June 24, 2015
Business Advisory Services. What are they and why would you need them? As the name suggests Business Advisory refers to recommendations and advice in relation to your business and how to make it run smoothly and efficiently. Specifically business advice in relation to how you can improve your business. How you can improve some key areas of your business including cashflow, debtors, creditors, stock, business profitability and the ultimate worth or value of your business.
Did you know that your level of debtors and stock can adversely impact your cashflow and therefore your ability to pay your creditors? These areas of your business are interrelated. If one of these areas is not at the right level there can be some unwanted consequences for and in other areas of your business.
Every business has a unique set of circumstances so what works for one business many not work for another business. That’s where business advisory services can help. You need to determine what works for your business, for your specific set of circumstances.
Consider the following questions for your business. What level of debtors should my business carry at any one time? What is the optimum level of stock my business should have in the warehouse at all times? How do I effectively manage my creditors to ensure I always have the stock I need to meet sales demand when a customer places an order? How do I stop creditors ringing for money but ensure I always have supplies and overheads on hand so the business runs smoothly?
Business advisory services also look at your business from the big picture perspective. Is your business profitable and how can your profit be improved? Many factors contribute to business profitability so many areas can be examined to ensure they are right for your business.
Business advisory services can help you improve many areas of your business. To help make it run smoothly and to be at optimum levels which lead to better profitability. Profitable businesses that will be worth more when it comes time to sell.