Take a critical look at your business and confront areas for improvement!
As many of us realise early in our lives as business owners or entrepreneurs, the trajectory of success isn’t always a steady rise to the top. From environmental conditions to shifting interest, it’s inevitable that every business is going to have some areas of struggle. However, that doesn’t necessarily mean that these areas are regularly addressed.
It’s natural for us to only look at the positives of our businesses; acting on issues as a reaction, rather than trying to seek them out preemptively. While this may make for a less stressful day-to-day, it can leave us with some glaring problems that can spell disaster if left unaddressed. So, to avoid this, it’s important to take a critical look at your business and confront the areas that may not be functioning effectively.
An important concept for people in business: Never doubt that your goals are in reach, but that there’s always a reality to the situation that you should fight to improve. In doing so, there are certain elements of understanding you should consider.
Understand Your Business Holistically
To quote author Catherine Asaro; “To solve math problems, you need to know the basic mathematics before you can start applying it.”
Delegation is often said to be at the heart of any successful operation, and that’s not wrong. A growing business takes a lot of moving parts and it’s near impossible for you to take all of them on effectively as an individual. However, that doesn’t mean that you shouldn’t be aware of operations within your organisation.
Even if your various sectors rarely interact or collaborate with each other, they are no less a part of the overarching whole that is your business. Having an understanding of these sectors will allow you a more educated insight into areas of improvement. This is true for even the smallest of practices or operations, as the moment you aren’t controlling the outcome of a situation, there are going to be factors that, well… aren’t in your control.
None of this is to say that you should be looking over staff members like a vulture on the hunt for inefficiency. What it does mean is that a basic understanding of how each discipline within your business operates will allow you to notice and flag issues more effectively.
Understand Your Customers
The 21st century has seen an explosion in the number of options customers have for virtually any service. From the medical industry to hospitality, the competition to win over new clients is fierce and there are going to be things that other businesses are doing better than your own. With more and more individuals becoming savvy with online tools, it’s easier than ever for potential clients to see potential failings in the form of customer reviews.
If you feel like your business is falling behind, all is not lost. However, before you start trying to remedy these issues, you should ask yourself:
“What is it that my customers value from my products or services?”
If you are looking to develop business relationships with clients over the long term, ask them for ways in which your services could better serve them. By doing so, you are adapting to the needs of your customers, rather than simply hoping that they will see your product or service as superior.
Understand Your Financial Situation
One of the biggest stumbling blocks for business owners is often the thought that they are financially savvy, even if that isn’t necessarily the case. However, according to the Small Business Association (SBA), 50% of businesses fail within their first 5 years. From this, we can see that the inability to maintain cash flow and financial issues are more prevalent than we’d like to believe.
The fact that some business owners aren’t as equipped for managing the finances of a business as they might like to believe isn’t surprising. When unobserved, small issues within a business’ financial systems can become insurmountable over time. This can lead to points of no return, where management issues lead to long term financial instability that can take down a business from the inside. This can also lead to business owners not getting what they want in the future as the foundations of their venture aren’t stable enough to plan for the future.
So, if confronting the reality of your business is so important, how do you go about it?
Let’s face it, while running any sort of venture necessitates some juggling of responsibilities, one person isn’t going to be able to do everything. So why not concentrate on what you are good at. If you are gifted in your service but not at, say, cash flow management, our experts can take that stress away so that you can do more of what you love.
If you’re worried about the financial management of your business, or simply feel that your financial knowledge is too limited, there are options. We provide businesses with management planning, strategy and solutions across the financial spectrum. From monthly management reporting to tax compliance, allowing our specialists to take the reins and help manage your finances will allow you the peace of mind to focus on growing your business.
The ability to acknowledge and remedy issues within an organisation is one of the most important, yet undervalued parts of being successful. For more practical financial advice and management options, contact our Advisory Specialists today. Alternatively, you can complete your contact details below or give us a call on (03) 9835 8200.
