Just like a healthy body requires routine checks and examinations, so too does a healthy, thriving business. No matter what stage your business is in, to keep it going you must check its systems, pay attention to any ailments and prevent early death.
For the newborn business, the goals and system checks are relatively simple - merely staying alive and maintaining your sanity is a measure of success. Systems are very limited at this stage as start-ups usually involve less than a handful of people trying to get capital, find more customers and deliver a quality product.
Three common causes of business mortality at this stage are:
As a business progresses, basic survival is the measure of success. Teetering on the edge of survival is hazardous to anyone's health. At this stage there are still limited systems and employees, there may be marginal profit, expenses are covered and cash flow must be projected. Failure to thrive can be attributed to owner burnout, a lack of vision, insufficient funds or marketplace factors.
Too many businesses get stuck in this stage. These are the businesses that are sold at a loss or just close down when the owner has had enough. Every business should strive for optimum health and try to perform like the Olympic athletes we witnessed at the Rio Olympics.
Now is the time to train your business body and make critical decisions. Are you going to go for gold or settle for being a recreational player? If you're reaching for the gold, then you're going to have to train your business, assess the weaknesses and attack them rigorously, optimize your strengths, consider growing and expanding your business and reinvest in its success.
This will require constant monitoring.
Not every athlete wins a gold medal, however constant monitoring increases your business' success and potential for optimum health.
We find that when business owners work with us to understand their numbers (especially the key drivers of revenue, profit and cash), set stretch targets and then monitor their key performance indicators every single month, better results are achieved.
You might have noticed similar results with your own body. If you weigh yourself each week you can notice any changes and take appropriate action then and there. On the other hand, if you worry about what your weight might be and subsequently ignore the bathroom scales, the next time you weigh yourself you may find yourself with a bigger problem that's much harder to fix.
To discuss your businesses health and find out more about our business monitoring service, please contact us today.
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