Thes are 5 major keys that will help set
up businesses for the long term success.
Note: i will be using the term "financial business
model" which i believe may not be clear to some of
us. so below is a basic explanation of what it is
according to "financial times"
This describes the method or means by which a
company tries to capture value from its business. A
business model may be based on many different
aspects of a company, such as how it makes,
distributes, prices or advertises its products.
The business model concentrates on value creation.
It describes a company's or organization's core
strategy to generate economic value, normally in
the form of revenue. -financial times
so i believe if i use the concept of "financial
business model" subsequently it should not seem
new.
Why do so many businesses fail to make profits
and achieve their financial goals? The answer is
simple because many business owners simply
ignore one or more of the 5 keys to financial
success. Many businesses are making sales but are
not profitable. Learn how to fortify your business
and set your company up for success. Developing a
financial business model provides a clear picture of
your company's financial history as well as your
company's financial future. Working from a financial
business model will help to prepare your company
to make better decisions for the company in the
future. And analyzing your finances on a regular
basis will provide you with the financial success
you are seeking to achieve. Get ready to gain more
flexibility and financial freedom in your company
with the keys to success .
Key #1) Have A Manager/s
Mismanagement of finances is not reserved for
start-up companies but for all businesses. Many
business owners are able to produce and sell their
products and services but are not able to manage
their finances. If you are not able to determine
where you have been you will not know where you
are going. Accountants and bookkeepers are able to
assist your company with establishing a financial
foundation and making predictions surrounding your
financial future. if you are grounded in the
management and accounting skill, apply them to
your business . i still remembered a prediction
that the Britain made long ago while they were
studying Nigerian businesses. they predicted that
Alhassan Dantata's business and a very little other
businesses will be able to stand time and succeed.
their base was grossly on the amount of
information and world standard records Dantata
kept about his business. The outcome of the
prediction was that "dantata died in august 17th
1955 as the richest and most successful business
man in Africa" Dantata was Dangote's maternal
grandfather.
start-up companies but for all businesses. Many
business owners are able to produce and sell their
products and services but are not able to manage
their finances. If you are not able to determine
where you have been you will not know where you
are going. Accountants and bookkeepers are able to
assist your company with establishing a financial
foundation and making predictions surrounding your
financial future. if you are grounded in the
management and accounting skill, apply them to
your business . i still remembered a prediction
that the Britain made long ago while they were
studying Nigerian businesses. they predicted that
Alhassan Dantata's business and a very little other
businesses will be able to stand time and succeed.
their base was grossly on the amount of
information and world standard records Dantata
kept about his business. The outcome of the
prediction was that "dantata died in august 17th
1955 as the richest and most successful business
man in Africa" Dantata was Dangote's maternal
grandfather.
Key #2) Review Historical Data
By developing a financial history of your company's
finances, it will provide you with valuable lessons
for the present that will guide you into a more
profitable future. Reviewing financial history helps
you to know what to do and what not to do in your
business. Compiling historical financial data can
help your bookkeeper or accountant to assess the
reasons for your success or failure.
finances, it will provide you with valuable lessons
for the present that will guide you into a more
profitable future. Reviewing financial history helps
you to know what to do and what not to do in your
business. Compiling historical financial data can
help your bookkeeper or accountant to assess the
reasons for your success or failure.
Key #3) Project Sales and Costs
Once you have completed the second key it will set
you on the trajectory to be able to project the sales
and costs. Projecting sales and costs without
historical data can be challenging but not
impossible. Projections for your company are not a
process that begins at the start-up phase, it is an
on-going process to help determine areas of growth
and change. Costs are always easier to project than
sales. However, sales should not be your main
focus but rather on the company being profitable!
you on the trajectory to be able to project the sales
and costs. Projecting sales and costs without
historical data can be challenging but not
impossible. Projections for your company are not a
process that begins at the start-up phase, it is an
on-going process to help determine areas of growth
and change. Costs are always easier to project than
sales. However, sales should not be your main
focus but rather on the company being profitable!
Key #4) Develop Financial Statements
Financial statements are the framework for the
accounting cycle. In other words, the income
statement, the balance sheet, and the statement of
cash flows provide a picture of how well your
company is doing financially. Financial statements
structure all financial data in a manner that is easy
to understand and should be prepared with
accuracy. These statements assist you with
assessing financial performance and determining
key business decisions.
accounting cycle. In other words, the income
statement, the balance sheet, and the statement of
cash flows provide a picture of how well your
company is doing financially. Financial statements
structure all financial data in a manner that is easy
to understand and should be prepared with
accuracy. These statements assist you with
assessing financial performance and determining
key business decisions.
#5) Assess and Implementation of Changes
This is the final piece in the financial business
model. Once all of the first four keys have been
established, you will be able to assess your
company's financial position and implement
changes where it is necessary to ensure financial
growth and success. Tying it all together the
financial statements will reflect your company's
historic information and decisions can be made
about the future from that data.
model. Once all of the first four keys have been
established, you will be able to assess your
company's financial position and implement
changes where it is necessary to ensure financial
growth and success. Tying it all together the
financial statements will reflect your company's
historic information and decisions can be made
about the future from that data.
Applying these five keys to your offline or online
business will set your company on the path to
achieving your goals and Earning profits!
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