Why spend money on driving business performance

In many ways running and owning a business is like running and owning a car.

In both cases we want control, reliability, comfort and safety. It is also best to have a clean history and for the asset to be in best condition at time of sale. In the case of a business, you also want to Exit when the destination is reached.

Extras are nice and business owners might see a finance director (“FD”) as on extra. However, as with a car, if you want peak performance and extra comfort some extras are a must have.

If you think of the business as the engine and the owner as the driver, then an FD will enhance many of the other vital components:-

Dashboard – reporting of key metrics.

Accelerator – enable and control growth.

Fuel consumption – knowing where cash flows stand at any time.

Speedometer & brakes – monitor the speed a business is growing and slow things down if cash flows are not travelling at the same speed or obstacles are in the way.

Steering wheel & SatNav – enable business owners to plan ahead and embark on new journeys. Help them navigate to their destination and make decisions. They can help avoid unnecessary delays and take new routes where necessary.

Automatic transmission - remove the need for the business owner to be constantly observing the finances and be able concentrate on the road ahead.

Users manual – having processes and methods in place.

Safety features – checks, balances and financial controls.

Sensors – anticipate potential problems and help business avoid them.

Suspension – reduce shocks (using risk analysis) and contribute to how the business is handled.

There are no doubt other analogies that could be used, but the theme is clear. When your ambitious for your business an FD is a vital upgrade when it comes to driving performance.

The author Brian Kilcullen can be contacted at brian@fd4.co.uk and 07767 368875. For other FD4 articles please visit the website https://fd4.co.uk/