Monitoring business performance
Your Board and advisors absolutely must monitor and analyse how your company performs over time, including:
- Your business’s performance, financial position and profitability projections for the future
- Cash flow forecasting to ensure that trading is smooth, as well as access to funding as-needed
- Overseeing marketing, personnel, sales, and operations to determine where a change in strategy may be needed
The Board assesses how your organisation performs and meets objectives in operations, strategy, and finance. It works to help set priorities, ensure that the company executes and follows through on approved plans, and meets objectives in a timely manner.
As many organisations have a number of data points that can be used to measure overall performance, such as financial metrics, industry trends, and peer data, the Board must create a consistent process to acquire, assess, and make use of the best data available.
This information can be sourced from Board reports, surveys, audit opinions, industry benchmarks, and financial statements. By doing so, your Board can best understand how your business’s performance, as well as what potential issues you may face as you grow.
The Essential Guide to Scale-Up Challenges
Learn about how to overcome 16 challenges when scaling up your business
Other strategic challenges you may be facing:
❖ Strategic Direction – creating a strategic direction for growth means having a plan to follow so the whole team is working towards clear goals. You can measure business performance against your objectives so you know if you are on the right path and if you are not taking the necessary action.
❖ Business Planning – ensure you have a clear understanding of all aspects of your business and can present your business to investors or debt funders when you need to. Make sure your business plan includes all the essential elements you need so you don’t lose out on great opportunities.
❖ Business Growth – growth is what all Scale-ups and most SMEs aspire to. Having a well thought out and clear growth strategy means you can drive your sales and profits in the right direction and scale-up with confidence. You’ll need the right people, processes and products or services, as well as the right experience to make the best decisions.