Akin to a healthy body demanding routine checks and examinations, so too does a vibrant business in order for it to thrive.
No matter what phase your business is in, to keep it going you must examine its systems, pay attention to any ailments and prevent early attacks.
For any new business, the goals and system checks are relatively simple. Simply staying active and maintaining your sanity is a measure of accomplishment at this point in development.
The systems within any new business are very limited in the start-up stage.
Panalitix Pty Ltd, a business improvement and consultant entity, explain this is because there are usually only a handful of people working to increase capital, expand its cliental while at the same time trying to deliver a superior product.
Panalitix’s also describe the three most common causes of mortality at this stage of the business as being:
- Atrophy—all capital and funds are exhausted, often due to the business being started underfunded
- Brand Disregard— the marketplace has neglected to recognise your company’s product or service, as there is often discord between your branding and your company name
- Stress—often the business owner has gone into business as a lifestyle choice not realising the implications and commitments required of running a successful business. All too often, the business owner wants to be the seller, the doer, and the book keeping all in one, which results in the business owner no longer able to handle the pressures of running a business resulting in sale or closure. The key message here is do what you do best and outsource the rest.
As your business evolves, basic survival is the next measure of success. However, hoovering on the edge of just making enough to survive is dangerous to anyone’s health, including a business. The systems and employees within this phase of the business are still limited, and while expenses are often covered, profit is marginal and cash flow can and should be projected.
Further, at this stage of the business, it is not uncommon for many businesses to get stuck, and failure to thrive is often attributed to lack of vision and professional financial assistance, insufficient funds, owner burnout and marketplace factors. It is these businesses that simply closedown when the owner has had enough or are unfortunately sold at a loss.
To prevent such demise, every business should endeavour to obtain optimal and vibrant health by training your business body, assessing and rigorously attacking the businesses weaknesses and making critical decisions, optimising the businesses strengths while simultaneously making critical decisions including how best to grow and expand your business and how to reinvest in its success.
To increase your business success and improve its potential of achieving optimum vibrancy constant examinations and monitoring of the business vital systems and procedures, will require constant monitoring.
Historically, Insight CA Limited has discovered that when business owners work with us to understand their business (specifically KPI’s, revenue, margin, overheads and cash in their business) and to establish extended targets, while concurrently monitoring both their business financial and non-financial key performance indicators every single month, healthier results are achieved.
Here at Insight CA Limited, we would be delighted to work with you, as your Accountability Partner, to check the vibrancy of your business or assist you in implementing any of the ideas reviewed in this blog. Please do not hesitate to contact us for forward thinking advice.