In a volatile market, keeping to a specific business strategy, or let’s face it creating one, can be tough.
The downside of not taking time out for your strategy is that there is a tendency to keep a short-term focus at an operational level to try and pick quick wins to generate financial returns. Sometimes in the process, this short-term focus undermines longer term value and returns.
As trusted advisors to businesses, we have an in-depth understanding of what it takes to create sustainable growth from within the business. Here are our ‘must dos’:
- Know what your position is.
A business health check is an analysis of the current state of your business. It is an analytical review of its operation to provide an overview of performance and identify potential issues.
Understanding your position will reveal your risks and capacity to develop.
If you’re looking to develop transparency and set up a regular reporting process that lends itself to proactive analysis, our business packages are ideally suited for small businesses.
- Know what to look for.
Once you know your position, the next focus is knowing what measures are going to give you the best insight into business performance.
In a volatile market, this information will give you what you need to make informed decisions at any one point in time. Our regular Accountant Check-ins with clients will give you a detailed review of your financial performance to verify accuray and identify any potential gaps you can address in a timely manner.
- Be prepared to make quick decisions.
If you know your position and have the data you need, be prepared to make quick decisions and take the first mover advantage. If you have the two elements above, you have your radar for identifying opportunities and mitigating risk.
Most businesses are simply a replication of what they see. While re-emerging from the pandemic and market instability is currently making it challenging, it’s imperative that businesses adapt to find solutions. When you start approaching the challenges this way you’ll also be open to the wave wave of innovation we are currently observing in the market as people are inherently resourceful.
- Don’t bank on a single opportunity.
If COVID has taught us anything, it is that things change, and we need to adapt and change with the circumstances.
While one single opportunity might make all the difference, an overreliance on one product, service, platform or methodology for delivering those products and services, exposes you to risk.
Look out for these in your regular operational checks.
- Understand your end game.
What are you aiming for?
Fast growth and sale?
Sustainable growth and sale as a retirement plan?
Even if you plan on simply running and growing your business for decades to come, that is a decision. Your end game and your progress towards that end game impacts your structure, focus, and decision making.
- Document your strategy.
Document your strategy – knowing it in your head is not enough. This does not have to be an onerous War & Peace approach. Simply put, it is understanding what you are aiming for, and breaking that down into measurable objectives, then into measurable outcomes and timeframes (preferably actionable against rolling 90 day plans).
This approach also makes management meetings a lot more meaningful.
Getting this set up right can mean the difference between lagging behind and really going full throttle in 2023. Reach out if you need a hand.