Small company entrepreneurs in Singapore often get bogged down with day to day operations and challenges of their companies. This is great since they are hands-on leaders. However, it also means that they hardly get time to think about the strategic decisions they make. As such, they may not be able to think and strategise well about their pricing models, capital investments or even staffing. Thus, they fail to capitalise on opportunities and lose revenue.
For starters, you need to make time out of the seemingly busy schedule and think about the business more strategically. But, how do you ensure that the decisions are smart? Read on and find out what makes smart strategic decisions.
Rely on accurate and timely financial data
Timely and accurate information is crucial for making strategic decisions. You need to know how your pricing model works out for the business, which areas of operations are taking up most expenses, which are the most profitable products and who are your best performing staff. You can’t rely on intuition or guesswork. You need hard data in order to make decisions that will remedy present bottlenecks.
Businesses that hire outsourced accounting firms in Singapore are in a better position to deliver such information to company boards. This is because the accounting firms provide specialised services in accounting functions and focus on the core job to produce accurate and timely results.
Review your pricing strategy
Your pricing strategy is crucial. If you set the price too high, clients will shun your products and buy from the competition. If you set it too low, you will lose revenue and drop your profits. A below-average price can also hurt your business prospects and trigger the loss of clients instead of attracting new clients.
You can engage in the services of audit firms and gain valuable insights on the vital pricing metrics including costs of production, a favorable mark-up and the value price to attach to each product.
Outsource instead of hire
Today’s business environment has made it possible for communities of self-employed people and entrepreneurs to meet and trade. You can outsource various business functions such as SME accounting services to cater to your company’s needs. One of the advantages of outsourcing is it is less costly than hiring one in-house. You will only be paying for the services you require, and there are various accounting services prices available that will suit your business budget.
Outsourcing to an accounting company ensures that you’ll focus on the strategy while you get objective and timely information. This will go a long way in helping you to make smarter strategic decisions with the help of a professional.
Get an objective perspective on investments
Before you make a decision on investments, engage an audit firms’ services and review the investments as well as your company’s financial ability to make the investment. This will enable you to have the professional support of a specialist to make a strategic decision that will affect your business future.