I know growing business is the ultimate desire of almost every business maker. Founders, leaders, decision makers.

I said, almost, because there would definitely some other reason you are in the business you are doing.

Could be you have no other thing you know of and decide to stick with something to keep you engaged.

Could be you just don’t believe that your business can grow and therefore just can’t engage to grow it.

Could be you still believe something else will come for you to do-just pass time for now.

There is a problem though.

Human mind will always crave for order.

Your mind will always keep demanding you set in a predictable order so that it can flow.

Without thinking much about it you find frustrations because naturally you seek security, safety and comfort.

Lack of design framework then, there is conflict with the nature in you

Frustrations after frustrations and then more of it.

Finally, a system develops where you make decisions in huff, not verified, not quality.

Routine repeats itself and system of frustrations set in. Business run on no decision at all.

The system find itself plunged inside trial and error, new thing tried to replace what seem not working.

System surge with an overburdening.

The business end up being manipulated by unseen system which yourself is also not able to control.

This cost business time for decisions that cannot be implemented and if implemented cannot win

Here is the deal.

If you want to quite under- hand - system that is manipulating your business operations, the solution is to have frame and design of what guides your decisions.

Quality thinking process also become great resource to build business.

When I met Mr John (Not real name) for the first time -John was looking for someone to help him scale up his sales. I am not a sales expert but he wanted if I can refer him someone. As we spoke John received a call that there is an urgent cheque needed -he drew a cheque book and signed off. This alone gave me clear picture of what was ailing his business of over Kshs 150M revenue per year. I did not need any other word.

My response -lets please have a day and go assess your operations set up and will be able to come up with next course of action. The clarity of that problem could not have been better.

You Need Decision Making Design

The design talked about here is guaranteeing automation of decisions creating consistency and predictability of results.

Currently, maybe, all decisions of your business have to pass through you as the leader.

This is scuttling the growth of business on daily basis.

Let’s pick one item for today

Design for making decision about business money

4 Key Decisions for Business Money -The Wheel of Business Finance

Operations

Day today operations of a business creates duties for ensuring collection of cash and accounting for it is predictable.

How do you make sales – any receipts issued?

How do you collect the money and account for it through accounts dedicated to business alone?

How do you create system of following up money for sales on credit

How do you create system for paying those who have supplied you.

Cash management

When the cash is received in the business- it is not just set for making payment outside

Many business have been stuck here unable to roll out cash and use the cash made by business to strengthen their system more

How do you extend credit sales

How do you prioritize payments

How do you develop relationship with the bank

How do you set excess cash to bring in more cash

How do you manage cash deficit.

Business Finance Control

As you operate the business more and more transactions happens and you can never explain all and have over look on all of them.

The business grows but due to weak controls it loses more and more money and other assets.

Do you have a budget

Do you have Key Performance Indicators to set the baseline

Do you have management reports and variance reporting?

Do you have set out professional to undertake accounting transactions

Special Support structure

After the business manages to accomplish making of money, accounting for it and growing it more, decision making on other risks needs safeguarded.

Have you listed your key stakeholders

Do you have tax planning support

Do you have financial planning projections beyond one, two, three and many years

When design for decision making is ready and on roll out, it is not about who is operating the business.

It is about right decision supported by right structures.

The business moves from emotive flow to reliable system. Decisions becomes pillars of growth

You definitely need a plan.

Directing your decision making for managing business finance through structured framework will definitely bring your business onother level of growth.

 Thank you for your time

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Gachoka

PS

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I am Charles Gachoka - CPA-K , MBA- C.O.O & Business Development at Cygnus.co.ke. I am also the lead in Business Finance Operations consultancy portfolio. Cygnus prides working with over 50 owners and decision makers of mid-level businesses, helping bring out huge growth through Kaizen in Operation Excellence, Business Finance Operations, ESG & Strategy Deployment model (Hoshin Kanri).

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