Spending time this week on research into organistion’s. Ensuring our contact details are up to date. One question I pondered over? Why do we only have to publish only our company annual returns, the financial and various liquidity ratio’s and not our strategy and or business model.
Our financial returns are familiar to most of us who run business, from those sole trader one person organisation’s to multi billion business. They are a constant in our business lives.
I understand that your financial data and returns are a snapshot of a particular point in time of an organisation with financial numbers to show current numbers compared to previous years, but no mention of your strategy and business plan, in essence your business model. It is just a looking back exercise and not forward planning for you and your business.
Why do we spend time on past performances, yes they can be a guide to future but thats the magic word ‘a guide’. What I would like and hopefully EU may eventually require organisations to submit your business plan / model with returns. You need to examine your strategy for the years ahead. While details may be confidential but how much more than your financials, it will focus you on growing the business.
Organisations vary in their analysis and updating of business plans. We all strive to get them completed for our startup advisors, to get enterprise up and running, banks on board with and then lapse into reviewing it.
A reality check, what is your actual performance?.
Is your business plan buried in the back of filing cabinet or worse, like your wedding album?
Your business plan is effective, it highlights areas that you may have examined but not pursued. Your business model, we can analysis your performance. Help you step back and observe your processes and methods.
Note to all: Financial Innovation in the context of this blog does not mean an innovative method of booking or creative financial accounting, i.e. avoiding taxes or dodgy ‘creative’ book keeping.