What Are The Signs Of A Healthy Business?
Monitoring your vitals ...
POSTED BY JONATHAN VOWLES ON 15/05/2018 @ 8:00AM
We all know the signs of a healthy person: the glowing skin, the sparkle in the eyes and a strong pulse! But what are the signs of a healthy business? And how do you check so you know when it's starting to get sick?
Whatever the size of your business, you need to monitor its vitals!
copyright: scanrail / 123rf stock photo
Your business will have vital signs at all stages of the business lifecycle, but there are a number of differences between a start-up business, a growing business, or a stable business.
"For a start-up business, the vitals are about staying alive and staying in business!"
Basic survival can be the most important measure of success, i.e. still being in business next month and having enough cash to pay your way. For great start-ups there is more though; your sales are buoyant and you get that great feeling of riding the crest of the wave!
A growing business shares some of the issues of a start-up business, but often on a bigger scale. A stable business often has issues like succession, expansion or staffing as well as the same issues as all other business.
So what are the problems? Businesses are often killed off by one of four issues:
a lack of capital and poor cash flow
a lack of sales and poor customer growth
a lack of systems that deliver consistent quality of customer fulfilment
the business owner's level of stress
Which gives you some basic things to measure to identify if you have a healthy business or not.
The vital signs come from monitoring cash, sales and customers and delivery of what you do; and the level of stress/happiness for the business owner. As a business owner, you need to remember that your business is the engine that drives everything.
It gives you the income you have this month, the savings you build to pay for stuff next month or next year, the capital value you can sell it for and pays for your family's future.
The only person who can decide and make changes about your business is you - which makes it all the more important to work with people who can help you to make it better and take it forward into a good future.
"Would you like to know more?"
If you're wondering if you have a healthy business and need help monitoring your business's vital signs, do give me a call on 01234 752 566 or click here to ping me an email and let's see how I can help you.
Until next time ...
More about Jonathan Vowles ...
I've been an accountant in and for business since 1987 and have a wide experience of consultancy, audit, accounts, taxation and wealth planning work from individuals and small businesses to multinational corporations and charities.
My eclectic interests in growing and developing business span a number of areas, which can be summarised as strategic business advice and tax saving advice.
I have worked with the Chamber of Commerce to deliver courses for people about starting up in business and have lectured about tax for a major accountancy practice and for Milton Keynes College.
I relax by reading fiction and by getting away from the office in a campervan.
More blog posts for you to enjoy ...