February 10, 2020 | 2years | Doctor Spanners Toolbox

In my surgery this week we have seen a number of patients showing symptoms of a common business ailment, Cash-v-Profit Syndrome.

This is where businesses convince themselves that they must focus on a single business strategy based on either chasing cashflow or chasing profit to keep their business alive.

Unfortunately, this disease affects the patient so badly that they fail to see that the way to improve the health of the business is to take control of TIME.

When I assess any patient with this condition, I try to remind them that there are three elements of time that must be exercised to improve their business health:

Management Time, Project Time and Future Time.

Some crazy boffins report that the average UK Micro or Small business (MSB) operates with 3.76 managers and a business with £1million turnover requires 2.4 mangers to optimise the business performance. Clearly, even I know, that despite the wonders of modern medicine, we cannot physically split our managers, therefore it is impossible to have 0.76 or 0.4 of a person in your team. This means that management staff have to work longer hours to deliver the workload, becoming less productive, or a business has to invest in staff that it may not be able to justify or afford, without even considering if the right person is available to join their team.

Likewise, when we look at the time it takes for an MSB to deliver a project, then we see on average these projects are 8% behind the original plan, which can have a huge impact on cashflow and profit.

It is also noticeable that the ability to predict the impact on future business performance is considerably reduced is MSB’s. In many instances the inability to access and analyse historical business data is non-existent, leaving the organisation relying on predicting future business decisions using a Crystal Ball approach. Resulting in the business being reactive rather than pro-active in dealing with cashflow or profitability challenges.

So, the Doctor’s diagnosis this week is to remember cashflow and profitability doesn’t need to be an either-or choice in your business. By taking control of TIME then you can prioritise, predict and manage all the business challenges. This also does not need to be expensive as hiring new staff. Your existing staff’s productivity, efficiency management controls can be greatly improved by simply by investing in IT with the correct business tools and data management systems, which can be installed in your business now for as little as £100 with Apsis One-Share.

Remember if you would like to hear more from Doctor Spanner’s Toolbox connect with us through social media or visit our website where you will find the tools to maximise your business productivity and profitability.

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