Know Your Financial Resources, or Pay the Price

It’s always a good idea to look at the bigger picture when providing financial advice. This is how we can remain focused on the fundamentals which influence the next steps in your financial journey and determine what kind of further advice you might need.

Therefore no matter what stage you’re at in this journey, whether just beginning or a seasoned-pro – and whether for your own personal finances or for a business – here are 5 nuggets of wisdom that will give you a head start and give you the right mindset ahead of your meeting with any financial expert.

  1. Take Stock of Your Tools

You need to understand the tools already at your disposal before you go seeking others. Also, are they being used in the right way? Is there any way that you can use your resources a little more efficiently?

Tools, or resources, can be things like cash and stock but they can also be longer-term elements that could reap rewards in the future. Go through your accounts, reports and bank statements with a fine-toothed comb to make sure you’re fully aware of all resources at your disposal.

Other resources include non-financial aspects such as staff and skills, branding, position in the market etc. Take stock of your standing in your market and the other less visible qualities you have.

  1. Take Aim

It sounds simple but you’d be surprised at how easy it is to get caught up in the process of simply getting from one week to the next and forget the goal you set out with. You need to know what you want to achieve and keep it in mind as you work.

Make your goals as specific as possible. Is there a certain amount of revenue you want to achieve by the 3rd quarter? Is there a production level you want to achieve? Do you want a certain number of long-term clients? If so, by when? What’s your timescale?

Figuring this out will mean you can set longer-term goals and soon a strategy will present itself.

  1. Good Information

Data is essential to any business. Using data you can identify patterns and try to predict business trends. There are always new parameters you can use to analyze accounts and they often bring up startling results that will help you to see your business in a whole new light.

Such information is a big help in understanding how your business can grow and where it may be losing money.

Bear in mind that it is not just accounting data that can provide the basis for such deep analysis. Invest your time in looking over your market activity and demographics. Sales numbers also shed light on what is popular and how the market may be turning.

  1. It’s About Who You Know

“People like to do business with people.” Heard this old business saying? Well, it’s true. Business is about people and having the right people around you. You need to have the right staff and advisors but you also need to build good relationships with your customers.

Relationships are essential and no matter how well business might be doing right now a sharp change can be just around the corner if you cease to nurture your relationships.

  1. Choices

Don’t be afraid to get creative and seek out a new approach to old problems. If you open your mind you’ll find that there are often several possible solutions to every issue and you are not without choices. Having choices is the result of combining the right people with the right skills with great data.

Once you have all those elements the decisions about how to change things, react and plan the future of your business, rest with you

Further Advice

No matter what the situation may be the first thing you should do is understand that you always have options available to you. The last thing you should do is panic. With the right advisors behind you, you will have the advice you need to get your ship back on the right course.

These simple hints and tips are designed to help you gain a deeper insight into how your business works and an understanding of the assets and resources you have within it. Follow these tips and you’ll soon find your way.

Able Accountants are UK – based advisors with an active blog of financial tips and tricks for all forms of personal and business accounting.

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