In our last article, we dealt with the money matter of whether or not you can avoid the next business buy that comes your way. For this article, we deal with the matter of your business’ financial systems.
As with any company, you need to have a financial system established in your company and, just like most entrepreneurs, you want your businesses to keep growing more and more. However, not having the proper financial systems in place could make growth PAINFUL for you and your company. It may sound weird to some entrepreneurs but yes. These growth pains can come from several areas like out-dated share-holder agreements and old pension plans.
So what exactly do you have to do? You need to keep “tuning up” your financial systems. This means that you need to tweak it regularly just so that any growth you encounter won’t have a lot of financial growth pains. Doing this regularly means scheduling the tune-up every three to five years. Should you expand your branches or product lines or experience any kind of fast growth, you can do this even more regularly. Try to involve your people as well. As the owner, you may not have a clear purview of each aspect of the business. This makes sure that you don’t leave out any important details that you need to financially prepare for. Lastly, you also need to keep in mind that you are doing this to OPTIMIZE your systems. Optimization means that you make it more efficient which means that you’re going to get more money out of the systems you optimize.
It’s quite a complicated process and we’d advise that you seek the help of a financial consultant. Of course, it helps to understand your own financial systems tune-up.
About Brightblue Transition Solutions
Located on Vancouver’s North Shore we are the premier business broker in the lower mainland, contact us if you need any help buying or selling a business in the greater Vancouver or lower mainland areas.