Evaluating Internal Operations

Essential Questions Every Business Owner Must Ask

For business owners, it is important to regulate the ongoing internal affairs and financial growth of their company. To have an accurate perception of their business, owners must evaluate every aspect of their firm with a complete and current operational analysis. NAWBO members who work as business consultants throughout the nation offer these insightful tips on how to do just that to ensure smooth operations and promote fiscal growth.

Back to the Basics
Business owners must have a solid business plan in effect to strategize, implement annual objectives and accurately assess year-to-date progress. A business model is vital for assessing past and present performance levels and meeting goals in the most cost-effective way. According to R.C. Consulting President and Senior Executive Career Coach Romona Camarata, “Without a strong business plan to go back to, you cannot get to the point of assessing how the operations of the business are going.”

Once the plan is in place, company executives need to evaluate business operations each quarter, make adjustments as needed and take their product to the next level. Setting up a record-keeping and recording system to capture and summarize the needed information enables owners to compare the actual results to the initial business plan. “Business owners must be aware of the financial state of their business at any given moment,” says Business and Financial Consultant Betty Andelman. “The numbers can talk and they should listen to the story!” Those who follow this advice can adjust strategy at a moment’s notice. Regulating internal operations enables business owners to get to the root of a potential problem before it arises. According to Ignite Consulting CEO Carla Feagans, “Instead of just putting Band-Aids on a problem, people need to take time to analyze their business, address issues and formulate solutions.”

Outside the Box
Take a step back and really assess how your business functions from an outside perspective. Often times business owners are too close to their work, engrossed in various projects and cannot see the bigger picture that employees or customers may notice. “It is important to take into account a variety of perspectives from individuals who do not deal with the information, products and services that you handle on a regular basis,” shares Feagans. It is crucial to allot time for each aspect of your company and increase internal communication with employees.

“It’s also important for business owners to regularly reevaluate their strategy and objectives to ensure that they still match the marketing conditions,” says Business Consultant Maureen Gevertz. Companies with outdated goals and business practices run the risk of losing operational efficiency. By acknowledging shortcomings before they happen, businesses can prevent potential disasters and secure loyal customers.

There’s No “I” in Team
Women business owners have a tendency to spread themselves thin by taking responsibility for every aspect of their company. It is essential to look at your team, acknowledge individual strengths and delegate tasks accordingly. When business owners micromanage everything and hold themselves personally responsible for each and every task, other areas are neglected and productivity actually declines. “Female business owners often take on too much work, as it is really hard for women to say no,” says inGiNuity President Ginny Caroll. Women need to take advantage of their team’s strengths, remove excessive stresses from their own plate and break down work into manageable bite-size chunks.

By efficiently delegating and taking tasks one at a time, business owners can focus on the immediate steps at hand. Frequently evaluating business strategies and checking the internal dynamics of a company leads to successful operations and greater revenue.

Love What You Do
Staying on top of your operations analysis doesn’t guarantee imminent success. It is important for business owners to remember what first got them into the industry and illustrate this passion at the forefront of their operations. By reflecting on the businesses’ current standing, owners should ask themselves “Am I where I thought I would be when I first started out?” and “Am I still doing what I love to do?” Honestly answering these questions provides clarity and enables business owners to find the right solution for their company.

Double Check: Four Must-Ask Questions For Business Owners

By Deborah Schaefer, Publisher of www.successorate.com

1) How do your year-to-date sales compare to the last couple of years?
Tip: Do not be satisfied if you managed to match them because if sales stayed the same, then you have achieved zero growth.

2) What percentage of your business is from repeat customers?
Tip: Keeping customers is more cost-effective than constantly seeking new ones.

3) Are your employees happy?
Tip: Do not ask them directly, but observe them throughout the day—watch, listen and learn.

4) Do you consider marketing and advertising expenses or investments?
Tip: Marketing is really investing in you, your vision and your company. The old adage that you must spend money to make money is true, but you must spend it wisely.

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