New Year, New Business Goals
Your business should be the key in the pursuit of achieving your personal goals. With the New Year and New Decade upon us, ask yourself “is my business helping me achieve my personal goals?” Owners of small to medium enterprise (SME) usually are working so hard in their business that they fail to stop to even think about why they are in business in the first place.
Most SME owners receive their yearly financial statements and income tax returns from their accountant and presumably spend on average less than ten minutes reviewing the financial information. The documents are then “filed” for future reference and that is as far as any strategic planning or business development goes. Most SME owners are so consumed with the day to day operation of their business that they have no time to consider their goals, future direction and objectives, let alone how to achieve these goals using their business as a vehicle to achieve financial freedom. The following list of questions seem so basic, however most answers to these would not be known or are never even thought about.
Strategic Analysis & Vision Questions
- Why are you in business?
- What are your life goals (Family, Social, Financial)?
- What do you want from your business?
- What is the “strategic position” of your business (SWOT analysis)?
- What is your business competencies and competitive advantages?
- If you did not work in your business for a year would it be a better business?
- Do you fully understand your financial statements?
- Are you receiving financial statements at least quarterly?
- Do you understand fixed/variable, direct/indirect, value added/non-value added costs in your business?
- Do you have accurate costing system in your business?
- Have you done Cost-Volume-Profit analysis and know your break even sales/unit production requirements?
The above questions are but just a few to make you think about why you are in business and how your business is going. If you would like to discuss how we can help improve your business please contact our office for a no-obligation consultation.