- Inadequate Cashflow
Cash is king. Most, if not all business owners have some form of cash issue. Although this is often linked to customer debtors, this is not the only issue. Ensuring a business is properly funded requires careful planning and a financial plan.
Without understanding the dynamics around cash funding putting a financial plan together taking into account all the relevant business variables can be difficult to master, especially when you still have the business to worry about.
- Managing a growing customer base
Most businesses need more customers, but few are clear enough on how to select the right customers. Some customers will place unreasonable demands on your established business model, placing your profitability at risk. Do you know how the key attributes of a new customer should relate to your business model so your profitability isn’t adversely affected?
- Managing staff
As businesses grow they need to take on staff to perform functions which you as a business owner may have performed. You may find however that your staff lack the level of commitment that you expect, they don’t have a clear understanding of your expectations and they’re not aware of how they can contribute to overall company objectives.
You have been working around the clock to get the business up and running for two or three years and the demands are continuing to pile up. You haven’t had a holiday for a while, you’ve had little time with your family and the frustration and stress are building. You know that something has to change to help you navigated your way through the challenges that you are faced with.
- Keeping investors at bay
You have a big enough issue running the business and dealing with its problems and now investors want a piece of you! They have invested their funds and want to know how their investment is performing. You may need additional funds and if they are not happy with how the business is performing, the information they’re receiving or if their expectations have changed, they may be unwilling to invest further.
- Investment Decisions
SME’s often have to deal with more financial issues than they’d like. Their business has become more complicated with multiple causes and effects behind each problem, and solutions which have worked before are not working now. A different approach is needed to make decisions on the necessary investments to enable more efficient growth as the business grows. You find that your new team does not have the experience to understand the issues and help you make these decisions.