Don’t let working “in” your business get you bogged down, and don’t put the important task of reviewing your business strategy into your too hard basket!
Take some time today to step back and “look” at your business. Looking at your business’s future and developing a strategy might be the best thing you can do, not only for your business’s success and growth but also for the opportunity it gives you to “think smarter” about your business.
Many business owners spend more time working “in” their business than they do working “on” their business strategy. Yet your business strategy is arguably your most important key function.
Whether you are a new business owner, or already have a small business. You need to:
- Review your existing business strategy or implement a new strategy. Your strategy should differentiate your business from your competitors, and also focus on your business’s strengths.
Key Areas that Drive Business Growth
There’s no one way to make your business succeed, but there are a number of fundamentals that can give your business a fighting chance. Whether you decide to do it yourself or employ the services of an experienced small business adviser, there are a few key areas that drive business growth that you should always address, for example:
Your Business Plan
You should have a business plan! It is not uncommon for business owners to prepare a business plan and then find that they don’t make enough time to regularly “review” their business plan. Nonetheless, when preparing your business plan, you should clearly define your business’s vision, mission, goals, and objectives. Furthermore, you should regularly “review” your business plan to see what strategies and opportunities you may need to take.
Note: If you are unsure of what to include in your business plan, simply download our business plan template.
For your small business to be successful it doesn’t just have to offer a product or service, instead, it has to have direction and aspirations. To put it differently, your small business needs a vision. As an illustration, a vision can be as simple as being the hair salon of choice for a city’s stylish trendsetters. Additionally, for your small business to achieve its vision, it will need leaders who know how to communicate and inspire their teams.
Your Customers or Clients
It is important to regularly keep in touch with your existing customers or clients if you want to keep them loyal to your product or service.
You will find your small business will do best when your team is dedicated and uses the full extent of their talents. That means you and your managers need to:
- Hire well;
- Take care of your employees; and
- Support your employees.
Additionally, you should strive to create a sense of ownership and investment among your employees.
Problems and challenges will always come along, moreover, you still have to:
- Think critically;
- Develop strategies; and
- Derive solutions to various obstacles.
Problem-solving may range from crisis management to long-term planning aimed at heading off foreseeable issues. Because you cannot possibly know it all, you may need to hire an expert small business adviser to bring in much-needed business advice.
Understanding your Financial Statements and Financial Ratios
It can be quite daunting for small business owners without any accounting or financial expertise. Be that as it may, you have to understand the components that go into your business’s financial statements, such as:
- Your Income (Profit and Loss )statements;
- Your Balance sheet; and
- Your Cash Flow statement.
Likewise, you should try to understand the key financial ratios within your business and what these ratios mean to your business.
Note: For more information on financial ratios and analysis, simply click here to view our related Blog on this topic.