This is the third week now that we are talking about the 4 Financial Pillars of Success™. These pillars are what I believe are the foundation for your businesses financial success.
We have talked about pillar one which was Financial Record Keeping and pillar two was Financial Management.
This week we are talking about the third pillar which is Financial Systems and Solutions. This pillar focuses on processes and software solutions. This is all about the people and processes in your business. You need to have documented standard operating procedures around how everything in your business is done. From how the receptionist answers the phones to what gift you give a client once their service is complete. It must be so detailed that any new employee can follow the instructions without much assistance. This is a key element when it comes to taking your business to the next level. Because when you sit down to create these procedures, you end up creating the positions for who will do them. This allows you to see your business in an entirely new light.
This pillar also includes the software you will use in your business as well. You need a reliable accounting system to help you track your numbers and know what is truly going on in your business. Excel is great but even with the best macros in place, it is still a manual process and is therefore susceptible to more errors than a full blown accounting system.
Now that we are in the 21st century, technology is everywhere. And you need to embrace it. Don’t be scared of it. If your accountant or CPA does not have a stack of technology applications that they recommend, figure it out for yourself. Make a list of your need and wants – in two separate columns. Then start your research. Figure out which applications can give you most of your needs and a few of your wants. No software is perfect, so I doubt you will be able to find every want and need in one application. But hey – anything is possible. Be sure to check the advantage and disadvantages of each one, so you can make a well-informed decision.
Now once you leverage technology by matching it to your operational processes, magic will really begin to happen. You will then be able to shift the some of the duties and task to an automated system which will in turn free up your time. You will begin to run a more productive business. And a more productive business with efficient process equals higher profitability.
System workflow in a business is the key to structure and organization in your business. It is also the one thing that will allow you to scale your business.
Next week we will discuss our fourth and final pillar – Financial Strategy.
