Graham Salmon, writer of a blog called OMB (Owner Managed Businesses) was written about my post What Do Clients Really Want.
His blog is gives "Practical ideas for Owner Managed Businesses - from an accountant". If you run an "OMB" it's well worth a read.
He's written two excellent posts "Where it goes wrong for OMBs - my Top 10 list" and "How to put it all right - My Top 10 remedies". As I agree with pretty much everything he says I thought I'd run through the list with some comments and the ultimate judge, do we do this in our business!
1. Crap financial records
Like Graham says, get a bookkeeper. A proper, professional bookkeeper. Our accountant does our books every month which gives us a fantastically realistic view of the business and ensure there are no surprises come End of Year. 1 point.
2. Putting a heap of private expenses through ‘the books’ (..’just to get the VAT back-honest’)
We don't do this either. We're too virtuous. 1 point.
3. Not working out the profit on a job before it’s started
Oh dear we're guilty of this, we're far too keen to do some exciting work to bother with silly things like profit. 0 points.
4. Not having a formal structure for the business
We have this, all signed and sealed. 1 point.
5. Not having an exit strategy
Hmmm. We don't have an official one, but I think a consensus is emerging. 1/2 point.
6. Not having a marketing plan - or not measuring the results of advertising (particularly in Yellow Pages !)
We don't advertise in Yellow Pages but we do have a marketing/business plan, that we're broadly sticking too. 1 point.
7. Not knowing how much the business is worth
We think about it, but we don't know for certain. I'll ask someone. 0 point.
8. Employing people at low rates of pay because they’re cheap - not necessarily because they’re good.
This is a great point. We don't do this. 1 point.
9. Not delegating.
We delegate. 1 point.
10. Instructing an accountant to prepare annual accounts and then not asking him/her for advice (because it might increase the bill…).
Hahaha I can imagine this happens a lot. Our accountant is a God. He acts as a business advisor and is always right. He tells us lots of uncomfortable things we don't want to hear, but we still listen. 1 point.
7 and 1/2 out of 10. Not bad...




























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