Symptoms
If your profits change like the wind – one year they are up, the next they are down, then it is likely that you have a severe case of the Ping Pong Profits! This often leads to major cashflow issues and having a business with no direction.
Causes
Lack of financial planning & forecasts.
Irregular and poor quality financial reporting.
Inadequate pricing strategies.
Remedy
Regular cashflow forecasting is key and ensures a healthy balance of income and outgoings, without any nasty surprises popping up that could push you out of business.
Regular, quality financial reports provide key information from which you can make informed decisions about what is and isn’t working for your business. Setting goals and measuring performance against them on a regular basis means you can react to trends and swiftly adjust performance accordingly.
Products and services need to be priced correctly in order to make you a decent profit. Accurate margin analysis and sales trend analysis will help you decide where to dedicate your efforts for the best return.
Next Steps
In any business, it is important to know the numbers, look after the cash and focus your energy in the right place. If you would like a dedicated Financial Controller to help you to take back control, drive your profits up and ensure they rise year after year, then please get in touch for a free, no obligation chat.
