Small Business Financial Management

We love to assist business owners with their financial affairs. Thanks to the technology experts at Mindshop, we can now easily share our Small Business Financial Management diagnostic to business owners online. The diagnostic allows the business owner to focus on ten key areas to see where their business is financially strong and weak. This diagnostic is the tool we use when stepping into the mindset of the Small Business Finance Director/Controller.

Any business owner targeting High Performance should use this diagnostic to draw out any potential operating problems or challenges.

Instructions on how to complete the diagnostic are below and don't hesitate to get in touch with us if you would like any assistance completing the diagnostic. This five-minute exercise could be your first step toward getting your business finance under control.

The diagnostic is thanks to the 'Ten Management Rules for Small Business Survival'.

Tracy, T.C. and Tracy, J.A. (2011). Small Business Financial Management Kit For Dummies. Wiley.

Here is a summary of the ten rules:

  1. Remember that Planning Counts

    Dedicate resources to planning. Planning is an ongoing and fluid process. A living, breathing tool that constantly changes. Identify, obtain and evaluate reliable third party market data and information.

  2. Secure Capital

    The proper amount, type, and structure provide the business with the financial resources to execute the business plan. Adequate capital is needed to survive and grow. Can you raise money? Will you miss opportunities?

  3. Don't Overlook Management Resources

    Identify and retain a qualified and experienced management team. This 'soft' capital does not appear on the balance sheet.

  4. Understand the Selling Cycle

    Full service from initial contact to delivery and satisfaction. Keep the customer coming back. Every aspect of the business should consider the selling cycle.

  5. Don't Fail to Communicate

    Proper channels and tools to communicate critical results and information to internal and external parties. Reliable, proactive and timely information that people can respond to and act on for improved performance.

  6. Practice 'CART.'

    Complete, Accurate, Reliable and Timely.

    CART Applies to information, reports and data

  7. Remember to 'KISS.'

    Keep It Simple Stupid. Most businesses have an economic model that relies on 2 or 3 critical financial factors that can produce significant changes in profits or losses. Understand those factors and structure accounting and financial information to capture them and have 'flash' reports.

  8. Comply, Comply, Comply

    File accounts and comply with tax rules, including VAT and payroll taxes.

  9. Execute Your Exit Strategy

    Retain a board of advisors to consider exit options. Value is subject to the company's ability to generate cash and profits. It would help if you also had good timing.

  10. Know When to Say When

    Know when the business is not economically viable, and there is no market to sell the business.