The majority of business owners are able to write a business plan and put together credible financial forecasts either alone or with the help of an accountant. However most struggle to systematically report progress and analyse what is going on within their company. Figures show that only about 10% are able to do this without financial assistance. So it is no surprise that there is a correlation between this and the number of businesses that survive over three years of trading also being at 10%.
Business failure rates are also high as most company owners can’t spot warning signs, let alone deal with them. You need to ensure that you are realistic about the company’s performance, rather than being overly optimistic and blinkered when it comes to evaluation.
Systematically monitored financial progress and analysis of results is the key, however only the minority of business owners have this under control. It is essential to be aware of the company’s costs, sales and revenue both current and future and work out how much capital the business will require going forward.
If this is something that you have done and have figured out that your company will require some additional funding, contact Beer & Young for a free no obligation chat to discuss potential investment.
No comments:
Post a Comment