Business owners must retain accountability and responsibility for critical decisions and actions, particularly those related to cash flow, profit management, and policy development, to ensure the long-term viability and success of their business.
Primary Implication
Accountability for results begins and ends with ownership. If the business owners are quick to blame others or make excuses, those in their employ will do likewise.
Accountable owners don’t wait and hope for cash and profits to appear; they lead the way in getting things done because they know ultimately everything that happens in a business they “own” it.
Using the principles of the Business CPR™ Management System is how they hold themselves and those in their employ accountable for the results of the actions occurring across their business.
Overview
Business owners best honor the obligations they have to themselves and their businesses by being clear on what it is they alone are the best at doing and not let go of any accountability or responsibility for these business-critical decisions and actions.
Below is a list of the most common business accountabilities for a small business owner:
- Cash and Profit Plan Management
- Sales, Ops, Finance and HR Policies
- Cost, Expense Policies
- Asset Management
- Risk Analysis + Insurance
- Marketing Promotions
- Corporate Accounts
- Tax Management
- Community Involvement
- Professional + Financial Services Relationships
- Vendor and Subcontractor Relations
- Facilities Management
As your business grows, you are likely to delegate many of the above responsibilities, yet you will always remain accountable for how your business performs against the following business equations:
Business Cash Flow Equation: (Beginning Cash Balance + Cash Inflow) – Cash Outflow = Ending Cash Balance
Profit Equation: Net Sales – Direct Costs – Indirect Costs = Operating Profits
Failure to ensure that the relationship between cash flow, profits, and business reporting is managed in the best interest of your customers, employees, and ownership will rob you of owning a viable business.
Disciplined use of the BusinessCPR™ Management System will protect your business from failing. It is the surest way to realize your sales, profit, and wealth creation goals. Cash flow from your operations sets the foundation for the business you either make or lose money from.
