Stop and Take Stock!
When you own and operate a business of any size it’s very easy to get caught up in the everyday issues of running that business. Keeping on top of operational matters, staffing issues, customers and financial management can all be very much a full time job. Sometimes we can easily fall into the trap of just coping with everyday life rather than taking stock, identifying the real issues and then putting in place some strategies and an action plan to address them.
Take a break for a few minutes and honestly answer the following questions:
* Is your business underperforming from a cash flow perspective and requires action?
* Are you having trouble attracting, retaining and motivating staff?
* Are you concerned about market share and how the business stacks up against its competitors?
* Is your lifestyle and work-life balance out of whack?
* Do you have a real and documented succession plan?
* Do you know the current value of your business?
* Is there a gap between your business’s current value and where you want it to be?
Where you have identified areas of concern it’s now important to take some affirmative action to address them. They won’t solve themselves. As with our health or our personal fitness you may need some help to address these issues in a truly effective way.
An enormous amount of money can often be tied up in your business’s stock or work-in-progress and debtors. With an effective management plan in place much of this capital can be better utilised to grow the business or reducing debt or perhaps even put in the business owner’s pocket.
A business’s staff or team members should be its greatest asset. They should also often form a vital part of the business’s succession plan. In both financial and operational terms the cost of either carrying unsatisfactory staff members or recruiting new people can be substantial. In most businesses it doesn’t have to be this way. With the right systems and culture you can have a genuine cohesive team environment.
You may also need help with growth strategies and managing your work-life balance.
Succession and maximising the value of your business is one of the real and looming issues facing a huge number of business owners over the next five to ten years. To deal with this effectively you definitely need a structured, sustained and disciplined approach. The missed opportunity through not dealing with this issue can be significant and have a real impact on your lifestyle in retirement. Most people definitely need help here, not only to develop your plan and your strategies but vitally to keep you accountable so that the plan actually gets implemented.