“Scaling up” – where do you start?
Business Advisory Services Update
The number of companies wishing to “Scale Up” is growing and accountants can play a very important role in the planning and implementation process to assist an SME client.
Encourage the formation of a Senior Leadership team for the client’s business. This way, the business will achieve more than the CEO trying to do it all by him/her self.
Suggest that a “Think Tank” meeting of the Leadership Team be held to consider:
- What “Trends” are affecting the business – what’s coming at us?
- What “Opportunities” exist for the business?
- What “Threats/Risks” exist?
- What “Strengths” does the business have that can be built on?
- What “Changes” are needed within the organisation?
- What is the “Current Turnover” of the business – what is the “scaled up target”?
- Is the “Leadership Team” capable of implementing the strategies needed for a business committed to a “scaling up” task? If not, what “changes” are necessary to ensure that the “Leadership Team” is capable of implementing the vision for the business?
- Are the “Products/Services” that the business currently has suitable for the business to achieve its “Scaled up Targets”? If not, does the business need to undertake “Research and Development” activities, to develop new product or purchase the license rights to produce various products?
This strategy should then be documented into the “Company’s Business Plan and Updated Budgets, Cash Flow Forecasts and Projected Balance Sheets”.
It is also important that a “52 Week of the Year Business System” is implemented. This will produce “Weekly Performance Reports” to guide the “Leadership Team”, along with detailed “Monthly Financial Accounts for Each Business Activity”, with a comparison to budget, to allow an effective undertaking of “Monthly Review of Financial Performance”.
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