Business support practitioners are often frustrated by the lack of enthusiasm displayed by their small business clients when it comes to the use of solid financial forecasting. However, an appropriate approach and the use of accessible tools may help them in using budgets, cash flow forecasts, and expense comparisons with great effect.
So says Lynn Maggott, founder and MD of the Green Connexion, who started her career in financial control with large pharmaceutical and telecommunications companies. She is qualified in cost and management accounting and has, for the past decade, been active in supporting small businesses in overcoming their growth challenges.
Maggott is the guest on the next episode of the IBASA & EPI Webinar Series, covering the topic: “Supporting reluctant clients to use budgets and cash flow forecasting for growth”.
“Entrepreneurs who do not experience the immediate value for business success that current financial information provides, are often resisting the use of management accounts, variance analysis that compares actual results against budgets and cash flow forecasts,” says Maggott. “It is not that they have an inability to use this information, but rather that they have been taught that accounts is the historic information captured by their accountant for calculating VAT or submitting Annual Financial Statements for CIPC.”
In the upcoming webinar, Maggott will explain practical ways she is using in helping her small business clients to make a mind-shift when it comes to the use of financial information.
“Supporting reluctant clients to use budgets and cash flow forecasting for growth”
Join Lynn Maggott, founder and MD of the Green Connexion, for this practical webinar supporting your small business clients in adopting financial forecasting to enable growth.
Thursday 22 April from 11h30 to 12h45
<< CLICK HERE >> to book your place
“Firstly, you have to help your client to make it easy to access and use financial information as many entrepreneurs are more focussed on the technical side of their business than the use of spreadsheets to make sure the money is managed well,” she says.
“And secondly you need to make sure they see the benefit offered by the use of accurate information, as it helps them to understand their business better and make good decisions on the go.”
An accurate forecast helps business owners to understand where their money is going so that they can zoom in on potential overspending or unwise use of funds. In many instances, this starts with evaluating the money the owner takes as earnings and introducing the discipline of taking a salary, rather than ad hoc drawings.
“It is surprising to see how many small business owners do not know the break-even sales they need to make. They seem to hope for the best, not knowing how many units they have to sell every week and not knowing what contribution each sale needs to make to cover their overheads,” says Maggott.
“But this can easily change,” says Maggott. “A small shift by the owner allows for big gains in the use of financial information, but it always starts with making this shift!”
During the upcoming episode of the IBASA & EPI Webinar Series, IBASA MD, Mpho Mofikoe will also introduce IBASA members to opportunities in upcoming mentorship programmes and share the details of the IBASA 2021 AGM.
- To join the upcoming CPD webinar you can << REGISTER HERE >>.
- Christoff Oosthuysen is the webinar host, Founding CEO of the Entrepreneurial Planning Institute (EPI), and General Partner at Seed South Capital.