In my book, I dedicate a chapter about keeping track of your financial performance, and now more than ever, this should be core to every small to medium-sized business owner.
I have had many clients contact me about rising costs in the last month. But I know many business owners are not keeping track of their numbers and keep doing the same thing without adjusting anything.
The main business sectors affected by rising prices are transport, building and food. Anyone who imports products knows that the cost of shipping has gone up as much as eleven times the regular price. But are you doing anything about the increased costs?
Some of our clients use budgets which is great. But like I advise these clients, this is not just a set and forget exercise. It should be regularly reviewed and analysed to actual performance. But also, if changes are occurring, the essential thing to do is update the budget. It will highlight the impact on your business in terms of profitability.
Also, supply is a significant issue facing businesses. The impact on cash flow and productivity has been draining.
As a business owner, are you burying your head in the sand, or are you considering these factors? Things that can be done:
- Review the type of work you take on
- Adjust prices
- Alert customers of what is going on, quotes may need to change or to bill revised
- Review cash flow
- Amend forecast budgets
- Review your business strategy
If you are a business owner struggling to keep pace with the changes occurring or need to review your budget or cash flow, please contact me at email@example.com or call on 02 9923 2959 to see how we can help you on your road to recovery.