Why Having a Finance Expert Helps Your Small Business Grow
Part 1 Of A Two-Part Series
When it comes to running your small to mid-sized business, one of the most essential pieces of the growth puzzle for you to have is expert financial advice. Without it, many small businesses can end up not foreseeing their financial future clearly and fall flat.
Your business was born from a great idea or product that took off, and your entrepreneurial leadership, in most cases, may have reached the capacity of your comfort zone. But within all of that, many business owners don't have substantial financial backgrounds to help manage, analyze, and handle the cash flow.
Having a financial expert for your small business has many benefits that help your business grow to the success you envisioned when you first started. Today, we wanted to look at some of the most significant advantages of hiring someone with financial expertise.
Manage Cash Flow
Growing your business comes down to cash flow. When there isn't enough, you're struggling to meet product deliveries and pay your employees. When there's too much, you may end up allocating it to the wrong places or not addressing the areas that create the most growth for your business. Hiring a finance expert means you will have someone that understands the balance in managing your business' cash. If your business doesn't have enough money set aside to pay your bills every month, then you're not able to implement your growth strategy. Someone with finance expertise will be able to keep track of your business' cash flow, execute projections, and advise you on the state of your cash flow.
Protect Your Growth and Future
One of the most essential things a finance expert can do for your business is to guide and protect your growth. Knowing how your company makes money, products that cost more money to produce and stock than to discontinue, and where your company is actually earning profit are what someone with finance expertise does every day. They'll be able to do a full breakdown and analysis of your company to determine which of your products or services are the most profitable and which ones are costing you more money than profit. This is invaluable information that contributes directly to the future growth of your company.
Projections and Reporting
Unless you understand the intricacies of financial projections, profit margins, and sales reports, you're going to need to enlist the services of a finance expert. It is their job to analyze and understand the health of your financials. They're able to take the information from your sales and accounting and turn that into in-depth reports and projections on where your business is trending toward currently. These reports and forecasts allow you to assess your progress against key performance indicators and know what's working and what isn't. Reports and analytics of your business come in handy when you want to get a loan for your next big idea or even sell your business.
There are many other reasons why it's critical to enlist the services of someone with finance expertise for your small to mid-sized business. At Pillar One Consulting, our finance services are designed to give your business the boost it needs to grow.