How fast can you react?
Are your reactions lighting fast? Or are you struggling to keep up? Fast reactions are useful in a variety of situations; accidents, emergencies, but also in business. The ability to react to changes in the marketplace is one of the main areas where small businesses can beat big businesses. Being able to judge the trends and changes in a marketplace and ensure that you are in a good position quickly can be an indicator of success. But what has this got to do with accountants?
Imagine you have a small company that sells blue widgets, and the big company that sells green widgets goes bust. If you know the exact financial position of your company, how much money is in the bank, cash reserves, forecast sales for the coming months and your current profit margin, you will quickly be able to assess whether you can afford to jump into the green widget market. Other bigger companies will be likely to move into the green market, but you can steal some of the market share with speed.
However, if you don’t know your forecasts, your exact profit margin, your cash reserves, you are less equipped to make the leap into the green widget market. You can go away and find these figures out, but this will mean losing the critical time where the market was open for the taking. By the time you have found these figures, a big company has already moved into the green widget market ahead of you.
A good management accountant will know whether it is viable for you to move into the green widget market, as they are involved in your business and will be able to accurately help you decide whether or not this is a good move.
At TLA Business Services we understand that making endless decisions alone about your business can be tiring and lonely, but with our management accountants we will support and encourage you in making sound and thoughtful decisions. We believe that the best way to serve our customers is to be involved in their businesses throughout the year, not simply to tell them how they have done at the end of the year. If you think having on-going support throughout the year sounds like a good idea, give us a call on 01905 21411