As a former Chief Financial Officer of a listed company one of the very important things that I learnt was that larger businesses operate as a series of small businesses but the important difference is that they have implemented systems and processes for their individual business entities that are not normally associated with small businesses.
There is no reason why most SMEs should not implement “big end of town” systems to improve their business performance thus improving the business’ chances of successful operations.
Where do you start “thinking like a large business”?
It starts with the Leadership Team which every business should have but unfortunately many do not have people performing some of the important roles even on a part-time basis.
Businesses that adopt this approach have a Leadership Team comprising full time members and part-time consultants with expertise in particular areas that are crucial for the business’ success.
The designations of the Leadership Team (full-time and part-time) would probably include:
- General Manager/CEO
- Products/Services Manager
- Manufacturing Manager
- Marketing Manager
- Sales Manager
- Chief Financial Officer
- Communications Manager
- Office Manager
One of the priorities should be to prepare a document – “Who is this Business – What do we hope to Achieve?” Most SMEs will not have the time or the business knowledge to be able to prepare this document completely and the Accounting Consultant who is performing the virtual Chief Financial Officer services are the ideal preparers of this document in conjunction with the Leadership Team.
Some of the items to be covered in the “Who is this Business – What do we hope to Achieve” Document include:
- Vision
- Rhythm of meetings for the business
- Products/services
- Manufacturing/delivery of services
- Locations
- Team
- Team training and professional development
- Suppliers
- Customers
- Communications
- Marketing
- Selling – Calculation of selling prices – charge out rates
- Research and development
- Development of Intellectual Property
- Commercialisation of Research and Development / Intellectual Property
- Succession
- Exit document
This is the format of a communication to business people that I suggest accounting firms who are members / subscribers of ESS BIZTOOLS utilise to convey the message that they are willing and able to deliver Advisory Services which will assist an SME business to survive the challenging conditions we have at present and if they are capable and willing, to “Scale Up” their business operations.
These types of activities offer “Interesting and Challenging Work for Accountants” and are extremely beneficial to assist in the “Attraction and Retention of Talent within Firms”.
Not every partner in an accounting firm can have the experience of being the Chief Financial Officer / Company Secretary of a Listed Public Company and therefore I try to deliver an overview of the services that were required in that role, so that you might be able to benefit from my experience in offering services to your clients based on the adaption that some big businesses have made to deliver their services as if they were a “group of small businesses” to your clients.
The system is based on the “52 week business enhancement system” which recognises that most businesses operate throughout the year and can beneficially utilise data daily, weekly, monthly with a Due Diligence Performance Review – Board of Directors’ meeting / Board of Advice meeting each month – so that variances and errors are identified and rectified as early as possible.
If you find this concept interesting, I am sure that you will gain some ideas from the ESS BIZTOOLS Product Package that you can view at www.essbiztools.com.au
If you would like to have a complimentary one-on-one webinar overview of how ESS BIZTOOLS can assist your firm to “Deliver Advisory Services” please send us an email peter@essbiztools.com.au or Telephone (07) 4724 1118.
Stay safe!
Peter Towers – Founder and Managing Director
ESS BIZTOOLS Pty Ltd
Telephone: 07 4724 1118
Email: peter@essbiztools.com.au
Website: www.essbiztools.com.au
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