Facets

Facets is an ongoing diary of financial activity within the Stiddard Businesses. A model of a small business operated in the “Stiddard Way” Its aim is to offer you a working example of how we apply the concept of Financial Identity.

All the posts will refer to real data and real life situations. It is a demonstration of our principle of absolute transparency. I am happy for you to copy and put into practice any part of what you read and equally if you are a direct competitor then you are welcome to use any of my ideas.

I would ask you to read several times the section on the website headed  “What is Financial Identity” A lot of thought went into this and I think it is a good explanation of what I mean when I refer to “Financial Identity”.

To help you I have set out how the concept of Financial Identity applies to me:

"I recognise the unique attributes and characteristics that define my financial world". In the context of my business and personal finances this means that I am aware of the significance of my strengths and weaknesses.

"I understand how these strengths and weaknesses impact on my business and financial life". In practical terms this means that I organize my business and financial affairs so that my role is focused on the areas where my strengths lie. I can then partner with or employ persons who are strong in my areas of weakness. I therefore must have a clearly defined business model, market, brand and business process.

"I know with 100% confidence exactly where I stand from a financial perspective at any given time". In the context of my business this means that:

1. All Companies House and HMRC compliance requirements are always up to date.
2. I have available monthly managements reports, which provide me with all the financial data that I need to make good decisions.
3. I have a solid business plan, which summarises my best estimates of profit and cash flow over the next 3 years.

In the context of my personal finances this means that my personal investments are managed by an IFA who I know is properly qualified, honest and transparent in his dealings with clients (namely Mark Loughlin of Stiddard Financial Services).

Look out for the next Facets posts, which will give you an introduction to the Stiddard Business Model.