your objectives.
In the ebook we drill down and explore each of these four key elements and how they can assist you in improving your financial and operational performance.
We’ve also created a Timetable of financial and operational actions to help you plan and manage your review processes.
Understanding financial reports a critical skill
Many business owners leave understanding financial performance and associated reports to their finance team or external accountants – “I’m not a trained accountant so I don’t have time to understand the numbers stuff” etc.
While it’s important to have an expert team around you, the best business owners and managers we’ve seen having a working knowledge of financial reports.
They know why financial reports are so important, how to read them and what they’re saying about their business’s performance.
The infographic illustrates the importance of financial reports.
If you would like to improve your business’s financial and operational performance, we’re keen to help you. Feel free to get in touch by calling 02 6360 0360 or 02 9893 1803 for a confidential, obligation-free discussion.
