Business 101: Mid-year vitality check crucial for small businesses
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JUST yesterday, we were preparing to celebrate the beginning of a new year.
But since then, businesses have faced a gauntlet of hurdles brought about by Covid-19.
They have adapted repeatedly and some have found ways to navigate this brand new business world.
Halfway through the year, it is time to take a retrospective at what we have done and how far we have come.
It is time to take stock once again and setting time aside to reflect on the goals that we set at the beginning of the year. Here are some central aspects to taking inventory and measuring your trajectory for meeting those goals.
During the 1930s and 1940s, Globe Wernicke invented industrial “in and out” paper trays for clerks to sort their mail. Today, the trays have become synonymous with office-bound work.
Businesses need to review their inventory list and decide, what to get rid of and what to keep, in a ruthless way.
They need to consider the pricing structure to ensure that it has adapted sufficiently to maintain a competitive edge. Chase your suppliers to meet deadlines.
Take stock of your financial position. Have a profit-and-growth mindset and re-evaluate your revenue streams.
In a turbulent economic landscape, the most innovative entrepreneurs are those who can diversify their income streams and pool their resources.
Monetise new aspects of your business and check where new opportunities lay. Check whether what you are spending money on – people or activities – is producing sufficient returns.
An effective financial inventory goes beyond just rands and cents.
Reflect on where your goals originated and the percentage you aspire to increase your profit margin.
Capture a bigger market share, provide better customer service and improve employee training.
Structure these goals around your specific needs and business vision.
Your business goals should also be closely connected to your values and what is truly important to you for them to be authentic.
A business that is based on authenticity is more likely to be successful.
Consider this quote by award-wining author and founder of the “Getting Things Done” methodology, David Allen.
“Sometimes the biggest gain in productive energy will come from cleaning the cobwebs, dealing with old business, and clearing the desks – cutting loose debris that’s impeding forward motion.”
Ben Bierman is a managing director at Business Partners Limited
*The views expressed here are not necessarily those of IOL or of title sites.