Does Your Business Pass the Healthy Biz Fitness Test?
A lot like your body, your business must maintain a steady temperature. Monitoring your business’ vital signs may save you from surgery (wallet removal) or a bypass (a proxy running your business). Here are a few things that need to be checked regularly:
- Cash Flow – this is like blood work. Knowing your expenses and receivables is key to how you run your business. Look at this every day, make adjustments as needed and if you fall short of paying your bills, it’s time to do something different. Keep the cash coming in ahead of the bills to be paid.
- Product or Service Sales – this is your food. Every time the cash register dings, you’ve fed yourself. Out go the products or billable hours and in comes the cash. Along with cash flow, this should be a daily occurrence for how your products are moving, what moves the fastest, slowest and what doesn’t move. Know your flow from historical records. Be able to forecast what will sell. If you don’t have records to go by, start keeping track.
- Control your receivables – One of the most detrimental things you can do is lose control of your anticipated income.Your cash flow should reflect when you will receive payment and controlling your receivables will assure they do come in when expected. Don’t let this slip.Your business needs this to stay healthy.
- Manage your labor daily – this is a deep cut to any body part when not managed. Rather than stocking up on band-aids, manage the hours worked by your employees. Coach them to request to work overtime, either from you or a manager. Don’t allow overtime to become an entitlement. When not controlled, overtime may bleed you dry of profits.