Pictured above: Andy Kay
There may never be a better time to take a long walk with a
trusted adviser, says Andy Kay, corporate finance director at the
Midlands office of national audit, tax and advisory firm Crowe
Clark Whitehill.
That is because it is critical to step back once in a while from
the day to day running of the business and ponder where you are and
where you are going.
He said: "If there is one exercise all businesses will have
undertaken in recent years it is to examine their cost base. Many
will also have a better understanding of their customers and where
their profits really come from.
"But as we look forward to what we hope are better times ahead,
businesses also need to be planning for growth and in some cases,
succession.
"And to do that you must know what you want."
The tips of the trade, he revealed, are to establish trusted
relationships between owners and managers, build on what you
know, keep an eagle eye on the competition, get the balance right
between leadership and management, be prepared to change as you
grow and have a good grasp of both your pricing and your cash
cycle.
"One of the most important is to understand the customer - don't
rely on gut-feel," said Mr Kay.
"Another must is to be aware of your maximum rate of sustainable
growth as many a firm has crashed by over-extending itself.
The right financing structure is also key."
He went on: "Senior managers need to take 'time out' to reflect
on their business and understand the changes happening in their
sector.
"It is easy to fall into the vicious circle of assuming the
place will fall apart if you are not there. By not developing
perspective you are potentially missing the real changes affecting
your market and the way your company operates.
"The common barrier is often 'where do I find the time', but how
many meetings do you currently attend that you really need to
attend?
"And know the value in continuing to focus on selling your
existing customers your existing products, albeit in perhaps a
different way. Think about what your customer needs now and in the
future.
"Aided by technology, the customer has arguably never been so
powerful. That does not mean they don't want your product but they
might want fewer of it or buy it at different times. They might
want the same quantity, but at a cheaper price."
Mr Kay added: "Planning is less about putting a plan in place,
and more about creating the time and conditions to really analyse
and understand your business, its market and its future."
For more information about Crowe Clark Whitehill, please visit
their website here: www.croweclarkwhitehill.co.uk