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Where is your business headed? Navigate for success, urges Richards
ONE of Amazon’s best-selling business authors, Australian consultant Rod Richards, has a few tips for those starting a business – and they are not too dissimilar from measures he advises business leaders to use in rejuvenating their businesses. For Rod Richards, success is all about business leaders directing their energies to best effect. Here are some of his latest tips.
WHERE is your business headed?
Perhaps you’ve just launched a new service and are excited to finally convert all that sweat into your very first sales. Perhaps you opened up shop a few years ago and are at a “respectable” level of success, but are afraid of growing complacent or having the competition gain on you.
But really, do you know where you’re headed – short-term, mid-term or long-term? The answers lie in how well you know your own business. 
Suppose someone asked you the following three-part question: “What are your financial, business and personal goals?”
Would you be able to provide clear, positive, definite responses?
These three key areas should be assessed regularly. It is important to consider where the business is going, where you are going and what needs to be put in place for goals to be achieved.
When first sitting down with my clients, one of my initial questions is, “What business goals do you want to achieve by the end of the financial year?”
I look at one-, three- and five-year planning periods.
BUSINESS GOALS
These give clarity and focus to this all-important area. Business goals need to be defined and redefined as necessary as your business develops. They must be specific and measurable.
You can’t manage what you can’t measure. Hazy goals will produce hazy results. Being clear about what has to be done also motivates you and your staff and encourages commitment. Ensure your business goals are realistic, well researched and achievable.
FINANCIAL GOALS
Know the numbers and determine what gross turnover, gross profit and net profit are needed. It is important also to know your business cost centres.
Analyse running costs (fixed, variable and semi-variable). This will help you understand their impact on your cash position. Forecasts help you avoid possible pitfalls.
PERSONAL GOALS
Does your business run your life or are you in business to support your lifestyle? It is worth giving careful consideration as to how close you are to the business.
It is important to discuss with family the commitment required to run the business and the impact it is likely to have on family time. Organising a balance between work and family can be achieved with input from those involved.
In summary, be specific about what you need to achieve. Setting goals does work if you persist and review them regularly.
- Rod Richards, Richards Consulting.
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