Every successful ‘enterprise’ (pardon the pun) needs a strong crew of highly trained and qualified individuals who perform at their individual best so that the whole may prosper.
Here’s what I’ve learned working with fast growing businesses…
Rapid growth is all consuming and teams are often left to flounder as business leaders focus on what they consider more pressing priorities. With huge workloads, individuals survive the best they can often working on their own and without direction. Their performance is far from their best.
When business owners finally come up for air, they often find themselves in a mess.
Disengaged employees and low productivity negatively affects cash flow and this ultimately delivers poor financial results. Your poor work environment quickly taints your reputation as team members leave and you find it increasingly difficult to attract quality talent. Your profitability and market share decrease.
Imagine a group of highly skilled individuals (just like Captain Kirk’s crew) all working together as one complete unit. Each performing at their optimum level of capability and productivity while proactively interacting with other team members and external advisors.
While the clear success markers of a great team will be increased profitability and out performing your competitors, the less obvious benefits that translate into financial success include employee loyalty, a strong sense of belonging, feeling appreciated, enjoying reward for effort and the camaraderie that comes from being part of a group that’s committed to achieving a united outcome.
Creating a great place to work is significant, but more so are the financial flow on effects.
Innovation and IP not only creates opportunity for revenue, reliable cash flow and growth in market share, it increases the value of your overall business. As the business owner, this is important for your own personal prosperity.
A happy, stable workforce in a workplace where morale is high translates directly into financial wins.
Less sick days, increased productivity and fewer expensive ‘rookie’ errors for starters. Recruitment costs will be down as you become a sought after employer choosing from the cream of available talent.
While leadership is a key ingredient for building effective teams, so too is having the right building blocks in place.
Here’s what you’ll need…
You’ll need a clear vision and understanding of your business needs now and in the future, so that you can recruit accordingly, among other things.
You’ll also need business and financial management advice to ensure you have a sound grasp of your current and future financial position so you can afford the salary and remuneration packages you’ll need to consider. Additional team building financial considerations will include investing in technology and the equipment necessary for your team to do their jobs.
Your technology will include financial systems capable of providing accurate financial data that will support decision making so you can fund your growth overall.
This is where my work as an external CFO provides the support, advice and services necessary. I can work in advance of inhouse financial management teams (usually helping to select them), but more often I’m on the team because I’m a viable and cost effective alternative to an inhouse CFO.
Generic accounting programs generally don’t cut it for growth businesses, customised systems will be required to deliver meaningful financial reporting.
These reports, which commonly include cash flow projections, profit improvement strategies and predictive modelling will enable thorough analysis and the business, accounting and tax advice that you’ll need to support your day to day operational needs while funding your continued growth.
Your next steps…
Contact me for a discussion about teams and financial management.
Consider how external CFO services can support your internal team.
Review your technologies, equipment and customise your financial systems.
For more information about the building blocks necessary for building effective teams, Business Advice, Tax Planning and our CFO services, please contact me on shane@makecentsaccounting.com.au or telephone +61 2 9699 9171.
Click here for earlier articles in my Live Long & Prosper series:
#1: Set a course for smooth cash flow – Make it so!
#2: Systems – Logic is the beginning of wisdom, not the end!
#3: Tax Planning – Insufficient facts always invites danger.
#4: Sustainable Cash flow: To boldly go where no man (or business) has gone before
*Lieutenant Uhura, Star Trek Beyond (2016)
