Supporting clients through planned growth

Matt Martin, Manager

But how does it work? What support can we offer on the exciting (and often scary) journey of planned growth? One thing I have learned over the years is that every business, and each client, is different, but there are some golden rules I follow when supporting a client through planned growth.

What does success look like?

A wise man once told me that the first question must always be “What does success look like?” Without an objective we are aimless wanderers with no destination, and you might be surprised how many clients want more of this, and more of that, but can’t actually define in a short sentence or three bullet points exactly what it is they are aiming for in the next two or three years. So, my first job is to ask questions, especially when there are multiple characters involved.

Of course, this idea of what does success look like might change multiple times over the planned growth journey. It’s all part of the fun.

Accurate information

So, we have a target to aim for, what next? Stick to the basics. Often, but not always, the targets will be monetary figures along with some form of KPI. So, we need a way to ensure these figures and KPIs can be measured accurately and easily, or in other words, we need a system.

This is probably my favourite part of the whole journey; I love a good system.

At this point it is best to introduce accounting software such as Xero as it gives us as the accountant a clear visual over the figures and the means to interact with transactions in real time to ensure the information you’re looking at is as accurate as possible. A planned growth journey and Xero go hand in hand.

Timely information

Having accurate information is essential, but the more out of date that information is, the less use it is. This is usually the hardest part of the journey, requiring time, money, and often the most difficult thing of all, changing habits!

Most business owners see their accounts once a year, often nine months after the fact (just before the submission deadline!) But to see more up to date numbers we need information, whether that’s invoices from a one-off supplier, context on what a large expense was actually for so it can be allocated to the correct “pot”, or the director looking through their wallet for those pesky cash expense receipts – “I’m sure they’re in here somewhere!”

Up to date information requires up to date habits, and without up-to-date information you are always two steps behind. But with the right systems, and nifty software such as Dext to capture the expenses in real time, the new habits that provide timely information don’t have to be painful. On the contrary, they’re often less painful than the old ones!

Accountability

So, we’ve formulated a plan, we have accurate information to check how we’re doing, and we’re getting that information once a month / quarter, so now what?

Someone needs to hold you to account. Funnily enough if you are only answerable to yourself you’ll find it all too easy to let yourself off. “You’ve had a hard week”, “you had to do that thing, it got in the way”, “there’s always next month”.

Now this may sound like a student / teacher relationship, but someone needs to sit you down, look at the hard, cold figures, and ask you – “why?”, “what?” and “how?”

Very rarely are the goals that determine success met in the first meeting (otherwise they were far too easy to begin with!) so you need sit, look, and discuss. An accountant with a wealth of knowledge and experience to draw upon can be a useful sounding board. Sure, you could go with one of those life / business coaches, but can they back up their relentless positivity with financial knowledge? 

What you need is a regular place to meet, whether online or in person (in person you get the complimentary biscuits) and a person to meet with who will present you with the latest figures, what was agreed in the last meeting, remind you of the long-term goals, and dig down into the numbers with you. There’s a great bit of software that integrates with Xero called Fathom that produces stunning reports that will help us drill down into the real issues, so you can start to ponder how best to resolve them.

Summary

With a plan, accurate and timely information, systems, software and that magic ingredient, time, there is very little that cannot be achieved.

I wouldn’t presume to tell a plumber how to plumb, or a consultant how to consult(?) in their specialist area, but what I will say with confidence is that this system works. And if there is one thing I’ve learned from the process I’ve outlined above it’s that often the one thing really standing in a business owner’s way is, in fact, themselves.

It’s difficult to take a step back from working in the business so that you can work on the business. But trust me when I say that if you work on the business enough something will click, I’ve seen it many times, and all of a sudden the path becomes clear. It just might take a few meetings (and a kickass accountant) before you’ll find that path for yourself – then let the journey begin!