When is the best time to give your business an overhaul?
I took my car in for a service yesterday and my brakes needed serious attention, even though I had not noticed any problem beforehand, (yes I do trust the garage that did the service). This made me realise that if I hadn’t taken it for a service, I may have had a serious accident if there was a malfunction while driving.
I then got to thinking about business and when is a good time to give your business a “service”. Do we wait until there is a malfunction before we take action to fix it? Unfortunately, this is very often the case and by then it may be too late and the business losses a lot of money, or worse still it closes down.
So when should you review your business? The answer is quite simple, but counter intuitive, it is when everything is going very well. Why wait for the brakes to fail before fixing a potential problem?
When the business is going well it is the right time to plan for the future, assess the business risks and plan for scenarios that may affect the business, both positive and negative.
On the positive side you need to be sure that the business can handle growth so you can take advantage of upturns in your market or the economy. Do you have the infrastructure in place? Do you have the right team? Is your supply able to supply your requirements? Will you be able to continue to supply the same quality of service or product?
On the negative side you need to plan what actions to take if there is a downturn. If it is due to circumstances beyond your control what actions do you need to take. What can you do to keep the business at the same level or at worst keep in business? What cash, or other, resources will you need to build up?
Look at all aspects of the business-
Sales and markets
Giving your business a “service” when times are good will put you in a much stronger position to take advantage of any upturns or plan for any downturns, thus ensuring your long term profitability and sustainability.