There are 101 Things to Do in Any New Business
But Which are the 97 you Shouldn’t Do?
Most business owners are motivated by goals. They may not have clarity on what those goals are because they have not set aside time to think about it, document it, or consider the relative importance of various goals. Accountants around the world are now stepping business owners through this important process. It begins by asking you to consider how important the following goals are to you in a specific timeframe:
More revenue can help stabilise your business, attract bigger customers, attract capable employees, grow the reputation / status, lead to bigger profits and make the business more interesting to acquirers.
Profit can be distributed to owners and paid in bonuses to the team. It can also be reinvested into your business to generate growth.
This refers to your efficiency. If you are maximising the use of your resources, then your capacity is perfect. If your team could produce more, your capacity can be improved.
Your reason for being in business may be somewhat driven by a goal to contribute or give back to your community (employees, their families, other stakeholders, charitable recipients etc.) or leave a legacy.
Some owners are unhappy because they want to work less (and do other things). Others are unhappy because they want to do different things in the business (e.g. focus more on client management and less on administration).
You may consider a (partial) change in ownership of your business, e.g. selling to a third-party investor, a management buy-out, transferring ownership to a family member, liquidating the business. It is rarely just one goal that is important. You can see from the above that goals are often interrelated.
The next step is to assess the current strengths and weaknesses of your business to gain an understanding of your business’s competencies. Extensive research has led to boiling down everything that matters in a business into five key business areas:
- Attract customers
- Manage customers
- Develop teams
- Optimise processes
- Develop products
Within those five business areas, there is a range of projects that you could work on at any point in time to build on your strengths or mitigate your weaknesses. To determine which of those projects make the most sense, you start by rating your business’s current competence in each one.