Improving Business Fitness

Maintaining a healthy business can be as challenging as keeping up with those regular workouts at the gym according to Sydney business coach, Mike Reddy. 

"It requires strategy - an action plan - complete with realistic goals and deadlines", he says.

So it's probably a great opportunity for some self reflection. There's no point in repeating the same mistakes time after time.  Yet that's one of the bad (and expensive) business habits we can sometimes get ourselves into.

So consider what has NOT worked in the past - and learn from it.

Mr Reddy highlighted some areas that he focuses on when coaching small businesses:

Control spending.  Most small businesses I work with are already lean and mean. The challenge is to focus on smart ways to control costs. It's not about cutting costs but making sure you are getting a good return for your buck. There is always a quality/price trade off. Ask your business advisor about running your figures through an Activity Based Costing scenario in order to work out where some real savings can be made.

Pay on time. Don't just set up reminders but also reminders for your reminders. Not only will it make you the customer your suppliers want to do business with, it also means you can improve your margin - providing you negotiate a discount for your reliable prompt payment - and why wouldn’t you? And if your cash flow is a problem - well that's what a good business coach is all about!

Remember to set aside an emergency fund. If you have your marketing, pricing and business model set up correctly you will be able to put something aside for a rainy day.

Write down your goals and remember to make them specific - "getting rich" doesn’t cut the mustard.