Mid-Year Business Check-up – 9 Questions For Every Business Owner
May.24.2017 Business Resources
The year is half over – it’s an excellent time to stop and assess how you are doing and reflect on how your actions and leadership are impacting your business and faith. Take this quick check-up to assess your progress.
- Are your best customers happy? Most companies get 80% of their business from 20% of their customers. If your key customers are unhappy, this is an indication that there are serious problems that need to be addressed and fixed. Are your key customers ecstatic or are they ready to jump ship?
- Is employee turnover too high? Are you losing more people, especially key players? Employee turnover relates to many variables and can be an indicator of several different problems. Basic compensation policies may need to be changed or some managers may need to be trained or replaced, just to name a few of the variables to consider.
- Are you developing new business? Are you gaining or losing against the competition to get new customers? If your marketing, R&D, and sales efforts are healthy, you should be faring well among your competitors. Are you growing at a healthy rate for your industry?
- Are your communications effective? Are your meetings boring and unproductive? Do the same mistakes seem to occur? Are you paying too much for rework on items that should have been done right the first time? Are you confident that your key players have the right information?
- Are your goals clear, and do they relate to and support your vision?Can all your employees recite your Mission Statement, and do they use it to make decisions in the business? Obtaining buy-in to your mission, goals and objectives is a core leadership function. Employees need to feel part of a team; something bigger than a paycheck. If you were to take your best employees and ask them to state your company mission statement, goals, and core values, how confident would you feel waiting for their answer?
- Does your compensation system support your desired culture? Do you pay for performance or do you pay for simply putting in time? Your compensation strategy should be an integral part of your corporate strategy. Setting clear performance goals and rewarding those who achieve them, is the best way to improve overall performance within your organization. Are your employees paid well in comparison to your competitors employees in similar positions?
- Are your employees working too many hours? Are you?Overworked and overextended staff often make mistakes. This condition is generally indicative of bigger problems. If you or your staff average 70-90 hours per week, it’s time to evaluate workflows and efficiencies.
- Are your financial reports current, reliable, and useful to you in operating your business? Managing a business without relevant and reliable financial information, or having a team without any accountability to them can be costly.
- Have your recent initiatives been successful?Initiatives can relate to entering new markets or installing a new compensation system. It can also include changes to improve processes or procedures, or the culture of a healthy business to make it healthier.
How did you do?
If you recognize any area that needs work, dedicate some valuable time to working on solutions. You’ll see improved performance among your employees – and a better bottom line. If you would like to learn more about joining Charlotte-area business leaders at a C12 Peer Advisory meeting, email Tony Tennaro.
“Each of you has received a gift in order to serve others. You should use it faithfully.” – 1 Peter 4:10