Ascend Business Partners’ systematic approach to successfully exiting your business is called the “7 Steps to REFIRE”.
In this blog we share the fifth of the seven steps – Maximising Business Performance
Does your business provide the appropriate level of return for your investment of time and money? Creating a high performance business requires owners to have a clear focus on product/service innovation, growth activities, financial management, attracting and retaining good people, and being well-systemised. Regular business performance reviews, that utilise the skills and knowledge of management and appropriate advisers, will create an environment focused on constant improvement. Best business practices typically ensure a monthly review of financial reports and key performance indicators, and key staff taking ownership of areas identified for business improvement.
Best business practice also requires business owners to have a structured approach to reviewing business performance. In essence, this really means taking time each month to review the financial performance of the business through the review of the financial information listed above.
We recommend that meetings are well-structured and focus on outcomes. They should have a range of stakeholders present that are prepared to look at the big picture issues of the business.
When setting up this review process it is worth noting:
Medium-size businesses should contemplate having an advisory board in place that will help create a profitable, thriving and valuable business. Having an advisory board in place may help:
Having expert advisers means that you could access best-of-breed information from strategic, accounting and marketing advice to HR, QA, OHS/WHS right through to venture capital, bank financing, mergers and acquisitions.
Running a good business requires effective financial management. At the end of the day, the business exists to make money, so having in place the mechanism to ensure it maximises profitability is a key to ongoing success, as well as being one of the most significant factors in creating a valuable business.
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