When is the best time to plant a tree?
25 years ago, BUT the next best time is now.”
Deep roots are imperative to a tree for 2 reasons: 1. They provide stability to the tree in tough conditions. A strong wind or rough storm will easily blow trees over but if the roots are deep and strong, the tree will have a better chance at survival, and 2. They provide the tree with access to water and nutrients deep below the surface.
Deep financial roots: what are they?
Roots are critical for trees to grow, I think we all know that. And roots are critical to the long term survival of your business, even yourself personally. Let’s rephrase the saying above:
“The best time to plant deep financial roots was at the start, the next best time is now”.
Deep financial roots are the life blood of the company. They are the processes and procedures put in place to ensure the company is running at its best. Financial roots starts with the little transactions that the accountant does or even the person who captures the credit notes or similar documents. Deep roots are not massive, they are made of lots of little ones they join up to make a big one that becomes the trunk.
The amazing thing about roots is that you seldom see them. You only see them in exceptional circumstances – there is always an exception to the rule! That fact coupled with the fact that you cant see if there is anything wrong with them, can be disastrous. You only see “sick” roots when its too late
The same analogy can be said about deep financial roots. 1. They provide the ability to withstand any strong wind i.e. scrutiny from directors and or shareholders or even investigation from relevant authorities and, 2. They give the business access to all the data needed to produce reports to run the business optimally.
As explained above, deep financial roots are of vital importance in order for your business to a. Survive and b. Run at an optimal level. There are ways of making sure you have deep roots if your business does not have them already:
1. Start today. Start growing those deep roots from today and build them going forward and,
2. Go back and plant them using the data from your records (if you kept them). This can be expensive but well worth it if done correctly and accurately.
Whatever you choose to do, please note that building deep roots can be a slow process. Nothing comes overnight. All it takes is little habits that build on each other and this leads to deep roots that will survive any storm. Having said that, it takes little habits from many sources to build them. You require EVERYONE to contribute.
This article was updated in October 2021