Ever wondered if you could understand this better?
When I start to work with clients a perspective on this is often not in place. The business is running them, they’re not running the business. They’re doing “stuff”, transacting, getting distracted …..on it goes.
So, some “basic signs” that a business is failing are:
- No cash in the business, bad financial results is obviously a clear sign……..if we know what we’re looking for. Remember good sales can make you go bust so be clear about what you’re looking at……..and how you’re assessing it and planning to make it better.
- Stressed and demotivated business owners working too many hours for no rewards
- No focus on what the business needs to be doing or even if they know there is too much procrastination and lack of the right actions.
- Demotivated staff
- “I’m busy syndrome”….When I first meet clients they always say “I’m busy”……but busy doing what I ask!
- Often there are no measurement processes in place, other than “gut feel”. GUT means “given up thinking” and is replaced by a reliance on hoping…….hoping things will be ok, hoping we get the right leads, hoping we’ll convert them, hoping we’ll make some margin……
So here are some thoughts to help you be more proactive in your business:
I’ll start with a common problem; majoring in minor things. STOP it…..it will kill your business.
Be clear on your vision for your business. Be clear when you want to have the option to profitably exit your business…..what is the actual date and year……..if you’re not clear on this you’ll never focus your energy on the right things to achieving it.
Next, set up Key performance indicators for the business so you can measure performance against these. Work out what the key drivers are for your business and when you’ll measure them….daily/weekly/monthly? Set up your business dashboard.
Do you have a comprehensive and structured business plan? Is it in your head or is it clearly written down and shared and reviewed with the team. What period does it cover? Tomorrow or 1/3/5 years?
Set clear budgets, typically a profit and loss budget and a Cash flow forecast. For larger organisations a cash flow forecast needs to be split between Operational, Investment and Financing cash flow measurements.
Instigate a 90 day planning process in your business……..this “chunks down” your annual goals.
Set SMART Goals specific, measurable, attainable, realistic and time lined) and then set aligned strategies to achieve the goal/s and chronological actions against each strategy.
Behaviours in the business are also key. How much are you, the owner, working IN v ON the business?
Are you reactive; firefighting etc or are you proactive, investing sufficient time on strategy?
Start to value your time……..what’s your time worth per hour…it will stop you doing £10 p/h stuff that other people can do for you!
Assess what is working and what’s not working…….a good way to start this is to ask yourself, What do we need to do more of, less of, and what do we need to stop doing and start doing! This list can change your business and your life.
What level of “interference” are you tolerating……remember “effective performance – interference = great results. What’s your level of productivity……..honestly?
Do we have the right team and indeed the right balance of team members?
Start working on these points. Enrol external support to help you. Don’t become another business casualty statistic.
If you’d like to explore these and other aspects of your business give me a call………and check out my website and links to my social media platforms.
