Shortcuts to Financial Confidence

At Amplify, we find the top opportunities for us to add value to Growth businesses’ financial strategies include:

Cash flow and Working Capital Management
Financing – Assistance with debt and equity opportunities to grow the business
Financial Planning & Analysis – the trifecta of cash-flow forecasting, budgeting (i.e. operational or annual) and long-term forecast or financial strategic plan (i.e. 3 or 5 years)
Optimization – operational financing analysis of key performance indicators (i.e. gross margins, profit analysis, etc.) products or services, regions, departments or other angles of the business

Clients who get support in these areas have a financial strategy and the tools and resources to develop and leverage financial literacy to grow confidently.

We recently saw Xero’s Canadian survey and were happy to see that the top financial literacy challenges cited were primarily aligned with the opportunities we see.

The survey showed:

28% struggle with optimizing tax strategies.
15% find implementing cash flow management difficult.
14% have trouble developing long-term financial plans.
10% face challenges in implementing and adhering to budgets.

Here’s the thing: Our clients and most small business owners are smart enough to tackle these challenges. But they didn’t go into business to be bogged down with budgets and cash flow. They have troubles because it’s not their passion, and they have a business to run!

Getting support strengthens the team. A strong executive, management, and general employee base with financial literacy and support for using financial information is powerful.

Having help restores leadership. When a Finance Leader has your back, you can focus on growth, operations, sales, and the team. And you have time personally for your family, health, and maybe even fun!

Who is in charge of these areas in your business?

Other interesting findings from the survey found Canadian small business owners:

Self-assessed financial literacy: 47% rate their financial literacy as ‘high.’
Fiscal challenges due to financial understanding: 43% have faced such challenges; 16% have not yet recovered.

Primary motivations for starting a business:

69% seek greater flexibility.
56% aim for increased earnings and personal financial goals.
Business origins: 53% began as side gigs.

Transition to full-time entrepreneurship:

32% felt an entrepreneurial calling or were dissatisfied with their previous career.
27% experienced increased demand for their products/services.
23% found their side gig more lucrative than their full-time job.
Startup funding sources: 71% used personal funds or savings.
Emotional barriers: 47% faced self-doubt and fear of failure.

Emergency preparedness:

37% have a reserve fund for emergencies.
10% lack any plan for unexpected expenses.

Financial priorities if funds become available:

28% would pay off outstanding debts.
23% would save for future emergencies.

Financial management approaches:

44% prefer to handle finances independently.
21% actively use an accountant or advisor.

https://www.xero.com/us/media-releases/canada-survey-small-business-financial-literacy/

With so few businesses getting support, we all have an opportunity.

Having help is a competitive advantage, and you’ll grow quicker and with confidence. Take a look at your financial strategy and the overall financial literacy of your organization. It’s an opportunity!