compared to other professions? It’s difficult to see when this boat will be turned around.
11. It’s not the people Most of your people will actually have minimal impact on your business performance. Without the right leadership, culture and systems in place, it’s pointless bemoaning the lack of capability of your team.
12. Not reinvesting in the business We are currently operating in a buoyant economic environment – there’s more than enough work to enhance our built environment. Many successful businesses are delivering exceptional financial performance. This is the time to be reinvesting profits in mergers and acquisitions, investing in needed technology / systems, leadership, innovation and new ways of operating. It’s not the time for all the profits to be taken out of the business for the benefit of the owners or to pay taxation. Today, businesses should be allocating a third of the profits for reinvestment in the business.
If you liked this article, make sure to look at and share our 12 reasons why architects, engineers and designers underperform financially infographic here.
Do You Know Your Numbers? Gordana Milosevska, CPA, Director, Management For Design Are you an expert in business financials? As business leaders you are confronted with a myriad of financial information about your business — your income, your expenses, your profit margin, cash position and project performance. And that’s only the start! Your role as a leader is to regularly absorb this information and to make decisions in a timely manner. These executive decisions can then be converted into activities to be completed by your team. Your accountants and finance people then report these activities in a numerical way to produce your business report card. This will most likely be in the form of an income statement, a balance sheet and most importantly a cashflow statement.
