Whenever we use the word ‘governance’ when speaking with the owners of small to medium-sized businesses, they usually say it is only applicable to large businesses.

Small or large – every business faces similar challenges that fall under the mantle of governance. That is why it is applicable to every business owner. Actually, it’s more important to a small business. This is because they usually don’t have the resources to survive if something major happens.

What role does governance play in relation to small businesses?

  • Health & Safety is the number one issue. You need evidence that H&S is being implemented and pro-actively managed.
  • Managing growth around hiring the right people at the right time.
  • Anticipating the need for extra plant and equipment. Assessing the return on investment (ROI) for such purchases.
  • Financial forecasting to predict extra funding required to accelerate growth. And importantly, sourcing that funding.
  • It prepares the company for what the future may bring. Calculating risks and planning responses.
  • Anticipating and planning the sale of the business, maximising the return for the owner(s).
  • Developing an understanding of the importance of cash flow, not just increased revenue.

How do you implement Governance for smaller businesses?

Governance for a small business would normally take the form of an advisory board. This meets regularly and is recommended in place of a formal board of directors. Regular input from external specialists helps owners make the right decisions for their future.

Contact us for more information. A local advisor can make recommendations and give examples of how an advisory board might work for your organisation. The benefits speak for themselves.

0508 238 268

Any questions? Call us.

Level 2, 62 Highbrook Drive

East Tamaki, Auckland 2013

Newsletter


Advantage Business


Advantage Business is in the business of transforming the lives of business owners so they can enjoy the best of both worlds: running a high-performance company while still enjoying time to live life outside of the business world.