Measures to consider if business is not booming:
To carry the points forward from the previous article on “Is my business making money?”, there are a few things you, as a business person must keep in mind to boost the revenue to an otherwise lagging SME. One essential factor to keep a check on is to consider the marketing and sales funnel. The very top of the funnel determines the extent of your production and thus the reach of your business. If it is narrow the initial stages, it would be quite a task to expect a substantial turnaround. In the middle of the funnel is where considerations regarding the costs such as those incurred for getting potential customers are faced. It is also at this stage that one would want to evaluate the revenue model being followed by the SME and understand if changes need to be made or not. Finally at the bottom of the funnel is where the effects of the first two filters come into effect: where the income can be monitored. In addition to this, there are a few measures that can be taken in the onset of a small business.
- To Plan well in advance is a great way to form a sense of direction for your business. It may predominantly revolve around evaluating costs, setting achievable goals, linking the business activities to income and regularly checking the business model being followed and making necessary changes as and when the need may arise.
- To adopt the business-healthy activity of keeping a regular check on work vs income is a good step to regulate business activity and productivity. Maintaining a weekly report is a start.
- Being the leader of a business, it is your responsibility not only to understand the work, but to define what the work is to subordinates and co-workers in the firm. Unless every individual has a sound knowledge of what they are trying to achieve, the SME will have no sense of direction and thus end up being less productive than expected.
- Finally, tracking weekly expenses and monthly progress within the business is advisable as losing a track of the same could spell disaster. Many SMEs in the present day do not grow because they end up losing money without being aware of the cash flow, income and expenses. In the same way, tracking monthly progress is one of the old school ways that still applies to any successful business.