Running a business day to day, and making sure it’s profitable are two very different things.
You can have all the pieces in place and have it running smoothly, but if you’re not making any (or enough) profit, what’s the point?
This is where a financial planning business coach can help.
Growing a business is not just a case of setting a nominal X% growth target. It’s important to understand the drivers of business and profit, and then know how to control them!
UK Growth Coach has a unique model called The Profit Flow specifically designed for business owners to manage their profit. This model is a good reason on it’s own to work with a financial planning business coach!
Financial planning business coach: The profit flow
The idea is that money flows into a business, and there are various points at which it can either flow freely or be slowed up.
The key stages are…
The number of lead and client contacts (i.e.where a member of your target audience (either a prospect or a current or past client) gets to properly interact with / or is reminded about your business’s key marketing messages)
X
The marketing progression rate (%) from leads to enquiry (this is a mix of message power, brand identity, and starting value proposition)
=
Your “number of qualified enquiries”
X
Your sales conversion rate (%)
=
Your number of clients
X
The average value achievement on each order (a function of value proposition, sales skills, and other elements)
X
The average frequency of orders (within that annual period – influences by account management, education and service selection strategy)
=
Your turnover
–
The COS (cost of sales) / COGS (cost of goods sold)
=
Your gross profit
–
Business Overheads (fixed costs)
=
Your EBITDA (Earnings before interest, tax, depreciations, and amortisation)
Each area in blue text here represents a potential area for improving business strategy choice, and thus business performance.
They are important Key Performance Indicators (KPIs) which drive the growth of your business and enable its performance.
Accountants vs financial planning business coach
Whilst accountants are a vital part of business planning, the vast majority are not skilled in marketing, sales, business operating efficiency, staff management, systemisation, or productivity.
These are the elements that influence the critical factors in the profit flow. An accountant can tell you the outcome of those, but not what each of them are nor how to change them.
These are all the remit of a business coach with expertise in those areas, which UK Growth Coach is.
We do, however, definitely need a good accountants help!
Accountants are excellent at helping guide on all the financial systems, tax planning, and much more. They are very highly trained and are experts in their field.
Business coaches and accountants are, in most cases, both highly valuable during the process of financial planning and they have complementary skill sets, that feed off of one another.
Good accountants recognise these differences and will value the input of a business coach. A financial planning business coach is therefore a complementary addition to your pro-active accountant.
A financial planning business coach
A business finance coach helps you manage your business finances so that your business can be more profitable. They also teach you how to manage the cash in your business with confidence.
Here are four ways a financial planning business coach can set your business up for success:
- Identify if there are any money leaks in your company
- Understand how profitable your business actually is
- Plan and understand your taxes
- Create a financial plan.
If this is something you need help with or want to have a chat, why not book a complimentary 90-minute business strategy session with our Founder, Tim Rylatt?
He has helped over 250 companies to date and you can hear the success he has achieve for them in our case studies.
To learn more about our products and services, click here.
