Business Fitness: Prerequisite to Growth

Everyone knows the value of physical fitness. It may be a struggle in the short term, but the medium and long term benefits are worth it. The same is true in business. If you want your business to grow make sure it is “fit” first. A fit business is sleek, strong, stable, flexible and attractive.

My thesis has always been that it’s important to reach a state of business fitness as the foundation for future growth. You want to be able to answer “yes” to the following questions. If you can, your business is in a state of fitness and you are ready for growth.

• Are you concentrating on the critical elements that determine the condition of your business – such as Gross and Net Revenues, Accounts Receivable, Inventory, Fixed and Variable Expenses, Unexpected Expenses, Cost per Unit Sold, Cash Flow, Net Profit/Loss, Cash Reserve or Debt?
• Have you clearly defined your market and targeted your marketing efforts to the most likely groups?
• Have you identified and eliminated all unnecessary expense?
• Is your inventory and/or accounts receivable as tight as possible? [Read more…]