This is a guest post by David Seaman FCA, Director, Three Lines Chartered Accountants
Whether a business is large or small, at Three Lines, we believe that every business should have a mission statement.
A mission cannot succeed unless the mission is known and all parties involved are on the same mission.
A mission statement will tell the reader what the business is trying to accomplish.
It is a clear intention of future success.
It will communicate the core values of the business and hopefully connect with clients, potential clients, employees, investors and the wider world.
A mission statement is not the place to put any financial numbers!
Our own Three Lines mission statement is to proactively communicate the Financial Numbers of ambitious creative businesses in a clear, no nonsense, jargon-free manner.
Following on from producing a mission statement, the hard, but fun, work begins.
A sensible business plan must be produced, discussed with all parties and finalised.
It doesn’t need to involve oodles of paperwork, but the plan does need to be a concise easy to follow strategy for your way forward that you can tweak over time.
Make sure plans are realistic and achievable. It saves being disheartened, and it will ensure you have the right resources, and energy, to achieve your mission.
Ensure the plan contains clear and measurable financial objectives, which will include headline figures for cash generation and profitability.
This sort of planning is often seen as a one-off exercise undertaken only when a new business is starting up or when you’re heading off to the bank. But by repeating this over time, you can see how it builds up a good picture of past successes and failures and allows you not to rely on memory alone.
The main reason for the high failure rate of newly established businesses is when owners lack experience in managing all aspects of the business. So if you need help or feel out of your comfort zone, the best advice is to get just that.
This is the proactive work that Three Lines specialises in and enjoys working on.
Planning is extremely important. It can be said that “failing to plan, is planning to fail”.
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