Is your business staying financially viable in the long-term or are you sugar-coating underlying problems in your business with short-lived successes?
First, what are short-lived business successes? They may have different meanings depending on who is involved. Short-lived business success may refer to a new business project, a completed goal, or maybe it is just the feeling of triumph over adversity.
You might be feeling good having implemented a new project or overcoming a big issue. But problems with cashflow, creditors and debtors and other issues beyond the metrics prevail and won't go away, stopping you from maximising your business' potential. If this situation is familiar to you, then your short-lived successes may be sabotaging your business viability by sugar-coating underlying problems.
Like a house, your business needs more than just a nicely painted wall. All aspects need to be solid from the foundations up. It has to survive a competitive market and be ready for change and challenges.
To be sure your business is in good shape, first take an honest look at your business and learn, learn and learn more about it. Regularly conduct a business health check with the help of someone you trust like a Chartered Accountant. Follow the three R's to thoroughly evaluate your business.
Review. Ask basic questions first: How is your business currently doing? Are you achieving your KPIs? How are your business finances? You can use a business health check guide to ensure you review all relevant aspects of your business. It is also useful to get assistance from a Chartered Accountant to help you understand the meaning behind the numbers in your business financials.
Research. After evaluating your business, conduct research on areas that need improvement. Knowing where you are having problems is not enough. You need workable solutions. Perhaps there is a missing link between your marketing efforts and sales conversions. Research how you could bridge the gap between these two aspects and learn why your prospect customers are dropping off before they even reach the checkout.
There are many possible solutions to the different problems in your business operations. The only way to resolve them is to conduct research and find the best possible solution.
Remedy. Finally, work on the problems. This is essential to improve your business and create a solid foundation towards long-term prosperity. Cure the root causes of the problems to minimise future risks in your business. Create measurable action plans, strategise and monitor your progress.
It is important that you understand your business, in particular its financial ins and outs. You should not dismiss underlying problems just because you have achieved your goals for the month. A truly viable and future-proofed business can withstand scrutiny and unexpected problems.
For more information on how you can maximise your business' potential call us on (09) 576 4166 or request an online appointment. We'd love to hear from you!