The 7 P’s of business. Here’s what you need to stay ahead…
We’ve all heard the cliche in the boardroom (if you haven’t feel free to look it up), but in today’s fluctuating business climate, it’s starting to make a lot of sense.
When it comes to growing your business, confidence is vital to stimulating growth. But what’s just as important is having the ability to make positive decisions based on a clear understanding of what your business is doing now, where it is going, and what else you can do to steer it towards the future.
It’s called proper planning and preparation, and well managed and well funded organisations with a carefully planned business strategy have a much better chance of achieving success. In changing times, where an ‘uncertain’ external business environment is becoming the norm, companies need to have greater confidence in their own business to be able to grow. This can only happen if they are prepared to invest.
Increased confidence and investment leads to a positive growth cycle where growth is inevitable. The economic crisis has continued to challenge businesses and many are still reluctant to borrow or access other types of available funding.
Finance is available to businesses, although since the crisis, lending (particularly by banks) is more “prudent” and “sensible” in the current climate so that the debt being put into any business can be managed. As well as the types of loan finance available in the market, there are also alternative funding opportunities for organisations to explore.
Accessing available finance can be a catalyst for your business growth and opportunities to access it do exist, however, businesses need to be smarter about the way they access finance. In changing times, organisations that are able to produce and present clear business plans and financial accounts will be more likely to access the finance and funding they need.
A clear understanding of all the alternatives and options available can help businesses secure the finance they need, which is why taking specialist advice from a business like ours can help you make the key decisions you need to move your business forward.
So, now that we know how important planning and preparation are, here are the 5 essentials that your business needs if you want access to valuable finance:
1) You NEED a clear business plan
A clear vision demonstrated in a well structured business plan with well prepared financial projections is essential. Being able to show a bank, financier or funder a clear background to your business including its structure, what it does and where it is now as well as what the business is trying to achieve is all important. A well structured and convincing business proposal with supporting data and information is what you will need.
2) You NEED a focused management team
The strength of the management team in your organisation and their skills and experience is important. A well led, managed and focused team who shares the vision to drive the business in the same direction is attractive to a financier or funder.
3) You NEED access to current financial information
As well as enabling you to make timely and informed business decisions, up to date and accurate financial information and details of financial performance is vital. Financiers and banks will want to see your business focus on cash generation and cash flow. Ultimately, if you borrow, your business needs to demonstrate that it can repay the loan and that the debt is serviceable. If you look for other funding (or grant injection), the funder needs to be confident that your business is a sound investment.
4) You NEED to be able to forecast your performance
Outlining recent performance is important, but your plan should also include realistic forecasts for your business. Organisations need to demonstrate that they can revise their business plans in a robust and credible way, identify risks and uncertainties and build these into contingency plans, based on different scenarios.
5) You NEED clear lines of communication with financiers and funding specialists
Our advice is talk to your bank or other financier and see what they can offer your business. Talk to us – see how we can help point you to different funding options. Building a good relationship with your banks, funders and specialist advisors will benefit your business and is likely to benefit you with opportunities.
You need to be confident and well prepared to access sources of funding. Businesses that are looking to access funding need to be clear about the historic, current and predicted future performance of their business, and be able to provide funders with the best quality management information to support their business plan.
We are still operating in uncertain times, so businesses need to keep a tight focus on risk management, even when they are seeking to grow.
At Ascend Twentyone we can help you ensure that your business sticks closely to the 7 P’s principle so that it gains access to the finance it needs. What’s more, once you have secured the finance, we can help you make the plans that really matter to your business to help it move forward and grow. So, get in touch now to find out more.