Step 3 of Building a Better Business: Defining Your Current Business Position – Warts and All for Future Growth
Welcome to the third step in our series on building a better business. In this crucial phase, we delve into the often underestimated task of understanding where your business stands today—warts and all. Without a clear grasp of your current realities, the road to success remains obscure. Let’s dive into the essential questions that will help you candidly assess your business’s current position and work towards your future growth plan.
Alignment of Owners/Leaders:
Initiate your assessment by gauging the alignment among the owners or leaders of your business. Can each leader independently articulate the same vision? Resolve conflicts and ensure unified thinking before forging ahead into the future.
Analyse Result-Generating Activities:
Go beyond mere sales figures and scrutinise the activities fuelling your current results. Evaluate lead generation, proposal conversion rates, average sales values, and more. A comprehensive understanding of these metrics is essential for improvement and strategic planning.
Team Engagement with the Vision:
A thriving culture and an engaged team significantly contribute to business success. Assess how well your team comprehends their roles in achieving the overall business vision. Without team buy-in, leveraging your business becomes a daunting task.
Evaluation of Measurement Systems:
As the saying goes, “If you can’t measure it, you can’t improve it.” Review the effectiveness of your measurement and reporting systems. Do they provide accurate and actionable information? Informed decisions rely on the quality of data at your disposal.
Identify Vulnerabilities:
Uncover your five most significant vulnerabilities. What keeps you awake at night? Whether it’s industry disruptions, impending legislation, system robustness, team turnover, succession planning, cashflow strains, or a weak Balance Sheet, acknowledging vulnerabilities is the first step toward addressing them so you can make the necessary adjustments for your future growth plan.
Take the necessary time to define your business’s current state, recognising both strengths and weaknesses. Skipping this critical step is a perilous choice. Remember, “Opportunities don’t happen. You create them.” – Chris Grosser.
If you find these questions challenging, we’re here to help. Contact us for guidance on navigating these crucial assessments and steering your business toward new opportunities.
On Tuesday 13 February from 8-9am, Sharp Accounting will be running our Building a Better Business in 10 Steps Seminar. This will be held at our offices here in Ballarat. Click here to find out more and register at no cost.
