How to evaluate your business's health.
|We do have to revise and re-evaluate every now and again, especially our businesses. I have changed businesses three times in the past few years when they proved not profitable. I have realized, through an online course that I took, that you can heal your own business, and, therefore, it might not be necessary to scrap the whole thing. I will be periodically using this method to evaluate Transition To Success if the need arises. There are few key areas which have to be checked in order to assess the “health” of your business. Most business owners will already know this, but I am reaching out today to the business people, like me, who may not be very experienced with business. This technique really clarified a few things for me.
First look at how your business is making money-its Revenue Model. Evaluate what your programs and packages are and how much they are priced. This is your business’s bread and butter and might change due to current trends in businesses similar to yours or the needs of your current clientele.
Next, look at what your business costs are-your Gross Margin Model. Where is your money going? Evaluate what you are paying out and find out if adjustments have to be made in where, exactly, you need to put your money. Some costs might be not necessary.
Take a look at how your funding what you are offering-your Working Capital Model. Are you investing your own money? Is everything that comes from your Revenue going back into your Working Capital? You might have to add a new dimension to your business, like I did, to get Working Capital. Right now, I have offered a Joint Venture aspect to my business to help fund my programs and packages.
Then you must look at how you deliver your programs and services-your Operating Model. You might have to find more economic ways of giving your products or services to your clients. I am selling everything in a Facebook group, and this seems to be working now.
Every few months evaluate these things in your business. Don’t wait until there is a problem. Prevention is the best medicine.