Top 3 business mistakes!
January 2022 Newsletter.
Starting and setting up a business can be time consuming and frustrating. You often need to do every task yourself and things like finances, planning and administration can be forgotten which creates more problems in the future.
When we started Square Penny, there were just two staff so we started slowly, built gradually and had a process in place for everything we did.
The business wasn’t turning over a lot in the early stages, but from day one we knew we wanted to have a fully systemised business to provide cost-effective financial solutions for our clients and be adequately remunerated for our skills. Fourteen years later, this goal is still at the forefront of everything we do.
By being strategic about what we did and the clients we took on we have been able to grow steadily and systematically, making it easier to adapt to new processes when we needed to. We are now a team of 26 staff, and have key processes and systems down pat.
If your goal is to grow your business, finances need to become a priority. You need to understand how these top 3 mistakes can derail your business and prevent you from seeing real sustainable growth.
Lack of Organisation: If we asked what your incomings and outgoings were for the last 6 months or even 2 years ago, would you know? Where do you record your earnings and your expenditure? Have you balanced your books recently to know if you are overspending or spending on the wrong things? How much does it cost to secure a client or customer and what? Take the time this week to work determine what you earn each week, each month and each quarter. By spending time organising your finances you will establish a stronger foundation to build your business from.
Lack of Planning: Do you have a plan in place that you review regularly? How do you plan and what do you plan for? Do you plan how many clients or customers you need to see each week to help your business prosper? Do you revise your plan as your business grows? What happens if you need to move premises because the business is expanding? Will you need to plan for more staff or upskill your current staff? Have you planned for where you want to be in 2-5 years time? By taking the time to plan, your business won’t seem so ad hoc and you will be better equipped for growth and change.
Lack of Administration: This is just as important for your business as is a sale. Do you have processes in place for when you are away or unwell? When you secure a client or a customer what happens with the paperwork? Are all your files systemised for easy access and consistency? Do you still do your own administration or does someone do it for you? What does your filing system look like? When you have a system for dealing with your paperwork and administration it will free you to focus on working on your business your business rather than in your business.
By consistently attending to these 3 business mistakes, you will better understand the strengths and weaknesses of your business and where you need to spend more time. This in turn allows you to operate more efficiently and effectively.