Attention BUSINESS OWNERS
Five questions to ask yourself about your business. Your answers will determine how successful you plan to be this year.
- Would you rehire your key staff/executives?
For your company to do well, you need the right people doing the right jobs well. You don’t have to settle for mediocre leaders in your business. Do your leaders regularly wow your team with crucial insights? Would you rehire them?
- Can you state your business strategy simply?
Like an elevator pitch, can you articulate what your business does clearly and concisely? If you can’t explain what you do in a quick, powerful way, don’t expect your employees or the market to get it either.
- What’s your cash cycle?
Your cash flow should be running faster than your investments in the business. If it isn’t, you risk failing. Basically the cash conversion cycle is how many days it takes a company to pay for and generate cash from the sales of its inventory. Crucial for retailers to know and understand how many days it takes for a dollar invested in growth to flow back into your business. The shorter the cycle, the less time capital is tied up in the business process, and therefore better for your bottom line.
- What 25 relationships do you need to nurture?
Business success depends on powerful gatekeepers and ‘key center of influence’ people. Make a list of the top 25 people who will help you double the size of your business—including the next five major customers you need. Figure out how to cultivate and deepen these relationships before you ask for any favours. Then pitch it to them with an established strategy – basically, ‘how you can create a mutually beneficial relationship’.
- What could threaten your industry?
What could threaten your very existence? Know your competitors. What are they doing? Keep abreast of changes to your industry. What are the new initiatives, technologies or developments in your industry? Should you be implementing, adapting or making changes to your business to mitigate your risk of a potential future problem?
(amended excerpt from Fortune Mag, Dec 2014)