The old adage that “what you don’t know won’t hurt you” does not apply to business success. Many business owners are uncertain about some key drivers of their business’s successes and failures.
Common blind spots:
1. Key customers not only means you are able to list your top customers but more importantly do you know which customers are your most profitable? The answer to this question will enable you to allocate your time and strategies more efficiently and intentionally to drive increased profits and growth.
2. Revenue and Expense Analyses are cursory at best and often not done at all in a targeted and methodical manner. Yes, you know your profit margins are shrinking but what are the root causes and the corrective actions needed to stem the bleeding? How do your financials compare to your competitors and similar businesses in your industry? Do you have the appropriate tools to detect trends and construct a roadmap to achieve profit goals?
3. Staffing. Do you have the right people doing the right jobs? How much of your staffing is really tied to relationships, patronage and not to skills and abilities? Many business owners can not truly evaluate employee performance and instead rely on subjective factors versus results-driven outcomes to inspire and reward their employees. Most successful executives attribute the success of their organization to the talent of their employees but few are truly aware of the employees who are critical to the success of their companies. Tools such as Trello, Desktime, and Salesforce can aid in assessing employee performance
As a business owner, it’s important to regularly weigh the return of investment of your actions. Don’t be afraid to bring on outside analysts to take a hard look at the business state of your organization. Avoid accidents and missteps by eliminating these blind spots today.