Adewale (Joseph) OKANLAWON. PMEC™, CFE, FMVA® ACCA, QuickBooks Pro.’s Post

Unleashing Profitability: A Journey to Sustainable Success for SMEs! 📈 Allow me,to share a transformative story of Judith, a dedicated businesswoman who faced the silent threat of Ignoring Profitability Analysis. I worked with her on a journey to overcome this challenge and pave the way for her business's prosperity. 👩💼 Meet Judith, the Determined Entrepreneur Judith, a passionate entrepreneur, poured her heart and soul into her business but struggled to see the full financial picture. Ignoring Profitability Analysis left her in the dark about the true health of her operations, hindering growth and jeopardizing long-term success. 🔍 Diagnosing the Issue: Unveiling the Blind Spot Upon assessing Judith's business, it became clear that a lack of profitability analysis was holding her back. Without understanding which products were driving profits, how pricing strategies impacted revenue, or where costs could be optimized, Judith's business was at risk of stagnation. Empowering Judith: Practical Steps to Success 1. Identifying Profitable Products/Services: Together, we analyzed sales data to pinpoint Judith's most profitable offerings, enabling her to focus resources on high-impact areas and maximize returns. 2. Reviewing Pricing Strategies: By conducting a pricing analysis, we adjusted pricing structures to reflect value accurately, boost margins, and align with customer expectations, driving revenue growth. 3. Optimizing Cost Structures: Through a cost analysis, we identified inefficiencies, renegotiated vendor contracts, and streamlined operations to reduce expenses without compromising quality, enhancing profitability. 4. Implementing Profitability Metrics: Introducing key performance indicators (KPIs) for profitability, we established a system to track and monitor financial performance regularly, enabling Judith to make data-driven decisions with confidence. The Transformation: Judith's Path to Prosperity Armed with a newfound understanding of profitability analysis, Judith's business flourished. She gained clarity on her financial health, made informed decisions, and steered her SME towards sustainable success, all thanks to embracing the power of profitability analysis. Let Judith's story inspire you to prioritize profitability analysis in your own business. By following these practical steps and unlocking the insights hidden within your financial data, you too can propel your SME towards a future filled with growth, resilience, and prosperity. I hope this is helpful? #ProfitabilityAnalysis #SMEs #FinancialSuccess #AccountingProfessional

💡 Understanding EBITDA: Why It Matters for Business Owners and Investors Ever wondered why EBITDA is such a popular metric in business analysis? Here’s a quick breakdown! 👇 What is EBITDA? EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. Essentially, it’s a measure of a company’s operating performance, excluding non-operational expenses. Think of it as a way to see how much money a business makes just from its core operations. Why is EBITDA Important? For business owners and investors alike, EBITDA is a key indicator: • Clarity on Profitability: It provides a snapshot of profitability before certain costs, giving a clear view of operational efficiency. • Investor Confidence: Investors and lenders use it to assess how profitable and cash-generating a company truly is, which impacts lending and investment decisions. • Simple Benchmarking: As a widely used metric, EBITDA makes it easier to compare performance across companies and industries. How is EBITDA Calculated? To calculate EBITDA: 1. Start with revenue. 2. Subtract cost of goods sold and operating expenses (excluding interest, taxes, depreciation, and amortization). EBITDA vs. Net Income Unlike net income, EBITDA ignores non-operational factors, providing a cleaner look at operational success. 📊 Whether you’re scaling your business or looking to invest, understanding EBITDA is crucial for evaluating profitability and financial health. ♻️ Like & Repost this to help others in your network👍 And follow Jeremiah Teo (赵汉昇) for more! #charisma #leadershipdevelopment #executivecoaching #lifecoaching #highimpact #entrepreneurship #personaldevelopment #charismabusinessgrowth #jeremiahteo

In the dynamic world of business, steering clear of common pitfalls is crucial for sustained success. Ahead of this week’s edition of the #BusinessRecoverySeries, we are sharing some the common #Mistakes business operators and entrepreneurs make along with their impactful consequences: 1.POOR / LACK OF PLANNING: The lack of planning in business signifies the absence of a comprehensive roadmap, leading to a cascade of detrimental effects. Without a clear plan, businesses lack direction, making it challenging to align efforts, allocate resources efficiently, and set measurable goals. This absence of strategic guidance hampers the ability to manage risks, adapt to market changes, and instills uncertainty among stakeholders. Moreover, the lack of a well-defined plan may deter potential investors, hindering financial support. 2.MARKET RESEARCH: Insufficient market research is a critical mistake in business that involves a lack of thorough investigation into the target market and industry landscape before launching a product or service. This oversight can have significant repercussions as it means a business operates with limited understanding of #customer needs, preferences, and competitive #dynamics. Without comprehensive #market research, businesses may introduce offerings that fail to resonate with the target audience or overlook key factors in the environment or community the business is in, influencing consumer behavior. The impact extends to missed opportunities, ineffective marketing strategies, and an increased likelihood of product or service failures. 3. IGNORING CUSTOMER FEEDBACK: This is a detrimental oversight in business that involves neglecting valuable insights from the very individuals who use a #product or #service. Customer feedback serves as a direct line to understanding their experiences, preferences, and #expectations. Failing to acknowledge and act upon this feedback can result in a disconnect between the #BUSINESS and its #CUSTOMER base. The impact is profound, potentially leading to a decline in customer satisfaction, loyalty, and the overall competitiveness of the company. Businesses that disregard customer input may miss opportunities for improvement, innovation, and the development of products or services that better align with market demands. 4.POOR FINANCIAL MANAGEMENT: Well, this a significant pitfall in business that encompasses various mistakes such as overspending, inadequate budgeting, and ineffective resource allocation. This #negligence can lead to financial instability, hindering the enterprise's ability to navigate economic challenges and seize opportunities for growth. Without a solid financial foundation, businesses may struggle to meet operational needs, repay debts, or invest in essential areas such as marketing and innovation. KEEP TRACK OF YOUR BUSINESSES ENTREPRENEURS!

Top 5 Financial Modelling Tips for SME Success Financial models are not just numerical representations—they are strategic tools that can guide small and medium-sized enterprises (SMEs) through decision-making and growth planning. Here are five refined tips for SMEs to enhance their financial modelling approach: 1. Streamline for Clarity: Build models that are straightforward and focused on critical financial aspects like cash flow, expenses, and revenues. A clear model helps in better decision-making. 2. Define Assumptions Clearly: Ensure that the assumptions your model relies on are well-defined and visible. This clarity aids in modifying strategies quickly as market conditions change. 3. Update Regularly: A dynamic approach is essential; update your models to reflect current economic and business conditions to maintain their relevance and accuracy. 4. Focus on Decision Utility: Your financial model should serve as a decision-making tool, aiding in negotiations and strategic choices by providing actionable insights and predictive analytics. 5. Evaluate Sustainability and Scalability: Use your model to test various scenarios that assess the long-term viability and growth potential of your business. This can guide resource allocation and expansion plans. By prioritizing these aspects, SMEs can turn their financial models into powerful tools for navigating today's market complexities, ensuring they not only survive but thrive. #FinancialModelling #SMEs #BusinessGrowth #StrategicPlanning #DecisionMaking #FinancialPlanning #BusinessStrategy #Entrepreneurship #BusinessInsights #EconomicGrowth

How Highly Geared Businesses Can Fail Overnight !!!! In the dynamic landscape of business, the margin between success and failure is often defined by how well a company manages its financial leverage. As a seasoned business consultant, my experience has shown that businesses heavily reliant on loans and high expenses face a unique set of vulnerabilities. This discussion aims to shed light on the pitfalls of excessive financial gearing and to offer strategies for sustainable growth and stability, especially in the face of fluctuating interest rates and uncertain economic climates. The Risks of Over-Leveraging The allure of rapid expansion often leads businesses to take on substantial debt. While this can fuel growth in the short term, it also creates a fragile financial structure. The danger escalates when external economic factors, such as rising interest rates, come into play. Suddenly, the manageable repayments become burdensome, squeezing cash flow and threatening the very survival of the business. Strategic Cost Management: A Necessity, Not an Option Effective cost control is critical in preventing such scenarios. It's not merely about reducing expenses but about optimizing them. Strategic spending, process efficiency, and judicious investment decisions form the bedrock of sound financial management. This approach ensures that resources are allocated where they yield the best returns, safeguarding the business against unnecessary financial exposure. READ THE FULL ARTICLE https://lnkd.in/eEAZNrku Bradley Chapman, Business Consultant, Coach, and Mentor www.bradleychapman.com #BusinessStrategy #FinancialManagement #TeamProductivity #BusinessGrowth #Entrepreneurship #Leadership #StrategicThinking #BusinessConsulting #BradleyChapman

Anticipating problems is a crucial skill for entrepreneurs to navigate the challenges of starting and running a business successfully. Here are some strategies to help entrepreneurs anticipate problems: Market Research: Conduct thorough market research to understand your target audience, competitors, industry trends, and potential obstacles. This will help you identify potential problems before they arise. SWOT Analysis: Perform a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis to assess both internal and external factors that could impact your business. This will help you anticipate potential threats and weaknesses that may arise. Scenario Planning: Develop various scenarios that could affect your business, such as changes in market conditions, shifts in consumer behavior, or unexpected events. By planning for different scenarios, you can better prepare for potential problems. Seek Feedback: Regularly seek feedback from customers, employees, mentors, and advisors. They may provide insights into areas where your business could encounter problems that you may not have considered. Stay Informed: Stay up-to-date with industry news, market trends, technological advancements, and regulatory changes that could impact your business. Being informed will help you anticipate potential challenges and adapt accordingly. Financial Planning: Develop a comprehensive financial plan that includes budgeting, forecasting, and risk management strategies. This will help you anticipate and mitigate financial challenges before they escalate. Build a Strong Team: Surround yourself with a diverse team of talented individuals who bring different skills and perspectives to the table. A strong team can help you identify and address problems more effectively. Continuous Learning: Stay curious and continuously learn from your experiences and the experiences of others. By being open to new ideas and perspectives, you can better anticipate and respond to potential problems. Establish Contingency Plans: Develop contingency plans for potential problems that may arise, such as supply chain disruptions, changes in consumer demand, or economic downturns. Having a plan in place will enable you to respond quickly and effectively when problems occur. Monitor Key Metrics: Regularly monitor key performance indicators (KPIs) and metrics relevant to your business to identify any signs of trouble early on. This will allow you to take proactive measures to address issues before they escalate. By implementing these strategies, entrepreneurs can better anticipate problems and position their businesses for long-term success. #enterpreneur #ceos

🌟 The Tough Reality of Buying a Business 🌟 While buying a business can be a strategic move towards achieving financial independence and growth, it’s crucial to approach this decision with a clear understanding of the challenges involved. The entrepreneurial journey is not for the faint of heart, and these statistics underscore why due diligence is essential when acquiring an existing business. 📊 Here are some sobering statistics to consider: 1. About 20% of small businesses fail within the first year (U.S. Bureau of Labor Statistics). 2. By the end of the fifth year, roughly 50% of small businesses have failed (U.S. Bureau of Labor Statistics). 3. Only about 30% of small businesses make it to the 10-year mark (U.S. Bureau of Labor Statistics). These numbers highlight the inherent risks in the entrepreneurial landscape. When buying a business, it’s not just about the financials but understanding the underlying factors that contribute to long-term success or failure. 🔍 Key Considerations Before Buying: 1. Thorough Due Diligence: Investigate the business’s financial health, market position, customer base, and operational efficiencies. 2. Understanding Market Trends: Ensure the business is in a growing industry and has a strong competitive edge. 3. Assessing Operational Stability: Look at the management team, employee satisfaction, and any existing contracts or obligations. 4. Evaluating Growth Potential: Consider the business’s ability to scale and adapt to market changes. Buying a business is a significant investment and these statistics serve as a crucial reminder to proceed with caution and thorough preparation. Ensure you have a clear plan and the right support to navigate the complexities of business ownership. 💪 Here’s to making informed decisions and driving success through strategic acquisitions. #BusinessAcquisition #Entrepreneurship #DueDiligence #SmallBusiness #BusinessGrowth #Leadership References: • U.S. Bureau of Labor Statistics, “Business Employment Dynamics”

For small businesses, performing a SWOT analysis and planning for financial growth are key to informed decision-making and leveraging market opportunities. Additionally, fostering a culture of innovation can set your business apart in 2024. #iworkforComcast #SmallBusiness #BusinessGrowth #Innovation https://lnkd.in/gtpFurPJ

For small businesses, performing a SWOT analysis and planning for financial growth are key to informed decision-making and leveraging market opportunities. Additionally, fostering a culture of innovation can set your business apart in 2024. #iworkforComcast #SmallBusiness #BusinessGrowth #Innovation https://lnkd.in/e8JMm-iZ

Illuminate the worth of your enterprise by fostering a state of readiness. A business valuation transcends the mere representation of a numeric value. It symbolizes the culmination of your exertion, emotional investment, and incalculable hours dedicated to your entrepreneurial endeavor. I propose we synthesize this journey into a systematic five-step procedure. 1. Comprehend your Objectives: Ascertain the motivation driving your pursuit of a valuation. Is it geared towards a merger, an acquisition, or an internal evaluation? Your underlying objective will determine the methodology employed and the degree of meticulousness demanded. 2. Fiscal Analysis: Accumulate and examine your financial documents. Your profit and loss statements, balance sheets, and cash flow statements from the preceding years are essential. These records furnish a quantitative evaluation of your business's performance. 3. Market Examination: Develop a comprehensible understanding of your industry. Grasp the evolving trends, potential threats, and prospective opportunities. Such information will aid you in determining the position your enterprise occupies within the market, thereby contributing an additional layer to your valuation. 4. Business Predictions: Anticipate the future performance trajectory of your business. This prospective viewpoint is of paramount importance, as it offers potential investors or acquirers a peek into their potential returns. 5. Retain a Professional: As a final step, contemplate appointing a seasoned valuation expert. Doing so will ensure an impartial and precise evaluation, and they can steer you through this intricate process. Preparation for a business valuation is not merely a numerical exercise. It is a strategic maneuver that can unleash avenues for growth, financial backing, and strategic planning. #entrepreneurship #socialnetworking #technology #innovation #pnwa #investing #creativity