What are the 3 key business constructs at the core of every business? Why would they create challenges?

It is normal that businesses face various challenges as they operate. Those challenges are not necessarily caused by changes outside the firm such as inflation, for instance. They can sometimes be deeply rooted in how a business operates internally. I have learned that through my experience as a business owner.

In the first chapter of my bestselling book, Rewire Your Business for Success, I have identified the three key areas that business owners often find difficult to synchronise. If the business owner followed my framework in the coming chapters, they would be able to optimise & synchronise these 3 key areas, and their business would turn from a burden to a blessing. They will have more time to spend with their families, on their hobbies, or with their friends.

It’s important to note that business undergoes challenges, and the business owner is faced with stress and having to conduct difficult decisions because of an issue in one or all those key areas (cash, systems, and team).

Cash

The first area is cash. By cash, I mean the lack of it. When a business lacks cash, that is usually attributed to two main reasons. The first is that their current systems do not work, and the second is that their systems are inconsistent.?

A common business alert for lack of cash, that owners face, is when the business expenses exceed the business income. Can you guess what the most common reason for that is? Paying the bills too soon. Yes, you do not have to pay a bill as soon as you receive it just to get it out of your way. In the coming chapters, you will learn more about better managing your business’s finances.?

Systems

The second key area is Systems. These systems are used in your everyday business operations such as: invoicing, paying expenses, sending quotes, handling complaints, etc… It is very important that these processes are automated, no matter which team member is following them. It is recommended, however, that the owner must have a written record of how they wish those systems to operate (templates) for existing & future team members to be able to understand and continue following up on those systems. This helps in avoiding the possibility that the team member will not create their own systems.?

It’s also worth mentioning that it’s important to review those systems with your team members regularly. Preferable quarterly or every six months.?

Team

The third key challenge posing area for business owners is their team. By team, I mean your internal and external team members (freelancers and partners that support the business). As a business owner, you are also a team member and you do not want to be part of the problem. How so? Business owners tend to have a strong mindset on how things would be done, sometimes they fail to delegate, and are perfectionists to a degree that they slow down important decisions.?

Debunking Accountant Myths

In the next week’s article, stay tuned for addressing the common myths about accountants

Rewire Your Business Today

Rewire your business with Elena Meskhi & Co. We are more than your average accountant! We are your financial partners in this incredible business journey. Contact us today for more information on how you can rewire your business starting from the foundation; your financial processes.

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Stay tuned for next week's article where we discuss and put an end to Myths about Accountants.