The start of a new financial year is an appropriate time to take stock of the position your business is in at present. This month you could ask yourself "How well do I know my business? To start this process, why not ask your employees what business you're in. Then compare their answers to yours. As part of the review of "How well do you know your business?" we have prepared a check list which we are happy to send you. Some of the questions are:

Customers

  • Who are your customers?
  • How well do you know their preferences?
  • Do you know your 'A' grade customers?
  • Do you have special policies for your 'A' grade customers?
  • What are your policies to convert 'B' grade customers to 'A' grade customers?
  • Does your business exceed your customers' expectations?
  • If you believe your business exceeds your customers' expectations, how do you know that?
  • Do your clients refer business to you?
KPI (Key Performance Indicators)
  • Have you identified key performance indicators for your business?
  • Are they appropriate?
  • Do you share the key performance indicator information with your team?
Every business will have different KPIs. Popular KPIs are:
  • Debtors' Days Outstanding;
  • Stockturn;
  • Work in Progress;
  • Gross Profit Percentage by individual products or departments;
  • Sales/fees per team member.
Team Members
  • Have you identified team members' strengths and weaknesses?
  • Have you identified special training or development individual team members may need?
  • Are you conducting staff training and development activities for your team members?
Marketing
  • Is your website user-friendly?
  • Have you asked customers/clients whether they get the information they are looking for from your website?
  • Do your team members know what your customers/clients think about your website?
  • Are your team members using the website to fully supply information to customers/clients?
  • Have you got a growth strategy for the business?
Cashflow
  • Have you analysed your cashflow position?
  • Are improvements needed to cashflow?
  • Are credit terms clearly explained in writing to customers/clients?
  • Are tax invoices accurately prepared and sent promptly?
  • Are statements prepared and mailed?
  • Is follow-up action started as soon as the debtor exceeds your stated terms of trade?

So ask yourself, how well do you know your business?