It’s Time for a Summer Check-Up: Grow The Value of your Business Now!
How can a thermostat, a physical exam, and the Weather Channel help your business?
The short answer is that they can’t. Over the years, however, those items have helped you to monitor and improve performance in some simple yet highly impactful ways.
Chances are you check the thermostat in your home regularly to make sure you are not wasting energy. You probably go to the doctor once a year to keep an eye on your vitals and make sure you are aware of anything that could require intervention to improve your quality of life.
As adults we also routinely check the news to stay informed, the weather to be prepared for the elements, and our retirement plan to make sure we have funds for the future.
Most small businesses, though, avoid monitoring the indicators that could help foresee their future. In doing so, they forfeit the ability to adjust or alter their behavior; they miss out on the chance to create a future state that could be significantly better than their current state. Worse yet, this “ignorance is bliss” mindset means the business has no real knowledge of any potential health issues.
It is neither difficult nor painful to start tracking the key business value drivers that can produce dramatic changes over time. Getting started requires little more than a closer look, an open mind, and a genuine interest in improving beyond the current state.
Regardless of your customer base, business type, or management style, every business has similar value components. These can be assessed and even benchmarked against other businesses to delineate between the rising stars and those who will never be able to pull out of a persistent nosedive.
If you answer yes to any of the following questions, consider taking a deeper look at your organizational performance. You might also benefit from an exploratory meeting with an outside expert who has experience dealing with situations like yours.
- Do you have too many eggs in one basket? Many small and midsized businesses get wrapped up in catering to one or two big clients and find themselves at their mercy. This not only creates vulnerability, but customer diversification is essential for good business health; it enhances the value of your business.
- Are you—and you alone—“the business”? A major value component for any business is the strength of its management. Having the right people in the right places is essential. Perhaps now is a good time to start thinking about corporate succession, or an organizational leadership development plan.
- Do downtime, quality defects, and missed shipments cut into your profits? What you don’t know might shock you. A Continuous Improvement Assessment can provide insight into where you can improve and ultimately outperform your rivals. More importantly, these costs can be saved, increasing cash flow, employee productivity, and customer satisfaction.
- Are you losing business or potentially leaving money on the table? Costing and pricing are common problem areas. Left unaddressed, they can choke off profitable growth. A small investment in time and money with a credible expert could pay dividends for years to come.
- Do day-to-day operations prevent planning for real change and measurable growth? It’s a known fact that 8 out of 10 businesses lack any kind of strategy. Work with an expert to create an actionable, measurable plan to achieve growth, and increase the value of your enterprise.
Set aside some time today to take an honest look at the questions above. How does your business stack up? Keep in mind that having an accredited outside professional looking at your performance is no different than a doctor giving you a physical. Why put off for another day, week, or year the ability to get healthy and prosper?