Mistakes to avoid in 2023
Keeping an eye on all aspects of your business is difficult at the best of times, and more so than ever in the current inflationary environment. GroForth’s Ashley Halsall highlights some common mistakes to avoid.
While it’s true that we learn from our mistakes, the lessons can be very expensive so it’s worth avoiding the most common mistakes when we can. Here are 9 to watch out for in 2023:
- Monitoring the wrong key performance indicators. The systems that your business relies on contain a wealth of information which when properly analysed and used can unlock opportunities and save you time and money. Too often, we see businesses using generic KPIs Instead of designing their own KPIs to match their strategic objectives.
- Focusing on sales rather than profit margins. When costs are rising, it’s more important than ever to focus on maintaining good profit margins. A well managed sales pipeline will help you streamline your processes and convert prospects to customers. However, remember that maximising your ability to grow revenue is only worthwhile if the prospects you focus on generate profit for your business.
- Poor record keeping. Administrative tasks often fall behind when there are more urgent pressures elsewhere in the business but poor record keeping leads to mistakes. Neglecting your business accounts can affect your ability to access loans while payroll mistakes can be time consuming to sort out, particularly if they go unnoticed for a prolonged period. Maintaining accurate records will help you avoid expensive headaches. If you don’t have the resources to manage your processes effectively in-house, GroForth may be able to assist you. Contact us for details.
- Reacting slowly to rising interest rates. It is important to monitor interest rates and assess the impact that changes will have on your input costs. Managing cashflow is vital. Check out our recent blog on cashflow tips for inflationary times.
- Not keeping up to date. Legislation changes all the time. In the last few weeks we’ve seen new Statutory Sick Pay rules come into force and new requirements affecting businesses where workers receive tips and gratuities. Changes that impact payroll can be very expensive if you don’t comply on time so it’s important to ensure that your payroll administrator keeps up to date. If you’re not confident that you can manage payroll or other administrative processes effectively in-house, it may be time to outsource.
- Hiring rather than innovating or outsourcing. Inflationary pressure in the economy is driving up wages and this, combined with a skills shortage in certain sectors, is making hiring expensive. Before taking on additional staff, particularly administrative staff, it is worth looking at alternatives like outsourcing.
- Poor financial control / poor credit control. Keeping a close eye on your finances and debtors is more important than ever in the current trading environment. Previously, we’ve shared tips on how to implement effective financial controls. Your systems should flag up emerging problems. If and when this happens, it’s crucial to act quickly. Problems that are ignored have a nasty tendency to escalate.
- Not investing in technology. Tools that integrate and streamline processes are increasingly affordable and accessible. Making the most of available technologies is a great way to free up time and resources.
- Failure to backup your data. This is another common mistake. Regular backups are essential and remember to test that they work correctly as you may need to rely on them if things go wrong.
Make time to manage
Your time is precious and one of the best ways to maximise it is to clarify your goals and focus on avoiding the mistakes (and customers) that waste your time and resources. We understand that with limited capacity it is not always possible to do all that needs to be done. GroForth’s services are designed to ease your administrative burden, freeing you to concentrate on those aspects of your business that generate the greatest return. To find out more about how we can help your business, please get in touch.