First things first – well done on surviving 2020.
It truly is an achievement. It has been one of the most challenging years for businesses on record.
The businesses that have survived – and thrived – through COVID have generally been the ones who adapted. Who saw what was happening and made changes to acclimatise.
It’s not too late to make these changes.
Are you ready for the year ahead? Have you implemented new strategies in your business?
Here at DFK Everalls, we offer a suite of Business Advisory Services, to help you grow. From Business Plans to Valuations and Profit Improvement Programs – we help build better businesses.
To get you started, we have put together some key ideas you should be thinking about, heading into the new year.
What kinds of projects are currently underway? Do you need to re-evaluate their relevance?
Many businesses had started projects which made sense in a prior business environment – but will no longer deliver the value expected.
These projects can drag on and waste time, energy and money.
As a business owner, you should consider re-evaluating and identifying mission-critical versus discretionary projects, to drive the best business outcomes in the new environment.
Data and Analysis
Do you have access to the figures necessary to make better business decisions?
Where do you find the critical data needed for analysis, faster decision-making, risk assessment, financial modelling and forecasting?
It’s one thing to collect data – it’s another to examine it and use it to identify where you need to make improvements.
We can help, with access to industry benchmarks , as well as identifying what your important KPIs should be – and how to measure them.
The Balance of Cost Cutting
Of course, when faced with a predicament, many business owners look to cut costs.
But what are the long-term implications?
Ruthless cost-cutting may be essential sometimes. However, it also risks harming the customer service experience and future agility of the business.
For example, reducing marketing spending may result in less leads and therefore have a detrimental effect of revenue.
Do you need help getting the balance right? Get in touch.
Improving Cash Flow
How can you improve liquidity?
It goes without saying – “Cash is King.” A business with good cash flow is in a relatively strong position.
Do you need to identify assets which can be turned into cash?
Do you need to consider factoring, improving debt collection processes, reducing costs, renegotiating supplier payment terms, or improving inventory management?
Our Cash Flow Management program helps you to improve your liquidity. So you can get on with building your business and spend less time worrying about how to pay your bills.
Have any opportunities arisen in the current market?
2020 has created some unique opportunities as a result of the disrupted business environment.
Are there any new partnerships you could look to forge, as the landscape changes? Are there distressed businesses selling assets at discounted rates?
We can work with you to help quantify the risk and upside of these pathways, to determine which opportunities help you achieve your goals faster – versus which ones are just a distraction, or worse!
Positive Client Experience
This is absolutely key.
Your business should always be focused on providing an excellent client experience.
You need to be fully acquainted with your client and their needs ESPECIALLY in changing business conditions (good or bad).
This leads to intelligent recommendations and strategies to retain clients or acquire new ones.
We can help identify which of your services are experiencing growth in gross revenue or profit margin – so you know which ones to focus on.
A Healthy Balance Sheet
A strong Balance Sheet is critical – especially in these unusual times.
So how can we strengthen your balance sheet?
Can you identify how improved inventory management, accounts receivable and accounts payable affects the business – and how they can be improved?
Does your existing finance need to be reviewed?
These are things to discuss with your accountant.
Is your business compliant and adhering to governance rules?
Extraordinary business conditions require a different approach to running your business. Speed is of the essence – but departing from the usual ‘rules’ can put your business at risk.
Any changes must obviously be in the best interests of the business. However, it is critical that associated risks are well understood and can be managed.
Is management acting boldly and decisively?
A ‘wait-and see’ approach is seldom appropriate. Boldness is even more important in times of uncertainty.
Does your senior leadership team need help to enable bold decision making?
Our Strategic Planning Days are a great way to ensure all levels of management are on the same page. We can help you and your team to focus and direct your business, by establishing where the business wants to be – and provide details on what action is required to get it there.
Ensuring your Future
How do you improve the sustainability of your business?
As a business owner, you need to be able to identify and reduce – or mitigate – all risk factors associated with your business.
Because these factors have a direct impact on the value of your business.
You need to fully understand these impacts – and specifically target the most threatening risks. Not just to maximize the value of your business – but to ensure its survival.
The alternative is wasting a lot of resources doing things that don’t improve the functioning or value of the business.
And really, who has time to waste?
Contact our team if you want to start 2021, the right way.