Understanding the health of your business is integral in not only securing your profit goals – it’s essential to taking care of your team, clients, & the longevity of your organization.
But unfortunately, far too many business owners fall into two camps: the “I don’t want to see what makes me uncomfortable” camp, and the “I have no clue what to look for to know what’s even wrong” camp.
And no matter which camp you’re in – or maybe, it’s neither – our GOAL is to get you into a healthy & sustainable place in business where you know exactly what issues may jeopardize your business – and how to fix them.
Here’s the most important lesson though – in order to address the health of our business, we MUST deal with ourselves too. Even though feelings of pride or brutal criticism can easily sneak in, we’ve got to learn to separate our performance from our identity as a human being.
Remember – your business does NOT define your worth, so do everything you can to grade yourself as a third party would, so you can fix it.
Ready to give yourself an honest grade in the next 3 minutes? Let’s answer these questions (and why they’re important!) and get down to it. All you’ve got to do is give yourself a yes or no.
- Do you truly understand your market and offer them what they WANT (not need)?
Here’s another way we can ask this question: do you know precisely who you’re serving, and what they WANT? Remember, there’s a gap between knowing who you think wants to buy from you – and who’s willing to put their credit card down. We want to make sure this is crystal clear. Even though you may be giving them what they need… you have to sell to what they want. No one wants to pay for new brakes, but when they realize they want them because they’ll help them get to where they want to go… it’s a no brainer. (But imagine if someone just explained how brakes worked all day convincing you to buy… BORING!)
- Do people want, and consistently pay top dollar, for what it is you’re selling?
It’s really important to make sure what you offer, whether it’s a product or service, is crystal clear to your client. The distinction here is usually not what you offer either – it’s the way you offer it. Your products and services have to be priced with the market, in demand with the market, and delivered in a way that fulfills there need.
- Is your message clear?
As a business owner, it’s critical to focus on the benefits of what you do that can enrich the lives of others rather than the “features” (you know, the number of rooms you’ll organize, the photos you’ll take, etc). What’s important is that you solve & communicate the greater value of your product or service – such as photos your family will have to cherish life’s sweeter moments, or the relief they feel coming home to a spotless kitchen.
- Does your marketing increase your visibility?
Aka, do you have a consistent strategy to keep getting in front of the right people who want to buy from you? In order for you to solve a need, you’ve GOT to have a marketing plan. One that’s not measured by the number of times you post on social media… but a plan that’s committed to helping you find the right people to refer you.
- Are you consistently making sales each month with a formula to replicate them?
The importance of this question speaks for itself. Considering sales are the lifeblood of your business… do they continue to come in over time?
- Is your business profitable, or on track to become profitable?
Oh the P&L statements we all either love or loathe… and I’m not talking about your bank account balance. More important than any other question, it’s essential to know: is your business profitable? There’s a great difference between revenue and profit, in addition to seeing these numbers over time.
- Have you mastered the way you spend your time to produce revenue generating activities?
We don’t think about this question often enough, but the reality is that where we spend our time dictates our priorities in business. More than that, the way we spend it can make or break the difference between moving the needle and checking off items on our to do list in business. Knowing the difference between the two will drastically dictate growth.
So, ready to find out the answers? Here we go!
If you answered yes to almost every question…
Then congrats! You’re scaling. Basically, you’ve come to a place where you’re on your way and scaling. Bumps happen, but the truth is you’re going places. At this stage, it’s time to outsource & keep surrounding yourself with people in the same position as you.
If you answered yes to more than 4 questions…
You’re growing. This is the point where the most important growth will happen in your business, and it’s important to master these techniques (or find someone who can help you) fast. They’ll make or break your business. Maybe not now, but as you grow, lacking these foundational elements, is trouble.
If you have more no’s than yes’s…
You’re starting. And that’s okay! If anything, you’ve got an opportunity to lay a strong foundation this first go around. You’ve got two ways to do it: research the HELL out of these topics, or get help to get there faster. The choice is yours, but keep your head down and keep going after it.
No matter where you fall, it’s important to remember: your business is not a linear scale. In fact, it’s a pretty bumpy ride. The secret is remembering to stay on for the long haul, and roll with the punches along the way 🙂