How Well Do You Know Your Business?

The start of a new financial year is an appropriate time to take stock of the position your business is in at present. This month you could ask yourself  "How well do I know my business?". To start this process, we've prepared a checklist.

Some of the questions are:

Customers

• Who are your customers?
• How well do you know their preferences?
• Do you know your 'A' grade customers?
• Do you have special policies for you 'A' grade customers?
• What are your policies to convert 'B' grade customers to 'A' grade customers?
• Does your business exceed your customers' expectations?
• If you believe that your business exceeds your customers' expectations, how do you know that?
• Do your clients refer business to you?

KPI ( Key Performance Indicators)

• Have you identified key performance indicators for your business?
• Are they appropriate?
• Do you share the key performance indicator information with your team?
• Every business will have different KPIs. Popular KPIs are:
  • Debtors' Days Outstanding
  • Stockturn
  • Work in Progress
  • Gross Profit Percentage by individual products or departments
  • Sales/fees per team member

Team Members

• Have you identified team members' strengths and weaknesses?
• Have you identified special training or development individual team members may need?
• Are you conducting staff training and development activities for your team members?

Marketing

• Is your website user-friendly?
• Have you asked customers/clients whether they get the information they are looking for from your website?
• Do your team members know what your customers/clients think about your website?
• Are your team members using the website fully to supply information to customers/clients?
• Have you got a growth strategy for the business?

Cashflow

• Have you analysed your cashflow position?
• Are improvements needed to cashflow?
• Are credit terms clearly explained in writing to customers/clients?
• Are tax invoices accurately prepared and mailed?
• Is follow-up action started as soon as the debtor exceeds your stated terms of trade?

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