... spending more than income ...
Bullets
• Money appears to be leaving too fast
• Worry about spend without visible benefit
• Spend greater than revenues
Discussion
Money is a very sensitive subject within all companies. It is absolutely necessary for the company to survive and its control is a key driver to internal conflict. Where there is concern over money this is often due to lack of communication coupled with unclear roles and responsibilities. Getting clarity is absolutely critical if the business is to survive without conflict.
Money appearing to be leaving too fast is an indication of;
a lack of communication within the company explaining the money spend
an imbalance in the company's internal relationships (people conflict or politics) coupled with a real, or perceived, lack of controls over spend
A genuine concern on the rate of spend relative to revenues and / or expectation
Worry about spend without visible benefit is an indication of;
Concerns on controls or lack of them
Concerns on priorities
Expectation gaps
Spend greater than revenues is an indication of;
Business slowdown which is unexpected
Imbalance between discretionary and non-discretionary spend
Spend too high relative to what was expected, especially during the business start-up phase or when a company is going through significant growth
How BC-Strategic can help
Financial Big Picture
work with your finance function or accountants to build the current picture of spend and build detailed views of the current spend to include discretionary vs non-discretionary spend, and identify top 10 spend areas to be used for financial decision making
build a communication plan for internally publicising the financials
build a communication plan for company roles to balance out internal conflict
Financial Prioritisation
work with you to review spend with the stated company goals
identify areas for reducing spend without damaging the business
create a plan to direct spend to prioritised and managed areas
Spend Options
Create a series of options for cost management eg. cost avoidance schemes by closing non-strategic business lines, outsourcing administrative functions
Creating spend approval processes and controls that match business needs
Review or create 3 year spend forecast
If you have any questions please contact us at
info@bc-strategic.com