Team Archives - Insight CA Limited
Close

Category Archives: Team

The one mistake that could ruin your business’s success | Insight CA

The one mistake that could ruin your business’s success | Insight CA

Lack of management buy-in is often cited as a key reason why businesses fail to achieve their goals. In fact, a recent study found that nearly 60% of business owners believe that their management team is not fully committed to their business plan. This can be a major problem, leading to a lack of execution and missed opportunities.

So why is management buy-in so important? And how can you ensure that your management team is on board with your business plan?

Let’s take a look at John.

John is the owner of a small business. He’s been in business for about 5 years and has done quite well for himself. But lately, he’s been feeling frustrated. He’s developed a new business plan that he’s confident will take his business to the next level. But his management team isn’t on board. They don’t understand why he’s making certain decisions and are often resistant to change.

John soon realises that he made a critical mistake – he forgot to include his management team in the planning process. As a result, they don’t have buy-in and aren’t fully committed to the plan.

This is a common problem that can lead to big problems down the road. Without management buy-in, businesses often fail to achieve their goals. So if you want your business plan to be successful, you must involve your management team from the start.

Here are a few reasons why involving your management team is crucial to your business’s success:
  1. They’ll be more invested in the plan if they’ve had a hand in creating it.
  2. They’ll be better equipped to execute the plan if they understand its thinking.
  3. They can provide valuable insights and feedback that you may not have considered.
If you have failed to include your management team in the business planning process and you notice that, like John, your team is struggling to get on board, it’s not too late. You can still turn things around by:
Take the time to explain your vision and strategy to them.

The first step is to make sure that your management team understands your business plan. Take the time to sit down with them and explain it in detail. If they don’t understand the specifics of what you want to achieve, they won’t be able to execute your vision properly.

Ask for their feedback and input on how the plan could be improved.

Your management team is full of valuable insights and ideas. Ask them for their feedback on your business plan and how it could be improved. You may be surprised by the innovative solutions they come up with.

Get them involved in the implementation process.

Involving your management team in the implementation process will help them to buy into the plan. Ask them to help with setting goals, developing strategies, and measuring progress. This will give them a sense of ownership and responsibility for the plan’s success.

Involving your management team in your business planning process is essential to ensuring its success. By taking the time to involve them from the start, you’ll ensure that they’re invested in the plan and that they understand your vision. This will make it much easier to execute the plan and achieve your goals.

Your business planning process is only as good as your management team’s involvement!

Insight CA knows that the success of any business plan depends on the commitment and engagement of the management team. That’s why when we are assisting our clients with their annual business plan, we take the time to involve them from the start, so they’re invested in the plan and understand your vision. This makes it much easier to execute the plan and achieve your goals.

Click here to get in touch today for a free consultation, and let us show you how we can help.

If you’re looking for other resources that will help you improve or grow your business click here to check out this article that focuses on your mindset as a leader.

Wishing You a Safe & Merry Christmas!

Wishing You a Safe & Merry Christmas!

We wish you a safe and relaxing Christmas, and an abundant New Year!

We’re closing our doors on the 23rd of December 2022 and will reopen in the New Year on the 9th of January 2023.

Thank you for working with us this year — we appreciate you!

Below are the key compliance dates coming up. If you have questions or need help with any of the following, we are here to help.

Key Tax Dates – DECEMBER 2022

  • 20 December – PAYE – Small and large employers’ payment due. File employment information within two working days after payday.
  • 16 January – GST forperiod ending November 2022 and provisional tax
  • 20 January – PAYE for December 2022 & FBT
  • 30 January GST for period ending December 2022
  • 20 February PAYE for January 2023
  • 28 February GST for period ending January 2023

And don’t forget about GST, PAYE, and provisional tax falling due from 17 January in the new year!

Anything keeping you up at night?

If you’re facing operational issues, tackling people challenges, or have health and safety questions, get free support and advice from the COVID-19 Business Helpline: North Island: 0800 500 362 and South Island: 0800 505 096.

Contact Us

It’s never too early to start planning your financial goals for the year. Find out more about Cash Flow Management Coaching or simply book a call on your next available date so we can discuss and plan out your success for 2022!

cash flow management

 

How to build a best practice business through planning – A Case Study

How to build a best practice business through planning – A Case Study

Every Best Practice Business Has Value

Building a best practice business takes planning and the execution of documented processes and tasks. You must set goals, have strategies, tactics and action plans. If you are a business owner, then you will understand the driving forces behind competition, supply and demand.

But are you aware of what best practices your business needs in order to perform at the optimal level and stay ahead of the competition and meet your supply and demand expectations?

When there are more businesses for sale, lower prices result. With fewer qualified buyers, a buyers market ensues. In a buyers market, buyers can be selective and value driven – hence the importance of creating value by ensuring you have a best practice business

So, how do you go about ensuring your business has value?

You can start by becoming a best practice business through putting in place goals, strategies, tactics and action plans that build value into your business systems.

A business with good systems, that is not reliant on its owners, is important so that the business can always function seamlessly without the presence of its owners. Ultimately, your business will be more attractive to prospective buyers where you have the systems and processes in place if your plan is to sell at some stage in the future, or if you have a succession plan in place but still want to retain full or part ownership.  

A best practice business has all its systems and processes documented, and this includes your planning documentation, that should be regularly reviewed and updated.

Each unit of the business should be aware of its function with clear and concise processes that are organised into a ‘Manual Set’. Each business unit should have clear goals and objectives with strategies, tactics and actions plans to guide them towards achieving the goals. As a business owner, it is your role as the senior leader to ensure that each and every one in your team is equipped with the ‘tools’ to perform their roles so that the overall company goals are achieved. Each individual contribution is connected to the whole.

It is not your role as business owner to execute on everything, but ultimately, you have the overall responsibility to ensure that all plans, tasks and actions are executed. That is why it is important to have trusted lieutenants to help you with the implementation.

But, what are goals, strategies, tactics and action plans anyway and why are they so important because you have a business plan, right?

It’s a good question, and one we get asked a lot. But here’s the thing, when I ask a prospective client to share their business plan it often surprises me (well actually, I’m not surprised), how little detail they have in their business plans. More often than not, their ‘plan’ is just a ‘guide’ of where they want to be. While this is a good first step, a plan must have a detailed ‘road map’ of how to get to where you want to go.

The challenge that I see is that not every business owner understands the difference between goals, objectives, strategy and tactics.

A business goal should be the target of what you want to achieve i.e. a revenue goal – we want to achieve $1million dollars in total sales by X. 

Objectives are the specific steps you need to take in order to achieve your goals.

A strategy is the; What, Why, Who and How of your plans. I.e. What do we need to do, why are we doing it, who is responsible and how are we going to do it. In most business contexts a business strategy is driven by a competitive need.

The tactics, like in any competitive game, are the moves you make that support the overall strategy. 

The action plan defines who will do what and by when.

When you have these attributes clearly defined, then you have a solid business plan in which to guide your business in a best practice framework. 

I often get asked – well, thanks for defining what I need to have in place. So, how long does my business plan need to be? Well, here’s the short answer, it needs to be as long as you need to cover everything that you can think of to get you to where you want to be. And, once you are at that point, you can actually distill all that information into two pages. Two pages I hear you say incredulously – yes indeed, I say, only two pages. You can download our example here.

Case Study

We recently started a client on the path to building a best practice business. Our client is an engineering firm employing 12 staff and turnover in the $3 to $5 million range. 

Our client purchased an engineering business and merged with another to create a larger customer base with a new brand. The problem was that combining two businesses came with a number of headaches. Different systems and processes, pricing and ways of working all contributed to sleepless nights for the owner.

He knew he needed to make some changes and organise everything to become a best practice business – he just didn’t know where to start.

Our process to help our client involved streamlining systems and processes into having one set of documentation and one way of working across the entire organisation. 

We gathered the financial data and benchmarked performance using tools such as our Business Risk Assessment to work out the gaps and determined areas of focus. We guided the client on documenting everything and helped them pull all the information into a business plan distilled into the one-page-plan I mentioned earlier.

We worked with the client on the drivers of business value, namely: looking after loyal customers, benchmarking performance and working with staff to embrace the changes that had happened in the business.

The four key areas of focus to grow value were identified as follows:

  1. Increase the numbers of customer types that he wanted to do business with
  2. Increase the number of times customers returned for help with further jobs
  3. Increase the average value of each sale
  4. Increase the effectiveness of each process within the business that ultimately benefited the customer

A best practice business owner continually monitors their Key Performance Indicators (KPI’s), and we put in place KPI’s across all key focus areas and benchmarked performance against industry standards to ensure the business was reaching or exceeding its potential. Tracking KPI’s is the result of sound reporting principles and the ability to extract information in a timely and organised manner is crucial to establishing business value.

The Outcome 

It will come as no surprise that the biggest challenge for our client has come from his team adapting to change. Generally speaking, humans don’t like change, however when you put in place a structure that has a logical set of best practice principles, over time even those most resistant to change will come to see that process driven ‘change is for the better’ now each and every team member is clear on their roles and responsibilities and how this impacts the business and the customer.

We are pleased to report that our client is following the plan we created for him, and combined with ongoing monthly guidance from us through our Virtual CFO service and Board of Advice programme he is on track to growing the value of his best practice business

Want to know more?

If you know that your business could benefit from having a best practice structure but are too bogged down in the day-to-day minutiae, then get in contact with us today via email to organise a free no obligation chat. Also, If you need an accountant in Auckland – feel free to reach out. We will listen and then formulate the best strategies to help you achieve your goals. Alternatively, click on the Book A Call button now to get started.

BOOK A CALL