A holistic approach to making business better.
Before you can improve, you have to determine what is normal.
Sometimes you aren't even sure there's a problem. Think about the kinds of questions that run through your head when you are worried about your personal health. "Is that pain in my side normal or is it a symptom of some terminal illness? " The same kinds of questions bother business managers and owners.
"Is it me, or does it feel like business is more sluggish than usual? Is it a good thing that one customer now accounts for more than 90% of my business? How do I know if I have a problem? Does everybody have this much employee turnover ? What is normal? Am I more or less fit than others in my age group/neighborhood/industry? Why do I work harder and produce less? Should I take vitamins? "
And then there's the pricing/revenue model problem. How do you know how to price your goods or services? Do you stay awake at night wondering if you could charge more for each hour or product and not have to work so hard? If so, you are not alone.
Do you suffer from any of these common business ailments?
Reverse Hockey Stick Disease.
Check your revenue growth. Is it less than 5%? This could be a symptom of poor product mix, poor customer service, a declining market, or it could be exactly the right number for your business. Either way, it might be time for you to take a look at your goals and objectives and see if you are on track for long term success.
Bad Creditosis.
Compare the percentage growth in your accounts receivable balance to the percentage growth in your revenues. If AR growth exceeds revenue growth it's time to get it checked out. Review your credit policies. Examine your customer list and any early payment discounts. Examine your collections process and any employees involved. How can you improve the process?
Salesman Apathy.
If left untreated, can be fatal. Examine compensation structure and monitor in HR system. Review cycle of customer interaction for any blockages in the system. Investigate order entry process and CRM solutions in use. Could be time for an upgrade or a major overhaul.
Restless Customer Syndrome.
Are your customers constantly looking for the lowest price? If you are competing solely on price, then it is time to take a look at your business model.
Got an Ailment to add to the list?
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