You have your financial statements in place, right? You may even have an easy to read dashboard highlighting everything you need to know on one page. But do you really know how to read these figures and what they are telling you about your business?
Without clearly understanding your financial figures, you are like a novice pilot in the cockpit who may unwittingly misread the instruments or fail to notice the flashing warning lights, with catastrophic consequences.
M.U.S.T. Do for Business is a Rinse ‘n Repeat approach. That is, the four elements of M.U.S.T. represent a continual cycle designed to help business owners to work through for making the most of their business opportunities. In this article we focus on part two of our framework, U – UNDERSTAND your numbers.
First of all, rest assured when it comes to understanding, or rather, not understanding your business financials, you’re not alone. Most business owners are in the same boat (or shall we say plane) and have a limited understanding of what their numbers really mean and how to use them to make decisions and achieve goals.
Using real-time and accurate financial data, we help you to conduct what is effectively a financial SWOT analysis. Your numbers will clearly reveal your business Strengths, Weaknesses, Opportunities and Threats. When you understand what the numbers mean, you can plan more effectively, mitigate problems and capture opportunities. Put simply, you won’t need to guess or rely on ‘gut-feeling’ as you will have a clear understanding of facts that will support confident decision making.
Using your business financials, we’ll model relevant real-life business scenarios, demonstrating how it’s often the small and easy-to-implement actions that can significantly improve your business performance.
For example, we can model Debtor Days to illustrate how payment delays impact on cash flow, affect stock turnover and ultimately, the profitability of your business. With clarity, the solution may be as easy as changing your payment terms from 30 to 14 days or using automatic reminders to get monies in.
Whether you have specific concerns that you simply need to talk through or you need us as your accountants and business advisors to be more closely involved to lead the process for you, understanding the numbers and the signals – good and bad – places you in control and in a much stronger position when making decisions. The business environment and circumstances can change quickly and a clear understanding of your financials will mean you’ll be more prepared for riding out the inevitable turbulence and returning to blue skies.
U – UNDERSTAND your Numbers
We will work with you to:
Conduct a financial SWOT analysis;
Model ‘what if’ scenarios;
Offer practical solutions and help you to implement them.
Robinson Voss Partners is known for helping established, small and medium sized businesses to grow.
Using our M.U.S.T. Do for Business framework we help them to achieve outcomes that extend beyond business success to personal prosperity for business owners.
At Robinson Voss Partners, we have over 30 years’ experience helping business owners at all stages of their business. If you would like strategic advice to help you make the most of your business and personal situation, please contact us today on 03 9708 8801 or email info@rvpartners.com.au
Learn more about the M.U.S.T. Do for Business Framework
Measure | Understand your Numbers | Set a Strategy | Take Action
General Advice Disclaimer: The information contained within this document is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Robinson Voss Partners (RV Partners) strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances.
