Small business blind spots… and how to fix them before they cost you.
Running a small business means juggling a lot, from clients to cash flow, operations to strategy, so it’s no surprise that blind spots can creep in.
Often, it’s not the big things that catch out small business owners; rather, it’s the small, unseen gaps that quietly impact your profitability, performance, and growth. And it happens to the best of us.
Being able to identify these blind spots, or know what to look for, can minimise risk to your business, improve productivity, and enhance the efficiencies of your operations.
Here are the common blind spots we see affecting small business owners:
Knowledge of your cash position
There’s a difference between being busy in your business and being profitable, and the two don’t always align. If the work is coming in, and the invoices are getting paid, it’s a sign of positive cash flow, isn’t it?
Not necessarily, because the crunch comes when the GST bill hits, subscriptions need to be paid, and the company car is up for a warrant!
Rather than looking in the rear-view mirror at last month’s numbers, keep your eyes on the road ahead. Do you know your cash position for the upcoming quarter? What is your forecast, and do you have work in the pipeline to meet it?
If you can’t confidently answer “what’s our cash position next quarter?”, you’ve got a blind spot.
The true cost of your services
Are you afraid to put your prices up for fear of losing customers? It’s a feeling we all share, which is why it’s important to price your services right in the first place.
As business owners, one of the classic traps we fall into is under-pricing our services, thinking that a higher cost will send clients to our competition. In reality, under valuing, and under-pricing, our services can quietly suffocate your business.
At Auctus, we’ll help you build true cost models of what you need to charge your services out at. We’ll analyse your margins, identify what and where your hidden costs are, and help you to implement value-based pricing, so the cost of your services actually pays for your time.
How efficient are your processes?
Are you too busy to implement a new process, even if it promises to save you time in the long run?
Every small business is guilty of it… starting out with a simple system that isn’t future proofed for growth. And yes, then we try to manage our way through multiple spreadsheets, clunky systems, and outdated software.
Automation is a business owner’s friend, but we’re often blind, or perhaps reluctant, to make the change for fear of losing control and oversight. By integrating automation and cloud-based tools into your business processes (think CRM, invoicing, payroll, project tracking), you’ll have more time to work on the business, deliver to clients, and implement your strategy for future growth.
Work on your small business, not in it
They say the view’s better from up on high. If you can take a helicopter view of your business and objectively see how all the moving parts are working together, you’ll be able to identify where the sticking points are.
But don’t try and do it all yourself.
Seek external advice, employ the right people, consult trusted advisers, and have people to hold you accountable.
Blind spots can be avoided with a clear strategy, structure, clarity and defined growth – as a small business owner, you might have the drive, but even the best of us behind the wheel need a navigator by our sides.
Get in touch with one of our advisors today.
