It’s very easy to get so busy running a business that you forget about the day after tomorrow. The day-to-day hustle and bustle of keeping your head above water can be exhilarating, frustrating and exhausting all at the same time. But for budding entrepreneurs as well as older hands, there is a real danger in being lost in the moment. Markets change, new products come along and competitors can sneak up on you. It is a vital skill to be able to step back regularly and take stock of not just the business, but the world in which you’re operating. getaguard
To do this successfully, and effectively, there are a number of areas that any business owner should keep firmly in mind, and which should be reviewed on a regular basis to make sure things are on track, not just now but for the foreseeable future.
Actually Use the Business Plan
When businesses start out they usually have a plan. It’s how they developed the original idea and what they used to convince the bank or investors that the idea was, Hardrockhealth in fact, worth supporting with hard cash. Once the business is up and running, however, too often the plan is shelved and forgotten. If, however, it is kept on the desk and not only referred to, but up updated and amended it can be the ongoing roadmap that keeps the business on track.
Focus on Winning New Business
It’s great to have a full order book and diary, but it will not last forever. Your customers will change suppliers, go bust and retire. You must be constantly on the lookout for new business. If you get more than you can handle, that’s great. You either expand or make some really grateful contacts as you hand the surplus on, which will pay dividends later. Most importantly, lavelart you will have a flow of work to replace losses.
Keep Your Current Customers Happy
Don’t become complacent with your existing customers. They are already putting money in your bank account, so treat them with the gratitude they deserve, even if they’ve been with you for years. Take them for granted and they’ll soon switch to someone who does appreciate them.
Watch the Cashflow – Closely
It’s the classic mistake that businesses of all sizes make. Just because the order book is full for the next 6 months, don’t think you can ignore the bills that have to be paid now. Conversely, readmakedo just because the bank account is healthy at the moment you can’t assume it will stay that way. One disaster such as machinery breaking down and losing orders could still wipe you out. Regular consultation with the accountant is crucial to make sure the cash flow can support the business. Spotting potential problems early also gives you time to do something about it, whether it’s chasing in money owed or raising additional bridging finance.
Don’t Let the Staff Become Stale
And this includes the boss! Over time we all become set in our ways. If we’re not careful this can lead to the stagnation of everyone’s skills as well as the business as a whole. This is the first step on the road to decline. Keeping up with new developments and methods in any industry need not be expensive, and certainly doesn’t require overpaid consultants and training. Access to the internet means there is no excuse to not stay informed and ahead of the game. Making sure all staff are part of this process does take time, but it is well worth the effort in the returns gained from remaining at the cutting edge of the field.
Keep on Top of the Overheads
A lean business is more profitable and more responsive to change. Making sure the overheads are always kept to an absolute minimum is also the key to keeping on top of the cash flow. It’s much harder to trim down than to stay lean in the first place (ask any dieter). Reviewing the overheads on a regular basis, ideally with an accountant, and considering all new commitments carefully is also a disciplined way of keeping a finger on the pulse of the organisation as a whole.
Be Aware of the Outside World
Markets and the world change, and any business that doesn’t respond will be left behind. Businesses that are actually ahead of the changes will thrive and outdo their competitors. Being aware of what’s happening by keeping up with the business news and trade press is a must, thehealthyadaptation even if it’s not the most exciting thing to do. The business accountant can often be a surprising source of intelligence as their work brings them in to contact with a whole range of businesses.