You may hear people saying, “We’re not doing too badly”, or “We’re doing okay”, or even sometimes, “We’re going pretty well.” Worse still, are comments like “One of my staff looks after that part of the business.”
The reality is, your business is either growing or going backwards. Put even more brashly, your business is either moving forward and making money or it’s going backwards and losing money. I regularly hear many of my clients say “My business is about the same, or fairly constant.” If that is the case for you, I have some awakening news….the truth is that the world, commerce, technology, products, services AND YOUR COMPETITORS are moving forward.
What does this mean? It means that if you are staying the same, then you are actually going backwards.
Without a doubt one of the biggest problems I continue to see is that many businesses have no truly accurate way of seeing exactly how they are tracking. Many businesses often have absolutely no tangible or objective sense of performance that is up to date, accurate and reliable enough to gauge how well they are doing, let alone assess the direction in which they are going. Many small business owners may have a gut feeling, approximates, or a general roundabout idea. However, when asked for specific measurements, quite often the answer is nothing more than a shoulder shrug.
There is one thing that is undeniable - big companies make reporting a weekly discipline. Every week they know exactly how much money they have made or lost. The reason they do this is because they are usually accountable to management or a board of directors. Management expects to know how the week has progressed, and if necessary react quickly, and make adjustments…FAST! How does this help those of you who are running small to medium size businesses? Well, the good news is that most small to medium business owners can react much quicker than many big corporations. They can also make the necessary adjustments, so that their business starts travelling back on track, towards making money.
To assess whether you’re tracking your success, ask yourself the following questions:
1. How do I measure the performance of my business? Do I know how well it’s performing?
2. Is my business going forwards or backwards?
3. Could I tell someone in tangible objective figures how my business is travelling?
4. If yes, how often do I look at these figures?
5. If I was given one strategy to improve my business, how would I know if the strategy works?
I challenge you to answer these questions for yourself. One of the paramount rules of business (and it doesn’t matter which business mentor you listen to) is this:
“IF YOU CANT MEAURE SOMETHING, YOU CAN’T MANAGE IT!”
So, this is my final point….
In the Bartercard business network, there are ample opportunities to resource cost effective strategies to improve your business. Many of these are more cost effective than in traditional cash businesses. Put them in place and see what results you can actually measure as growth.
Finally, write down this ACTION POINT:
Identify an accurate performance measure for your business, and monitor it weekly! You may decide it might be in sales, business leads, profits, or conversions.
Commit yourself to monitor it, and see the results for yourself.
HINT: Graphs are a great way for you to get a real perspective of a business’ direction.
Author: Sam Tornatore
Victory Business Solutions
M: 0404 099 102
Since 2006, Sam has been Australasia and New Zealand’s No 1 trainer/facilitator to date for Life in Balance seminars. His personal clients have included Mercedes Benz, Volkswagen, Mortgage Choice, Yellow Pages, Ray White, Tupperware, Toyota and Fitness First Health Clubs. Sam has been running workshops in various locations throughout Australia including the highly acclaimed, long standing and successful Total Focus Workshop. He has personally impacted over 20,000 individuals with his company’s proven material endorsed by academics and psychologists.