As a business improvement specialist I help business owners to get a life again, plug the gaps, restore their work/life balance and help them build an asset which is investor ready. Even if they decide not to sell, they will become free to enjoy the wealth created.
Below, you will find a list of questions designed to get you working ON your business; have a go at answering them to see how you fare.
Once completed, we will have enough information to put together a report or action plan on what you would need to do to achieve the desired objectives e.g. give you a successful business which operates on auto-pilot and delivers at least equal or more than when you lived in the business.
So let’s get started:
Where do you, the owner want to take this?
Is there a clear strategic vision?
Does everyone know what it is?
Is everyone pulling in the same direction?
What are the top 5 priorities in the next 8 quarters to ensure you deliver the desired outcome?
How will these KPIs be measured?
Who does what?
Is there a “system” in place?
Is there an Operations Manual, policies & procedures, inductions, training, job descriptions & performance appraisals?
Does everyone know what is expected of them?
S.M.A.R.T = Specific, Measurable, Achievable, Relevant & time-based.
Are there any clearly defined measurable goals in place? This is not only for the individual, but also each dept and indeed the whole company.
Sales/Marketing/ Lead Generation:
Are the sales team making the most of “no to low cost strategies,” the soft sell, the consistent presence in the marketplace.
Are they networking, business group breakfasts etc. Industry associations? Chamber of Commerce?
Is your website dynamic or static? Is it updated regularly with useful information for your target audience? Do you use AIDA principles of Attract, Interest, Desire & importantly a call to Action?
Is your website compatible with smartphones & tablets; in Australia for example 60% of consumers shop this way online!
Are leads being captured? How?
What is the follow up procedure? You do have one??
What is the conversion ratio?
Do you maintain a database or better still a CRM accessible to everyone who will deal with a customer throughout the project?
Staff/ Key people:
Does each person know what is expected of them?
Do they have a job description and clear KPIs?
Does your company have a Skills Matrix detailing clearly which employees are capable to complete each task, this should be cross-referenced. This same matrix should be able to pick up on potential weaknesses and allow for training.
What is the general attitude, morale, commitment in your staff, honest opinion required here?
Do you really know your people?
Are you getting the best from them?
What do they really want?
Are they committed?
Have you considered an incentive based scheme to get everyone on board (a WIIFM or whats in it for me)
Do they know what you and your company stand for?
Last Financial Year Year To Date Budget
Revenue: $ $ $
Gross Profit: % % %
Net Profit: % % %
If you are on budget, well done!
Do you have an Accounts Receivable dept/person?
Do they have a clear understanding of what is expected?
Is there an S.O.P (standard operating procedure)?
Current days in receivables?
Cost of stock on hand?
Value of orders on hand?
Product Mix? Winners vs. Losers?
Cull the losers and concentrate on the winners
Where is your product in it’s life cycle? What will replace it and when?
Supplier contract reviews? Are you getting the best price?
Production efficiencies? Total time from start to finish versus down time between each process?
Is the plant layout optimized? E.g. could you implement cell manufacturing?
Work flow; from inwards goods to Despatch in the shortest line.
Have you eliminated clutter, obstacles etc, to streamline workflow, eliminate heavy lifting etc – look at 5S here.
Reduce WIP (work in progress) by promoting JIT (just in time) systems and the use of “The Theory of Constraints”; the quicker the job is finished, the quicker you get paid!!!
Stock reduction – both raw material & finished goods. Communicate with suppliers and customers regarding forecasts, consignment stock etc.
On time delivery performance?
Cost of defects as a % of turnover?
Cost of WIP?
In summary it is imperative that you have access to live data on how your business is tracking now today. Most business’ rely on their accountant to tell them how they are faring but that is like driving forward by looking thru the rear view mirror!
I would suggest you collate the data (that you determine is critical to your particular business) and then present it weekly in a user-friendly dashboard style snapshot at a weekly meeting with your team. Analyse the results and make the appropriate changes to stay on track.
If you or your team would like help with this or any other growth strategies contact John for an obligation free discussion.
To your success!