No business owner sets out to fail, but unfortunately, that is the case for most.
I recently meet Kevin at a social event we got to talking.
He admitted that he had recently had to shut the doors to his dream business and beg his previous employer for his old job back.
The harsh reality is that 80% of businesses fail in the first five years – often due to preventable mistakes.
Kevin made many of those same mistakes, but the biggest one was not investing in himself or his business.
Businesses are like people – they need food, water, and shelter to survive.
The food for a business is a plan, the water is cash flow, and the shelter is accountability.
The problem is that too many business owners like Kevin scoff at the price of these three essentials, thinking that they can get by without them.
Now, as they reflect on the loss of their business, their dream – they regret not taking the time to invest in themselves and their business. Kevin certainly did!
That’s why it’s so important for businesses to invest in all three of these key ingredients for success
The three pillars of guaranteed business success – action, awareness and accountability – are not pipe dreams or magic bullets.
They are essential ingredients in any recipe for business success.
These three simple steps are the difference between failure and success
That is why Insight CA have turned these three pillars into one unique black box system.
The black box system is the perfect solution for business owners who have begun feeling the pressure from their business and who are asking themselves what they can do to turn things around.
The system has been proven time and again to produce unparalleled results for all types of businesses – big or small!
The key to its success lies in the fact that it forces you to take action, become aware of what is really happening in your business, and be accountable for your results.
Of course, you can choose to do one or a combination, but to be truly successful, all three steps must be taken.
Let’s take a closer look at each one, starting with…
The Action Pillar is your business plan; it takes your dreams for your business and lifestyle and breaks them down into goals with actions and due dates.
This plan becomes your guiding document to deliver you the desired business outcomes.
It will help keep you focused on those smaller, bite-sized chunks that eventually lead to the larger goal of running a successful business.
There are literally thousands of books and articles on the internet about the components of a Business Plan.
The most important part of a business is its cash flow.
This is what allows a company to keep the lights on, pay employees, and continue moving forward.
Unfortunately, too many businesses don’t take the time to forecast their cash flow properly.
This can lead to big problems down the road. A cash flow forecast is essential for any business.
It gives you a clear picture of where your money is going and how much you can expect to bring in each month so that you can make confident decisions about how to manage your finances.
Without a cash flow forecast, it is very difficult to run a successful business.
Even if your business has a positive cash flow, you should prepare a forecast.
This will help you to identify any potential problems in the future and solve them before they become too large.
Most people think of forecasting exclusively in terms of profit and loss.
But there are actually three different types of forecasts which we can combine into something called a three-way forecast. These are:
- Profit and loss forecast – how much revenue a business is expected to generate and what its expenses will be.
- Cash flow forecast – tracks the inflow and outflow of cash, showing how much money a business has on hand to meet its obligations.
- Balance sheet forecast – projects a business’s assets, liabilities, and equity over time.
Each of these forecasts is essential in its own way, but together they provide a comprehensive picture of a business’s financial health.
Ask any successful business owner, and they will tell you that a three way cash flow forecast is essential for running a successful business.
Don’t make the mistake of thinking that you can run your business without one!
Having someone to hold you accountable is one of the most important things you can do for your business.
A good accountability coach will help you set aside time to work on your business and complete the actions you set in your Business Plan or respond to your regular reports, building better habits for your business.
Your accountability coach must be someone independent, and they must have the backbone to give you consequences for inaction but the heart to care.
They can’t be afraid to upset you when you need a dose of accountability, and they need to care about you achieving the goals you’ve set.
You must have clearly documented actions with due dates to ensure you have a deadline to work towards.
There must be consequences for inaction; if you keep failing to complete your actions, something is broken, and you likely have the wrong person holding you to account.
So, who will hold you accountable?
So what are your next steps from here:
If you’re reading this, then it’s safe to assume that you’re not happy with where your business is at the moment.
Doing nothing is not an option – you need to take action if you want things to change.
But what should you do?
The answer is simple: It’s time for a change.
And Insight CA is here to help you do just that!
What are you waiting for?
Don’t wait to turn your business around. Tomorrow is too late and waiting won’t change anything.
The time is now.
Every day your business struggles means another day of wasted potential, another day of missed opportunities.
It doesn’t have to be this way.
With the right plan, the right insights, and the right team in your corner, you, too can achieve the business success you’ve always dreamed of.
Are you ready to succeed?
Claim your free insight call now!
We offer a complimentary one-hour meeting to discuss your goals and find out how we can work together to achieve them. If you’re looking for a chartered accountant or business advisor in Auckland – feel free to reach out!
** Changing how you run your business is all about building better business habits – making small changes that add up over time.
We have a Building Better Habits Worksheet you can download for free, which will help you identify the one area of your business that you’d like to consciously improve daily.
Are you struggling to make your business work?
Insight CA Limited is a team of experienced Auckland-based chartered accountants and business advisors who can help. We’ll give you the power to see what’s really happening in your business, so you can take control and start making progress. Click here to learn more about how we can help you achieve your goals.