How lean is your business?
There are obvious benefits to your personal wellbeing if you sweat it out at the gym three times a week: improved stamina, enviable muscle tone, endorphin buzz and unwanted pounds shed. But could your business benefit from a similar process?
We are not suggesting that business owners and their staff leap to their feet and jog on the spot, beneficial as that may be, but there are ways that you can approach business fitness that have enduring and continuing benefits. For example:
• Could you speed up the collection of cash – the time you allow customers to pay your bills? For many business owners the focus is on selling, and important as this is, converting a sale into cash in your bank account – rather than allowing your customers to keep your money in their bank account – is no less important.
• Do you have redundant assets or stock that you could sell at a discount? This might free up storage space for more productive uses and add to your cash reserves.
• Do you have surplus floor space? Are there opportunities to sub-let these spaces and create new income streams?
• Do you really need new cars/commercial vehicles? With a little tender care from your local service centre could use of your vehicles be extended for a few years? This would free up investment capital for more productive uses.
• Are you ready for life after Brexit? Have you examined your supply chains? Do you understand and are ready to implement changes to import/export processes?
It is important to stress that this is not just another reminder to get ready for Brexit, important as this may be. Working on your business fitness has no downsides. Taking time out to consider cash flow, utilisation and management of assets, organisation of capital and funding, has no downsides. It will be time well spent and will have enduring benefits.
In the same way that a personal fitness program will help to keep you well and active, so too will a structured approach to business fitness keep your business in good shape. Call now if you would like to discuss your options for undertaking a fitness assessment, it's never too late to start…