I get to see many businesses and discuss their experiences throughout the year and the most successful ones are those that concentrate their activity on their core business
What is the core business?
It is so easy to describe your business within its sector as accountants, builders, cleaners for example but this does not describe what you do. It is only by being more specific that you can become more focussed not only in your marketing activity but also in the process by which you actually do the work. Let us consider the builder as an example and the type of work they carry out:
- Commercial (as opposed to residential)
- Public sector (not private sector)
- Fit out (rather than new build)
If they deviated into a domestic new build a new skill set would be required and while they may be able to do the work the disciplines and working practices are different. Suddenly the efficiencies are lost and this will impact on both profitability and ultimately cashflow.
This may be an extreme but it is worth looking at new ventures and seeing whether they are complimentary to current activity or running along a separate track altogether. In summary my advice would be to:
- Differentiate your business
- Become a niche – you are not the same as the others
- Concentrate on that core activity
The advice above may not apply to your circumstances, so seek professional advice before taking any steps based on the information shown. If you would like advice in this or other areas feel free to call. Alastair Wood, AW Accounting, Gravesend – Accountants who “speak your language”