We need to be constantly reflecting on how our business is performing and review our strategy and business plan and measure the success of our marketing. Are we making the most of market opportunities, are we moving in a different direction to we originally planned, is the business under control, all questions we need to be constantly asking of our business as an executive team. We might decide the business is ready to move to the next stage of development, if so what resources do we need to progress:-
- Do we need people with different skills
- Do we need to invest in more assets
- Do we have sufficient finances to develop
- Are the facilities the right ones for developing
- Do we need to look to professional advisers to assess if we are ready
Let’s evaluate our business and ask ourselves some key questions such as what makes our products/services successful, how could they improve, and should we look at new/complementary products and services.
We should start by asking ourselves some key questions.
- Are we providing/delivering products and services that match our customer’s needs
- Which products/services are successful, delivering high percentage of sales and high profit margins
- If products are not delivering, why? Is it price, marketing, service
- Do you frequently review your key areas of costs, overheads and assets
- Is there a better way of doing something
- Have we negotiated the best deal with our suppliers
As a senior team in finding the answers to the above will give you the basis to improve sales and profitability.
When reviewing the finances of the business, consideration should be given to the following:
- The cashflow, the in and out of money through the business needs to be reviewed regularly and updated.
- Working capital has the business situation changed, you may need to resource additional funds and for this the business plan need to be up to date.
- Have you reviewed your cost base recently to ensure that you are selling at the correct price?
- Have you looked at borrowings and explored cheaper finance offers
- If you are planning growth for your business do you need to adjust finances to enable this to happen?
Having conducted these business reviews you have a clear understanding where the Company is now. In today’s dynamic age it is essential that you thoroughly revisit and challenge the whole business process and it may be necessary to bring in outside assistance from a consultant, which can prove more economical than developing internal talent, they can help you identify how to change your management structure and an experienced non executive director can provide essential impartial advice.
I hope that this information has been useful, but if you require assistance in helping your business grow please contact us.