Join today and start learning
TFD is the learning platform built for finance professionals.
This content is available as part of our bitesized video series.
Watch this video today by joining our free community.
Join today and start learning
TFD is the learning platform built for finance professionals.
This content is available as part of our bitesized video series.
Watch this video today by joining our free community.
Video : Downturn Tip Four – Know The Costs Of Your Business
In this video, Phil outlines the importance of knowing the detail of the costs of your business and reviewing every cost associated with your business.
Tip four, you got to get really into the detail of the costs of your business. You obviously, referring to previous tech pool, will have needed to have done this to a certain extent in order to understand where price inflationary pressure is going to come from, but you need to review the full cost of your business on a regular basis.
Too many times engaging with organisations, I hear stories such as we reviewed that cost last year, or we’ve agreed that multi-year contract, we don’t need to look at that. Well, yes you do. There is no part of the cost of your business that is exempt from review and overhaul on a regular basis. I’d recommend at least every six months, unless you’re really familiar with the cost mechanisms of your business, then you’re potentially going to be caught out by those price increases and inflationary pressures getting passed on to you by your suppliers.
So you, in the same way that you have to be able to defend a price increase to your clients, you should defend a price increase from your suppliers, make sure that they’re taking a structured and meaningful approach that engages you and you can understand and really push back when things are done, ill communicated, ill thought through, and not based on sound business logic.
So yes, you’ve got to really know the cost of your business even more so than you did when you founded, when you set up your enterprise, you’ve got to be absolutely involved in all of the managerial decision making, the leadership team decision making around the cost base, and what commitments you’re making as an organisation.
So yes, know your costs.
Phil co-founded Mettryx following a 16 year finance career “in-house” across a range of industries, in order to provide senior, on-demand, finance services into SME organisations. His expertise range across fractional FD/CFO duties; FP&A consultancy; strategic finance projects support; international expansion; ERP/EPM implementations.
Video: Downturn Tip Four – Know The Costs Of Your Business
In this video, Phil outlines the importance of knowing the detail of the costs of your business and reviewing every cost associated with your business.
Tip four, you got to get really into the detail of the costs of your business. You obviously, referring to previous tech pool, will have needed to have done this to a certain extent in order to understand where price inflationary pressure is going to come from, but you need to review the full cost of your business on a regular basis.
Too many times engaging with organisations, I hear stories such as we reviewed that cost last year, or we’ve agreed that multi-year contract, we don’t need to look at that. Well, yes you do. There is no part of the cost of your business that is exempt from review and overhaul on a regular basis. I’d recommend at least every six months, unless you’re really familiar with the cost mechanisms of your business, then you’re potentially going to be caught out by those price increases and inflationary pressures getting passed on to you by your suppliers.
So you, in the same way that you have to be able to defend a price increase to your clients, you should defend a price increase from your suppliers, make sure that they’re taking a structured and meaningful approach that engages you and you can understand and really push back when things are done, ill communicated, ill thought through, and not based on sound business logic.
So yes, you’ve got to really know the cost of your business even more so than you did when you founded, when you set up your enterprise, you’ve got to be absolutely involved in all of the managerial decision making, the leadership team decision making around the cost base, and what commitments you’re making as an organisation.
So yes, know your costs.
Phil co-founded Mettryx following a 16 year finance career “in-house” across a range of industries, in order to provide senior, on-demand, finance services into SME organisations. His expertise range across fractional FD/CFO duties; FP&A consultancy; strategic finance projects support; international expansion; ERP/EPM implementations.
