So you’ve started running your own company. Things are going well. You’ve won some clients, made some sales and things are looking up. But, you want to take things to the next level, to move from a small to medium company. You know you need to plan, but where do you start?
According to Nutbourne’s Marcus Evans, there are two fundamentals you need to get right.
“When you’re running a business, it looks likes the key thing is delivery, but it’s not,” says Marcus. “If you want it to grow you need to take care of the figures as well, and that comes largely from sales.”
Nutbourne grew from six clients in 2013 to 68 clients at the end of 2016, and from seven staff to 27 in the same period. The recurring monthly revenue from sales is what Marcus calls the lifeblood of the company, and is what the company is built on.
“When we began to pay proper attention to sales we began to motor,” Marcus adds. “As long as you have recurring revenue that pays everyone’s salary – which is where we are – then everything else goes towards all the other things you want to do as a company. From those sales, we became a successful company.”
Nothing, he adds, is left to chance. Each year he writes a business plan, crunches the departmental numbers and works out the profit for that year. From there a decision is made on how to progress – what isn’t measured isn’t managed after all.
“You have to look at your numbers. What can you afford? What money do you have coming in? What debt do you have? You have to be meticulous.
“Do you have enough money to pay your bills? Can you advance credit? Are you able to get credit? Have you set aside money for your VAT and corporation tax bills? Those things can really stymie your business if they’re not managed properly.
“What this boils down to is that cash flow is absolute king for a small business. If you want to grow, you have to take care of that – it’s as simple and complex as that.”