How Does Your Business Measure Up? Here is the first of several steps that need to be taken to generate profits and growth.
On a regular basis, conduct a full review internal of how your business has performed. This is the best method to really see what you are missing. It is important to involve your management team in this initial review the right amount, yet not too much: the right amount lets them convey the needed information to the review team; too much takes them away from their daily obligations keeping the business moving forward.
Since serving the customer is the whole purpose of a business, our reviews start with the customer perspective, and then evaluate what the business is doing and compare that to what the customer wants or expects.
- Highlight those activities your business does really well.
- Outline top areas where you need to make changes to perform better.
- Outline areas where you are overlooking business opportunities in your environment.
- Describe the key challenges for your business, from the perspective of the outside looking in.
- Perform a complete review of your environment, including your direct and indirect competition, the market(s) in which you operate and your industry.
- What is your business model? Describe in an objective way how money flows through your business so that flow can be evaluated for consistency and durability going forward.
- Determine your customer perspective, to gauge feedback and opportunities for growth. Creating new products and services for existing customers is an excellent growth strategy as long as it does not lead to over-diversification and thrashing. Thrashing is when you spend a lot of time getting very little done, typically more time switching between activities than actually performing them. Time to refocus.
- Get your key suppliers’ perspective for feedback and identification of potential opportunities for growth and joint-venture relationships.
- Identify best practices in your industry that apply and do not apply to you and how your business measures up.
- Evaluate future trends and potential disruption in your industry and how your business adaptability potential measures up.
So, How Does Your Business Measure Up?