by Debi Enders
Before you can plan your business’s future, you must understand where it stands today. That means taking a hard look in the mirror and objectively assessing what you see. Here are some things to consider:
1. Your cash flow. A company needs a steady influx of cash to stay healthy and grow. Begin by examining your sales, profit and cash flow from a high level, and then drill down to study the contributions of your individual products and services. If sales are good but cash flow is suffering, it’s time to figure out why. Are the factors driving it temporary, or do they point to a long-term trend? You’ll need a clear financial snapshot to guide future decision-making.
2. Your core strengths. What is the greatest strength of your business? Core strengths, which can be anything from exemplary customer service to technological innovation to exceptional reliability, are what give your business a competitive advantage. If you aren’t sure, think about the biggest successes your company has experienced and what led to them. Recall also your defeats and identify the issues that contributed to them. Your core strengths should be reflected in your growth strategy.
3. Your customers. Look at your business from a customer’s point of view. Think about why your best customers keep coming back. What parts of your business receive the greatest number of compliments – and which parts receive complaints? If you are interested in a reality check, ask customers and prospects why they sometimes choose your competitors. Sometimes their answers not only are insightful but also can point your business in new, more profitable directions.
To plan a future with greater cash flow, in short, you have to identify new ways to leverage your company’s strengths to meet your customer’s needs – and grow from there.
Debi Enders (debi.enders@commercebank.com) is assistant vice president, small business banking at Commerce Bank.
Submitted 9 years 149 days ago