What makes businesses successful? Why do some survive and others not? Why do some seem “healthier” than others? What are the most important signs your business has a resilient immune system?
Businesses are like bodies: you must look after them otherwise they’ll grow weak and not perform. So how do we look after them?
For those in retail, sales are your number one priority. You need to monitor sales performance and measure it. Your business must be customer focused and feedback should be encouraged. Be sure to respond and/or react to the feedback.
Keeping employees happy goes a long way to building the right working environment to be successful. Employees want flexibility in working hours and conditions.
Low staff turnover is a good measure but beware, it could also mean that things are too relaxed. It’s a matter of getting the right mix.
Business owners need to be dispensable. The business cannot rely on one person and must be able to survive on its own. Identify what you do well and outsource or delegate what you don’t. It’s the old adage “work on the business, not in the business.” This will result in the business being more attractive to a potential investor/purchaser, resulting in a higher value.
Documenting internal procedures provides clarity and reassurance when an employee is to perform a task. Consistency is the key to establish efficient systems that run without hiccups.
A healthy bottom line is key to business health. Too often small business owners don’t have a budget or understand their financials. The relationship between income, expenses, cash flow, and how to collect money from your debtors – means you will know if your business is performing and if the hard work is paying off.
Marketing and branding to your specific market will assist in developing your brand to improve sales.
With advancements in technology, the market place has gone global. The consumer now has the power to shop around the world at a click of a button. You need to review your products and services, continually, to ensure they meet buyer demand and see how they compare to the competition.
Optima Partners can assist businesses highlight their weaknesses with regular reviews of your financial data. We have recently invested in software that monitors your figures and provides a dashboard style report on an ongoing basis. Please call to discuss further.