Posted in Blog, Entrepreneurship by Jo North
Time for Your Business Check Up
The purpose of this business check up article is to provide you with an opportunity to stop and think for a few moments about how you feel about your business and progress right now. and identify some pragmatic, effective actions to create a step change in performance.
You and Your Business – Free Business Check Up Download
I’ve created a FREE download HERE to help with your business check up, focused on how you see yourself and your business right now. The download also includes some coaching questions to help you identify actions to move forward, and I will be delighted to talk through your thoughts with you in confidence if that helps. You’ll find out more about the download later in the article.
Passionate, empowered, confident with a clear vision? Or, under pressure and feeling like you’re always putting out fires?
As entrepreneurs, when we feel passionate, empowered and confident about our businesses and have a clear vision for where we are heading, we are unstoppable. Our energy, insightfulness and preparation combine to create a compelling and powerful effect that inspires, aligns and focuses the people around us to play their part in our unfolding success story.
The challenge is that starting, building, maintaining and growing a business is hard work. There are moments of celebration, and even the occasional flash of glamour once we begin to reap the rewards, such as an award, a huge contract signing, an exceptionally glowing testimonial.
But, it can be hard to step back, see what we’ve achieved, and check that the course we are on is the right one. Delivering great service to existing clients at the same time as innovating, expanding and wooing new customers can be tough. Fast growth is a wonderful problem to have. It does, however come with growing pains, a lot of firefighting, and a feeling that we are always playing catch up, never mind getting ahead of the curve. We need to create a few moments to stop and think.
Take a few moments to stop and think
Where are you at this moment, at this stage of your entrepreneurial journey? Are you passionate, empowered and confident with a clear vision? Are you loving your work almost every day?
Or…
Are you head down in your work, bottom pointing to the sky, feeling like you’re battling through, reacting and on a hamster wheel, working hard just to avoid slipping backwards?
Is the reality of your business today matching up to what you wanted to achieve?
Or…
Has the strength of your overall vision got lost somewhere in all the hard work, noise and drive of the day-to-day?
Freedom and Fulfilment
I have worked with many, many entrepreneurs, and I don’t know any who are only in it for the money. The two fundamental drivers for people who start and build a company based on my experience are freedom and fulfilment:
Freedom to…
- Create a business that stands for what we believe in.
- Focus on what matters to us.
- Make the decisions that we think are right for our companies and ourselves.
Fulfilment from…
- Building something that is about more than just profit and delivering the numbers.
- Doing great work, through our products, services and leadership.
- Nurturing our ideas from concept to commercial reality, giving us a genuine sense of self-achievement
We also want more clients, greater certainty of continuing work, money and security, a brand that makes us proud, and a hassle-free, high performance culture.
Your Business Check Up
Taking 20 minutes to assess the current status of you and your business, and identify some quick wins to move you forward, will be time well spent. I’ve created some resources to help you do just that. Use them today, and keep coming back to them every few months or so to maintain your momentum and make sure that you are working on and not just in your business.
Step 1: Download your free copy of my You and Your Business Playbook
First, download my FREE You and Your Business Playbook here and take my quiz to explore how you’re feeling about your business, your contribution to it, and how much freedom and fulfilment you’re getting from it.
A playbook, as you probably know, details the range of moves that a team, usually in sports, has mapped out in order to achieve the target outcome – the win.
My playbooks are designed to help you to step back from your business for a few minutes, and see things from a different perspective and gain new insight by asking you to answer a small number of really powerful questions.
Once you have this new insight, the playbook then walks you through a really quick and easy process. You’ll work out how you can take action simply, quickly and effectively to create a step change in your performance.
Top Tips for Using Your Playbook
- Try not to over-analyse: go with your first response as you read the questions.
- Think about any other questions you need to ask that are specific to your work and business.
- Write down whatever is in your head. This will help you capture your thoughts right now, and is also really illuminating when you come to read it back in the future.
Step 2: Think about You
Reflect on each of the statements for You in your playbook and rate how strongly you agree with each statement on a scale from 1-7:
7 – strongly agree
6 – agree
5 – slightly agree
4 – neither agree nor disagree
3 – slightly disagree
2 – disagree
1 – strongly disagree
Here are the statements:
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I enjoy my work, more or less regardless of what is going on. |
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Compared with most of my peers, I consider myself to be a high performer. |
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The people I work with hold me in high regard. |
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If I could start my career over, I would not change very much at all. |
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So far I’ve achieved the important things I wanted to achieve in my career. |
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I am satisfied with my career. |
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The rewards I get from my work are excellent. |
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In most ways the time I spend at work is close to my idea. |
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At work I frequently experience moments that make me realize why the work I do makes me feel so personally fulfilled. |
The statements are designed to get you thinking about aspects of work that my research and commercial experience show are fundamental ingredients of experiencing freedom and fulfilment at work.
Step 3: Think about Your Business
Reflect on each of the statements for Your Business in your playbook and rate how strongly you agree with each statement on a scale from 1-7:
7 – strongly agree
6 – agree
5 – slightly agree
4 – neither agree nor disagree
3 – slightly disagree
2 – disagree
1 – strongly disagree
Here are the statements:
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There is a clear, motivational business plan for the future. |
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The business is achieving the things I originally set out to do. |
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The people I work with – employees and / or suppliers – are creative and come up with new ideas for the business. |
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Customer retention is strong. |
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The business is attracting new customers on an ongoing basis. |
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Cashflow is strong most of the time. |
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Financial management is a strength of the business. |
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We have new product/ service innovations in the pipeline. |
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I regularly network with others to gain information for my business. |
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People in the business generally perform well. |
These statements give you a pragmatic, efficient and insightful business check up, covering financials, people, customers, innovation and goals for the future.
Check your answers with someone who knows you and your business well: they may have a different perspective on you and your business.
Step 4: Use the Coaching Questions
Highlight the statements that you gave your lowest scores to, and then use the coaching questions I have provided to explore your thinking and come up with ideas and actions to improve. I have provided coaching questions for ALL the statements, but you only need to do the ones that are most relevant to you. Do make sure that you jot your thoughts down in the notes section. Using your head as an office and filing system is not a great idea, and we know that when people commit things to paper they are much more likely to take action.
Again, check your answers with someone who knows you and your business well: they may have a different perspective on you and your business. You can always book a free coaching call with me too, to discuss them I complete confidence.
Step 5: Action Focus
Go back and review your answers. Ask yourself these questions:
- What are the key things you need to address right now?
- What do you need to address in six months?
- What do you need to address in 12 months?
Write your next steps down in your playbook.
Business Check Up: Focusing on the Financials
For business owners, an annual check up of your company’s finances is as crucial as regular health check-ups for your personal well-being. Assess your business model, current performance, and financial health to ensure you’re on the right track towards achieving your goals.
Why Conduct a Financial Business Check Up?
- Identify Potential Risks: Early detection of financial problems can save you much time and resources in the long run.
- Evaluate Company Operations: Understanding the efficiency of your company’s activities is key to making necessary adjustments.
- Align with Revenue Goals: Checking if your business is meeting its targets is vital for both short term and long-term success.
The First Step: Assessing Your Business’ Financial Health
Begin with a simple calculation of your business’s key financial statements: the balance sheet, income statement, and cash flow statements. These documents reveal the gross profit, net profit, and net income, offering a clear picture of your financial information. Analyzing these numbers helps pinpoint any potential issues affecting your bottom line.
Key Components of a Financial Check Up
Financial Statements
Review your financial statements to evaluate your business growth compared to the past year. This includes looking at revenue growth, cost of goods, and gross margin. These figures offer practical information on your company’s performance and help set clear expectations for the future.
Business Credit Card and Loan Statements
Analyzing statements from your business credit card and any loans provides insights into your business’s spending habits and debt management. This is crucial for maintaining a healthy cash flow.
Tax Documents
With tax season comes ample time to review your previous year’s financial decisions. It’s a good time to assess if you need a better system for the next year to avoid last-minute rushes and potential financial problems.
Efficiency Audits and Optimization Campaign
Conducting efficiency audits on your company operations, including supply chains, client list, and social media practices, can reveal areas for an optimization campaign. This ensures you’re not only meeting but exceeding your business plans and strategic choices.
Setting an Action Plan
After completing your business health check, compile your findings into an action plan. This plan should outline the necessary adjustments to steer your business in the right direction for achieving annual revenue goals. It includes hiring new employees, updating your business model, or launching a website maintenance schedule.
The Role of Professional Advice
Consulting with a professional for advice is the first thing you should consider if your check up reveals significant problems or risks. Whether it’s a private practice accountant for a more detailed financial check-up or a marketing professional for an optimization campaign, getting expert insights matters.
Conclusion
Regular check-ups are vital for maintaining the overall health of your business, much like they are for your personal health. By taking the time to review your business’s financial health, you ensure that your business is on the right track for both short-term achievements and long-term success. Remember, the goal of this annual business check up is not just to assess current performance. It’s also to lay down a foundation for making strategic choices that will benefit your business size, from small business owner ventures to larger entities, in the years to come.
