Smith & Williamson’s ‘Business Road Test’ has now been deployed with over 60 growth businesses. The Road Test looks at 20 key areas of a business, identifying areas for consideration and action.
Initial results show that the majority of businesses are overly dependent upon their owners. In addition, many said that their senior management are not given the authority to match their responsibility and that their board of directors lacked the optimum mix of skills and experience.
Owner managers can be the biggest barrier to the success and growth of their own business. While it is natural for owners to be involved in every aspect at the start, the skill is in reducing dependency over time.
A number of other key issues were flagged by the Road Tests:
Supply chain management and security was a major concern following the credit crunch and, whilst most businesses said their IT systems were fit for purpose, some said that their technology was not properly secure or backed up, with many lacking a disaster recovery plan.
A good banking relationship and a clear understanding of finances are obviously essential for the smooth running of any business. While some businesses said they needed help in these areas, the vast majority felt they were under control and that the availability of funds was adequate.
Most businesses acknowledged they could be doing more to minimise the tax burden on their business and staff by reviewing their tax procedures regularly and keeping abreast of available allowances, credits and reliefs.
In conclusion, is it time for you to let go of routine tasks and give your managers the tools and authority they need to do their jobs so that you can take charge of business strategy and focus on the big picture?