thepassionateseeker.com would like to share with readers the article by David Stack – CFO of stream, a company dedicated to providing solutions for businesses. As the chief financial officer of a startup, spurring continued growth is an integral part of the job. Besides accounting, finance and other areas, focusing on business scale is also very important. One of my instructors once said, “If you do not think about the size of the business, who will do it?”
From the optimization of your resources to find out how to increase revenue while maintaining operating costs low, the business scale is something that any business would have to consider carefully when initializing and operating the business. As a CFO, I have to constantly answer questions that arise when thinking about business size. Here are five things to keep in mind as you embark on expanding your business to the best possible version.
It is important to have a holistic and consistent view of all decisions about the personnel, systems, processes that you perform. The impact of these decisions will have to be remembered in order to implement your overall business strategy. Recruiting talented people or choosing an excellent ERP (Enterprise Resource Planning) will not guarantee success unless there is a clear vision of how everything will be done and managed. how. Basically, you want to make sure you always see a whole forest, not just single trees.
2. HUMAN RESOURCES
Evaluation of the personnel plan in the next 12 to 18 months is extremely necessary. Recruit people who understand your vision and are happy to achieve success with you. Sure, you want your employees to be filled with enthusiasm, because there will be peak times, such as in important projects, and the team will have to work harder than required by the company. normal work
In addition to talent and enthusiasm, another important factor is that your personnel plan should match the culture and values of the company. For example, if you are a database company, you need to make sure that you are building a team that demonstrates that spirit and applies it.
Similar to your HR strategy, you must have a plan for all internal systems in the next few years. Evaluating when to upgrade your ERP system is the most important decision you can make. Need to know how to balance where you are in the growth cycle. If you decide to upgrade, it will certainly be very complex and expensive. Remember that your business management system needs help, not hinder you. If the system does not scale with you, it’s time to find a better system.
You also need to have a master plan for all internal accounting and financial systems. The key to this plan is to ensure that systems in all other departments work well with the accounting and financial systems. There should be frequent conversations and regular meetings with other departments, thereby ensuring that decisions are made in a coordinated manner throughout the company.
As you expand your business, you will definitely need to add more elements to your team. Find out what is working and change throughout the process. Adapting to the ongoing needs of a growing business requires many important factors to change, and culture is no exception. Be loyal to your core values and culture as you grow and make sure everyone in your team understands that building a business scale is an essential part of your success plan.
To increase your chances of success, minimize future risks, and support your growth, you have to pay attention to the size of your business! Remember that decisions made in the early days can have far-reaching implications in the future.
Price is a good example of a factor that has a large impact on the company as it can attract a larger customer base. Having a simple and focused pricing strategy will help ensure consistency and alignment between sales, marketing, products, customer needs, and finance, operations. This is necessary to help promote positive interactions with clients on a long-term basis.