Oldfield Accountants  Logo

Latest News

  • 4 Focus points for your Brexit Plan

    Tue, 27 Mar 2018 16:02:20
  • How to get formidable sales momentum in 2018

    No doubt you’ve already dived into 2018 full of vigour and enthusiasm for a fresh year of successes, challenges and victories. And you’ve got a sales target to hit or beat. But what will happen in 3 months’ time? 6 months’ time? If we’re honest keeping up the momentum on sales is tough, and doesn’t just happen. It’s so easy to give up – it’s our greatest weakness! But when it comes to sales targets, there’s no way anyone can afford to give up in 2018. With the shifts and challenges we’re seeing in the business environment, we can see that keeping up momentum on sales is going be more essential than ever in 2018!

    Fri, 09 Feb 2018 12:16:44
  • 2017 a challenge? 1 way to make 2018 a success

    The key to success in 2018 can be summed up in one word: focus. It can so easily feel that somehow if we try and do something with lots of opportunities, one or two of them will work out, and we’ll get some good results. But we see time after time it doesn’t work. Time is limited. Money is limited (normally!) Your energy and the energy of your team isn’t infinite. So how do we achieve a laser like focus in 2018?

    Thu, 08 Feb 2018 18:07:24

 

Is your business breathing? 

|  Posted 3rd October 2017

 

 

How to ensure your business has enough oxygen to breathe

In a recent analogy, cash was likened to oxygen.  We couldn’t agree more with this.  So the next question is – have you got enough oxygen? 

Is your business breathing sufficiently to: 

a) stay afloat and ensure you are in business in 2018

b) generate surplus cash in view of future needs?

It is absolutely critical that your business is generating cash.  This may sound obvious, but you may just need to stand back and have a look at whether you actually are, or whether you are generating enough.

If you would like more oxygen and energy in your business (i.e. cash), here are 3 areas to look at:

1)      Income exceeding outgoings

Sounds an obvious statement, but it is so true.  Unless you are generating a decent TRUE net profit (after actual owners drawings and tax), it will be almost impossible to get to a position where you are generating cash sustainably.  An experienced financial and business advisor will show you where you need to make changes and formulate an action plan to either start making a true net profit, or keep increasing it.

2)      Business model

It’s about this time of year, that we are starting to think about our strategies for next year.   It is definitely the ideal time to take a strategic and financial view, and establish whether the business you are building is one that will generate cash.  Do you know which customer groups are generating cash?  Do you know which product groups are cash-producing?  And vice versa.  You need to know these things, so that you can make informed decisions based on facts and data, which will form the basis of your strategic direction into next year.

3)      Control on 3 cash drivers

Keeping the focus and control on stock, debtors and creditors is a crucial cog in the wheel of cashflow management, and cash generation strategies. 

      - Regularly report on these areas

      - Have different key management personnel responsible each areas and               hold accountable

      - Set targets and automate processes so that control of these areas is not a           drain on resource, but rather the opposite

I know we’re always talking about cash, but after all isn’t that part of what motivates us in life?!?

Just in closing – a dream of having more cash does not just happen.  It needs a strategy and a plan.


Posted by
Angus Brewer
Business Consultant and Tax Advisor

info@oldfieldaccountants.co.uk
connect on LinkedIn
 

 

Please note – This report is provided for information only.    No action should be taken without consulting detailed legislation or seeking independent professional advice.   Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this report can be accepted. 

 
Oldfield Accountants footer image
Oldfield Accountants
Santis House, Curriers Close, Coventry, CV4 8AW
Telephone: +44 (0)24 7667 3160  Fax: +44 (0)24 7671 5510
Contact Us  |  News Archive  |  Site Map  |  Bookmark

web design and hosting Pixel Studios © 2018 Oldfield Accountants