The Corona Virus has divided the world into two distinct camps. Those that are in a panic and frantically buying hand sanitiser and wearing face masks, and those who are brushing it off as just another virus, no worse than flu. Regardless of which camp you are in, there are certain precautions to take, which quite frankly are no different from everyday hygiene practices that people ought to be following. Your business health is no different. You can’t wait for a crisis to introduce new measures. There are certain routine practices you need to implement on a regular basis to ensure the ongoing health of your business.
How often do you take time to monitor the health of your business? Are you pushing too hard and ignoring signs that things are about to go pear-shaped? Just as your health can deteriorate at a rapid pace, so too can your business health.
These are the regular checks you need to do to ensure your business’ vital signs are strong:
Daily / Weekly / Status Meetings
Most companies or departments schedule regular meetings to ensure that the team is on the same page. When things get busy, these meetings fall by the wayside, and before you know it, you have lost touch with what is going on. Here’s the thing… when you are busy, that is even more reason to touch base regularly, to ensure that you have a finger on the pulse and that you are on track.
So many business owners I work with are intimidated by the finances. They leave it to the experts in this field. As the business owner, you need to have your management accounts presented to you by the finance gurus, so you can interrogate the numbers and make informed decisions. If the prognosis is not great, you can do something about it. If the finances are in good shape, you can rest assured that there is one less thing to worry about. But you need to know!
Cashflow and debtors
The one aspect of your business health that has the potential to go downhill fast is debtors. Too many business owners find themselves in a cashflow predicament because they allow their debtors to run too far. You need to check who owes you money on a regular basis and clamp down on overdue payments before they escalate.
Key Performance Indicators
You can’t measure your business health if you don’t have a benchmark. Budgets, targets, capacity planning and 90-day plans are imperative to give business owners a sense of whether things are on track. Remember, you can’t manage what you can’t measure.
Team Litmus Test
Talk to your team and have regular feedback sessions about the softer workplace culture issues. Is everyone happy? Are we all on the same page? Is the team functioning well? Do we celebrate wins and put plans in place to put out fires?
Touch base with your customers on a regular basis. Are they happy? Are they receiving value? What could you be doing to improve your service and offering to the market? Business owners are often too scared to ask, for fear that they might get negative feedback. But wouldn’t you rather want to know what’s wrong, so you can do something about it? It’s like refusing to go for an x-ray of your painful arm, in case they tell you it’s broken! Get the diagnosis and treat it!
In life, and in business, you get little knocks along the way. They are like cats-eyes in the road. If you ignore them and don’t get back into your lane, you are likely to have a collision.
What business health signs have you been ignoring? I am offering a free consultation to anyone who completes our free business health check.