Like you, your business is alive. But is it thriving? Are you giving it the fuel it needs to grow?
Many components of business require the time of owners, founders and management. And three critical components stand out—accounting, culture and systems. Sure, it’s possible to make money without these, but it can be extremely difficult to grow or reach goals. Surprisingly, these three components are typically ignored or left to chance. Don’t leave your success to chance.
Accounting, culture and systems are equally important, although one might take priority over the other two, depending on your business and its current development stage. But no matter where you’re at, it’s important to be aware of how these three components contribute to your progress.
Accounting is usually most ignored by small and beginning businesses. However, we’ve seen many well established, profitable companies that don’t have or can’t produce reliable financials on demand. Without that, management loses all ability to gain valuable information that’s provided in financial statements.
So, why is accounting often ignored? While each business likely has its own, unique reasons, there are some common themes we see. Often times, small businesses just can’t afford to have in house accounting people, so these functions get pushed to the back burner. Another common theme we see stems from lack of understanding. Accounting can be tricky, and when businesses don’t understand their numbers, they often times just ignore them and hope for the best. This can lead to some serious financial issues that, if ignored, can take a business downhill fast.
Culture is your company’s personality. It’s how your staff interacts with each other and customers. If you don’t identify and define your culture, you can stunt your business’s efforts to grow. For example, one business owner almost completely replaced her staff. Her former staff wanted to keep the “mom and pop” feel. In her long-range planning, which her former staff was part of, they identified strategies for growing the business, complete with revenue targets. It wasn’t until the owner began taking the necessary action to achieve the growth did she realize her staff wasn’t actually on board. Her views of change and growth for the company differed from her staff, which created a cultural nightmare.
It is imperative for everyone to believe and share the company culture. Maybe this means creating policies and procedures that directly align with your company culture, or hosting meetings and events to help your staff understand and adapt to the company culture. However you implement it, culture is too important to ignore – after all, your people are at the heart of your business.
Proper systems are more than writing down the process. The systems should be both quantifiable and qualified. Quantifiable means it should be set up to measure if things are being done the same way every time, and if the desired results are being achieved. A qualified system is one that’s performed the same way and the way it was written, even if you or management is not present. It should be pointed out that it’s not necessary to systematize your entire business. Focus on areas that create consistent and reoccurring frustrations, are important to the operation and growth of the business and where consistent results are needed.
To sum it all up, all components of your business are important. Your accounting needs, culture and systems and processes are three components that stand out because unfortunately, they are often ignored. By devoting more time, effort and resources into these, you can help your business stay on track for growth and continued success.
*Shameless plug: These three components may seem confusing, scary and downright challenging, but it doesn’t have to be that way. We have talented professionals who dedicate their time and skills to helping your business succeed. If you need help, let us know!