I intend to run a business section on my blog where we will expand on some basic but fundamental business ideas.
This first article is a guest contribution from my father, Tommy Treanor. His help has been invaluable to me as I’ve set up my own business which is in a great place after three years of hard work. The rest of this piece is all his – are you sitting attentively? Then I’ll let him begin – enjoy the learnings.
The opinions shared will be just that, opinions, and should be treated by you with as much skepticism and analysis as you would normally give any opinion or advice.
In time when we have built an engaged community we may then transcend into a more formal network where we will continue to enjoy and participate business ideas.
Each blog will take one subject as the theme for that article and expand on the concept and hopefully impart some advice or points for consideration for the reader.
The aim of the blog will be to engage and be of use in either a general sense or give guidance in a specific circumstance where the reader is encountering a similar scenario.
As a taster of the topics up and coming, today I encourage you as business owner / manager/ stakeholder to perform the following extremely simple task.
Open your records for your operating bank account or accounts and look at each and every type of outlay for a specified period –say 1 to 3 months.
Don’t skip any transaction but ask yourself the question for each debit.
Did my business get value for money for that outlay?
Consider these pointers —and work through each expense category
- Is this a repetitive cost –and if so —would I today engage that same supplier/service at those rates if they were not already part of the business fabric. If it was a new supplier would I be satisfied with the quality and price.
- If it’s a debit for an employee’s wage —are we getting a good return here. Do we need to engage directly with the employee on specific issues and are both parties getting reward from the relationship? It may be an example of never finding the way or time to address personnel issues because they don’t have to be done today as a matter of urgency.
- If it’s a non-essential outlay –i.e. one that is not wholly, necessarily and exclusively for the business –should it be continued or curtailed.
- If it’s a debit for the lease of a car or for equipment —are we only paying the number of debits contracted into and can we hold/own the asset after the lease period without immediately upgrading and starting a new lease.
- Communications overhead –nowadays should be well under control with all the low cost options of Skype etc
- Printing and stationery —again because soft copy invoices can be sent and received the stationery could be reduced significantly.
Business tip—if your answers are throwing up unforeseen complications or too many actions points then don’t consider knee jerk reactions.
Instead note the query —confirm your reading of the situation and deal with each issue separately taking time to assess in full. Include the appropriate personnel to share your observations and possible solutions with.
If you have specific problems in this or any other business transaction–feel free to contact giving an outline of the issue and we may be able to offer some advice.
Look out for next week’s guide on this website.