Having survived an uncertain climate, you may well be looking for innovative ways to grow your business. This can be an exciting time as you and your staff work hard to win new business. Yet a pressured and fast paced ‘win’ environment can easily allow factors to creep in that could potentially damage your business.
What you can do:
So, play to your strengths. However, not knowing whether you have done business with someone before, or the work you did, for them can be detrimental in many ways. So, have a central and integrated system that will enable you to see all current and past work that you have done for these customers and how you did it.
I’d suggest that it is also key to see what’s coming down the line. Getting an accurate picture of potential work is essential to understanding your future cash position.
Also, make an effort to capture costs early. It’s easy for costs to slip through at the early stages. An expense here, some extra work there – the costs can quickly add up and you will face a few nasty surprises down the line and a serious erosion of your profit margin. Capture and analyse all costs at the earliest opportunity and you can understand the true costs and profitability of every bit of work throughout its lifecycle and see how much it costs you to win new work. Use this information to make future informed decisions about a customer.
By David White, Partner, Charterhouse, based in Beaconsfield
Member since: 16th May 2013
David White is an equity partner in Charterhouse a practising firm of Chartered Accountants based in Beaconsfield and Harrow. David is Charterhouse through and through having been with them for 30 years...