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New financial year - time to get your house in order?

on Thursday, 28 February 2013. Posted in Accounting, Consulting, System Implementation

Follow up on the Small Business Sins series - Implementing a business system

New financial year - time to get your house in order?

We are entering a new financial year for the majority of small business owners and individuals. In follow up to my previous blog regarding the small business sins, I believe a new financial year is a great time to start fresh.

For the majority of small business owners, time and money is a scarce resource. Hence implementing a proper structure and system is not at the top of their priority list. Most only spend some resources on complying with statutory obligations for SARS and CIPC, because they have to do so by law.

There are some profound underlying changes that occur when you get your house in order, but for now let’s focus on some of the more obvious ones. The typical small business owner does not want to spend time on creating a structure for their business because they perceive this as a waste of time. The reason they believe it is a waste is that they think they should rather spend their time on making more sales or getting more clients or to just do what they have to do to survive.

Make no mistake, the majority of small business owners work very hard and it is understandable that they may make this critical error in underestimating the value of order because they focus on daily survival. However order is essential for creating spare time in the future. It may seem the other way around at first when you are implementing a new system, but be sure if it is a solid logic system, you will reap the benefit in saving time in the future.

Once you reach the stage where your system takes on maturity and start running on its own, you will be able to start breathing more and returning to your original role of business strategist rather than operational slave. Remember that time when you started your business, your thoughts were occupied with questions such as what will work? What if I change this? How will this influence that? Now you have become operationally enslaved with questions such as: What time do I have to be there? How am I going to remember to do that? When do I have to pay this? What type of part did he want? What was it Mrs Jones ordered? How can he say that is bad service?

How do you ever want to grow without order as a foundation?

Is it time to get your house in order?

Comments (3)

  • Marriana Booyens

    09 March 2013 at 14:27 |
    Dis amazing hoe waarheid kan indrop in jou siel...dankie vir wat jy skryf en deel...dit voel asof net die blote feit dat ek dit lees my begin vry maak om my besigheidssake reg te maak, letterlik n kopskuif te maak en te weet dat as ek die regte goed begin implementeer, alles stadig maar seker sal begin beweeg in die regte rigting en die verwarring, en leuens sal moet begin gaan. Waarheid maak vry! Dit wat onmoontlik en te moeilik gevoel het om te doen, begin nou moontlik voel. Dankie Chris!

    reply

  • Mia Conradie

    22 April 2013 at 11:43 |
    Good advice mr Herbst.

    reply

  • Mzi Vava

    13 March 2014 at 19:04 |
    Thank you very much for this wise advice! As an emerging entrepreneur and small business owner I take note of this informative advice!
    Thank you

    reply

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