We’ve noticed that similar companies, operating in the same industry and in the same market could often exhibit significantly different results. Some were very profitable and some weren’t. Other companies could be very profitable for a time and then they would become less profitable, or loss making companies could be turned around very quickly. We use the lessons learned to apply sound business practices into our clients businesses. Some of our services include:
Better forecasting leads to better decisions. We use our specialist financial forecasting tool to provide a month-by-month three-way forecast of your business. Most importantly, we forecast the movement of your cash balance. We then meet with you (ideally monthly) to review your actual performance and re-cast the forecast for the remainder of the financial year. Regular monitoring and forecasting is the most efficient way to detect variances before they become and issue.
Where are you going to be in three years time? How about five years? What changes are taking place in the market that might affect your business? Will you be ahead of these changes, or reacting to them after the event?
It is easy to get so involved in the daily operations of the business, that you simply don’t have the time to consider longer-term options. We can help you to formulate or amend your business/ strategic plan or we can help with individual components.
The best plans are useless if they are not implemented properly. Once we have helped you put together your plan, we schedule a program to help you implement it.
Our philosophy is that you are better to have a basic plan that is well implemented (and perhaps refined over time) as compared to a ‘shiny’ plan that never sees the light of day after it has been prepared.
In all likelihood you have either not given Business Transition much thought, or you have considered it, but do not really know where or when to start.
The other issue could be that you are not sure who the business will transition to. According to KPMG, 50% of businesses will not pass to the next generation. Note 1
Even if you have no plans to exit your business, it is a good idea to start planning early. Unfortunately all too often business owners are forced to make changes due to circumstances such as health reasons, or some unforseen change in circumstances. If you are a 3-partner business (three 35 year old males), there is a 74% probability of death, total permanent disablement or critical illness of one of the partners before age 65. Note 2
Other than risk management, perhaps one of the biggest advantages of having exit strategies in place is that it forces you to consider how the business will operate without you, therefore the business becomes more robust and the business value is maximised.
Business transition is typically a stepped process and we can help to guide you through the process:
Email us for more Strategic Planning information and we’ll get back to you ASAP
Whether you are a first home buyer or an experienced investor adding to your portfolio of properties, we can help.
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