RECAP: NAWBO CANDID CONVERSATION ''5 TIPS FOR BUILDING A BETTER BUSINESS''
12/13/2017
Key Performance Indicators (KPI’s); Internal Controls; Financial Statements; Right People/Right Seats; Professional Support Team. These are the “5 Tips for Building a Better Business.” Gerber, LLC and Kaiser Consulting partnered up to present “5 Tips for Building a Better Business” to NAWBO members for an extra-special Candid Conversation, covering the foundational aspects to building a better business. Here are highlights from the event.
DECREASE RISK & IMPROVE OPPORTUNITIES
The minute an internal financial operator (such as a CFO) or outsourced financial support (such as a bookkeeper or accountant) has access to a company’s business accounts is the moment cash controls need to be implemented by the entrepreneur. “Don’t turn your back when someone says “don’t worry, we have it handled,” explains Lori Kaiser from
Kaiser Consulting. The last thing you want to do is be completely oblivious to finances in your company.
Even if the entrepreneur is the only one managing the finances, it is good practice to meet with your banker to see what scams are on the rise and how you can protect yourself. Financial Statements are important both internally and externally, especially when your business is in a growth stage, because they can open up the door to new opportunities. These statements show a banker or investor how healthy your business really is, so it’s important to keep them in tip top shape.
TRACK & MEASURE
Each entrepreneur has company goals; Key Performance Indicators ( KPIs) are the leading (predictive) and lagging (reactive) signals each business needs to align with the efforts to reach that goal. Hint: Don’t stress too much about finding the right KPIs in the beginning! Try to pick three to five indicators, then measure and evaluate to see which ones work for your business. Think of it as marrying financial and non-financial data to achieve a business goal. “Stressing about the right KPIs from the beginning can be paralyzing, so just remember that you can always adjust them if they aren’t the right ones” explains
Randy Gerber from Gerber, LLC. The most important part of tracking KPI’s is measuring the results!
PEOPLE MATTER
Mission statements and core values help each entrepreneur help their employees do a better job for the company. These are crucial, foundational pieces for each business; allowing the entrepreneur to hire and fire employees (and even clients) based off of those foundational practices. Once you have people that align with the core values of the organization, it’s important to grow the people in order to grow the company. Communication is key through meeting rhythms, team meetings, and touch bases to see what is going on in your life personally and professionally. It not only makes the employee feel appreciated but it increases their loyalty as well.
Entrepreneurs can implement each of the foundational pieces outlined above to build a better business, but the key objective is to realize that working ON your business versus IN your business is a choice. As an entrepreneur, are you willing to make that choice?
