Is your’s a Balanced Business AND DOES IT MATTER?
Yes it does. Having a balanced business matters a great deal, especially if you want your business to be easier to manage, to keep your best staff, to grow and deliver exceptional profits.
Your business is healthy and effective to the extent that the individual elements making up the business, are themselves working well. For example:
- In marketing, sufficient sales enquiries or leads are being generated, for sales to follow up on and convert to orders.
- Sales revenues are on target. Sales are being made at the right price and margin.
- Cash flow is healthy. Bills can be paid when due and the business has established a decent cash buffer.
- Employees are working efficiently and effectively. Performance is at the centre of everything they do.
In this example, each element of the business is working well, so this is a balanced business.
But, when a business is not running well, it will be due to one or more likely several issues, for example:
- Too few sales enquiries or leads are being generated.
- Too few sales being made. Sales revenue targets are not being hit.
- There is insufficient cash. Suppliers are rarely paid on time, plus all the other problems that stem from not having enough cash.
- A key member(s) of the team is underperforming, absent or have left. Morale is low. Staff appear indifferent to the company.
Clearly, this is an unbalanced business where issues need to be fixed. Probably quickly.
When I’m asked to help improve a business, I establish with clarity, the key underlying issues and problems and then set about working with the business owners, directors and management team to fix them; to re-balance the business.
For many small businesses, running a balanced business is about taking a practical approach to managing its various parts and keeping them working in harmony (balanced) – and at optimum efficiency and performance.
If yours is an unbalanced business and you are not sure where to start to balance it, then contact me here for an informal, confidential and no-obligation chat about the possibilities.
See also Grow your business, Your Business Plan, Which tasks and activities should I be working on?