As a successful business owner you will of course already be doing several of these within your business, however this will hopefully serve as a timely reminder for the others.
1. Make sure you have got an up-to-date 12-month forecast (by month) for profit, cash and balance sheets.
2. For tight management of cash flow set up a nine-week rolling receipts and payments Excel spread-sheet and update it every week.
3. Know your break-even sales level.
4. Set up systems and processes so that the business is less dependent on you. Use authority matrices to enforce this.
5. Make sure monthly management accounts are produced so that you know where you are.
6. Monitor your gross margin percentage and think of ways to improve it.
7. Always know what your cash headroom is.
8. Graph your debtor collection days, supplier payment days and stock holding days. Look for ways to 'squeeze' the business.
9. Decide on the most important KPIs for your business and review them regularly (they should be non-financial as well as financial).
10. Get the assistance of part-time Chief Financial Officer from CFOCORP to really help your business soar.
David Prestneyis the founding director of CFOCORP an organisation dedicated to helping business owners and management make their businesses prosper, through the provision of highly experienced Part time CFO’s which are a fraction of the cost of a full time position.