Key information every business owner needs to know
This blog is all about the key information every business owner needs to know. If you’ve been following my blog recently, you will have read my articles about turning your dreams into a reality and how to achieve business success.
Now I’m going to talk about what you as business owners require in order to start taking these steps towards success. It’s all about the power of information! The problem I see with a lot of clients is that they don’t always know what is and isn’t working in their business. Therefore, they don’t know what areas need improving.
Let’s discuss the importance of information in more detail. To make it work for your business, it needs to have four vital characteristics:
To run a successful business, you need the right information at the right time. If you’re still waiting for crucial figures a few months down the line, it’s likely to be of little use to you, and there won’t be much you can do to make any improvements needed.
By increasing the frequency of the information you are gathering about your business, you will find yourself having much more control over key figures. This will, in turn, allow you the flexibility to make corrections where needed at the right time.
This is the same as frequency, right? No, regularity is all about reliability. If you are gathering performance information once a month, you need to have the confidence that this will happen. If you are gathering information on an ad hoc basis, it won’t be nearly as valuable to your business.
Have you ever found yourself relying on a set of figures you have been editing, only to discover that they’re quite a different story when it comes to your year-end? Don’t worry; you’re not alone! There are plenty of business owners out there in the same boat, and this is why working with an accountant to produce accurate performance information in the form of Management Accounts is essential to the success of your business.
As you can see, with the right information, it really is possible to run an efficient and successful business. If you’d like to learn more about these characteristics and read some interesting real-life examples, go ahead and download my book ‘The Keys To The Safe’.
If you’ve found this article on the key information every business owner needs to know helpful, you are definitely going to want to stay tuned for my next blog when I will sharing some tips for ensuring your business information is always accurate and why spreadsheets really are the devil’s work!
Antony Holdsworth BSc (Hons) FCMA CGMA