Every month Synergy48 Group members invite a select group of 20 clients to attend a Knowledge Sharing Dinner with a panel of 4 business specialists from different professions to discuss a challenging or topical business issue.
As part of the agenda each of the specialists provides attendees with a checklist outlining business best practice in relation to the issue under discussion. All attendees have the opportunity to review the elements in the checklist directly with panel members to determine how they relate to their business. Attendees leave the dinner with a detailed action plan for achieving best practice in their business.
This month’s action plan
Here’s a checklist of 25 best practice activities that will help you protect your business against the risks of going bust fast. Review each item on the checklist to make sure you can give it a TICK. If not it’s time to take action….
Let’s start with the big picture.
A business that is run to best practice will be able to answer the following questions:
- I can identify the stage of business growth I am in and the three main challenges I need to resolve before moving to the next stage.
- I can identify why I am experiencing high growth and therefore the appropriate use of technology to manage this growth.
- I understand the processes inside each of my business’ 5 profit stacks and how technology impacts each of those areas.
Next let’s take a financial management perspective
- We prepare monthly management reports on our business performance
- We are confident that our accounts accurately show all sales and the related costs for each month
- We review the trends in gross profit (sales less direct cost of sales) and understand why there are changes
- We regularly monitor the level of debts outstanding and have a process to follow up outstanding debts
- We prepare cashflow forecasts to ensure that we will have enough money to pay the money currently owed in reasonable time
- We prepare a financial budget or forecast at least once a year
- We take steps to minimise stock levels and wastage
- We regularly review the level of overhead expenses to ensure that they meet the required service levels without being excessive
- We have a finance provider on hand for the times when we know that there will be a short-term cash shortage
- We have accounting expertise available to assist us in understanding our financial reports
The third step is to review your overall business practices and procedures
- Each element of the business has its purpose clearly defined.
- Each element of the business has its tasks clearly defined.
- There is documented flow chart of how each element of the business interacts.
- The business has a core policy on spending money.
- The business has a core payroll policy.
- Core business activities are documented and have processes that can be easily followed by emergency staff.
- Key positions within the business have documented position descriptions and responsibilities.
- Policies and procedures are regularly reviewed to ensure relevance and effectiveness and/or room for improvement.
Finally it’s time to drill down into your debtor policies and procedures
- We conduct credit checks on potential debtors where appropriate
- We have current Terms and Conditions and/or an engagement documents
- We have a policy for debt collection with dedicated time lines
- We have a dedicated staff member (team) to collect our debts