1) Create an “exit” strategy now
Even if you are building a generational business, you still need to determine how ownership will be handed over to members of your family. An exit strategy makes the sale of your business or transition of your business an easy initiative to accomplish. This takes out the stress of the process, so you are not scrambling to make it happen when you are ready to exit from your business.
2) Benchmark revenue and overhead percentages to the leaders in your industry
Leaders in your industry provide you with a blueprint of how your business needs to operate. Take their strategies and turn them into your own so that you can build your business to be among the industry leaders. Once you know how to make more money, then you will put your business in the position to be successful.
3) Establish an advisory board of key clients
Your best clients are the ones who will want to see your business grow and be successful. Allow these clients to point out where the strengths and weaknesses lie within your business. This will help you understand how to improve your business from your client’s point of view, which allows you to develop a product or service that will be in great demand from your target market.
4) Think of every product or service that your company sells as if it were a separate business. Does each one contribute to profitability?
Every product and service you have is certainly not producing a profit. When this occurs, you will need to get rid of these products and services and keep those which generate money. This will help you eliminate costs in favor of profitability. You will see your profits increase significantly once you eliminate these weak performing products and services.
5) Develop a cost accounting system to determine exactly what it costs you to deliver a service or product
You need to know if the product or service you are offering cost you more money than the money it is generating. If this is the case, you will need to sell more of them or raise the prices. If neither can be achieved, you will have to remove them from your product and service offerings.
6) Conduct a client/customer satisfaction survey every year
Get honest feedback from your clients. Asks them what they liked about your business and what they disliked. This will help you improve your business each year so that you can keep long-term clients, instead of having to constantly find new clients every year.
7) Revitalize aging products and services. What other uses can you find for your products or services?
Just because your products and services are not as popular as they once were, it does not necessarily mean that you have to get rid of them immediately. See if you can find ways to re-purpose their old uses in order to attract new markets before disposing of them. If you are able to re-purpose their use, you now have a new stream of income from a product or service that was once dormant.
8) Listen to your employee’s complaints about tedious tasks
Your employee complaints are an opportunity for you to take a look at their workload to see if they are focusing on the task that can help your business to grow or just busy work. If it is the latter, you can outsource this work to other companies, so that your employees are strictly focused on making money and maintaining the operations of your business.