Big Business Tools That Work for Your Business
With the global economy still struggling to get going after the GFC, what can you do to make sure you protect your business? During these times there are many “experts” who have many different opinions as to what businesses need to do. All of these changes, improvements, costs cuts etc may be all well and good, but how will you know:
1. If they are actually needed in the first place?
2. If they really work?
Use Big Business Tools in Your Business – They are Free!
One of the tools big companies use to answer these questions and analyse their business is internal management reporting. And this isn’t just their P&L or Balance Sheet! Most large corporations have what is known as Management Information Systems (MIS). This is a fancy term for a reporting system that gives management information about their business to then base their future decisions on. This reporting includes information such as:
• Regular Financial Management Reporting include variance and trend analysis
They are not as complicated as it might sound, in fact if you have a financial system such as QuickBooks, Xero or MYOB then there you should be able to create this type of reporting for yourself using the data from your system.
All that remains is to begin to use the information for decision making, but a word of warning! Take care not to “knee Jerk” react to the new reporting you develop. One of the main reasons to use this type of reporting should be trend analysis. One of the key components of trend analysis is time. Make sure you analyse the information reported thoroughly before making business changing decisions.
Remember it is a means to an end not the end itself! Big company directors use this type of reporting, in combination with other internal information, macro economic reports and other information such as market analysis to make decisions about their business.
Big Companies Are just Small Companies With more Zeros in Their Financial Reports
Big businesses have the same challenges and opportunities you have in your business. So why not act like a big company; start today and use the tools they use. Take it from us, our consultants have worked in those big companies all over the world and here in Australia, we know these tools will work to help you grow your business.