5 Pillars Of A Healthy SME Business

These will bring you Financial Peace if you score 7 out of 10 for each of the 5 pillarsRight Numbers

1. Right Numbers

  • Accurate & timely bookkeeping with full accrual accounting on a monthly basis and absolutely correct sales and cost allocations for each month, no cross over between months!
  • Profit & Loss account organised for management purposes.
  • Profit & Loss reports by major business units.
  • 3 way budgets, profit & loss, balance sheet and cash flow.
  • KPI reports monitoring sales and operations weekly.
  • Routine monthly Board/Advisory Board Meetings with full suite of Management Reports.

2. Right People

  • Starts from the top with the right Board and then CEO.
  • Simple Organisation Structure with clear lines of authority and accountability.
  • Grading of all employees as “A”, “B” or “C” for their current roles.
  • Clear documented job descriptions, employment contracts, and performance reviews.

3. Right Processes

  • Strong systems with fully integrated end to end processes.
  • Cutting edge technology.

4. Right Business Model

  • A big vision clearly documented.
  • Simple, effective, and growth oriented business model.
  • Majors on the Major and not on everything.
  • Clear strategy for each business unit.

5. Strong Growth

  • 20% annual organic growth attainable in most industries
  • Strong effective marketing strategy
  • “A” grade sales team
  • Simple KPI Reporting
  • Growing market share
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