how to manage a small business successfully Archives | Numbers Knowhow

Know Your Numbers & Financial Ratios

Mahmood Reza — Fri, 02 Feb 2024 09:28:52 +0000

Numbers are everywhere, and for the most part, we just ignore them. That is unless we’re forced to pay attention to them when it comes time to do our monthly taxes or budget. But, for most people numbers don’t seem interesting. And this is something I’ve seen over and over again. Know your numbers I can’t emphasise enough how important it is to know your numbers. In your business, your numbers are your best friend. Once you realise that you will become less anxious about them. The enormous benefit your business numbers give you is clarity about how healthy your business is. They will help you in the good and not-so-good times. Because numbers don’t lie to you. They will always give you that reality check. They’ll wake you up from slumber and prompt you to take action. Financial ratios Your numbers can be turned into financial ratios. Consequently, they can tell you a lot about your business’s health and where it could be headed in the future. Here’s a quick guide to how to know your numbers and how to use the most essential financial ratios. Subsequently, you can start using your numbers to make smart decisions for […]

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Overtrading: Spot It And Fix It

Mahmood Reza — Fri, 27 Oct 2023 08:25:48 +0000

Are you looking to grow your business? If so, then it’s important that you don’t overtrade. Overtrading is a very common problem for businesses. Furthermore, it can lead to financial failure even if you’re making profits in your business. That situation, folks, is known as overtrading and that’s the theme of my video today. So let’s get started on our journey together on avoiding overtrading in your own business. Let me introduce myself first of all – my name is Mahmood and I am an accountant who works with lots of small businesses just like yours every day helping them improve their profitability through better cash management practices such as understanding their true cost base so they can make more accurate pricing decisions for their products or services which leads directly onto improved gross profit margins which means higher net profits at year end for them too! One thing I see often is clients struggling financially because they’ve been trading beyond their means because they want growth now rather than waiting. Have you ever wondered how to spot and fix overtrading? If so, then this video is for you. Over the next few minutes, I’m going to show you how […]

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Pricing For Profit: 5 Key Numbers

Mahmood Reza — Mon, 23 Oct 2023 10:47:16 +0000

Wondering how to price your products or services so you can make a profit? It’s not as simple as it seems because it involves several things to consider. That’s why figuring out the right price is one of the biggest challenges business owners face. There are two main financial outcomes of pricing and it’s so important to understand them. And to know how to calculate them. Once you know what those two outcomes are, the next step is to consider five key factors that will help you set a price for your product or service that meets your business objectives. And finally, I’ll show you a FREE online pricing calculator that makes it easy to do all this math for yourself. Watch this video now and learn how to price your products or services for success! How to price your products or services so you can make a profit You need to make sure you’re covering your costs and making a profit. In this video, I’ll explain the two main financial outcomes you need to meet: Time availability, and Quantity of time. These two are essential to take into consideration because nobody can devote all of their time to […]

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Achieving Success In Your Business

Mahmood Reza — Mon, 16 Oct 2023 10:30:17 +0000

Feeling like you’re not achieving success in your business? You’re not alone. You’d be surprised to hear that many people feel this way at some point in their lives. But don’t worry, I can help. Once you’ve learned what success actually is, you can start to work on achieving it in your own business. However it won’t be easy, but it will be worth it. I promise. Here are some tips and examples of how you can achieve success. Watch my video on business success and find out how to achieve it for yourself! A few words on success Certainly we all have our own definition of success, but there are some commonalities that we can all agree on. To clarify success is not a destination, it’s a journey. It takes hard work, dedication and lots of perseverance. But most importantly, it takes learning from your mistakes and continuously progressing forward. There are so many resources out there to help you achieve success in your business. All you need is the desire and willingness to learn and put in the effort required. Stay focused on your goals, don’t compare yourself to others, and always keep moving forward. You can […]

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Performance Management System: 5 Tips

Mahmood Reza — Fri, 13 Oct 2023 10:57:38 +0000

Do you need a system that will track the performance of your employees in a consistent and measurable way? Then you need a performance management system for your business! Wondering how to create one? You’re in the right place! In this video, I’ll be talking to you about the five steps you need to take to create performance management system that’s perfect for your business. A balanced scorecard approach This is a performance management system aligned with a company’s core strategic goals. It includes the performance objectives of the business which it monitors, measures (and changes if necessary) with the end goal of achieving the company’s business plan. Why it might sound scary to business owners Creating and implementing a performance management system for your business can be a daunting task. There are so many factors to consider – from setting goals and measuring progress, to providing feedback and handling termination procedures. There are five steps to creating a performance management system are: Identifying your critical success factors, Setting your KPIs, Figuring out your initiatives, Reviewing your progress, and Taking action. This list might seem intimidating at a first glance, but having the right tools and advice, will definitely […]

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Effective Business Partnership Tips

Mahmood Reza — Sat, 15 Jul 2023 10:24:25 +0000

Making your business partnership work can be daunting if you have never had a partnership. If you intend to start a partnership with a friend or a family member, you should consider many things. Do not assume that just because you get along in a personal relationship you will have success in a business partnership. Adhering to a few simple steps will ensure that you have the best experience in any business partnerships you decide to have. Read on to find out how to keep your business from suffering heartaches when forming partnerships. Align your values One of the fundamental steps in ensuring that you have a successful partnership is to have the same starting point. Specifically, this means that you need to have similar values. Sit down with your potential candidate for the partnership and discuss the overall vision of your business. For example, see that you have similar (or the same) answers to these questions: Where do you see the business going? What are the dreams and goals of the business? You must establish the key goals, values, work ethics, and environment in order to have the best business. Do not assume that things will work themselves […]

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Business Success With BREATHING

Mahmood Reza — Thu, 06 Jul 2023 10:19:14 +0000

Achieving business success is every business owner’s goal (and dream). But how to get there is another story. You’ll find lots of advice about how to reach success in business, but I’ve distilled all that into something that can be easy to remember and consequently, implement. My experience has taught me that BREATHING leads to business success. It’s an acronym that stands for what I believe are the essentials to being successful as a business or brand. Above all do you want to know what it takes to be successful? If so, then read on to find out. And also check out the short video below. Business success principles As mentioned above, we’re going to take a look at the principles that fall under BREATHING. You’ll discover how each ingredient is important on its own. Moreover, when combined with other elements they are more powerful and effective in helping you achieve success in your own business. Firstly, let me explain what each letter represents and why they’re important individually as well as collectively with regard to business success. B – belief, as in self-belief R – risk, as in risk appetite E – education, as in learning A – […]

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Set The Right Business Targets

Mahmood Reza — Tue, 11 Apr 2023 10:07:59 +0000

Setting the right business targets can seem daunting, but it need not be. We will help you to choose the right targets for your business, and provide tips on how to reach them. Why targets are important The first thing that we want to make sure of is explain why setting business targets is one of the most important things you can do. It’s because targets give you a goal to aim for, and help you measure your progress along the way. Many small businesses set their goals too high and then struggle to reach them. In this blog post, we’ll show you how to choose the right targets for your business and give you tips on how to achieve them. So, whether you’re just starting out or looking to make a change, watch the video or read on for inspiration! What kind of targets you should be setting I’ve seen many businesses make the mistake of setting only financial goals. The trouble with that is that it doesn’t give us the complete picture. The reason why you’re not achieving your goals might of a different nature than pricing or proper markups. It could, in fact, be some kind […]

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How To Write A Financial Plan

Mahmood Reza — Tue, 11 Apr 2023 09:47:44 +0000

Are you a business owner who is looking to write a financial plan for your company? If so, you’re in luck! In this blog, I will be teaching you how to write a business financial plan that is both accurate and achievable. So, whether you’re just starting out or are looking to improve your current plan, keep reading for tips and advice. Your financial plan is an important document, as it is for any business, no matter its size. A good financial plan can help you make sound decisions about your company’s future and keep your business on track financially. But writing a financial plan can be daunting – especially if you’re not familiar with the terminology. So where do you start? This blog (and vlog) will walk you through the basics of writing a business financial plan. Why you should write a financial plan If you’re thinking about whether you can afford something for your company at the moment – things like: Investing in a course or business coaching you’ve just come across, Hiring more staff, Outsourcing a certain portion of your work, Starting a marketing campaign, etc. Then, you need to be familiar with your numbers at […]

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How To Manage Your Business Risk

Mahmood Reza — Tue, 11 Apr 2023 09:34:19 +0000

Managing your business risk is something you need to know no matter what kind of business you run. Naturally, there will always be some inherent risk involved when running your business. There’s no way to completely eliminate the risk. But by understanding and managing it, you can minimise its impact on your bottom line. In this blog, I look at the following: Understanding what risk is, Looking at risk categories, How you can identify risk, Ways to manage your risk. Watch the video to find out more about managing your business risk, or simply read on. What is business risk? A business risk is any situation that is sure to make a company not reach its goals. For example, it may be something that will have an effect on the relationship or communication with your customers. Consequently, you’d lose sales, and make the desired profit. Another example could be some sort of natural disaster. This may also affect communication with clients, or distribution of products (if you’re a product-based business). It could also be loss of suppliers. This will then result in you not being able to deliver on time, or deliver as big a quantity as you had […]

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Dealing With Procrastination

Mahmood Reza — Tue, 11 Apr 2023 09:29:16 +0000

Have you ever put off doing something, and then ended up racing to finish the task last-minute? If this sounds familiar the read on: It might be that you’ve been struggling to start work on major tasks just because they feel overwhelming. Hence, you’ve delayed them, telling yourself you’ll work on them when you have more time. But inevitably, that time never comes. Has this made you feel like you’re stuck in a cycle of procrastination, unable to break free? Don’t worry – you’re not alone! In this blog (also available as a vlog), I’ll look at what procrastination is, and offer some tips on dealing with procrastination. A short intro to procrastination Procrastination is a huge problem for many people, and it can have some pretty negative consequences on our lives. However, there are things we can do to reduce the amount of procrastination we do and improve our productivity in general. In this video, I talked about what procrastination is, how it manifests, why it occurs, and more importantly, what we can do about it. We often delay things if: They feel too difficult to complete, They are new or unfamiliar, or When we get distracted by […]

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How To Be Financially Successful

Mahmood Reza — Tue, 11 Apr 2023 09:13:21 +0000

Are you looking to be successful in your business but don’t know where to start? Most people think that in order to be successful in business, you need to be intelligent, have a lot of money, or know the right people. While these certainly don’t hurt, there are other factors that are just as important – if not more so. In this video, I’ll share with you the three most important secrets to success in business. No guarantees, but they help massively. These three steps are known as the 3 As: Attitude, Approach, and Application. Each is explored in detail so that you can start using them today! Watch to learn more about each one. How to be successful – key elements outline Attitude It’s really about how we see our business and what our attitude is towards it. Think about things like procrastination, Imposter syndrome, feeling lonely as you run your business solo, etc. All of these things impact our mindset or attitude. Despite different obstacles or difficulties, our attitude should be positive. Adopt the right attitude towards your business so that you can be successful. Approach If you want to make an impact, make money, and achieve […]

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