In the last blog we talked about the 3 Key Motivators of Confidence, Control and Cash in the Thriving Blueprint Concept.
Overview
So, to grow confidence and cash, we organize the flow of information.
For cash and control that requires optics, plan the money needed and how the cash is to flow through the business.
And finally for control and confidence we can make some observations about where the business is heading and the opportunities available.
1. Organise
So, we are going to get back our confidence and cash.
In the first instance, I see getting organized as spring cleaning the accounts so that you can truly see what you have and do not have. And what is happening month to month in your business.
Think of it like cleaning out your kitchen cupboards or even the fridge and finding what is lurking at the back and growing, and not in a nice way.
A lot of businesses have equipment that is not used anymore, and it’s taking up space, lot of stock, which is costing in space or resources, subscriptions for software that is not used, or for old machines.
You get the picture.
Too often I see business owners getting caught up in the day-to-day operations of their business, that they just let things run in the background and hope for the best.
Unfortunately, this often results in outdated processes lumpy cashflow, and no real plan for growth. This is the last thing I want for your business.
Remember that kitchen cupboard I mentioned earlier?
Well, think of your business process in the same way.
You want to get everything out of the cupboard, lay it all out and group them into like-minded bundles.
This way when you put them back in the cupboard, you can make sure that mugs go with mugs, plates with plates, sugar with the baking supplies and so on. Now, when you open a cupboard, you can see exactly what you have and access everything you need easily. As you go along the path to getting organized, the picture of your business now becomes clearer.
Clarity is the ultimate gift in this process.
2. Optics
So, it gives you back confidence and control.
I know accounting is a dirty word to most people but really, it is just the diagnostics of what is really happening in the business.
It is the measurement, the data, just like you would go to the mechanics, and they put your car on a machine which tells you what is happening inside the engine.
What is good, bad, or not so good.
We use accounting data to give us the trends of the actual costs. There is no hiding it anywhere.
I find that a lot of people just look at the bottom line of their profit and loss but that is not the only thing there is. There is also the movement of your assets as in the fixed assets, inventory, your loans which are on the balance sheet, and sometimes these two shall never meet, yet they are so intertwined.
But how they meet is through cash and this is where the misalignment between decision on what is happening on the profit and loss and what is happening to their actual cash.
So, I have some steps to bring those two together and so that you can have the cash and the confidence in the business and the control by using both accounting and cash management.
I want you to take back the power in the business.
I find it is more about your habit and decision process.
This defines how well the business is itself, not the fact that you are growing a business. I would like to help bring in new habits, beliefs, that will actually get you to your goals, to your dreams, valuing what you’re worth.
So, let us go back to the beginning.
When you went into business, what were you hoping for?
Money?
Lifestyle?
Be your own boss?
Do what you love doing?
Creating something that is yours?
Solve a problem that you had and everyone else has?
Then I want you to focus on what you do best because that is going to drive growth in your business.
In your business we use information to tell us how things are performing.
It gives us feedback like whether we have the wires or pipes around the right way. Well, accounting systems are just the same, but they go across all businesses because cash is like blood that is flowing through the arteries.
Up until recently, I had my accounting systems up to date, laid out, so that I could see what was really happening in my business. But I was still stressed about how I would pay the bills each month. There was no correlation between my decisions and the actual cash because of the delay of movement of cash and the long-term decisions.
I realized I had the same habits and decision-making skills as other business owners, in the way that there was no direct method to see how my cash was flowing as it was all in one bucket and leaking.
I could not really or easily tell where the leaking was occurring. So, then I realized that my banking habits need to be organized in a similar way to how the business is structured and operating, bring the plan actually into the cash world.
3. Observations
it gives you back the control and the cash.
As you can see, it is all interrelated.
With having the accounts up to date and organized and the information to give you a detailed picture of your business, now we can analyze the different areas of business.
It is time to look at the workflow of staff and the environment that they work in.
Does it match or align with what you’re trying to achieve, both in efficiencies and dream?
Here are some of the questions that need to be asked.
Are we double or triple handing paperwork?
How are we communicating all the information that is needed to do a job?
Or is it incorrectly entered into the next part of the system?
Is the workplace arranged for the most efficient use of time for all staff or just one person?
The list can go on, but you need to go through each part of business, look at your data, look at what your dream is, your plan is and see where it does not align, or you can improve.
With Organisation, Optics and Observations you can achieve Confidence, Control and Cash in your business.
If this concept aligns with your thoughts on a thriving business then take a look at the Thriving Blueprint Course and its step by step guide to putting in place this concept.