Over the years I have worked with hundreds of business owners and here is what I’ve noticed about the most successful ones:
The owner is or was the best salesperson. There is a team and processes to manage the bulk of the work which is monitored closely. They understand the close relationship between price and term. They know that a sale is not a sale until it is paid.
The owner knows exactly how cash flows through their business. Interruptions in that flow can be expensive and so they prepare. Ever increasing amounts of working capital will be required so they understand the value of supplier credit and how to nurture it. They spend cash wisely! Most importantly they know never to dilute equity for working capital purposes.
Without financial statements it’s impossible for a business to get very far. Owners need trustworthy and competent people to guide and advise them. Having accurate and up to date financial information is important for many reasons. Successful business owners invest time and money to make sure they have it.
This is an area where the most successful business owners excel. Most people think the start up is the hardest part but growing a business rapidly and remaining in control is even tougher. Success depends on people they haven’t yet met and some have ulterior motives. It is a very exciting time that will determine the direction, the future and ultimately the success or failure of the exit strategy. It’s where the focus needs to be.
As an independent Business Finance Guide, I help my clients to access working capital and manage cash flow. I share useful websites on The Resources page of my website (www.truevikingfinance.ca) to help them with the other skills they need. When they succeed, we all succeed.