Diagnosing the health of your business is critical no matter where you are in the stage of operating your business!
New businesses, mature businesses, businesses under new leadership, businesses with leaders whove been in place for decades it doesnt matter. If you dont have a clear view of how healthy your business is, it’s time to discover that.
Business owners have tendencies to presume either everythings great or everythings falling apart and living in an assumptive state isnt healthy. Move beyond assumptions to knowing reality and addressing it! If you dont, then you just float along doing the best you can, hoping things get better, and thats a recipe for disaster.
Lets pause for a moment and think about our physical health. Almost everyone I know is guilty of having a minor health issue of one kind or another, and not going to the doctor. Of course, you dont have to rush off to the GP for a minor scratch. But if you dont get a checkup once in a while, you could have a life threatening disease and not know it! Wait too long for it to be discovered, and it can be a literal life or death situation. Dont do the same thing with your business.
Imagine thinking that you can retire and get a few million pounds for your business. Your exit strategy and your retirement fund are completely built around this fact. Now, imagine that you had operated on that assumption, that false assumption in fact, and when you try to exit the business you discover that its only worth £750,000. That would be tragic! But if you get the diagnosis, you can make accurate changes now, to ensure that it actually IS worth a few million pounds. No more living in ignorance or unknowns, but living in reality, you can plan your retirement effectively. (p.s. This is a real example. I didnt make this up.)
So how healthy is your business? and how do you know?
Doing a diagnostic on your business is probably not be something you can do on your own. You want a fresh set of eyes to look at everything! Someone who isnt swayed by the way things have always been done or personal preferences of the owner, can give you an honest and objective look at the realities your business is facing. Get someone who knows what theyre doing to take a look for you. (Ask me if youre interested, and Ill help you find the right person.
Once youve got someone to help you, strategy consulting requires looking at several factors:
External factors: Whats happening in the industry? What are competitors doing? Whats happening in technology, and how does it affect your industry and your business? What are the shareholder circumstances?
Internal factors: These start with the driving factors at the heart of your organisation, such as vision, strategy, structure, and culture. And these are also operational areas products & services, marketing & sales, finance, people, systems & processes.
Risks: You might be in a position to need to exercise great caution when it comes to risk taking. Knowing this will help you be strategic in your business development. But if you happen to be in a position to make greater risks, obviously your strategic development will look totally different. So a diagnosis isnt just to tell you look at you, well done! or Oh, that’s a shame. Its about knowing the truth of the situation so you can take action to preserve and grow your business.
Search to Sale: The Search to Sale is a funnel, or pipeline, if you will. It indicates your leads and upcoming work. If you have a good amount of work to do at present, and work in the funnel or pipeline, and leads following that, you are positioned well to have ongoing income. If your funnel is empty, you might be in trouble in a few months or years! This is a critical area for diagnosis, to determine if your business is healthy or not.
A diagnostic, done by someone who knows what theyre doing, will truly give you incredible insight into your business. Greater understanding of how healthy it is will give you greater peace. Recognition of sick areas will give you opportunity for targeted efforts to fix it! Dont let yourself be surprised by learning that your assumptions were false.
Diagnose your business now, and take your business from survival mode to healthy, or even beyond healthy to a business growing super fast and profitably!Tags: business health, profit improvement, risk, sales, strategy
This post was written by M3evolve
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