In order to know how effective a business health check is, one needs to know what it entails and the real impact it has on a business.
A Business Health Check helps you to identify your business’s key strengths and weaknesses and the areas that need improvement by giving a current thorough evaluation of the crucial components of your business and also helps you understand both your customers and employees. From that you are able to determine whether your customers demands and needs are being fulfilled or not and therefore take the necessary steps to put it right and align it with your business’s planning and modelling. In a nutshell, the business health check is a diagnostic of the five areas that drive the value of any business regardless of size – Marketing, Operations, Systems, People and Finance.
A lot of businesses see their business through the finance lens alone. However, if you are able to get help to raise finance or as in the case of most new businesses focus on predominately start up loans, what is the point in that if you haven’t covered the other 4 areas listed above When you focus on all 5 areas then you can begin to implement strategies to improve business performance?
We can therefore say; a business health check starts you on a journey from:
(A) where you business is now to (B) to where your business needs or wants to be.
There are many positive effects a good business health check has on your business, whether you own a business start-up or an existing business such as:
Our professional and highly experienced team at RBSS Consulting Ltd have already and continue to deliver measurable results to those businesses we have rendered our service to, which is known as a business diagnostic to our clients and we expect them to add on between 25-35% directly onto their bottom line within six to twelve months of using our service. One such business which we helped achieve such goal is BOUTIQUE STONE.
Moving on, I will be focus on three prominent points:
1. Productive people
2. Improved efficiency
Making considerable progress in the above three points will enable your business align itself with Business Improvement Strategies.
1. Productive people
Without productive people; such as your employees (if you have any. If not, you are more like your own employee), there will be no effective strategies to improve business performance or get the business off the ground in the case of a business start up.
A research by Oxford University's Saïd Business School, in collaboration with British multinational telecoms firm BT found a conclusive link between happiness and productivity in the workplace. It was concluded; workers are 13% more productive when happy. Unfortunately, this very crucial aspect is ignored by many businesses, including the macro and micro businesses which mostly need to bring out the best in their workers due to their size. This research also concluded that based on the UK population; paid work is ranked near the bottom in terms of activities that make the population happy. The bottom line is; "A Happy Employee is a Productive Employee" by Erin Davis. Your business will therefore be a happy company and a more productive company. High morale boosts one’s creativity and team collaboration. Your employees will therefore become engaging with your clients and productive with their time which leads to more satisfied customers. As word gets out, people will want to work with you and as every business aims for, this will eventually lead to getting more customers. As Richard Branson often emphases on and practises; take good care of your employees and they will take good care of your business (paraphrased).
This takes us to the next point:
2. Improved efficiency
Efficiency in business refers to the highest level of performance using the least amount of inputs to achieve the highest amount of output. This can include: products, services, and revenue. I have already talked about the impact of the high efficiency of happy (which is essential) workers has on a business, workplace or organisation. However, other essential factors include capital or finance and materials.
One way to do this is to make sure your goals are “SMART” – specific, measurable, attainable, realistic, and timely. Before assigning an employee a task, ask yourself if it fits in with each of these requirements. If not, ask yourself how the task can be tweaked to help your workers remain focused and efficient. One way to do this is to make sure your goals are “SMART” and aligns with your employees’ roles and tasks. It means doing more with less. In a nutshell working smarter, not harder. When you improve efficiency, you're able to get a larger output from the same amount of input – or even less. For employees, this means being able to get more done in a finite amount of time which is their assigned working hours. In the long run, as a business owner or manager, you are utilising your employees, including finance and materials by cutting down (within reason) the least needed to use these same resources to produce the highest output.
If the above 2 are optimised, it can lead to growth which is what any business should aspire to.
One of the most popular keywords googled today is; How to grow your business. Almost everyone in the business world expects every business to have business growth plans or strategies to be taken seriously. Business expansion strategies are often on business talks, teaching, events or conferences agendas. Growing your business if you are still considered as a macro or micro company isn’t just about increasing the quantity of your current limited products, it involves other areas such as:
Get a detailed report today and discover what's holding your company back. The detailed report includes a business forecast and plan to allow your business to build a clear pathway for success. Give us a call today on 0333 355 1696.