Full Focus Limited
P O Box 33489
Takapuna, Auckland
t: 09 489 1650
f: 09 489 1650
David Martin: 0274 902 401
Kathy Martin: 027 2800 564
RECENT FOCUS Feb 2010
Estimated reading time: under 5 minutes
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Have you got a REAL business?
As a business owner, have you ever asked yourself whether you’ve got a REAL business? It’s an unusual question, but a good one. Here’s why:
Sometimes businesses happen almost by default – especially the small family business. When you started out it was just you – self employed for the first time. Before you knew it, it wasn’t just you in the business anymore - perhaps there were other family members, employees, subcontractors etc.
If your business has evolved like this, you run the risk of not having all the things in place that make for a REAL business.
This in no way denigrates where you’ve got to so far. All that hard work and sweat has got you to here. Congratulations! Many business fail within the first 3 years of operation, so you’ve done a good job.
It’s just that business owners who have “grown into” their business over time often overlook some important steps. They have been so busy building their business and working in their business, the basic business principals are sometimes never addressed. If this sounds like you, perhaps it’s time to take stock.
But what constitutes a REAL business?
Perhaps it’s time to go back to basics – back to ground level, back to the fundamentals of a real business.
A solid foundation for your business will include a Strategic Business Plan. This will provide the essence of everything you need for a sound business strategy and a sound business model. With this in place you are far more likely to make decisions that are strategic ones, and not just tactical ones.
You’ll also want your business to have specific goals and objectives. You’ll need to ensure you get buy-in from your team if your business is to be truly successful. So make sure your whole team knows about them and can align with them
A real business will have a leader. Someone who takes “ownership” of the business as a hole. A leader will generate the buy-in we just talked about. A leader will “walk the talk”, recognise great effort and create a “team” out of a bunch of employees. Make sure your business is not leaderless!
A real business will have a systems and procedures manual. This will ensure everything has a process that can be easily followed. It’s a valuable asset in any business, and will provide an added bonus when the times comes to sell your business.
A real business will have a cashflow system that can forecast weeks in advance. This will go a long way to eliminating any nasty surprises.
A real business will make sure its customers pay on time or bear the consequences. It can be easy to let emotions come into play when someone gives you their sad story. It’s important you have a clear policy or procedure to follow. Being a business owner sometimes means making hard decisions.
A real business will also pay its own bills on time. Hard for you to get tough with your debtors if you’re slack in this department as well!
A real business will have professional advisors that add to what the business is up to, not confuse and detract. Persevere until you find advisors that fit with your business, that understand you and your business and can communicate in language that you understand.
A real business will seek to be top of its game – always looking for the edge, always looking for new ways to improve what it does.
Do you want a REAL business?
There’s no right or wrong answer to that question. The choice is yours to make. What’s important is that you know the answer.
Here’ a quick summary -
- Decide if you want a REAL business or not (if not, skip points 2-10)
- Make sure your business has a strategic plan
- Establish clear and SMART goals for the business, and get buy-in from your team
- Make sure leadership is present
- Get advisors around you that enhance your business – and that you understand
- Develop systems and procedures to both safeguard and improve your business, and document these
- Get your cashflow sorted
- Get your customers paying on time every time, and clean up any long-standing debts
- Need I say it … make sure your own bills are paid on time!
- Seek to be top of your game - act with the utmost concentration, on purpose and not by happenstance.
A REAL business will not only provide you, the business owner, with the lifestyle needs you want, it will also provide you with an asset that you can one day onsell – reaping the ultimate rewards for all your hard work.
Lastly, remember these 2 very good reasons to be in business – FUN and MONEY - and if there’s no money there’s no fun!
A REAL business needs both.
Read our latest blog posting. It talks about a FREE special offer we made to some of our contacts. And it’s all about Kick-starting your 2010 decade. A chance to propel your business into the new decade and produce unrecognisable results.
If you didn’t receive one of these special offers, don’t feel left out! You can read about it on our blog. If you think it might be appropriate for you, just contact us. We’d be happy to discuss it with you. But time’s nearly up - the FREE special offer ends on 28th February. Better be quick if you’re interested!
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