Aurora SME Management Procast – Episode One

Avoid Getting Lost in the Business

One of my favourite business expressions is “you cannot win a war fighting in the trenches”

It explains so well the concept we are talking about. We find that small business owners get lost in the business, and they forget to work on their business. So how do we avoid this?

Firstly, understand our purpose. This is the why –
“why are we setting up and why will we win in business?”
“why will people buy our services and / or products?”

It is from this that we develop our business model.

If starting up, this is one of the most important things to do.
It is imperative that our purpose is understood with clarity and written down.
You will need to invest time into this exercise – it is one of the most important things you will do – so don’t skip it.
It is very important that we re-visit this document regularly as a constant reminder of our purpose.
– This will keep us focused
– It will lead to the development of our purpose
– It is used to develop our annual planning process

This is an exercise that we must ensure we re-visit regularly, so the good news is – it’s never too late to start.

This leads me nicely to second “Don’t forget to Work ON our business. This is the annual planning process, and another business expression, although a bit of a cliché: “failing to plan, is planning to fail”

This is really a subset of our purpose. Its objective is to explain how we plan to move our business towards its purpose in the coming twelve month period. It sets out our sales volume targets, our sales price targets, and understands the costs associated with these sales.
This is an involved process – a team event. It is co-ordinated by the managing director and is ultimately his responsibility, however it cannot be his/her sole project. The process needs a wider perspective than one person. Ideas need to be challenged, thoughts need to be developed.

The annual operational & financial plan will provide direction, a plan to assess performance against, and a benchmark to set corrective action.

Aurora Accounting & Business Services’ clients engage in a rigorous annual financial planning process. Our view is if big companies value this process and employ significant resources into it then so should we. Our client’s agree. And our clients have enjoyed the benefits of planning – setting our goals and measuring performance and ultimately achieving our business goals.