Making good business decisions - back yourself
There is always someone out there who will tell you it’s not the right time to buy a farm, start a business, expand your business, or borrow more money (“you know interest rates are going up”) …. And sometimes they’re right, but not always!
If you think the time is right for you to do any of the above, then the best thing you can do, is your own homework. Malveena Scott, a director and client advisor at BFA, says: “When making any business decision, first, do your homework thoroughly, including seeking good professional advice. Ask yourself, what is your end goal and do the numbers stack up? If everything looks good, and you feel good about what you are planning to do, then back yourself and go for it!”
When seeking advice from professionals – talk to your accountant and banker. They know your financial situation inside out and their job is to give you the best advice for your situation to ensure you get a good outcome.
To make a good business decision you need the numbers – do a budget and complete a cash flow analysis – this will show you if what you are contemplating is viable, and if you are comfortable with it. If the numbers are good, this will put your mind at ease.
However, don’t just look at the numbers. Carry out a SWOT analysis. This is a method for assessing four aspects of your business – strengths, weaknesses, opportunities and threats. This will help you analyse what you are doing well now and devise a successful strategy for the future.
Malveena says she always makes a list of pro’s and con’s when she makes any big decisions and suggests that you should do this also. This helps you to consider aspects such as your work-life balance, mental wellbeing, and overall happiness as opposed to solely looking at the opportunities from a financial point of view. It may also uncover opportunity costs that you haven’t considered in your financial analysis. This could be the difference between deciding to go ahead with the opportunity or not.
Malveena is also a fan of goal setting. Make 5 year plans and re-assess these regularly. When opportunities arise, you’ll know quickly if the opportunity is worth looking at. Join industry groups and try to surround yourself with like-minded and positive people. These people will give you added strength and courage, and you will naturally find each other growing each other’s success.
So, if everything is stacking up in your favour and you feel really good and comfortable with making this decision, then back yourself!
BFA has the expertise to help you with your decision-making journey. Come in and talk to us at any time. Malveena and the team can help you evaluate your options so you make the right decision for you, your business, and your future.
