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Regain control of your business with the three essential tools

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Has the current business climate got you feeling a little directionless in your business? Craig Nevatt, Director at Drumm Nevatt & Associates Limited (DNA), shares three tools to regain control of your business. This article first appeared in the Times (7th September 2021, page 9) https://issuu.com/times_e-editions/docs/covid_19_-_flipbook_7-9-21?fr=sOTFlZTM0NzEwNA

Annual Business Plan

An annual business plan helps you get a broader vision of where your business aims to be by the end of the year. It maps out the primary goals for your business so you can achieve them in stages.

First up is writing the vision statement. A vision statement is what you want to achieve, it should inspire employees and be exciting to the rest of the world.

An annual plan will also need to contain high-level budget projections for the coming 12 months, forecasting income and expenses.

The business plan needs to include relevant KPIs (Key Performance Indicators). Each KPI should tie a performance measure to a business outcome.

A business plan is a great chance to identify ways you can exploit opportunities. Opportunities can be things like planning how to reach new markets etc. This is also a great time to expose and fix any vulnerabilities you have in your business.

Goals point a new business in the right direction and keeps an established company on the path to success.  Cascade down the business goals into smaller goals relevant to each department and then again to individual goals.

Annual Forecast

Business forecasting is a vital component of planning and long-term strategy for any business.

A financial snapshot of where your business is headed, a profit and loss forecast predicts the profit and losses over the coming financial year.  You can use to check your business is going in the right direction.

Cash flow forecasts are best used proactively rather than reactively. Planning for upcoming expenses will help you prevent financial difficulties and keep your business in the black.

Forecasting a balance sheet shows businesses what they’re likely to own and owe at a future date, which helps them plan for future acquisitions and make informed projections about their future capital, assets, debt and equity.

Ongoing Reporting with Accountability

Business reports are valuable tools for any business. They provide a way to track your progress and identify areas for improvement. Reporting monthly against forecast, updating goals and actions quarterly, and doing a full review and update annually is critical to any business’s success.

To find out more contact the team at DNA.

HOWICK OFFICE

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