Identifying the gaps:
The demands of running a business have always been high, but in today’s economy, the pressures and complexities are greater than ever. From navigating changing fiscal policies, tax changes and regulatory requirements, to responding to geopolitical shifts. Staying on top of business finances has never been more difficult, or more important.
Tackling the core challenges
As a business grows, there inevitably comes a point when the management team needs to expand and leaders are faced with major decisions about who to bring in, and into which roles. This is particularly true during periods of rapid growth, which many SMEs experience early in their business lifecycle. At this stage, pressure points often emerge due to a lack of both people and time, leading to reduced productivity and strain on leadership.
At this stage, every hiring decision is critical. But knowing who to recruit, whether that’s a Finance Director, a Bookkeeper or another role, is not easy and the choices made can have a huge impact on business culture and operational success. In the meantime, business owners often find themselves increasingly squeezed, sometimes taking on multiple roles – from financial management to product development to HR – all of which can have a huge impact on internal capacity and potential business growth.
If this sounds familiar, you’re not alone. Menzies recently polled over 500 business leaders as part of its Greatest Leap report, which examined the biggest challenges businesses face when attempting to scale. Not surprisingly, the “people problem” stood out: almost one in three leaders (32%) reported difficulty in building a competent senior management team to help them grow. Furthermore, nearly one in five (18%) said that HR and recruitment was their biggest distraction from strategic decision making.
The issues
This then leads directly into the issue of time, as having one person doing multiple jobs is not an efficient nor effective use of their skills. We often see business leaders, many of whom lack formal financial training, assuming responsibility for financial management simply because there is no one else in the business to do it. Our research supports this, as 21% of business leaders say that financial management and budgeting is their biggest distraction from strategic leadership responsibilities, and 30% say that they find managing cash flow a significant “challenge”.
From navigating changing HMRC and National Insurance regulations, to overseeing budgeting and financial planning, small business leaders are being spread thinly, limiting their ability to focus on the bigger picture. And failing to secure the right people to do the job needed in the right roles, particularly in finance, means the business might be missing out on both financial and growth opportunities.
But it’s not easy to find the right people, and while important it can be time intensive and high risk. This is where Outsourcing can make a real difference. Whether you’re looking to hire full-time, part-time, or outsource your entire finance function, Outsourcing helps you find the right talent for your business – quickly, efficiently, and without the hassle.
Filling in the gaps
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