Every month Steve and I set aside time to have what we call our Monthly Board Meeting. It is locked into our calendars well in advance and not negotiable. For at least a few hours we are focused solely on our business with no interruptions.
What do we discuss?
- We review our monthly and year to date financial results - assessing our profitability, cashflow and net asset position. We compare our results to budget and analyse any variations.
- We monitor other key performance indicators (KPI's) to identify trends, and areas requiring improvement.
- We discuss other business management matters including resourcing, upcoming capital expenditure, marketing and professional development.
- We report on the progress of our ongoing projects and actions, and we keep minutes of decisions made.
Why is it important?
- The analysis of our financial results and KPI's every month enables us to identify any problems or variances from budget early and take action to rectify any issues before they escalate.
- The formal process of meeting (with an agenda and minutes recorded) keeps us accountable to each other for our decisions and actions and keeps us on the same page.
- It gives us an opportunity to work ON our business instead of IN it.
Why should you do it too?
- You can't manage what you don't
measure. If you are only looking
at your financial statements once a year, and monitor your business
performance by "gut feel" alone, how can you be sure that your
business is performing well? How can you identify those small but
recurring changes that over time may become a significant issue?
- To stay focused on your big
picture. Taking the time to stop,
check and realign with your business goals, will ensure you stay on track.
- You will make better decisions. This time away from the normal day-to-day activities of your business will give you perspective and allow you to think clearer.
What if you are a sole trader?
- Call on your trusted advisor or a mentor to either meet with you or hold you accountable to ensure that you make the time to go through this process on a regular basis.
At Sothertons, we meet with our most successful business clients on a monthly or quarterly basis. Don't leave the success of your business to chance. Call us today on 49721300.